According to a new report published by Allied Market Research, titled, "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 projected to reach $12.6 billion by 2026, registering a CAGR of 8.2% from 2019 to 2026.
Organic coffee is widely accepted as environmentally friendly product. Organic farming minimizes the utilization of synthetic and artificial additives added to the soil. For organic farming compost mulch and natural fertilizers are used in place of artificial fertilizers. Moreover, conventional methods used for farming have been replaced by new and advanced eco-friendly techniques. This improves production efficiency and produces high quality organic coffee. In addition, advanced farming technologies minimize the production time and manpower. For instance, Bio-char based organic soil amendment technology (BIOSAT), a soil additive made of mixture of bio-char and various organic nutrients, improves soil fertility, maintains soil strength, increases crop production, and minimizes dependency on artificial fertilizers. Hence, improved eco-friendly farming techniques act as major drivers for the global organic coffee market growth.
The organic food and beverages industry is growing rapidly, which attracts companies to invest in the industry. Moreover, in recent years, several government organizations have also recognized significant growths registered by the organic foods market to come up with new policies to encourage contributors in the organic food sector. For instance, the Peru government has defined the coffee sector as a national priority and have implemented national renovation program with about $70 million budget, similarly, the government in India aids farmers who seek for loans and organic certification. Such government initiatives are expected to bolster production of organic coffee around the world.
The global organic coffee market is segmented into type, packaging type, sales channel, and region. By type it is bifurcated into Arabica and Robusta. On the basis of packaging type, it is segmented into stand-up pouches, jars & bottles, and others. By sales channel, it is studied across hypermarkets/supermarkets, departmental and convenience stores, specialty stores, online sales channels, and others. Region wise, the organic coffee industry is studied across 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 leading producers of organic coffee.
Key Findings of the Study:
- The Arabica segment was the highest contributor to the global organic coffee market, with $4.3 billion in 2018, and is estimated to reach $7.7 billion by 2026, at a CAGR of 7.9% during the forecast period.
- In 2018, based on packaging type, the stand-up pouches segment accounted for about 45% of the global organic coffee market share in 2018, and is expected to grow at the CAGR of 7.9%. However, this segment is expected to lose market share to the others segment during the forecast period.
- In 2018, based on sales channel the hypermarkets/supermarkets segment leads in terms of value share with about 37% market share, however online sales channel is expected to gain market share during the forecast period.
- North America leads in terms of organic coffee value share with about 44% market share and is expected to retain its dominance during the organic coffee market forecast period.
- Region wise, Asia-Pacific is anticipated to grow with robust CAGR of 10.3% during the forecast period.
Some of the key players in the organic coffee market analysis includes Nestle S.A., The Kraft Heinz Company, Starbucks Corporation, Jim’s Organic Coffee, F S Gourmet Private Limited, Wessanen, Complete Coffee Limited, Luigi Lavazza S.p.A., Java Trading Co. LLC, and Dr Pepper Snapple Group, Inc.(Green Mountain)