Market Definition
Coffee machines are appliances that work on various brewing processes to extract coffee. These machines are used for residential purposes and commercial consumption in offices, retail stores, houses, restaurants, and cafes. Automatic coffee machines are easy to use and clean and last long. They are also known as one-touch coffee machines, super-automatic coffee machines, and multifunctional coffee machines. It reduces the time and effort required to grind and prepare the coffee. Several types of automatic instant coffee machines are available, including bean-to-cup coffee machines, automatic capsule coffee machines, and automatic instant coffee machines.
Market Insights
The Global Coffee Machine Market is projected to grow at a CAGR of around 8.0% during the forecast period, i.e., 2023-28. The popularity of coffee capsules and their enhanced flavorful coffee, along with the onset of coffee machines integrated with Bluetooth, Wi-Fi, voice assistance, etc., has positively influenced the sales of coffee machines in recent years. Furthermore, the most recent advancements in the industry are the machines equipped with features to be accessed and controlled through smart devices like Google Home and Smartphones from anywhere within the house. As a result, the popularity of such coffee machines and increasing demand for them are expected to expand the market positively in the forecasting period.
Report Coverage | Details |
---|---|
Study Period | Historical Data: 2018-21 |
Base Year: 2022 | |
Forecast Period: 2023-28 | |
CAGR (2023-2028) | 8.0% |
Regions Covered | North America: USA, Canada, Mexico |
Europe: Germany, France, The United Kingdom, Russia, Scandinavia, Italy | |
Asia-Pacific: China, India, Japan, South Korea, Australia, Singapore, Rest of Asia Pacific | |
Africa: Algeria, Egypt, South Africa, Nigeria, Rest of Africa | |
Middle East: Saudi Arabia, Turkey, UAE, Qatar, Rest of Middle East | |
Key Companies Profiled | Keurig Dr Pepper, Jura Elektroapparate AG, EVOCA (formerly known as N&W Global Vending S.p.A), Melitta, Philips, Breville, Groupe SEB, De Longhi Group, Dualit, Nestle, Electrolux AG, Bosch, Others |
Unit Denominations | USD Million/Billion |
Consequently, consumers' growing preference because of the possible health benefits like healthy for the heart, reduced risk of type 2 diabetes, etc., will boost the consumption of coffee. Moreover, with the growing coffee culture and rising number of cafes opening in developing countries, the sales of coffee machines are likely to boost.
Additionally, the launch of new coffee products, such as green coffee, and flavored coffee, is expected to increase the consumption of coffee. On top of that, the fast-growing market of Ready-To-Drink (RTD) beverages, including coffee-infused drinks, would accompany new technologies being integrated into coffee machines in market development.
In October 2020, Nestle brand, Nespresso, launched new touchless functionalities to enable employees to maintain social interactions around a cup of coffee safely.
Market Dynamics
Key Driver: The Exponential Surge in Coffee Consumption
The popularity of coffee as an affordable flavorful beverage has led to its increased consumption, thereby propelling the industry's growth. Furthermore, the arrival of new cafes, coffee shops, hospitals, offices, and malls, the key end users of coffee machines, has given a lucrative growth opportunity to the market. Besides, the advertisement of coffee as a refresher, along with its health benefits among consumers, has made it the standard beverage to be shared even in the household. Further, the major market players focus on integrating various technologies, features, and automatic functions into machines, further pushing the market forward. Additionally, with the fast-moving lifestyle, the soaring need for automatic, pre-grind, and pre-infused features for consumers would maintain the industry's trajectory as the companies comply with consumers' demands. Moreover, the emergence of super-automatic machines, consistent in quality and operation, is likely to drive the market's growth in the forecast years.
Possible Restraint: Adverse Effects of Excessive Coffee Consumption
Along with the health benefits of coffee, there is also growing awareness regarding the negative health effects of its excessive consumption. For instance, unusual coffee intake has been related to cardiovascular effects, increasing heart attack risks in men, impact on male fertility, irregular or fast heartbeats, and more. Other than this, coffee addiction may lead to digestive problems, anxiety, and high blood pressure, hindering daily activities. These factors may adversely affect consumers' decisions related to coffee consumption, ultimately constraining market growth.
Growth Opportunities: Integration of Intelligent Features in Coffee Machines
The rising dependency and added comfort of technology in domestic home appliances offer a growth opportunity in the industry. Automatic coffee machines are gaining popularity among consumers with the trend of turning their kitchens into smart ones. The features of convenient accessibility and control from a distance are the most sought-after in today’s fast-track life. Adding such features could raise the demand for technological integration in coffee machines. Furthermore, the popularity of features such as Wi-Fi and Bluetooth could fuel the market's growth by integrating them into automatic coffee machines. Moreover, users may get a reminder to change filters, beans, etc., allowing flexible operations of the device, thus, emerging as an area of lucrative opportunity for manufacturers during the forecast years.
