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Coffee Substitute Market Trends

Report ID: GMI11227
Published Date: Sep 2024
Report Format: PDF

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Coffee Substitute Market Trends

The coffee substitute industry is witnessing a surge in innovation and diversification, with a pronounced focus on health-conscious and sustainable offerings. Beverages crafted from chicory, barley, and adaptogenic herbs are gaining traction, fueled by consumer demand for caffeine-free and nutrient-dense alternatives. Furthermore, as consumers increasingly prioritize natural and eco-friendly products, plant-based and organic options are becoming more prominent. The market is also benefiting from advancements in flavor technology, aiming to closely mimic the taste of traditional coffee. Additionally, the growth of online retail and specialty stores is enhancing the availability and accessibility of coffee substitute for consumers.

According to the United States Department of Agriculture (USDA), the demand for organic products has been growing at a rate of approximately 10% annually, reflecting the increasing consumer preference for natural and eco-friendly options. Similarly, data from the U.S. Census Bureau indicates a significant rise in online retail sales, which supports the expanding reach of coffee substitute in the market.

Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of coffee substitute reached USD 14.2 billion in 2023 and will showcase a 4.7% CAGR during 2024-2032, fueled by a rising consumer interest in healthier, caffeine-free options and a broader shift towards sustainable, natural products.

The conventional segment will reach USD 15.4 billion by 2032, as it offers diverse, health-conscious alternatives made from ingredients like chicory, barley, and rye, while innovating to meet evolving consumer preferences.

North America market was worth USD 6.2 billion in 2023 and will register a 4.4% CAGR through 2032, driven by increasing consumer interest in healthier, caffeine-free alternatives and sustainable products.

Dandy Blend, Hand Family Companies, Teeccino Caffee, Flying Embers, Anthonys Goods, The Hain Celestial Group Inc., Remedy Organics, Tattva's Herbs LLC, Rishi Tea and Botanicals, PepsiCo Inc., Postum, and Rasa Inc.