Decaffeinated Coffee Market Worth $2.8 Billion By 2027 | CAGR: 7.0%

April 2020 | Report Format: Electronic (PDF)

The global decaffeinated coffee market size is expected to reach USD 2.8 billion by 2027, registering a CAGR of 7.0% over the forecast period, according to a new report by Grand View Research, Inc. Rising awareness about the harmful effects of caffeine on human health, such as anxiety, insomnia, digestive issues, muscle breakdown, high blood pressure, and fatigue, is expected to promote the scope of decaf coffee as healthy drinks. Additionally, shifting inclination towards functional and decaffeinated beverages among millennials at the global level as a result of increased health awareness through social media and television campaigns by hot beverage companies is expected to expand the industry scope.

Over the past few years, new product developments through synergizing the business expertise between two or three companies are expected to open new avenues. For instance, in February 2020, Starbucks and Nestlé together launched a new range of coffee capsules for the Nespresso original system. It comes in four premium signature blends and is made from ethically sourced Arabica coffee. Starbucks Decaf Espresso Roast, which is one of the four blends, has caramelly sweetness. These capsules are made from recyclable aluminum and are accepted in Nespresso’s Canadian recycling solutions.

Similarly, in February 2020, The Caffeinery's began its coffee roasting program. The roaster roasts three pounds of coffee every nine minutes. The company also offers decaffeinated blend, which has been awarded several times for its year-round catalog. Likewise, in January 2020, McDonald’s through its brand, McCafe launched decaf coffee drinks with the aim of attracting local customers who are sensitive to caffeine and heavy coffee drinkers. Four such drinks are available, which include Americano, McCafe Latte, Cappuccino, and Espresso. This offers a variety of choices for customers seeking to control their daily caffeine intake.

Key decaffeinated coffee market participants include SWISS WATER DECAFFEINATED COFFEE INC.; LifeBoost Decaf; Cafe Don Pablo Colombia Supremo Decaf; No Fun Jo Decaf; and Fresh Roasted. Product innovation is expected to remain a key strategy among the industry players in the near future.

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Further key findings from the study suggest:

  • Raw products generated revenue of USD 1.0 billion in 2019. Growing popularity of home roaster is motivating people to opt for unroasted and raw product forms

  • Roasted products are expected to expand at the fastest CAGR of 8.1% from 2020 to 2027. These product categories are expected to gain popularity among the consumers due to their enhanced flavor and excellent aroma characteristics

  • Based on bean species, Arabica accounted for around 30% share of the global revenue in 2019. This is attributed to large cultivation and easy availability of these beans

  • Asia Pacific decaffeinated coffee market is expected to exhibit the fastest CAGR of 8.2% from 2020 to 2027 on account of improvement in economic indicators in countries, including Indonesia, Malaysia, and India.

Grand View Research has segmented the global decaffeinated coffee market on the basis of product, bean species, distribution channel, and region:

Decaf Coffee Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Roasted

  • Raw

Decaf Coffee Bean Species Outlook (Revenue, USD Million, 2016 - 2027)

  • Arabica

  • Robusta

  • Others

Decaf Coffee Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

  • Online

  • Offline

Decaf Coffee Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

  • Europe

    • France

    • Italy

    • Germany

  • Asia Pacific

    • Japan

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

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