One Tech Capital

A glance into the coffee market and trends

Coffee is a beloved beverage enjoyed by millions around the world and has become an integral part and a daily ritual for many. Did you know that every day, more than 2.25 billion cups of coffee are consumed worldwide? Not only is this a clear representation of the extent of its appeal, but it is also an unequivocal proof of its broad presence across various cultures and communities.

Savored in homes, offices or cafes, coffee unites people together and provides a joyful ritual with its bold flavor and enchanting aroma. It goes beyond that to represent a an evolving industry that plays a significant role in the global economy.

As industry data shows, coffee is the second most lucrative commodity market after oil and gas. Its market size is estimated at USD 132.13 billion in 2024, and is expected to reach USD 166.39 billion by 2029.
While the market for coffee is distinct from one country to another, the coffee industry remains extremely competitive with the large sum of consumers and suppliers. The major coffee-producing countries being Brazil, Vietnam, Colombia, Ethiopia, and Honduras among several others, with each region's unique climate, altitude, and soil contributing to the distinct flavor profiles of the beans they produce.

When looking into the global coffee market, it is clear that in recent years, consumers preferences and lifestyle choices shifted trends in coffee consumption. One example of this is the surge in popularity of specialty coffee, characterized by higher quality and unique flavor profiles. Now more than ever, coffee consumers are showing a newly-found appreciation for freshly roasted flavors and aromas and higher quality produce and artisan cafés.
This culture is continuously spreading and coffee shops and roasters are becoming attractive venues for leisure and business gatherings, with the younger generation rapidly becoming more interested and inquisitive about consuming specialty coffee, for both the quality and the experience.

The growing interest presents various opportunities for coffee players to explore creating unique flavor profiles, varieties, and brewing methods. Niche markets, such as single-origin beans and micro-lot productions, allow for differentiation and the possibility of commanding premium prices.
The overall rise of coffee culture, with an emphasis on artisanal brewing methods and unique blends, has created a thriving market for coffee enthusiasts seeking a more immersive experience.

Another aspect of the evolving trends is, consumers becoming increasingly aware of ethical sourcing and sustainability issues, driving the demand for certified organic and fair-trade coffee. Now more than ever, consumers are more conscious of the origin of the products they purchase and how they were produced. As they pay more attention to issues of social justice and environmental degradation, consumers are more in demand for certified sustainable brands and labeling. For instance, sustainable coffee is meant to meet different social, environmental, and economic criteria and as a result receives independent certification from a recognized third party.

An anticipated growing future trend which has already surfaced among major players is vitamin-infused coffee blends. This is due to coffee consumers becoming more health-conscious and interested in healthy alternatives.

There is no doubt that in this digital era, innovation is an integral part to remain ahead. This is evident in the use of mobile apps currently providing a fresh taste to the industry as creative solutions that meet consumers’ dynamic customized needs.

While industry giants leverage e-commerce and apps as sales channels, a growing number of independent coffee shops and industry leaders are realizing the potential and are either investigating or have already incorporated them into their business strategy. Now more than ever, technology is influencing the coffee industry, and customers are becoming largely dependent on it.

The coffee industry is brimming with opportunities for growth and innovation. Navigating this changing landscape through catering to the evolving consumer preferences and leveraging technology will further allow the globally beloved coffee industry to thrive.