Shift Towards Specialty and Artisanal Coffee is Driving Demand for Premium Coffee Extracts

Requirements in functional beverages have become one of the main drivers to develop the coffee extract market. The societies consumption pattern is shifting towards products that still provide the convenience of a drink, but also has added health benefits. There is growing interest in incorporating functional compounds in to beverages and extracts of coffee possess qualities beneficial to the human body such as improved mental performance and metabolism. For instance, according to 2024 data, more than 2.25 billion cups of coffee are drunk every day worldwide. This pattern is more observed on health-conscious consumers who regard natural & healthy ingredients as highly important. Consequently, there are new types of drinks made by manufacturers containing coffee extract due to the growing demand, which in turn, is boosting the market even more.

The rise in popularity of specialty and artisanal coffee is causing a rising need for top-notch coffee extracts. Consumers are placing a growing importance on exclusive, high-quality coffee experiences that provide unique flavours and top-notch quality. This change is driving the demand for coffee extracts made from meticulously chosen beans and treated with modern methods to maintain their flavourful profiles. As coffee lovers look for these top-of-the-line products, the market is offering a range of quality coffee extracts to meet their refined tastes and help drive market expansion.
Coffee Extract Market

Coffee Farmers are Shifting to Organic Due to Consumer Preferences

Organic coffee extracts are on demand due to consumers preference and willingness to use natural and organic products. This is due to the rising awareness of the benefits of health and environmental aspects associated with the use of organic farming practices. As a result, there is a need for organic coffee extracts on the market, causing different brands to propose high-quality, officially organic products meeting consumers tendencies of green and health-focused products. For instance, in March 2024, Vietnam sent its initial shipment of organic coffee beans to Japan, Vinh Hiep Company Limited has been in negotiations with Japanese companies for the past two years. The initial delivery was officially sent to Japan at a price 35% above that of competing coffee bean products. Exporting the beans successfully will open doors for expanding the company's organic coffee product in Japan down the line.

Consumers awareness in as far as health and environment is concerned has created rising demand for organic coffee. The growing consumption is due to people’s willingness to embrace a cup of coffee that is grown naturally, not grown with pesticide, chemical fertilizers, or genetically modified. Customers who want to purchase and consume organic products and those who want to take care of the environment can embrace organic coffee because of the health consequences that arise from the intake of organic coffee as well as noble reason of environmental conservation. Likewise, many people go for the organic product because it has certification labels that producers can use in different retail shops and special stores for organic products. That is why coffee farmers are transitioning to organic agriculture and diversifying their production because of primary consumers tastes in the modern world.

Recent Trends in the Coffee Extract Industry:

  • Growing interest in coffee extracts because of their antioxidative properties.
  • Coffee extracts are commonly found in functional drinks that provide extra health advantages.
  • Popularity of specialty and artisanal coffee is driving up the need for top-notch quality.
  • Coffee growers are making the switch to using organic farming techniques.
  • Coffee extracts are utilized in several industries aside from beverages, such as cosmetics and pharmaceuticals.
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Environmental Concerns About Coffee Farming Impact, Leading to Hamper the Market

Growing concern over the effect of coffee production on the environment is slowly affecting the market more especially in the general coffee products other than the organic or the sustainable coffee products. More awareness of the impacts incurred by conventional farming of coffee puts a push both from the customers end and regulation. This shift is driving the expansion of organic and environmentally friendly coffee extracts as tradition and modernity compete, with tradition facing the potential decline in demand. Companies that fail to adapt to these sustainability meanings and trends may face challenges of retaining market share and gain customers trust.

The coffee industry supports 125 million people financially, but it has negative impacts on the environment. Recent data indicates a 60% rise in coffee output in the last three decades, this growth endangers our ecosystems. Currently, the warning signs are being raised for top-quality coffee plants due to climate change, thus exacerbating the issue. One example of significant involvement in this issue is the United States, which is the top purchasing country for coffee. This use of resources harms the environment by contaminating water sources, causing soil erosion, and reducing biodiversity.

