Decaf Coffee Market is expected to reach US$ 12.33 Billion by 2031

Rising Consumption Among Specific Demographics Propels Decaf Coffee Market Growth

According to the latest market study on “Decaf Coffee Market Forecast to 2031 – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Form, Nature, Category, and Distribution Channel,” the market was valued at US$ 6.74 billion in 2023 and is projected to reach US$ 12.33 billion by 2031; it is anticipated to record a CAGR of 7.8% from 2023 to 2031. The report highlights key factors contributing to the growing decaf coffee market size and prominent players along with their developments in the market.

The increased focus on health and wellness and the growing inclination of young adults toward healthy beverages are driving the demand for decaf coffee. Pregnant women constitute a significant consumer group in the decaf coffee market. Moreover, the decaf coffee market holds an attractive opportunity for expectant mothers to avoid caffeine-related risks such as miscarriage and low birth weight. Decaf coffee provides a solution that allows this demographic to continue enjoying their coffee routines without adverse side effects.

Decaf Coffee Market Breakdown – by Region

As per the American National Coffee Association, decaf coffee is highly popular among age group between 18 and 24, and 25 and 39 years. In terms of age, individuals in the age group 18–24 account for 19% of decaf consumers. Based on an online survey conducted by the National Coffee Association in 2022, Hispanic Americans are the leading ethnicity for decaf coffee consumers, with 12% of their coffee consumption being decaf. Decaf coffee consumption for Caucasian Americans, African Americans, and Asian Americans accounts for 9%, 7%, and 6%, respectively. The cultural shift in regions such as North America and Europe is fostering demographic-driven decaf coffee market growth.     

As per the research by Zydus Medical College and Hospital, regular caffeine consumption disturbs the parasympathetic system, leading to elevated blood pressure and heart rate. Due to its effect on the autonomic nervous system, regular caffeine consumption can increase the risk of hypertension and other cardiovascular diseases. Moreover, as per the British Coffee Association, one in five coffee drinkers regularly drink decaf coffee. The growing health awareness significantly boosts the growth of the decaf coffee market.

Product diversification involves introducing a range of new products that cater to varied customer preferences and needs while retaining a brand’s core identity. In the decaf coffee market, this strategy translates to expanding beyond traditional offerings such as plain decaffeinated coffee, specialty blends, single-origin varieties, organic options, flavored decaf beverages, and innovative formats. In June 2024, Muskoka Roastery announced the launch of three decaf coffee products: Black Bear decaf compostable pods, Aki organic compostable pods, and compostable organic espresso capsules. The diversification and premiumization of decaf coffee is expected to bring new decaf coffee market trends.

The decaf coffee market analysis is carried out by identifying and evaluating key players operating in the market across different regions. Nestle SA, illycaffè S.p.A., Luigi Lavazza SPA, Kraft Heinz Co, Fresh Roasted Coffee LLC, Lifeboost Coffee LLC, Koffee Kult Corp, JDE Peet’s NV, Reily Foods Co, Snowy Elk Coffee Co, Lucaffe Pty Ltd, Karam Foods Industries Co. L.L.C., J M Smucker Co, Keurig Dr Pepper Inc, Esselon Coffee Roasting Inc, Christopher Bean Coffee Co, Crazy Cups, Caffè Vergnano, Massimo Zanetti Beverage Group, and Don Pablo Coffee, are among the key players operating in the decaf coffee market.

Decaf Coffee Market Report Segmentation:

The global decaf coffee market is segmented on the basis of form, nature, category and distribution channel. Based on form, the market is categorized into whole bean, ground, and others. The ground segment held the largest decaf coffee market share in 2023. The consumer preference for convenience and ready-to-use coffee products boosts the demand for ground coffee. As per the British Coffee Association, the popularity of ground coffee is increasing among millennials (aged 16–34) in the UK. Ground coffee beans are available in various sizes, coarseness, or fineness, such as coarse grind, medium grind, medium-coarse grind, medium-fine grind, and fine grind, to suit different brewing methods. For instance, a coarse grind is suitable for French press brewing, while a fine grind is ideal for espresso. Medium grind is used for drip brewing coffee makers, filter coffee, and Aeropress, whereas medium-coarse grind is used for pour-over brewing. Fine-grind decaf coffee is widely used for espresso machines, mocha pots, and Turkish-style brews.

Based on nature, the market is segmented into plain and flavored. The flavored segment held the largest market share in 2023. Flavored decaf coffee targets consumers who enjoy a diverse range of coffee and experiment with sensorial characteristics of coffee. The segment blends traditional coffee with added flavors to cater to a broad taste spectrum. It is infused with natural or artificial flavors. The rising preference for unique and personalized coffee experiences is making flavored decaf coffee an appealing option to the young demographic. Key market players also offer seasonal and limited-edition flavors. The increase in marketing strategies to promote flavored decaf coffee as a fun and indulgent choice further boosts the market growth.

Based on category, the market is segmented into organic and conventional. The conventional segment held a significant decaf coffee market share in 2023. Conventional decaf coffee is grown using traditional farming methods involving synthetic pesticides, herbicides, and fertilizers, yet it contributes significantly to the decaf coffee market. Conventional coffee is decaffeinated using various methods, such as solvent-based techniques, and is cost-effective.

Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. In 2023, the supermarkets and hypermarkets segment held the largest share in the decaf coffee market. Supermarkets and hypermarkets play a key role in reaching a broad consumer base. Supermarkets, known for their extensive product offerings and accessibilities, serve as primary retail outlets for decaf coffee. The visibility of these products in hypermarket settings enhances consumer awareness and accessibility.

Further, the ability of hypermarkets to negotiate bulk purchases with suppliers is expected to impact their pricing and promotions, making decaf coffee more appealing to a broader audience. These distribution channels offer a convenient and familiar environment for consumers to explore and purchase decaf coffee, aligning with the broader trend of making such products easily accessible. Owing to their large customer base, manufacturers in the coffee industry typically prefer to sell their goods through supermarkets and hypermarkets. Major supermarket chains such as Walmart and Tesco have partnered with decaf coffee brands to maintain an uninterrupted supply of popular products.

The decaf coffee market report scope is broadly segmented into North America (US, Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia Pacific (China, India, Japan, Australia, South Korea, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com