Key Trend: The Advent of Semi-Automatic Coffee Machine
Consumers have many options, including manual coffee machines, semi-automatic coffee machines, smart coffee machines, or fully automatic coffee machines. Among them, semi-automatic is the most popular, and on-demand was given to it needing to be more wholly manual and as high cost as a fully automatic machine. This balance among the several types of machine advancement fuels the trend of consumers opting for a semi-automatic coffee machine. Additionally, unlike other super-automatic machines, a semi-automatic machine does not come with a pre-set time for adding shots. Allowing the consumer to decide on brewing and texture offers them to create a brew as per preference, which adds to the key factor behind its popularity, other than being cost-effective.
Market Segmentation
Based on Type of Machine,
Here, the Drip coffee machine type accounted for a significant share of the global market in the historical period. Due to the growing global demand for cafes and restaurants, this type has been the most preferred machine among consumers, owing to its durability and unique look. The key market player is also addressing the preference of the consumers and introducing multiple features focusing on quality and easy interface added to the already popular drip coffee machine. In addition, the components of the drip filter machine, like reusable filters and cones, add to the advantages consumers prefer. Furthermore, lesser repair and maintenance costs and adequate automated features of the drip filter machines would further result in the industry's growth.
Based on End User,
Of them all, the demand for Residential coffee makers is expected to grow substantially because of the vogue of adding coffee to the morning routine. Along with it, the demand for flavored coffee is also driving the segment. Additionally, countries including the United States and South Korea are witnessing high demand and preference for household coffee machines. Also, technological advancement in coffee machines adds ease and helps save time, resulting in further market growth through 2028. Furthermore, the integrated consumption of coffee into the daily routines of office workers and the young population is furthering the need for easy access to fresh coffee. Thus, the large consumption of coffee bags among residents and households fuels the rise in demand for the coffee machine industry.
Regional Projection
Geographically, the Global Coffee Machine Market expands across:
Amongst all, Asia Pacific dominates the Coffee Machine Market with the largest share, given the continuous increase in coffee consumption in the region. Along with it, many prominent retail chains support coffee machine consumption in countries like India, China, and South Korea. Furthermore, with the rising popularity of international café brands and the rise in the installation of cafes, restaurants, retail stores, and commercial buildings, the consumption of coffee machines is also the surge.
Thus, the market across the region is likely to accelerate owing to the rabid modernization and expanding disposable income. In addition, with younger consumers entering the corporate and working class, increasing workplaces is expediting the demand for coffee-making machines. With the increasing establishments of IT parks in India, coffee shops across busy streets of China, and instant coffee being the most consumed drink in South Korea, the Asia-Pacific region offers lucrative opportunities for automatic coffee machine sales.
Conversely, Europe is estimated to experience significant growth in the coffee Machine Market. The consumption is increasing effectively in many commercial complexes and offices. The market is likely to be driven by the substantial import of green coffee beans and the demand for espresso-blended drinks.
Additionally, rising awareness of the health benefits of coffee, such as the reduced risk of diabetes, healthy anti-oxidants, healthy heart, and energy boost, is likely to raise the demand for coffee machines, which would benefit the industry positively in the projected time frame.
Recent Developments in the Global Coffee Machine Market
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Frequently Asked Questions
A. The Coffee Machine Market is projected to grow at a CAGR of around 8.0% during 2023-28.
A. The exponential surge in coffee consumption is expected to drive the Coffee Machine Market during 2023-28.
A. TKeurig Dr Pepper, Jura Elektroapparate AG, EVOCA (formely known as N&W Global Vending S p A), Melitta, Philips, Breville, Groupe SEB, De Longhi Group, Dualit, Nestle, Electrolux AG, Bosch are the top players in the Global Coffee Machine Market during 2023-28.
A. Drip Coffee Machine is anticipated to emerge as an area of remunerative opportunities for the leading players in the Coffee Machine Market during the forecast period.
A. Globally, Asia Pacific would provide lucrative prospects for the Coffee Machine Market in the years ahead.
A. The trend of semi-automatic coffee machine is shaping the growth of the Coffee Machine Market during 2023-28.
A. Integration of intelligent features in coffee machines is propelling the Coffee Machine Market through 2028.
A. Adverse effects of excessive coffee consumption are the possible restraint affecting the growth of the Coffee Machine Market during 2023-28.