Decaf Coffee Market Growth, Trends, Analysis, Research Report (2021-2031)

The decaf coffee market size is projected to reach US$ 12.33 billion by 2031 from US$ 6.74 billion in 2023. The market is expected to register a CAGR of 7.8% during 2023–2031. Diversification and premiumization of product offering is likely to bring new trends in the market during the forecast period.

Decaf Coffee Market Analysis

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. The rising consumption of decaf coffee among specific demographics and growing health awareness are expected to favor the decaf coffee market growth.

Decaf Coffee Market Overview

Decaf coffee is made of regular coffee beans that go through a process of removing caffeine. This process involves soaking green coffee beans in a solvent to extract their caffeine. The coffee beans are then rinsed and dried to remove any remaining solvent and caffeine residues. Growing focus on health and wellness among consumers drives the demand for decaf coffee, which is perceived as a healthier alternative to regular coffee. Growing product innovations in decaf coffee flavors, such as flavored lattes and cold brew, attract several consumers, driving its market growth. In addition, growing disposable income and demand for premium products fuel the demand for the global decaf coffee market.

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Decaf Coffee Market: Strategic Insights

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Decaf Coffee Market Drivers and Opportunities

Growing Health Awareness

A growing number of consumers experience side effects such as anxiety, insomnia, and digestive issues due to caffeine intake. The overdose of coffee causes several health effects, such as tremors, nausea, vomiting, abdominal pain, rapid breathing, irregular heart rate, panic attacks, and seizures. In the past few years, key market players have tapped into this challenge by launching varieties of decaffeinated coffee. Decaf coffee offers the flavor and experience of regular coffee with reduced or no caffeine content; hence, it is increasingly becoming a popular choice among health-conscious individuals. Decaf coffee provides an alternative to enjoy coffee without its adverse effects. The overconsumption of caffeine can trigger anxiety and stress. Decaf coffee supports mental well-being by reducing the caffeine load while maintaining the coffee-drinking routine. With the growing emphasis on getting good sleep, decaf coffee has become an alternative solution to coffee to avoid the adverse effects of caffeine on sleep.

Regulatory authorities such as FSSAI, Food Safety and Applied Nutrition (CFSAN), The European Food Safety Authority (EFSA) have highlighted the risk of coffee consumption among pregnant and lactating women, children, adolescents, young adults, and people with underlying heart and other health conditions. 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. Thus, the growing health awareness drives the global decaf coffee market.

Rising Online Sales Channels and E-Commerce Platforms

Decaf coffee is witnessing a surge in interest due to increased health consciousness, lifestyle changes, and the demand for low-caffeine alternatives. The increase in e-commerce platforms is revolutionizing the market with a growing consumer base. As per the Food Industry Association, 6.0% of the total groceries sold in the US were through online sales channels. Moreover, the number of online grocery shoppers (female) in the US increased from 62% in 2023 to 66% in 2024. The number of Gen X online grocery shoppers in the US increased from 65% to 70% from 2023 to 2024. E-commerce contributes significantly to the visibility of products, expanding market reach and fostering deep consumer engagement. It also facilitates entry into untapped markets. Online sales channels also help brands experiment with innovative decaf coffee formats such as single-serve pods, specialty blends, and organic options. The integration of artificial intelligence and the data-driven nature of e-commerce also allow brands to analyze purchasing behavior and refine product offerings. The rise of coffee subscription culture further offers significant opportunities for the market growth. E-commerce amplifies brand storytelling and transparency in the decaf coffee market. Brands effectively communicate their commitment to sustainability, fair trade and health benefits, leveraging product descriptions. Thus, the growth of online sales channels and e-commerce platforms is expected to create lucrative opportunities for market growth.

Decaf Coffee Market Report Segmentation Analysis

The key segment that contributed to the derivation of the decaf coffee market analysis are form, nature, category, and distribution channel.

• Based on form, the decaf coffee market is segmented into whole bean, ground, and others. The ground segment dominated the market in 2023.
• On the basis of nature, the decaf coffee market is segmented into plain and flavored. The flavored segment dominated the market in 2023.
• Based on category, the market is segmented into organic and conventional. The conventional segment dominated the market in 2023.
• Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience store, online retail and others. The supermarkets and hypermarkets segment dominated the market in 2023.

Decaf Coffee Market Share Analysis by Geography

The geographic scope of the decaf coffee market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Europe dominated the decaf coffee market. In Europe, there is a growing emphasis on health and wellness, leading to an increased awareness about the importance of consuming a balanced diet. Countries such as Germany, the UK, and Italy contribute significantly to the market growth. The consumer preference for high-quality, artisanal products drives the demand for specialty decaf coffee. Health trends, particularly among older demographics, and a rise in focus on organic and fair-trade certifications are shaping the market. The adoption of decaf coffee pods and capsules is growing due to convenience and compatibility with home brewing systems.

Decaf Coffee Market Regional Insights

The regional trends and factors influencing the Decaf Coffee Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Decaf Coffee Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Decaf Coffee Market Report Scope

Decaf Coffee Market Players Density: Understanding Its Impact on Business Dynamics

The Decaf Coffee Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Decaf Coffee Market are:

1. Nestle SA
2. illycaff S.p.A.
3. Luigi Lavazza SPA
4. Kraft Heinz Co
5. Fresh Roasted Coffee LLC
6. Lifeboost Coffee LLC

Disclaimer: The companies listed above are not ranked in any particular order.

Decaf Coffee Market News and Recent Developments

The decaf coffee market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the decaf coffee market are listed below:

• Nestlé Vietnam announced a US$ 100 million investment to increase the production capacity of its Tri An coffee factory, located in the southern province of Đồng Nai. This will help the company meet local and international consumer demand for high-quality coffee. (Source: Nestlé SA, Press Release, January 2024)
• JDE Peet signed a long-term global license agreement to manufacture, market, and sell Caribou-branded coffee products, excluding Caribou coffeehouses. This agreement, expected to close in Q1 2024, aims to enhance JDE Peet's premium coffee offerings in North America. (Source: Nestlé SA, Press Release, January 2024)

Decaf Coffee Market Report Coverage and Deliverables

The "Decaf Coffee Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Decaf coffee market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Decaf coffee market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces analysis and SWOT analysis
• Decaf coffee market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the decaf coffee market
• Detailed company profiles