Decaf Coffee Market Analysis

Global Decaf Coffee Market Overview

Decaf coffee market size was valued at USD 19.5 billion in 2022. The decaf coffee industry is projected to grow from USD 20.37 Billion in 2023 to USD 26.45 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.45% during the forecast period (2023 - 2030). Rising awareness related to the harmful physiological effects of caffeine, a psychoactive substance in regular coffee, is expected to prompt buyers to consume decaf coffee. This is the key market driver expanding the market growth.

  Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Decaf Coffee Market Trends

• 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.

Decaf Coffee Market Segment Insights

Decaf Coffee Type Insights

The decaf coffee market segmentation, based on type, includes arabica, robusta, and others. The arabica segment held the majority share in 2022, contributing to the decaf coffee market revenue. This is attributed to the large cultivation and better availability of these beans. However, robusta is the fastest-growing category due to the lower prices of these products. Vietnam and Indonesia are among the largest suppliers of these products on account of the high concentration of coffee farmers at the domestic level.

Decaf Coffee Category Insights

The decaf coffee market segmentation, based on category, includes organic and conventional. The organic segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The increasing demand for healthier beverages among millennials due to consciousness regarding personal health may strengthen the market growth. However, conventional is the fastest-growing category over the forecast period due to its cost-effectiveness.

June 2022: Reliance Brands Ltd announced a strategic partnership with the fresh food and organic coffee chain Pret a Manger to launch and grow the brand in India.

Decaf Coffee Form Insights

The decaf coffee market data has been bifurcated by form into the ground and whole. The ground segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the growing number of product launches by various players operating in the market. However, the whole is the fastest-growing category due to its low price.

October 2021: Four Sigmatic launched two new products, Perform and Immune Support ground coffee, consisting of mushrooms to offer functional benefits.

Figure 1: Decaf Coffee Market, by Form, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Decaf Coffee Distribution Channel Insights

Based on distribution channels, the decaf coffee industry has been segmented into store-based and non-store-based. Non-store-based held the largest segment share in 2022, owing to the increased popularity of e-commerce channels as they offer products with add-on services, including discounted prices, cash-back offers, and coupon benefits. However, store-based is the fastest-growing category due to improvements in urban infrastructure in emerging economies, including China and India, which is expected to increase the number of offline stores in these countries.

Decaf Coffee Regional Insights

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, MRFR 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.

Decaf Coffee Key Market Players & Competitive Insights

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.

Key Companies in the Decaf Coffee Market include

• Don Pablo Coffee (US)


• The Kraft Heinz Company (US)


• Cravium Foods LLP (India)


• Colombian Brew Ground Coffee (Colombia)


• Nestlé S.A. (Switzerland)


• Lifeboost Coffee (US)


• Dunkin' Brands Group, Inc. (US)


• Fresh Roasted Coffee LLC (US)


• Volcanica Coffee, LLC (Costa Rica)


• Kicking Horse Coffee Co. Ltd. (Canada)


• Koffee Kult (US)


• Eight O’Clock Coffee Company (US)


• Cafedirect PLC (UK)


• Grindhouse Coffee Roasters (UK)


• Luigi Lavazza S.P.A. (Italy), among others

Decaf Coffee Industry Developments

October 2022: Independent coffee brand, CafePod, has announced the launch of Decaf Supercharger Espresso, a new flavor of decaf coffee.

February 202: Três Corações Group announced the acquisition of the Roast and Ground Coffee Business of Mitsui & Co. (Brasil) S.A. to strengthen the company's leadership position in the Brazilian coffee market.

Decaf Coffee Market Segmentation

Decaf Coffee Type Outlook

• Arabica


• Robusta


• Others

Decaf Coffee Category Outlook

• Organic


• Conventional

Decaf Coffee Form Outlook

• Ground


• Whole

Decaf Coffee Distribution Channel Outlook

• Store-Based


• Non-Store-Based

Decaf Coffee Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America