Functional Coffee Market: Increasing consumption of coffee to driving growth
The key factor driving the functional coffee market growth is the increasing consumption of coffee. Coffee is the second-most traded commodity in the world after oil. The cultivation of coffee is limited to 45 countries globally, with Brazil, Vietnam, Indonesia, and Colombia being the leading producers of coffee. In developed countries, such as the US, Canada, and Japan, coffee is the second-most preferred beverage after soft drinks. For instance, the demand for coffee pods has been increasing at a significant rate in the US owing to the ease of brewing and the convenience of brewing coffee at home. This has resulted in increased growth opportunities for the vendors in the market. This is also compelling vendors to focus on product diversification and introduce new flavors to increase their earnings. As a result, the market in focus is expected to grow during the forecast period.
Functional Coffee Market: Increasing popularity of coffee among millennials is a major trend
The increasing popularity of coffee among millennials is a major trend for the market. An improvement in economic conditions and an increase in job opportunities have made different types of coffee more affordable to young consumers. Millennials tend to spend more on premium beverage brands and are also keen to experiment with new types, brands, and flavors of beverages. Millennials also tend to socialize more, especially in coffee shops. This has led to a surge in the number of coffee shops, which has further strengthened the global functional coffee market. In addition, rising disposable incomes in emerging Asian, Eastern European, and Latin American countries and the growing coffee shop culture are the main factors boosting the popularity of different types of coffee, including functional coffee among Millennials. Such factors are projected to positively impact the market growth in the coming years.
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Functional Coffee Market: Segmentation Analysis
This market research report segments the functional coffee market by Product (Whole bean coffee, Ground coffee, and RTD coffee) and Geography (Europe, APAC, North America, South America, and the Middle East and Africa).
The functional coffee market share growth by the whole bean coffee segment will be significant for revenue generation. The growth is attributed to the high demand for whole bean coffee as it is ground just before brewing, and so it tends to taste more fresh and flavorful than pre-ground coffee beans.
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Functional Coffee Market Scope |
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.85% |
Market growth 2022-2026 |
USD 2.36 billion |
Market structure |
Fragmented |
YoY growth (%) |
5.33 |
Performing market contribution |
APAC at 33% |
Competitive landscape |
Leading companies, competitive strategies, consumer engagement scope |
Companies profiled |
Baristas Coffee Co. Inc., Berner Food and Beverage, Bulletproof 360 Inc., Cothas Coffee Co., Farmer Bros Co., FM Cosmetics UK Ltd., Function Coffee Labs, Heine Brothers Coffee, Ingenuity Beverages LLC, Kitu Life Inc., Nathan Coffee Mart, Nestle SA, Peak State, Peets Coffee Inc., Royal Cup Inc., Sklew Biotech Ltd., Starbucks Coffee Company, Strauss Group Ltd., Tata Sons Pvt. Ltd., and Vardhman Foods and Beverages |
Market Dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and future consumer dynamics, market condition analysis for the forecast period, |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of Content
1 Executive Summary
- 1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Global Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 06: Executive Summary – Chart on Incremental Growth
- Exhibit 07: Executive Summary – Data Table on Incremental Growth
- Exhibit 08: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 09: Parent market
- Exhibit 10: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 11: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 12: Market segments
- 3.4 Market outlook: Forecast for 2021-2026
- Exhibit 13: Chart on Global - Market size and forecast 2021-2026 ($ million)
- Exhibit 14: Data Table on Global - Market size and forecast 2021-2026 ($ million)
- Exhibit 15: Chart on Global Market: Year-over-year growth 2021-2026 (%)
- Exhibit 16: Data Table on Global Market: Year-over-year growth 2021-2026 (%)
4 Five Forces Analysis
- 4.1 Five forces summary
- Exhibit 17: Five forces analysis - Comparison between 2021 and 2026
- 4.2 Bargaining power of buyers
