Global Organic Coffee Market — Trends, Sustainability, Health Benefits, and Consumer Preferences
Organic coffee is derived from without the aid of any pesticides, chemical substances or any additives. Organic coffee is grown naturally and organic conditions without using any synthetic fertilizers, herbicides or insecticides. Rising consumer perception towards nutritional and health benefits of organic drinks such as tea, coffee, juices, functional drinks etc. has increased the demand for organic drinks in the global organic food and beverage market. Currently, the demand for organic coffee is increasing for direct consumption, bakery and confectionery products, smoothies and shakes, dairy products and in many other organic products. North America and Western Europe are the two major regions in which the demand for organic coffee is expected to increase with robust growth rate.
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Organic Coffee Market: Dynamics
Key drivers supporting the growth of organic coffee in the global market is due to increasing demand for organic food and beverages among millennials due to their higher emphasis towards personal health and wellbeing targets. On the other side, the supply of organic products such as organic tea, coffee, organic dairy products, organic fruits and vegetables is pushed due to increase in organic product offering by supermarket/hypermarket stores.
A substantial percentage of total sales of organic food and beverages takes place through organized retail formats. Owing to increasing preference for organic beverages, retail chains are increasingly offering such as organic beverages and this is expected to fuel demand for organic coffee in the global organic coffee market.
In addition, the with the availability of information through Internet due to the advent of smartphones, consumer’s research about the origin, processing, packaging and ingredients of the products online before making purchases. This supports the growth of organic products such as coffee and other beverages, it is expected that demand for organic coffee is expected to increase in near future.
Organic Coffee Market: Segmentation
The organic coffee market is segmented on the basis of by application, by end-use, and by distribution channel. On the basis of application, the organic coffee market includes dairy, bakery and confectionery, coffee based drinks and others. The demand for organic coffee is increasing in food and beverage industry is due to the presence of natural flavor of coffee beans and authentic aroma of coffee.
Further, the market for organic coffee by end-user segment includes household and commercial. Another segment for organic coffee is segmented by distribution channel, it is segmented by direct and indirect sales channel. Further, the market segment of organic coffee by indirect sales channel is sub-segmented on the basis of modern retail formats, convenience stores, specialty stores, and online retail channel.
Consumers in developed economies are increasingly concerned about the origins of food products. Interest in the local food economy, food safety, environmental impacts and the complexity of the entire food supply chain, has led to forming of new labels to differentiate food products such as “ethical”.
Consumers in the countries such as U.S., U.K., Germany, France and developing economies such as China, consumers prefer products that benefit their environment, their country and their individual communities. Owing to this changing consumer preference, the demand for organic coffee is expected increase at higher growth rate.
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Organic Coffee Market: Regional Outlook
On the basis of regional segment, market for organic coffee is segmented by seven different regions across the globe. It includes North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan, Middle East and Africa, and Japan.
The demand for organic beverages including organic coffee is increasing at higher growth rate especially among countries U.S., U.K., Germany, France, Italy, and in many other countries of Western Europe. Increasing awareness and health benefits of organic beverages such as organic coffee, tea, juices, functional and flavored drinks in Asia-Pacific region is expected to increase the demand for organic coffee in near future.
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Organic Coffee Market: Key Players
Some of the key players operating in the business of organic coffee market are Nestlé S.A., JAVA PLANET COFFEE ROASTERS INC., Jim’s Organic Coffee, Organic Coffee Company, LIMITLESS COFFEE & TEA, Shearwater Organic Coffee Roasters, LLC, Fresh Roasted Coffee LLC., Cameron’s Specialty Coffee, Koffee Kult, Two Volcanoes Coffee, and others.
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