Coffee has become one of the most consumable drinks in the world. As a result, the coffee industry has experienced some significant growth. Thanks to the recent high consumption of coffee, Contrive Datum Insight predicted the global market of coffee to reach USD 1,43,828.7 million in 2029.
In the coffee global market growth at a CAGR of 5.12% during the forecast period from 2023 to 2030, one of the things that stands out the most is the consistency of the specialty coffee market growth. Simply put, specialty coffee refers to coffee beans of high quality that have unique flavor profiles.
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The Rise and Demand of Specialty Coffee
Specialty coffee is expected to experience significant growth in the forecast period due to several factors. Here are some key points that push the growth of the specialty coffee market:
1. Rapid Level of Urbanization
With the increase in urbanization, there is a growing demand for specialty coffee shops and cafes. This trend is particularly strong in developing countries, where urbanization is occurring at a faster pace.
2. Disposable Income Increase
As people’s disposable income increases, meaning more people are willing to spend their money, they are more likely to seek out specialty coffee as a way to treat themselves. This trend is particularly strong among millennials, who prioritize quality and uniqueness in their consumption choices.
3. The Appearance of the Third Wave of Coffee
The third wave of coffee refers to a movement in the coffee industry that prioritizes the quality and origin of coffee beans, as well as the expertise of the barista. This movement has raised the profile of specialty coffee and made it more appealing to consumers.
Furthermore, according to the National Coffee Association’s report, specialty coffee consumption has hit a five-year high. Making the future seems bright for the specialty coffee industry.
Also Read: Join the 3rd Wave of Coffee – Your Taste Buds Will Thank You!
Growth of the Specialty Coffee Market in Different Countries
Countries from North America, Europe, and Asia-Pacific are key markets for the industry of specialty coffee. For more detailed information, take a look at each of those coffee consumer regions.
1. Specialty Coffee Market in North America
More than half of the total population of the United States has a daily habit of drinking coffee. For specialty coffee, however, the market in North America is predicted to keep experiencing a 20% growth every year until 2030. If that is the case, the North American market would be the world’s fastest-growing one.
2. Specialty Coffee Market in Europe
As of today, Europe has almost half of the global specialty coffee market share, which is the largest in the world. A key factor to that big share is that people in countries like Denmark, Sweden, Norway, and Finland prioritize coffee with higher quality. By 2026, the market is expected to grow to a 9% increase.
3. Specialty Coffee Market in Asia-Pacific
Similar to the North American market, the specialty coffee market in Asia-Pacific is predicted to grow the fastest in the world. However, the expected annual growth rate number is not as high, which is 15.3% until 2030. Countries that contribute the most at the fast-growing pace are China, Japan, and Taiwan.
The Specialty Coffee Market Segmentation
The specialty coffee market can be segmented in several ways, including:
- By product type: The specialty coffee market includes various product types such as single-origin coffee like Gayo long berry or Lasuna special (both are green coffee beans from the Aceh region), blended, espresso, and others.
- By distribution channel: The market can be segmented by distribution channel, including cafes and coffee shops, specialty stores, online retail, and others.
- By end-use: The specialty coffee market can be segmented based on end-use, including commercial and residential.
- By region: The market can also be segmented by region, including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
- By certification: Specialty coffee may also be certified by organizations such as Fair Trade USA, Rainforest Alliance, and others, and this certification can be used to segment the market.
Moreover, the segmentation of the specialty coffee market is dominated by coffee beans with 80-84.99, 85-89.99, and 90-100 grades. For your information, coffee beans are graded based on their size, color, shape, and also defects like mold or insect damage. They are basically factors that can affect the taste and aroma of the coffee.
Specialty Coffee Market Growth Trends
Thanks to the recent market growth, it is predicted that these things are the focus for the future of specialty coffee to further increase the growing trend.
1. Innovation in Products and Brewing Methods
Continued innovation of specialty coffee is likely to happen, specifically in coffee products and brewing technology. The innovation may include the development of brewing with new equipment and methods. Then, new coffee varieties with new flavor profiles may be introduced with improved product packaging and presentation.
Also Read: Brewing Noob? Here are the Best Coffee Beans for Pour Over!
2. Opportunities for Joint Ventures and Partnerships
It is suggested that joint ventures, partnerships, and investor relations between coffee growers, suppliers, and roasters may increase in the future. The goal is to make transparency and traceability better. The partnerships also may happen because of the need to increase access to coffee beans with high quality.
3. Agriculture Tourism for Coffee Plantation
Lastly, visiting places like the island of Sumatra, where specialty coffee is cultivated, may push the market growth even further. With agriculture tourism, coffee lovers can experience and learn coffee processing methods to increase their awareness of the origin of certain products.
With all details about the specialty coffee market growth above, you can consider specialty coffee to be used for a business with great potential. If you are interested in that idea, do not hesitate to contact Indonesia Specialty Coffee to cooperate with the best specialty green coffee distributor from Indonesia!