- Exhibit 18: Bargaining power of buyers – Impact of key factors in 2021 and 2026
- 4.3 Bargaining power of suppliers
- Exhibit 19: Bargaining power of suppliers – Impact of key factors in 2021 and 2026
- 4.4 Threat of new entrants
- Exhibit 20: Threat of new entrants – Impact of key factors in 2021 and 2026
- 4.5 Threat of substitutes
- Exhibit 21: Threat of substitutes – Impact of key factors in 2021 and 2026
- 4.6 Threat of rivalry
- Exhibit 22: Threat of rivalry – Impact of key factors in 2021 and 2026
- 4.7 Market condition
- Exhibit 23: Chart on Market condition - Five forces 2021 and 2026
5 Market Segmentation by Product
- 5.1 Market segments
- Exhibit 24: Chart on Product - Market share 2021-2026 (%)
- Exhibit 25: Data Table on Product - Market share 2021-2026 (%)
- 5.2 Comparison by Product
- Exhibit 26: Chart on Comparison by Product
- Exhibit 27: Data Table on Comparison by Product
- 5.3 Whole bean coffee - Market size and forecast 2021-2026
- Exhibit 28: Chart on Whole bean coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 29: Data Table on Whole bean coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 30: Chart on Whole bean coffee - Year-over-year growth 2021-2026 (%)
- Exhibit 31: Data Table on Whole bean coffee - Year-over-year growth 2021-2026 (%)
- 5.4 Ground coffee - Market size and forecast 2021-2026
- Exhibit 32: Chart on Ground coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 33: Data Table on Ground coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 34: Chart on Ground coffee - Year-over-year growth 2021-2026 (%)
- Exhibit 35: Data Table on Ground coffee - Year-over-year growth 2021-2026 (%)
- 5.5 RTD coffee - Market size and forecast 2021-2026
- Exhibit 36: Chart on RTD coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 37: Data Table on RTD coffee - Market size and forecast 2021-2026 ($ million)
- Exhibit 38: Chart on RTD coffee - Year-over-year growth 2021-2026 (%)
- Exhibit 39: Data Table on RTD coffee - Year-over-year growth 2021-2026 (%)
- 5.6 Market opportunity by Product
- Exhibit 40: Market opportunity by Product ($ million)
6 Customer Landscape
- 6.1 Customer landscape overview
- Exhibit 41: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
7 Geographic Landscape
- 7.1 Geographic segmentation
- Exhibit 42: Chart on Market share by geography 2021-2026 (%)
- Exhibit 43: Data Table on Market share by geography 2021-2026 (%)
- 7.2 Geographic comparison
- Exhibit 44: Chart on Geographic comparison
- Exhibit 45: Data Table on Geographic comparison
- 7.3 Europe - Market size and forecast 2021-2026
- Exhibit 46: Chart on Europe - Market size and forecast 2021-2026 ($ million)
- Exhibit 47: Data Table on Europe - Market size and forecast 2021-2026 ($ million)
- Exhibit 48: Chart on Europe - Year-over-year growth 2021-2026 (%)
- Exhibit 49: Data Table on Europe - Year-over-year growth 2021-2026 (%)
- 7.4 APAC - Market size and forecast 2021-2026
- Exhibit 50: Chart on APAC - Market size and forecast 2021-2026 ($ million)
- Exhibit 51: Data Table on APAC - Market size and forecast 2021-2026 ($ million)
- Exhibit 52: Chart on APAC - Year-over-year growth 2021-2026 (%)
- Exhibit 53: Data Table on APAC - Year-over-year growth 2021-2026 (%)
- 7.5 North America - Market size and forecast 2021-2026
- Exhibit 54: Chart on North America - Market size and forecast 2021-2026 ($ million)
- Exhibit 55: Data Table on North America - Market size and forecast 2021-2026 ($ million)
- Exhibit 56: Chart on North America - Year-over-year growth 2021-2026 (%)
- Exhibit 57: Data Table on North America - Year-over-year growth 2021-2026 (%)
- 7.6 South America - Market size and forecast 2021-2026
- Exhibit 58: Chart on South America - Market size and forecast 2021-2026 ($ million)
- Exhibit 59: Data Table on South America - Market size and forecast 2021-2026 ($ million)
- Exhibit 60: Chart on South America - Year-over-year growth 2021-2026 (%)
- Exhibit 61: Data Table on South America - Year-over-year growth 2021-2026 (%)
- 7.7 Middle East and Africa - Market size and forecast 2021-2026
- Exhibit 62: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
- Exhibit 63: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ million)
- Exhibit 64: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
- Exhibit 65: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)
- 7.8 US - Market size and forecast 2021-2026
- Exhibit 66: Chart on US - Market size and forecast 2021-2026 ($ million)
- Exhibit 67: Data Table on US - Market size and forecast 2021-2026 ($ million)
- Exhibit 68: Chart on US - Year-over-year growth 2021-2026 (%)
- Exhibit 69: Data Table on US - Year-over-year growth 2021-2026 (%)
- 7.9 Germany - Market size and forecast 2021-2026
- Exhibit 70: Chart on Germany - Market size and forecast 2021-2026 ($ million)
- Exhibit 71: Data Table on Germany - Market size and forecast 2021-2026 ($ million)
- Exhibit 72: Chart on Germany - Year-over-year growth 2021-2026 (%)
- Exhibit 73: Data Table on Germany - Year-over-year growth 2021-2026 (%)
- 7.10 France - Market size and forecast 2021-2026
- Exhibit 74: Chart on France - Market size and forecast 2021-2026 ($ million)
- Exhibit 75: Data Table on France - Market size and forecast 2021-2026 ($ million)
- Exhibit 76: Chart on France - Year-over-year growth 2021-2026 (%)
- Exhibit 77: Data Table on France - Year-over-year growth 2021-2026 (%)
- 7.11 Italy - Market size and forecast 2021-2026
- Exhibit 78: Chart on Italy - Market size and forecast 2021-2026 ($ million)
- Exhibit 79: Data Table on Italy - Market size and forecast 2021-2026 ($ million)
- Exhibit 80: Chart on Italy - Year-over-year growth 2021-2026 (%)
- Exhibit 81: Data Table on Italy - Year-over-year growth 2021-2026 (%)
- 7.12 Indonesia - Market size and forecast 2021-2026
- Exhibit 82: Chart on Indonesia - Market size and forecast 2021-2026 ($ million)
- Exhibit 83: Data Table on Indonesia - Market size and forecast 2021-2026 ($ million)
- Exhibit 84: Chart on Indonesia - Year-over-year growth 2021-2026 (%)
- Exhibit 85: Data Table on Indonesia - Year-over-year growth 2021-2026 (%)
- 7.13 Market opportunity by geography
- Exhibit 86: Market opportunity by geography ($ million)
8 Drivers, Challenges, and Trends
- 8.3 Impact of drivers and challenges
- Exhibit 87: Impact of drivers and challenges in 2021 and 2026
9 Vendor Landscape
- 9.2 Vendor landscape
- Exhibit 88: Overview on Criticality of inputs and Factors of differentiation
- 9.3 Landscape disruption
- Exhibit 89: Overview on factors of disruption
- 9.4 Industry risks
- Exhibit 90: Impact of key risks on business
10 Vendor Analysis
- 10.1 Vendors covered
- Exhibit 91: Vendors covered
- 10.2 Market positioning of vendors
- Exhibit 92: Matrix on vendor position and classification
- 10.3 Baristas Coffee Co. Inc.
- Exhibit 93: Baristas Coffee Co. Inc. - Overview
- Exhibit 94: Baristas Coffee Co. Inc. - Business segments
- Exhibit 95: Baristas Coffee Co. Inc. - Key offerings
- Exhibit 96: Baristas Coffee Co. Inc. - Segment focus
- 10.4 Bulletproof 360 Inc.
- Exhibit 97: Bulletproof 360 Inc. - Overview
- Exhibit 98: Bulletproof 360 Inc. - Product / Service
- Exhibit 99: Bulletproof 360 Inc. - Key offerings
- 10.5 Cothas Coffee Co.
- Exhibit 100: Cothas Coffee Co. - Overview
- Exhibit 101: Cothas Coffee Co. - Product / Service
- Exhibit 102: Cothas Coffee Co. - Key offerings
- 10.6 FM Cosmetics UK Ltd.
- Exhibit 103: FM Cosmetics UK Ltd. - Overview
- Exhibit 104: FM Cosmetics UK Ltd. - Product / Service
- Exhibit 105: FM Cosmetics UK Ltd. - Key offerings
- 10.7 Ingenuity Beverages LLC
- Exhibit 106: Ingenuity Beverages LLC - Overview
- Exhibit 107: Ingenuity Beverages LLC - Product / Service
- Exhibit 108: Ingenuity Beverages LLC - Key offerings
- 10.8 Nathan Coffee Mart
- Exhibit 109: Nathan Coffee Mart - Overview
- Exhibit 110: Nathan Coffee Mart - Product / Service
- Exhibit 111: Nathan Coffee Mart - Key offerings
- 10.9 Nestle SA
- Exhibit 112: Nestle SA - Overview
- Exhibit 113: Nestle SA - Business segments
- Exhibit 114: Nestle SA - Key news
- Exhibit 115: Nestle SA - Key offerings
- Exhibit 116: Nestle SA - Segment focus
- 10.10 Peets Coffee Inc.
- Exhibit 117: Peets Coffee Inc. - Overview
- Exhibit 118: Peets Coffee Inc. - Product / Service
- Exhibit 119: Peets Coffee Inc. - Key offerings
- 10.11 Tata Sons Pvt. Ltd.
- Exhibit 120: Tata Sons Pvt. Ltd. - Overview
- Exhibit 121: Tata Sons Pvt. Ltd. - Business segments
- Exhibit 122: Tata Sons Pvt. Ltd. - Key offerings
- Exhibit 123: Tata Sons Pvt. Ltd. - Segment focus
- 10.12 Vardhman Foods and Beverages
- Exhibit 124: Vardhman Foods and Beverages - Overview
- Exhibit 125: Vardhman Foods and Beverages - Product / Service
- Exhibit 126: Vardhman Foods and Beverages - Key offerings
11 Appendix
- 11.2 Inclusions and exclusions checklist
- Exhibit 127: Inclusions checklist
- Exhibit 128: Exclusions checklist
- 11.3 Currency conversion rates for US$
- Exhibit 129: Currency conversion rates for US$
- 11.4 Research methodology
- Exhibit 130: Research methodology
- Exhibit 131: Validation techniques employed for market sizing
- Exhibit 132: Information sources
- 11.5 List of abbreviations
- Exhibit 133: List of abbreviations
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