Market Size of Functional Coffee Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 4.03 Billion |
| Market Size (2029) | USD 4.45 Billion |
| CAGR (2024 - 2029) | 2.03 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Functional Coffee Market Analysis
The Functional Coffee Market size is estimated at USD 4.03 billion in 2024, and is expected to reach USD 4.45 billion by 2029, growing at a CAGR of 2.03% during the forecast period (2024-2029).
The functional coffee market is one of the fastest-growing areas in the beverage industry as it considers a healthy halo, offering drinks containing properties perceived as better and healthier. Subsequently, the growing health consciousness among global consumers is further propelling the functional coffee product demand. Coffee infused with cannabinoids (CBD) is becoming popular with consumers due to its health benefits, including pain and anxiety relief. Owing to this trend, the players are introducing innovative products. For instance, in August 2022, US-based Brewpoint Coffee launched cannabidiol (CBD) infused coffee, targeting consumers seeking jitter-free beverages infused with CBD's calming effects.
On the other hand, the drinks claiming to boost the immune system and contain antioxidants with powerful anti-inflammatory benefits have witnessed higher demand among consumers. Hence, manufacturers have infused turmeric, ginger, cardamom, and cinnamon into coffee grounds to aid digestion and strengthen immune function. For instance, in September 2022, Nutrocore, a premium USDA Organic and non-GMO certified grown coffee supplier, introduced cinnamon turmeric organic coffee in the market.
Global coffee producers have been adding ginseng to instant coffee for many years to offer additional benefits of improving blood circulation and memory. Manufacturers have combined the convenience and energy boost of instant coffee to increase these coffee beans' functionality. The market for functional coffee expanded to include products with weight-loss claims as well. For example, Bulletproof Coffees offer coffee combined with MCT oil (medium-chain triglycerides) and butter, which helps to support weight loss. The market is driven by multiple factors, including increasing demand for certified coffee products and consumers' acceptance of single-serve coffee brew systems.
Functional Coffee Industry Segmentation
Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain coffee species. Functional coffee is made by blending coffee with other ingredients, such as botanicals and proteins, through which consumers can get more than caffeine. The global functional coffee market is segmented by product type, distribution channel, and geography. Based on product type, the market is segmented into the whole bean, ground coffee, and RTD coffee. Based on distribution channels, the market is segmented into supermarkets/hypermarkets, cafes and foodservice, convenience stores, online store, and other distribution channels. Based on geography, the study analyzes the functional coffee market in emerging and established markets across the globe, including North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
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| Whole Bean | |
| Ground Coffee | |
| RTD Coffee |
| Distribution Channel | |
| Supermarket/Hypermarket | |
| Cafes and Foodservice | |
| Convenience Stores | |
| Online Stores | |
| Other Distribution Channels |
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Functional Coffee Market Size Summary
The functional coffee market is experiencing rapid growth within the beverage industry, driven by increasing health consciousness among consumers globally. This segment of the market is characterized by coffee products that offer additional health benefits, such as those infused with cannabinoids like CBD, which are popular for their pain and anxiety relief properties. Manufacturers are innovating by incorporating ingredients like turmeric, ginger, and cinnamon to enhance immune function and digestion. The market is also seeing the introduction of products with weight-loss claims, such as those combining coffee with MCT oil and butter. The demand for certified coffee products and the convenience of single-serve brew systems are further propelling market expansion. The trend towards healthy hydration and the rising popularity of ready-to-drink functional beverages are making them a preferred alternative to traditional soft drinks, particularly in regions with high coffee consumption like Europe and North America.
The competitive landscape of the global functional coffee market is marked by the presence of major players such as Nestle SA, Starbucks Corporation, and Bulletproof 360 Inc., who are focusing on strategic expansions through mergers and acquisitions. These companies are investing in online distribution channels to cater to the growing consumer demand for convenience. The Asia-Pacific region is expected to be the fastest-growing market due to the burgeoning coffee culture and increasing number of cafes. The COVID-19 pandemic has further shifted consumer preferences towards fortified coffee products, enhancing the market's growth potential. Key players are also introducing innovative products, such as herbalife's high-protein premix coffee and Cecors' mushroom-infused coffee, to meet the evolving consumer preferences for functional beverages.
Functional Coffee Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Whole Bean
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2.1.2 Ground Coffee
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2.1.3 RTD Coffee
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2.2 Distribution Channel
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2.2.1 Supermarket/Hypermarket
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2.2.2 Cafes and Foodservice
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2.2.3 Convenience Stores
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2.2.4 Online Stores
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2.2.5 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Spain
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle-East and Africa
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Functional Coffee Market Size FAQs
How big is the Functional Coffee Market?
The Functional Coffee Market size is expected to reach USD 4.03 billion in 2024 and grow at a CAGR of 2.03% to reach USD 4.45 billion by 2029.
What is the current Functional Coffee Market size?
In 2024, the Functional Coffee Market size is expected to reach USD 4.03 billion.
