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

Organic Coffee Market is segmented By Type (Arabica, Robusta), By Packaging Type(Stand-Up Pouches, Jars & Bottles), Bt Distrubution Channel(Supermarket/Hypermarket, Convenience Stores, Online Sales), By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa)– Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Organic Coffee Market Size

Global Organic Coffee Market reached USD 9.3 billion in 2022 and is expected to reach USD 18.8 billion by 2030 growing with a CAGR of 9.2% during the forecast period 2024-2031. Organic coffee is produced without the aid of artificial chemical substances, such as certain additives or some pesticides and herbicides. Many factors are taken into consideration when coffee is considered for organic certification. For example, the coffee farm's fertilizer must be 100% organic.

Some organic fertilizer options include chicken manure, coffee pulp, bocachi and general compost. If inorganic fertilizers such as synthetic nitrogen, phosphate, and potash are used, then the crop grown cannot be certified organic.

Rise in the trend of coffee consumption in cafes or outlets indicates rise in coffee consumption in the coming years. Thus, this increase is projected to drive the global organic coffee market growth. The health benefits associated with coffee along with changing consumer trends are anticipated to drive the global organic coffee market.

Organic Coffee Market Scope

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Organic Coffee Market Dynamics

Increasing Demand for Healthier Beverages Among Millennials is Driving the Organic Coffee Market Growth

Millennials, as a era, have proven a heightened interest in health and wellness compared to previous generations. They generally tend to prioritize organic and natural products that align with their values of sustainability and personal well-being. Organic coffee, being produced without the use of artificial fertilizers or pesticides, is perceived as a more healthy option by millennials.

Millennials are known for their conscious consumption habits and desire to make informed choices. They actively seek products which are produced sustainably, ethically, and with minimal environmental impact. Organic coffee, frequently associated with truthful trade practices and environmentally friendly farming methods, appeals to this segment of consumers.

Increase in Promotional Activities on Social Media is Rising Awareness about Organic Food and Beverages 

Social media influencers and content creators have emerged as powerful voices in shaping consumer preferences. Many influencers are known for promoting healthy and sustainable lifestyles, including the consumption of organic products. Their endorsements and recommendations can significantly impact consumer awareness and buying decisions. A study by MediaKix reported that 80% of marketers found influencer marketing effective and indicated plans to increase their influencer marketing budgets.

Social media platforms thrive on visual content, and organic food and beverages often have an aesthetic appeal that is well-suited for sharing on these platforms. Eye-catching images and videos of organic coffee can generate engagement, likes, comments, and shares, thereby increasing visibility and awareness among social media users. The shareability of such content helps in reaching a broader audience and creating a ripple effect of awareness.

Limited Supply and Higher Production Costs are Restraining the Organic Coffee Market

Organic coffee production is often more challenging and requires adherence to specific standards and certifications, such as USDA Organic or EU Organic. These certifications entail strict guidelines for organic farming practices, including restrictions on synthetic inputs and the use of organic fertilizers and pesticides. As a result, the supply of organic coffee may be limited compared to conventionally grown coffee. The scarcity of organic coffee can pose challenges for meeting the increasing demand, thus restraining the market's growth.

Organic coffee production typically involves higher costs compared to conventional coffee farming. Organic farming practices often require more labor-intensive methods, such as manual weed control and pest management. Additionally, organic certification processes and audits can incur additional expenses for farmers. These higher production costs can make organic coffee less economically viable for some farmers, limiting the overall supply and potentially leading to higher prices for consumers.

Organic Coffee Market Segment Analysis

The global organic coffee market is segmented based on type, packaging type, distribution channel, and region.

Arabica Segment Holds the Largest Market Share in the Organic Coffee Market

Arabica coffee is widely recognized and favored for its superior quality and flavor profile. It is known for its smooth, aromatic, and less bitter taste compared to other coffee varieties like Robusta. For instance, according to Intenational Coffee Organization, Total production for coffee year 2020/21 is estimated at 169.50 million bags, representing a 0.3% increase on 168.94 million bags in coffee year 2019/20. The global coffee market has a strong preference for Arabica beans, and this preference extends to the organic coffee segment as well.

The organic coffee market has witnessed a rise in the demand for specialty and high-quality coffee. Specialty coffee emphasizes unique flavors, distinct origins, and superior cupping scores. Arabica beans are often associated with specialty coffee due to their desirable flavor characteristics and the potential for producing exceptional coffees. As a result, the Arabica segment is likely to dominate the organic coffee market, driven by the demand for specialty and premium coffee experiences.

Global Organic Coffee Market Geographical Penetration

North America is Dominating the Organic Coffee Market

North America has a well-established specialty coffee culture, with a significant portion of coffee consumers seeking for high-quality, unique, and specialty coffee experiences. Organic coffee, often related to specialty and premium coffee, aligns well with the preferences of North American consumers. According to the Food & Agriculture Organization, coffee is the most widely traded tropical product, with up to 25 million farming households globally accounting for 80 percent of world output. The demand for specialty coffee has contributed to the domination of the organic coffee market in the region.

The regulatory environment in North America, particularly within the United States, has been favorable for organic products. The United States Department of Agriculture (USDA) has established strict organic certification standards, and consumers place trust with in these certifications. The robust regulatory framework and certification process have facilitated the growth and dominance of the organic coffee market in North America.

Organic Coffee Market Companies

The major global players in the market include Luigi Lavazza S.p.A., THE KRAFT HEINZ COMPANY, Dr Pepper Snapple Group, Inc., Complete Coffee Limited, Starbucks Corporation, NESTLE S.A. , Java Trading Co. LLC, Jim’s Organic Coffee, Wessanen, and F S Gourmet Private Limited.

COVID-19 Impact on Organic Coffee Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

Covid-19 Impact:

The COVID-19 pandemic led to disruptions in global supply chains, including the coffee industry. Lockdown measures, restrictions on transportation, and reduced workforce availability in coffee-producing regions could have impacted the supply of organic coffee. These disruptions may have caused delays in harvesting, processing, and shipping, affecting the availability of organic coffee in the market. The pandemic has influenced consumer behavior and preferences. With more people staying at home and relying on home brewing, there was an increase in at-home coffee consumption. 

Key Developments

• In June 2022, SYSTM Foods, an impact-focused food and beverage brand platform, announced the acquisition of Chameleon Organic Coffee from Nestle USA, Inc. Chameleon is a leading provider of organic, sustainably grown, and ethically sourced coffee and joins the SYSTM Foods portfolio of brands, including plant-powered functional beverage brand, REBBL.
• In January 2023, Tata Consumer Products announced the launch of its premium instant coffee ‘Tata Coffee Grand Premium’ a 100 percent coffee blend with flavor-locked decoction crystals. The product has been launched keeping in mind the taste preference of consumers in non-South markets who tend to prefer a 100 percent coffee blend over a coffee "chicory blend”.
• In June 2022, Food, and beverage brand platform, Systm Foods, has acquired Chameleon Organic Coffee from Nestlé USA. Chameleon produces organic and ethically-sourced cold brew coffee. Its current portfolio consists of multi-serve concentrates and single-serve ready-to-drink products.

Why Purchase the Report?

• To visualize the global organic coffee market segmentation based on type, packaging type, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of organic coffee market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study. 
• Product mapping is available as Excel consists of key products of all the major market players.

The global organic coffee market report would provide approximately 61 tables, 57 figures, and 190 Pages.