Allied Market Research published a report, named, “Organic Coffee Market by Type (Arabica and Robusta), Packaging Type (Stand-Up Pouches, Jars & Bottles, and Others), and Sales Channel (Hypermarket/Supermarket, Departmental & Convenience Stores, Specialty Stores, Online Sales Channels, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026.” As stated by this report, the global organic coffee market generated $6.8 billion in 2018 and expected to generate $12.6 billion by 2026, witnessing CAGR of 8.2% from 2019 to 2026.
Prime determinants of growth
The shift toward eco-friendly and sustainable farming procedures, along with a surge in awareness related to the health benefits of coffee, drive the global organic coffee market. However, lengthy approval and certification processes and expensive nature of organic coffee hold back the market growth. However, supportive government initiatives and innovative digital marketing strategies create new opportunities in the coming years.
The Arabica segment to maintain its lead position during the forecast period
Based on type, the Arabica segment was considered the highest market share back in 2018, accounting for around three-fifths of the global organic coffee market, and is estimated to maintain its lead position during the forecast period. The first position is attributed to Arabica possessing rich mineral contents along with having about 60% more lipids and double the concentration of sugar than robusta. On the other hand, the robusta segment is expected to maintain the highest CAGR of 8.8% from 2019 to 2026, owing to the higher content of caffeine, strong blending properties, and better shelf life, as compared to Arabica coffee bean.
The hypermarket/supermarket segment to contribute the highest revenue by 2026
Based on the sales channel, the supermarket segment accounted for the largest market share of the global organic coffee market, held nearly two-fifths of the total share in 2018, and is expected to contribute the highest revenue by 2026. This result is attributed to the rise in the adoption of distribution channels in developed and emerging markets, along with the one-stop solution provided by this format. Although, the online sales channels segment is estimated to witness the fastest CAGR of 10.6% from 2019 to 2026, due to technological advancements, including artificial intelligence and chatbots, along with the omnichannel strategy implemented in this field.
North America to maintain its lead position throughout the forecast period
Based on region, North America had the highest contribution regarding the revenue in 2018, contributing to more than two-fifths of the global organic coffee market, and is estimated to maintain its position throughout the forecast period. The first position is due to an increase in per capita consumption of organic coffee with health consciousness and needs to stay fit in a busy life. However, Asia-Pacific is estimated to witness the most significant CAGR of 10.3% from 2019 to 2026. This result is attributed to a surge in consumption in major countries, including India, Japan, China, and also the Philippines, along with the expansion of product portfolio by leading manufacturers.