Market Definition
Organic coffee is grown naturally without using any herbicides, pesticides, or other additives.
Market Insights
The Global Organic Coffee Market is projected to grow at a CAGR of around 7.5% during the forecast period, i.e., 2023-28. The growth of the market is driven primarily by shifting consumer preferences toward natural foods & sustainable lifestyles owing to the rising health consciousness among consumers, especially the millennials, i.e., coupled with the evolving trends of consuming coffee on-the-go, and the growing consumer awareness of the various health benefits of organic food & beverages.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 7.5% |
| Regions Covered | North America: USA, Canada, Rest of North America |
| Europe: Germany, The UK, France, Italy, Spain, Rest of Europe | |
| Asia-Pacific: Vietnam, Indonesia, India, China, Japan, Rest of Asia Pacific | |
| Latin America: Mexico, Brazil, Argentina, Honduras, Peru, Colombia, Guatemala, Rest of South America | |
| Middle East & Africa: Saudi Arabia, UAE, Ethiopia, Uganda, South Africa, Rest of Middle East & Africa | |
| Key Companies Profiled | Allegro Coffee Company, Burke Brands LLC, Cameron's Specialty Coffee, Camano Island Coffee Roasters LLC,, Dean's Beans Organic Coffee, Ethical Bean Coffee, Fresh Roasted Coffee LLC, Jim's Organic Coffee, Koffee Kult, Nestlé S.A., Organic Coffee Company, Rogers Family Company, Shearwater Organic Coffee Roasters, Two Volcanoes Coffee |
| Unit Denominations | USD Million/Billion |
With the influence of western culture on developing nations, people are increasingly adopting more nutritional beverages like organic coffee owing to its environment-friendly production and unique flavor & origin, along with improving social & economic status.
Besides, the surging utilization of organic coffee in personal care, cosmetic, pharmaceutical, and food & beverage sectors and aggressive promotional activities by major organic coffee manufacturers on social media platforms, i.e., leading to rapidly increasing consumer awareness regarding its various advantages, are other crucial aspects driving the global market.
Moreover, the advent of innovative organic coffee & related variations has further attracted an extensive consumer base worldwide and projects remunerative prospects for the global market through 2028. However, higher manufacturing costs associated with organic coffee than traditional coffee, which has artificial additives, might hinder the market expansion on the global level in the years to come.
Health Benefits:
It is rich in antioxidants, vitamins, and minerals that help balance harmful free radicals present in the human body and, in turn, counter large-scale cellular damage. Moreover, it helps prevents different types of cancer & neurological diseases, promotes weight loss, boosts immunity, and decreases cholesterol levels. The rise in consumer awareness of these nutritional & health benefits of organic coffee has significantly increased its production & sales globally for direct consumption, vegan bakery & confectionery, smoothies & shakes, etc.
Market Dynamics:
Key Driver: Growing Consumer Interest in Healthy Food & Beverages
The burgeoning consumption of natural & healthy foods, including organic coffee, owing to its several health benefits over regular coffee, is the prime aspect projected to drive the Global Organic Coffee Market during 2023-28. Organically-produced coffee doesn't comprise synthetic fertilizers, pesticides, herbicides, genetic engineering, artificial preservatives, flavors, or colors, and thus helps minimize the risk of cardiovascular diseases & Type 2 diabetes, the incidence of which is constantly rising, especially in the US. Hence, the demand for organic foods & beverages, including coffee, is surging at a rapid pace worldwide and, in turn, creating new directions for the market to expand notably in the coming years.
Growth Restraint: Significantly High Prices of Organic Coffee
Organic coffee is grown using natural fertilizers & pesticides, which raises its production cost and makes it around 20% more expensive than regular coffee. Moreover, acquiring organic certification & inspection also incurs massive costs for manufacturers, which leads to an additional 10-15% higher costs than regular coffee. As a result, the overall high cost of production & certification raises the price of final products sold in the market. Hence, the premium pricing associated with organic coffee, which shall restrict its full-scale commercialization, especially in developing nations, is projected to act as major growth restraint for the Global Organic Coffee Market during 2023-28.
