Decaf Coffee Market

Growth in the popularity of arabica coffee to boost the market growth

Growing consumer health concerns are driving arabica coffee adoption around the world. Arabica coffee contains more lipids, vitamins, and minerals than other coffees. Arabica coffee beans have higher natural sugar content than Robusta beans. During the projected period, consumer preference for sweet flavors over bitter ones will likely boost the arabica segment's growth. Because the caffeine content of this kind is naturally lower than that of other decaf coffee beans, the results of content decaffeination are much better. This coffee varietal has exceptional flavor, aroma, and body when brewed.

It has a naturally sweet and fruity flavor that makes it acceptable for eating with little to no sugar due to its high lipids and sugar content.

Further, millennials prefer organically and sustainably grown, decaf coffee, and lightly roasted coffee beans. Considering the growing demand for decaf coffee, many cafés, coffee houses, restaurants, and eateries have begun to include items made of the aforementioned variants on their menu. Furthermore, the popularity of these cafés and coffee houses among millennials, as a part of the lifestyle trends for socializing and working in these spots, is expected to boost the business-to-business sales of decaf coffee has enhanced the decaf coffee market CAGR across the globe in the recent years.

Additionally, the decaf coffee produced to Fairtrade standards by the Fairtrade organization is creating trade partnerships primarily focused on dialogue and transparency to achieve greater equality in international trade. These partnerships provide coffee farmers with better trading conditions and sustainable development. Over time, Fairtrade has become the world's most sustainable, recognized, and trusted label. It consists of more than 1.8 million farmers and workers offered economically viable trade options under this certification. For several reasons, the popularity of this coffee among modern and aware consumers is shaping the decaf coffee market revenue.

The Global Global Decaf Coffee Market Industry is experiencing growth driven by an increasing awareness of health and wellness among consumers. As more individuals seek to reduce their caffeine intake while still enjoying coffee, decaffeinated options are becoming increasingly popular. This trend is particularly notable among health-conscious demographics, including pregnant women and those with certain medical conditions. The market is projected to reach 20.4 USD Billion in 2024, reflecting a shift towards beverages perceived as healthier alternatives. This growing preference for decaf coffee aligns with broader dietary trends emphasizing low-caffeine and functional beverages.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America decaf coffee market accounted for USD 8.93 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the high preference of consumers in the region to drink decaf coffee at home is a key factor driving the market growth in the region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: DECAF COFFEE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe decaf coffee market accounts for the second-largest market share over the forecast period. The high popularity of decaf coffee in the region and growing awareness among people regarding the side effects of caffeine are promoting the sales of the product in this region. Further, the Germany decaf coffee market held the largest market share, and the UK decaf coffee market was the fastest-growing market in the European region.

The Asia-Pacific decaf coffee market is expected to grow at the fastest CAGR from 2022 to 2030. This growth is attributed to rising health consciousness among the residents of countries including India, Indonesia, and Japan. The sale is estimated to increase during the forecast period as the market is witnessing high demand for decaf coffee in Japan. Moreover, China decaf coffee market held the largest market share, and the India decaf coffee market was the fastest-growing market in the Asia-Pacific region.

Major market players are spending a huge amount of money on R&D to increase their product lines, which will help the decaf coffee market grow even more. Market participants are also taking several strategic initiatives to grow their footprint globally, with key market developments such as new product establishment, mergers and acquisitions, contractual agreements, enhanced investments, and collaboration with other organizations. Competitors in the decaf coffee industry must provide cost-effective items to enhance and survive in an increasingly competitive and increasing market environment.

One of the major business strategies manufacturers adopt in the decaf coffee industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The decaf coffee market major player such as Don Pablo Coffee (US), The Kraft Heinz Company (US), Cravium Foods LLP (India), and others are working on enhancing the market demand by investing in R&D activities.

Foodtastic Inc. is a Quebec-based franchisor of multiple restaurant concepts, including La Belle et La Boeuf, Carlos & Pepe's, Souvlaki Bar, Nickels, and Bacaro. Foodtastic's system exceeds 900 restaurants and $830 million in sales. Foodtastic is rapidly growing internationally, with over 100 restaurants outside of Canada. In April 2021, Foodtastic, a multiple restaurant concept franchisors based in Canada, announced the completion of the acquisition of Second Cup Coffee Co, a specialty coffee brand from Aegis Brands.

Also, Westrock Coffee Company, LLC provides integrated decaf coffee, tea, and extracts. The Company offers coffee sourcing and financing, supply chain management, roasting, packaging, and distribution services to retailers, restaurants, convenience stores, commercial accounts, and hospitality sectors. Westrock Coffee serves customers in the United States. In February 2020, Westrock Coffee Company, LLC announced the acquisition of S&D Coffee & Tea from Cott Corporation. The company took the initiative to create quality and innovative products for consumers.