Collaborations and Partnerships are Instrumental in Developing Distinctive Coffee Flavours, Catering to Consumer Preferences

The existing cooperation with a coffee brand is developing as new tastes are being added to the product, which is increasing the demand for coffee concentrate. This way cooperation between coffee companies is intensifying market impact and satisfying the growing consumers demand for quality and sustainability of products. For instance, the worldwide famous Coffee Bean & Tea Leaf chain is going to open its unique line of handmade items and welcoming personnel to serve the beautiful-ripe shores of Maldives starting from May 2024. The Coffee Bean & Tea Leaf is at the moment only in the process of growth increasing its outlets worldwide to reach the customers in new areas offering them the coffee and tea beverages recognized for as well as the specific atmosphere.

Ties between coffee manufacturers, technology employee firms, and sustainability agencies have been encouraging invention as well as refining product offerings. For instance, two popular coffee brands Lavazza and Paris Baguette have shared their intention in the beginning of December, 2023 to develop a new model of their cooperation concerning the Paris Baguette Blend. This move will unveil the packaged coffee from Paris Baguette to be sold within their cafe and enhances the existing working relationship between the two companies fusing Paris Baguette’s commitment to quality with Lavazza’s coffee experience.
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Millennial Category Consumption is Driving Growth in the Coffee Extract Market

North America has always been a large consumer of coffee. Worldwide consumption of coffee is approximately 1.8 cups per capita per day, and this is continuously rising mainly in stations, airports, and corporate organizations. Falling under the category of millennials are among the drivers of the coffee growth in the North American market. Previous report revealed that there are 76.1 million millennial consumers in the US, with each consuming, on average, 3.6 kg coffee. Young people are willing to spend their money on quality coffee especially with the tendency of people meeting and interacting in coffee shops.

The European market for coffee extract is growing because consumers are seeking more convenient and specialty drinks. Major companies such as Lavazza and Illycaffè provide high-quality coffee extracts, improving the range of products available for cafes and food producers. Advancements in extraction methods and responsible sourcing are fuelling market expansion and attracting consumer attention. Additionally, the growth of the coffee extract market in Latin America is driven by the increasing popularity of convenient and specialty drinks. Primary factors include rising consumer demand for top-notch, eco-friendly goods and expansion in the food and drink industry. Large companies are making investments in local manufacturing in order to satisfy demands at both regional and global levels.
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The report provides a detailed overview of the coffee extract market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for coffee extract market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the coffee extract market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the coffee extract market. Some key country and region included in the coffee extract market report as follows:
Regions Countries
North America United States, Canada
Latin America Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America
Europe Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe
Asia Pacific China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific
Middle East and Africa GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA

Coffee Extract Market Research Report Covers In-depth Analysis on:

  • Coffee extract market detailed segments and segment-wise market breakdown
  • Coffee extract market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in coffee extract industry)
  • Current, historical and forthcoming 10 years market valuation in terms of coffee extract market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
  • Coffee extract market demand analysis
  • Coffee extract market pricing analysis over forecast period (by key segment and by 
  • Coffee extract market regional insights with region-wise market breakdown
  • Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
  • Latest developments and innovations in coffee extract market
  • Regulatory landscape by key regions and key countries
  • Supply chain and value chain analysis in coffee extract market
  • Coffee extract market sales and distribution strategies
  • A comprehensive overview of parent market
  • A detailed viewpoint on coffee extract market forecast by countries
  • Mergers and acquisitions in coffee extract market
  • Essential information to enhance market position
  • Robust research methodology

- Frequently Asked Questions -

What are the key drivers of growth in the coffee extract market?

Key drivers include increasing consumer demand for natural ingredients, the rise in specialty coffee consumption, and the growing trend towards health and wellness products.

What factors influence pricing in the coffee extract market?

Pricing is influenced by raw coffee bean costs, production methods, market demand, and quality standards, along with regional factors impacting supply chains.

How is the coffee extract market expected to evolve over the next decade?

The coffee extract market is anticipated to grow steadily, driven by innovation in product development, increasing demand for organic and clean-label products, and expanding applications across various industries.