Coffee Substitutes Market Size, Share, Industry, Forecast and outlook (2024-2031)

Coffee Substitutes Market Size

Global Coffee Substitutes Market reached US$ 2.7 billion in 2024 and is projected to witness lucrative growth by reaching up to US$ 5.3 billion by 2031. The market is growing at a CAGR of 8.9% during the forecast period.

Coffee substitutes are beverages that serve as alternatives to traditional coffee. They are often chosen by individuals who want to reduce their caffeine intake or are looking for different flavors and health benefits. One of the primary reasons people seek coffee substitutes is to avoid caffeine. Coffee substitutes offer an attractive option as they are typically caffeine-free or contain only trace amounts. Herbal teas are popular coffee substitutes, providing a wide range of flavors and health benefits. 

Coffee substitute manufacturers are creating specialty blends that cater to specific tastes and dietary preferences. These blends may combine roasted grains, chicory root, and other ingredients to offer a unique flavor experience and appeal to a broader consumer base. For instance, consumers nowadays are preferably choosing lemon water as a morning beverage instead of consuming coffee because it’s calorie- and caffeine-free and provides an ample dose of vitamin C.

Market Scope

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Market Dynamics

Growing Demand for Green Tea is Driving the Market Growth

Green tea is a popular beverage that is known for its health benefits, such as antioxidants and metabolism-boosting properties. As consumers become more health-conscious and seek out alternatives to sugary and high-caffeine beverages, green tea has emerged as a popular choice. This trend towards healthier beverage alternatives has also led to an increase in demand for coffee substitutes, such as herbal teas, chicory root, and roasted barley, which offer a caffeine-free and healthier alternative to coffee. 

Moreover, the rise of specialty coffee substitutes, such as mushroom coffee, which blends medicinal mushrooms with coffee substitutes like roasted chicory root and dandelion root, has also been influenced by the growing popularity of green tea and other health-promoting beverages. According to the National Institutes of Health, 65.6% of men and 27.5% of women were regular green tea drinkers in the cohorts.

Numerous Advantages Associated with the Consumption of Coffee Substitutes

Coffee substitutes come in a wide range of flavors, including herbal teas, roasted grains, chicory root, carob, and more. This variety appeals to consumers looking for unique taste experiences beyond the traditional coffee flavor. By offering diverse flavor profiles, coffee substitutes cater to different preferences and attract a broader consumer base.

Many individuals experience sensitivity to caffeine, leading them to seek caffeine-free alternatives. Some people may also have health conditions or concerns that require them to limit their caffeine intake. Coffee substitutes provide a viable solution by offering a similar beverage experience without the stimulating effects of caffeine.

High Cost of Coffee Substitutes Holding Back the Coffee Substitutes Market

The high cost of coffee substitutes is one of the key restraints of the coffee substitute market, as it can make the final product more expensive than regular coffee, which can deter price-sensitive consumers. Some coffee substitutes, such as roasted chicory root or dandelion root, are not as widely grown or available as coffee beans. This limited supply can drive up the cost of these substitutes.

Coffee substitutes often require specialized processing and roasting techniques, which can be more expensive than the processes used for coffee beans. This can also add to the cost of producing coffee substitutes. Many coffee substitute brands are smaller, niche brands that require additional marketing and branding efforts to stand out in a crowded market. These costs can add up and contribute to the final price of the product.

Market Segmentation Analysis

The global coffee substitutes market is segmented based on nature, packaging, distribution channel, and region.

The Organic Coffee Substitutes are Expected to Hold the Largest Market Share Due to the Numerous Health Benefits

Organic coffee substitutes are holding the largest market share in the coffee substitutes market because of the increasing demand for organic and natural products among consumers. Organic coffee substitutes are made from natural and organic ingredients that are free from synthetic pesticides and fertilizers, making them a healthier and more sustainable alternative to traditional coffee. According to a report of The World of Organic Agriculture 2021 by Food and Agriculture Organization (FAO), organic agriculture is practiced in 187 countries, and 72.3 million hectares of agricultural land were managed organically by at least 3.1 million farmers. The global sales of organic food and drink reached more than 106 billion euros in 2019.

Consumers are becoming more aware of the potential health and environmental risks associated with synthetic chemicals in their food and beverages, and as a result, they are seeking out natural and organic options. This trend has contributed to the growth of the organic coffee substitute market, as consumers look for alternatives to traditional coffee that are free from harmful chemicals. 

Market Geographical Share

Europe Dominates the Market of Coffee Substitutes Globally

Europe has a strong culture of health and wellness, and consumers are increasingly seeking healthier beverage alternatives. Coffee substitutes, such as herbal teas and chicory root, are perceived as healthier options compared to traditional coffee, which has contributed to their popularity in the region. Coffee substitutes have been popular in Europe for many years, particularly during times of coffee shortages or economic downturns. This long-standing tradition has helped to establish the market for coffee substitutes in the region. 

Europe has a diverse range of cultural and culinary traditions, and coffee substitutes are a popular alternative to coffee in many countries. For example, roasted barley is a traditional coffee substitute in Germany and the Nordic countries, while roasted chicory root is popular in France and Belgium. 

Market Major Players

The major global players include Postum, Teeccino Caffee Inc., Rishi Tea and Botanicals, World Match Inc., drink NUJO, Anthony Goods, So Good Brand Inc., Dandy Blend, The Hain Celestial Group Inc., and Mondelez International Inc.

COVID-19 Impact On Market

COVID Impact

The COVID-19 pandemic has led to significant changes in consumer behavior, including shifts in purchasing patterns and consumption habits. With lockdowns, social distancing measures, and work-from-home arrangements, people's daily routines have been disrupted, resulting in altered preferences for beverages and increased experimentation with coffee substitutes. With restrictions on dining out and limited access to coffee shops and cafes, many individuals turned to home brewing to enjoy their favorite beverages. This trend also extends to coffee substitutes, as people explore homemade options using roasted grains, herbal teas, or other ingredients readily available at home.

Russia-Ukraine War Impact

The impact of the Russia-Ukraine war on the coffee substitutes market may vary depending on regional factors. For example, if the conflict affects the availability of traditional coffee, consumers in those regions may turn to coffee substitutes as alternatives. On the other hand, if there are broader economic repercussions, it could lead to a decrease in overall consumer purchasing power, potentially impacting the demand for premium or specialty coffee substitutes.

By Nature

• Organic
• Conventional

By Packaging

• Pouches
• Aseptic Cartons
• Cans

By Distribution Channel

• Supermarket/Hypermarket
• Online Sales
• Convenience Stores
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In January 2023, Rasa, a coffee-alternative maker launched two new mixes with adaptogenic herbs and mushrooms instead of caffeine.
• In March 2022, Better Buzz Coffee Roadsters, a San Diego-based Small Batch Coffee Roadsters collaborates with Intelligent Blends, an innovative manufacturer of single-serve beverage company to launch their “Best Drink Ever” from cafe to kitchen as a single-serve beverage that is now available to households across the U.S.
• In October 2022, Nestlé, a leading food and beverage company expands its coffee operations in North America by purchasing Seattle's Best Coffee.  

Why Purchase the Report?

• To visualize the global coffee substitutes market segmentation based on nature, packaging, and distribution channel understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous coffee substitute market-level data points all for segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global coffee substitutes market report would provide approximately 61 tables, 57 figures, and 200 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies