Ground Coffee Market Trends, Size, and Industry Outlook 2031

The global ground coffee market is expected to leap from $13.4 billion in 2023 to $19.5 billion by 2030, demonstrating a promising compound annual growth rate (CAGR) of 5.5% during the forecast period from 2023 to 2030.

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Key Drivers and Trends Fueling Market Growth

Sustainable and Ethically Sourced Coffee Products

The increasing demand for sustainable and ethically sourced coffee products is a key trend driving the ground coffee market. Consumers are prioritizing environmentally friendly practices, fair trade, and transparency in the coffee supply chain. Companies focusing on sustainability and ethical sourcing are witnessing significant market growth.

Rising Coffee Consumption

The growing appreciation for coffee's aroma, flavor, and caffeine boost, along with the rising coffee shop culture, is driving demand for ground coffee products globally. Increasing coffee consumption is expected to fuel the ground coffee market as more consumers embrace the coffee culture.

Premiumisation

The trend of premiumisation is set to drive the market as consumers increasingly seek high-quality, artisanal coffee experiences. This fuels demand for gourmet and specialty coffee blends, prompting companies to innovate and offer premium products. As consumers show a willingness to pay for superior quality, the market responds with upscale offerings, driving overall market growth.

Innovations in Flavor and Packaging

Innovations in flavor and packaging are expected to propel the ground coffee market. Unique flavor profiles, creative blends, and attractive packaging designs cater to evolving consumer preferences, driving product differentiation, consumer engagement, and market growth.

Market Segmentation and Dominance

Drip Ground Coffee Leads the Market

Drip ground coffee type has captured the largest market share due to its convenience and compatibility with popular brewing methods such as drip coffee makers. This pre-ground format eliminates the need for manual grinding, offering consumers a hassle-free brewing experience and consistent flavor profiles.

Food and Beverage Applications

The food and beverage application captured the largest market share in the ground coffee market due to its versatile usage in various culinary applications. Ground coffee serves as a key ingredient in recipes for desserts, marinades, sauces, and savory dishes, enhancing flavor profiles and driving its dominance in this segment.

Regional Insights

Asia Pacific Growth

The Asia Pacific region is experiencing significant growth in the ground coffee market due to increasing urbanization, rising disposable incomes, and evolving coffee consumption habits. Growing coffee shop culture, expanding retail channels, and a burgeoning café culture contribute to the region's growing demand for ground coffee products.

North American Market Dynamics

North America is also witnessing growth in the ground coffee market due to the expanding preference for specialty and gourmet coffee, along with the rising popularity of at-home coffee brewing. The region's dynamic café culture, coupled with innovations in product varieties, contributes to the sustained growth of the ground coffee market in North America.

Comparative Analysis: Historical and Future Perspectives

Historical Market Trends

The ground coffee market has experienced growth due to increasing consumer demand for convenience and ready-to-use coffee products. The rising trend of home brewing and the proliferation of coffee shops have further contributed to market expansion. The growing popularity of specialty coffee varieties and innovative flavor offerings have catered to diverse consumer preferences, fueling the growth of the ground coffee market.

Future Market Projections

The future of the ground coffee market appears promising, with continued growth anticipated due to several factors. Rising global coffee consumption, increasing demand for specialty and premium coffee varieties, and the growing popularity of convenient coffee solutions are expected to drive market expansion. Ongoing innovations in coffee processing techniques, flavor profiles, and packaging formats will further cater to evolving consumer preferences and lifestyles.

Key Growth Determinants

Increasing Coffee Consumption Trend

The growing preference for at-home coffee brewing among consumers is leading to a rise in the demand for ground coffee. Additionally, the shift towards specialty and gourmet coffee varieties has fueled market growth. The convenience and ease of use of ground coffee products have further contributed to this trend.

Growing Premiumisation

Premiumisation enhances the overall coffee experience, elevating it beyond a mere beverage to a sensory indulgence or lifestyle choice. Brands invest in premiumisation through sourcing high-quality beans, implementing sustainable and ethical practices, and offering innovative packaging and brewing methods. This focus on premium offerings attracts coffee enthusiasts and strengthens brand loyalty.

Innovations in Flavor Profiles and Packaging Formats

The introduction of diverse and unique flavors, including exotic and seasonal variations, appeals to consumers seeking novel taste experiences. Advancements in packaging, such as resealable and eco-friendly options, enhance convenience and sustainability, aligning with consumer values.

Challenges in the Market

Environmental Impact

Environmental impact poses a significant challenge due to concerns about deforestation, water usage, and carbon emissions associated with coffee production. Meeting these demands requires significant investments in sustainable farming practices, supply chain transparency, and environmental conservation efforts.

Competition from Alternative Beverages

With the rise of options like energy drinks, herbal teas, and specialty juices, consumers now have diverse choices beyond traditional coffee. The ground coffee sector must innovate, diversify product offerings, and communicate the distinct advantages of coffee to retain its consumer base amidst increasing beverage options.

Key Trends and Opportunities

Sustainable Sourcing

Sustainable sourcing practices, promoting biodiversity, and supporting fair labor conditions are crucial trends. This includes sourcing beans from certified organic farms, implementing shade-grown methods, and supporting initiatives that prioritize environmental conservation and community development.

Digitalisation

Advancements like online sales platforms, personalized subscription services, and IoT-enabled coffee machines streamline purchasing, offer customized experiences, and provide data-driven insights into consumer preferences.

Flavour Innovation

The development of unique and enticing flavor profiles to cater to diverse consumer preferences is a key trend. Experimenting with different bean varieties, roasting techniques, and flavor additives creates distinctive and memorable coffee experiences.

Regulatory Scenario

The ground coffee market is subject to various regulatory frameworks governing food safety, labeling, and trade standards. Compliance with regulatory standards is essential for market access and consumer trust, driving industry efforts to adhere to evolving regulations and maintain product quality and safety standards.

Fairfield’s Ranking Board

Top Segments

Drip Ground Coffee Remains Favoured

Drip ground coffee type has captured the largest market share due to its convenience and compatibility with popular brewing methods such as drip coffee makers.

Demand Maximum Across Food and Beverage

The food and beverage application has captured the largest market share due to its versatile usage in various culinary applications.

Regional Frontrunners

North America Leads the Market

North America has captured the largest market share due to a strong coffee culture, high consumption rates, and the presence of major coffee brands.

Asia Pacific Exhibits Remarkable Growth

The Asia Pacific region is expected to demonstrate a higher CAGR due to shifting consumer preferences, rapid urbanization, and a burgeoning café culture.

Competitive Landscape

The competitive landscape of the ground coffee market is characterized by a mix of global giants and regional players vying for market share. Key companies such as Nestlé, J.M. Smucker, and Starbucks dominate with their extensive product portfolios and strong brand recognition. Smaller specialty coffee roasters and boutique brands offer unique flavor profiles and artisanal blends, contributing to market diversity. Intense competition drives innovation, branding strategies, and market segmentation to cater to diverse consumer preferences.

Leaders in the Global Ground Coffee Space

The Kraft Heinz Company, Death Wish Coffee Company, Starbucks, Folgers Coffee, Jo Coffee Royal Kona, Hills Bros. Coffee, Red Thread, Kicking Horse Coffee, Peet's Coffee, Red Thread, Nestlé S.A., The J.M. Smucker Company, Dunkin' Brands Group, Inc., Keurig Dr Pepper Inc., and Lavazza Group.