Top Organic Coffee Market Players, Key Statistics and Activities

Organic coffee market

The organic coffee market is expected to grow with a robust growth rate amid rising consumer health awareness, growing government support, and advanced farming techniques.

Organic Coffee Market by Type, Packaging Type and Sales Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026”, the global organic coffee market size was $6.8 billion in 2018 and is expected to reach $12.6 billion by 2026, registering a CAGR of 8.2% from 2019 to 2026.

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Organic coffee is widely accepted as an environmentally friendly product. Organic farming minimizes the use of synthetic and artificial additives added to the soil. For organic farming, compost mulch and natural fertilizers are used instead of artificial fertilizers. Additionally, the conventional methods used for farming have been replaced with new and advanced techniques that are environmentally friendly. This improves production efficiency and produces high quality organic coffee. In addition, advanced agricultural technologies minimize production time and labor. For example, bio-char based organic soil amendment technology (BIOSAT), a soil additive made from a mixture of bio-char and various organic nutrients, improves soil fertility, maintains soil resistance soil, increases agricultural production and minimizes dependence on artificial fertilizers. Hence, improving environmentally friendly farming techniques is a major driver for the growth of the global organic coffee market.

The organic food and beverage industry is growing rapidly, prompting companies to invest in the industry. Additionally, over the past few years, several government bodies have also recognized the significant growths recorded by the organic food market to come up with new policies to encourage contributors from the organic food sector. For example, the Peruvian government has identified the coffee sector as a national priority and implemented a national renovation program with a budget of approximately $70 million. Similarly, the Indian government helps farmers who seek loans and organic certification. Such government initiatives are expected to boost organic coffee production around the world.

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The global organic coffee market is segmented into type, packaging type, sales channel and region. By type, it is divided into Arabica and Robusta. On the basis of packaging type, it is segmented into pouches, jars & bottles, and others. By sales channel, it is studied in hypermarkets/supermarkets, department stores and convenience stores, specialized stores, online sales channels, etc. Regionally, the organic coffee industry is studied in North America, Europe, Asia-Pacific, and LAMEA. Demand for organic coffee in North America, Western Europe and Japan remains high. Latin America remains one of the main producers of organic coffee.

Some of the major players in organic coffee market analysis include Nestle SA, The Kraft Heinz Company, Starbucks Corporation, Jim’s Organic Coffee, FS Gourmet Private Limited, Wessanen, Complete Coffee Limited, Luigi Lavazza SpA, Java Trading Co. LLC and Dr. Pepper Snapple Group, Inc. (Green Mountain).

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Main results of the study:

The Arabica segment was the largest contributor to the global organic coffee market, with $4.3 billion in 2018, and is expected to reach $7.7 billion by 2026, growing at a CAGR of 7.9% during of the forecast period.
In 2018, based on package type, the stand-up pouch segment accounted for around 45% of the global organic coffee market share in 2018 and is expected to grow at a CAGR of 7.9%. However, this segment is expected to lose market share to other segments during the forecast period.
In 2018, based on the sales channel, the hypermarket/supermarket segment leads in terms of value share with around 37% market share, but the online sales channel is expected to gain market share during of the forecast period.
North America leads in terms of organic coffee value share with around 44% market share and is expected to maintain its dominance during the organic coffee market forecast period.
Regionally, Asia-Pacific is expected to grow with a robust CAGR of 10.3% over the forecast period.

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Karen J. Nelson