Key Trends in the Organic Coffee Industry
Although the Europe Organic Coffee Market is still in a nascent stage, the demand is likely to rise notably in the forthcoming years. Trends like growing consumer inclination toward healthy living & diet, as well as increasing sustainability concerns of consumers & regional industry participants, are set to benefit the market, particularly in Germany, France, the United Kingdom, Italy, Switzerland, Denmark, & Sweden. Of all these countries, Germany is the leader with a relatively high disposable income of consumers than other nations, which makes them spend more on healthier food options, including coffee. As a majority of Germany-based large-scale importers & roasters deal with organic coffees, it shall create new avenues for the market to witness significant expansion in the coming years.
Market Segmentation
Based on Origin:
Of all coffee origins, Arabica dominates the Global Organic Coffee Market with a massive share. It attributes primarily to its extensive availability and superior qualities like enhanced sugars, improved acidity, more flavors, & a moderate caffeine amount, which makes it the best & most popular coffee bean.
Most Arabica coffee is grown in areas with subtropical climatic conditions (lots of humidity & warm temperatures), especially on hills & on mountain slopes. Due to low calories, richness in antioxidants & minerals like magnesium, riboflavin, manganese, etc., it also poses several health benefits.
In fact, if consumed in moderate amounts, it promotes hearth health & helps prevent cardiovascular diseases. Hence, with these benefits, rich taste, & premium quality, Arabica organic coffee is projected to continue dominating the global market through 2028.
Based on Distribution Channel;
Here, off-trade distribution channels lead the global market owing to the mounting consumer inclination toward online shopping, especially after the Covid-19 pandemic, the rise in urban population, and rapidly establishing supermarkets, hypermarkets, & specialty stores portraying large-scale availability of organic coffee worldwide.
With the easy availability of a wide range of organic coffees & lucrative offers & discounts, online distribution channels have gained immense popularity worldwide, especially among the young population. Moreover, online retailers of organic coffee are increasingly coming up with target marketing strategies to attain all consumer touchpoints, i.e., another crucial aspect contributing to the surging product sales through off-trade distribution channels and fueling the overall market expansion.
Regional Projection
Geographically, the Global Organic Coffee Market expands across:
Amongst all regions globally, Latin America dominates the Organic Coffee Market owing to countries like Mexico, Peru, Columbia, Guatemala, & Honduras, the leading producers & exporters of organic coffee, and various government initiatives toward promoting organic production practices in the region.
Coffee beans grown across the countries cited above are without herbicides, pesticides, or other chemicals and are fertilized naturally by animal droppings. In the region, Colombia & Guatemala witness the highest price premiums owing to the superior quality of organic coffee produced in these countries. Moreover, the increasing consumer requirements for healthy foods & beverages and growing environmental awareness are also contributing to the burgeoning production of organic coffee in the region.
Latin America grows certified organic coffee in bulk & supplies most of it to the United States, where manufacturers are compelled to maintain the highest safety levels for their products due to stringent regulations. Similarly, since food safety issues are not improving as they should and there's increased media coverage about these issues, consumers in the country are increasingly opting for certified organic products, thereby driving the market across Latin America.
Besides, the surging consumer awareness about the significance & various health benefits of organic coffee is also driving its sales in the country and, in turn, contributing to the organic coffee market expansion across Latin America.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Organic Coffee Market is projected to grow at a CAGR of around 7.5% during 2023-28.
A. The mounting health consciousness among people, especially after the advent of Covid-19, which has led to their increased inclination toward consuming food & beverages with natural ingredients, is the prime aspect projected to drive the Organic Coffee Market through 2028.
A. Online distribution channels are anticipated to emerge as an area of remunerative opportunities for the leading players in the Organic Coffee Market over the forecast years.
A. Allegro Coffee Company, Burke Brands LLC, Cameron's Specialty Coffee, Camano Island Coffee Roasters LLC,, Dean's Beans Organic Coffee, Ethical Bean Coffee, Fresh Roasted Coffee LLC, Jim's Organic Coffee, Koffee Kult, Nestlé S.A., Organic Coffee Company, Rogers Family Company, Shearwater Organic Coffee Roasters, and Two Volcanoes Coffee are the key companies participating in the Organic Coffee Market.
A. Globally, Latin America would continue creating substantial growth opportunities for the Organic Coffee Market during 2023-28.
