Direct-to-Consumer (D2C) Coffee Market Size Worth $2,722.3 Million by 2027 | CAGR: 15.3%: Astute Analytica – Yahoo Finance

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NEW DELHI, Sept. 7, 2021 /PRNewswire/ — As per the report "Global Direct-to-Consumer (D2C) Coffee MarketIndustry Dynamics, Market Size, and Opportunity Forecast to 2027" published by Astute Analytica, the D2C coffee market is estimated to clock CAGR of 15.3% during the period 2020-2027, globally. The market is analyzed to see addition of more than USD 1.56 Bn of opportunity over this forecast term, with volume sales crossing 139.0 kilotons by 2027.
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Direct-to-consumer coffee (D2C or DTC) is roasted, ready-to-serve coffee that can be found at coffee shops, retailers, and shopping malls. Direct-to-consumer coffee is available to anyone who wants to make an instant coffee drink. Pouches, jars, ready-to-drink coffee, and various varieties of direct-to-consumer coffee are available. The demand for unconventional and premium products has risen in recent years, and a dozen or more coffee startups/direct-to-consumer (D2C) businesses are catering to the changing customer taste and expectations. A surge in disposable income and a shift in lifestyle has undoubtedly shifted the global demography towards delightful meals and beverages.
The research study analyzes the impact of some of the major market drivers such as the rising demand of certified and organic products. Consumers have been increasingly aware of the manufacture of the things they buy in recent years, as well as the origins of their purchases. This is especially true in the case of food and beverage supply chains, including coffee. As a result, people are eager to purchase certified coffee goods to assure the quality of the product. Because coffee is becoming an increasingly popular target for food counterfeiters, certified coffee provides consumers with assurances about the product's reliability. Certifications provide consumers with a variety of third-party assurances. They can provide verification for environmentally responsible farming techniques, up to and including organic certification. Fair Trade is one such certification that strives to improve the lives of farmers in underdeveloped countries by guaranteeing a minimum price, connecting them directly with importers, and ensuring long-term environmental stewardship and sustainability. It's a product certification method that verifies the social, economic, and environmental elements of production against Fairtrade Producer and Trader Standards. The Fairtrade system keeps track of the product's purchase and sale until it's packaged and labelled for consumers. Since 2000, Starbucks has offered Fairtrade coffee. Fair trade coffee is coffee that has been recognized by fair trade organizations as having been produced according to fair trade standards. Fair trade organizations form trading partnerships based on discussion, transparency, and respect with the purpose of attaining more equity in international trade. Starbucks sold 34.3 million pounds of Fairtrade coffee in 2011, accounting for 8% of total sales. Also, the firm purchased 9.6 million pounds (2.2%) of certified organic coffee in the same year. However, growing number of health-conscious consumers, as well as the negative health impacts associated with excessive caffeine consumption, are likely to hinder coffee's growth and sales.
The way consumers buy is changing due to a slew of new direct-to-consumer enterprises. In the process, these businesses are profoundly shifting consumer tastes and expectations. Direct-to-consumer companies have taken advantage of this infrastructure to expand swiftly and communicate directly with their customers. Direct-to-consumer (D2C) businesses manufacture and deliver their products directly to clients, skipping intermediaries. Unlike their traditional retail competitors, D2C businesses can experiment with distribution methods like shipping directly to customers, developing partnerships with physical locations, and opening pop-up shops. There's a reason why the D2C method is more effective. When a brand's identity is strong and consistent, consumers are united behind a single message. The most extensively consumed brewed beverage is coffee, which is manufactured from roasted coffee beans, which are the seeds of Coffee species. The International Coffee Organization (ICO) predicted that global coffee consumption in 2019-2020 would be 169.34 million bags.
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Growing desire for coffee as a functional beverage generates profitable opportunities in the market
Coffee has long been a functional beverage, because to its naturally high caffeine level, which has made it a popular source of energy. Convenience and functionality are two main aspects driving the rise of the functional coffee market. Although the "functional" part is tough to achieve, companies are attempting to add such benefits by fortifying coffee with micronutrients. Consumers desire coffee with functional benefits such as metabolism, alertness, and relaxation. Starbucks, for example, introduced a plant-based, protein-blended cold brew in almond and cocoa flavor in 2018, with 12 and 10 grams of plant-based protein, respectively. Full-fat coffee (bulletproof coffee) is another example. This beverage system has gained appeal among weight reduction and fitness experts, as well as "biohackers" — those wanting to improve their brain performance in high-pressure situations.
Europe D2C coffee industry: Top-tier region in the global market
Global market includes the following regions- North America, Europe, Asia Pacific, Middle East and Africa (MEA) and South America. Europe dominates the D2C industry, according to the study, due to higher coffee consumption in the region's wealthy countries. Nespresso debuted its World Explorations range of coffees in January 2021, which are available through Nespresso's D2C online shop. Starbucks-branded products from Nescafé and Nestlé, on the other hand, are often purchased in stores or through third-party online retailers.
During the projected period, the Asia Pacific region in the global D2C market would develop at the quickest CAGR of 19.7%. As in Mainland China, coffee has been ingrained in the culture. Coffee has established itself as a trendy, western luxury among Chinese customers, with coffee shops lined up along the busy streets of cities such as Beijing and Shanghai.
Competitive Landscape
Nestle, JM Smucker Company, The Kraft Heinz Company, Tata Consumer Products Limited and Starbucks Coffee Company dominate the worldwide coffee business, which is a highly competitive market. Furthermore, they are involving consumers in their innovation and expansion efforts, ensuring that they remain competitive among the top companies. New product development, agreements/partnerships, expansions, mergers, and acquisitions are the main strategies used by market players.
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Segment Outline
Market segments comprehended in the report include market size analysis based on revenue and volume in different categories. For instance, soluble type under product segment is projected to grow at highest CAGR of 17.1% in the forecast period and also holds maximum share of more than 40% in 2020.
Similarly, the jars among all the packaging types dominated the market with about 37 percent share in 2020 while pouches and sachets are projected to grow at a fastest CAGR of 16.1% during the forecast period.
The report provides thorough analysis of Global D2C Coffee Market, based on the following segmentations.
By Product Type
By Packaging
By Distribution Channel
By Subscription Model
By End User
By Geography
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