Organic Coffee Market to Reach $12.6 Bn, Globally, by 2026 a

|Apr 21|magazine13 min read

Shift toward environment friendly and sustainable farming procedures along with surge in awareness related to health benefits of coffee drive the global organic coffee market

PORTLAND, Oregon, April 21, 2020 /PRNewswire/ -- Allied Market Research published a report, titled, "Organic Coffee Market by Type (Arabica and Robusta), Packaging Type (Stand-Up Pouches, Jars & Bottles, and Others), and Sales Channel (Hypermarket/Supermarket, Departmental & Convenience Stores, Specialty Stores, Online Sales Channels, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026." According to the report, the global organic coffee market generated $6.8 billion in 2018, and is expected to generate $12.6 billion by 2026, witnessing a CAGR of 8.2% from 2019 to 2026.

Prime determinants of growth

Shift toward environment friendly and sustainable farming procedures along with surge in awareness related to health benefits of coffee drive the global organic coffee market. However, long approval and certification processes and expensive nature of organic coffee restrain the market growth. On the other hand, supportive government initiatives and innovative digital marketing strategies create new opportunities in the coming years.

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The Arabica segment to maintain its lead position during the forecast period

Based on type, the Arabica segment accounted for the highest market share in 2018, accounting for around three-fifths of the global organic coffee market, and is estimated to maintain its lead position during the forecast period. This is attributed to Arabica possessing rich mineral contents along with having about 60% more lipids and twice concentration of sugar than robusta. However, the robusta segment is expected to maintain the highest CAGR of 8.8% from 2019 to 2026, owing to higher content of caffeine, better shelf life, and strong blending properties as compared to Arabica.

The hypermarket/supermarket segment to contribute the highest revenue by 2026

Based on sales channel, the hypermarket/supermarket segment accounted for the largest market share of the global organic coffee market, holding nearly two-fifths of the total share in 2018, and is expected to contribute the highest revenue by 2026. This is attributed to rise in adoption of these distribution channels in developed and emerging markets along with the one stop solution provided by this format. However, the online sales channels segment is estimated to witness the fastest CAGR of 10.6% from 2019 to 2026, owing to technological advancements including artificial intelligence and chatbots along with omnichannel strategy implemented in these fields.

North America to maintain its lead position throughout the forecast period

Based on region, North America made the highest contribution in terms of revenue in 2018, contributing to more than two-fifths of the global organic coffee market, and is estimated to maintain its lead position throughout the forecast period. This is due to increase in per capita consumption of organic coffee with health consciousness and need to stay fit in hectic life. However, Asia-Pacific is estimated to witness the largest CAGR of 10.3% from 2019 to 2026. This is attributed to surge in consumption in major countries including Japan, India, China, and the Philippines along with expansion of product portfolio by leading manufacturers.

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Leading market players

  • Nestle S.A.
  • The Kraft Heinz Company
  • Starbucks Corporation
  • Jim's Organic Coffee
  • F S Gourmet Private Limited
  • Wessanen
  • Complete Coffee Limited
  • Luigi Lavazza S.p.A.
  • Java Trading Co. LLC
  • Dr. Pepper Snapple Group, Inc. (Green Mountain)

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