Product Innovations and Advancements in Technology to Boost Coffee Market Growth

Posted by Bhagyashri bhangale on April 23rd, 2021

A coffee substitute is a non-coffee product that has rich coffee flavours infused in them. Coffee substitutes are gaining the market in recent years with an increase with awareness among the people about coffee consumption.  A coffee substitute is usually the without the utilization of caffeine which is most favourable to the people who are allergic or addicted to caffeine. Another reason for the increase in demand for a coffee substitutes is rapid inclination of people toward veganism.

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With the changing preferences of people with the food substitute toward a healthy lifestyle, Coffee Substitutes market has a growing opportunity. Urbanization and improved standard of living is also a reason for the food and beverage market to promote Coffee Substitutes market. Coffee Substitutes not only eliminates caffeine but also are a good source of inulin, which is a prebiotic fiber known to reduce digestive health and help in the reduction of weight.

 They have nutrients such as vitamin B6 and manganese, the two nutrient which is considered important for improvement of brain health. These benefits are directly boosting the growth of the Coffee Substitutes market. Leading companies operating in Coffee Substitutes market are changing their retail strategy and focusing on online stores which are likely to be major sales channel shortly.

Coffee Substitutes Market: COVID- 19 Impact Insights

COVID-19 pandemic affected coffee substitutes market at a nominal level. During the initial phase of lockdowns across countries, slight decline in the consumption of coffee substitutes in key parts of the world. However, not much decline in consumption was witnessed due to ease of lockdowns in geographic clusters. All-in-all the impact of pandemic was nominal as the manufacturers didn’t notice much decline in revenues from target segment.

Coffee Substitutes Market: Segmentation

 The Coffee Substitutes market can be classified into 6 major categories on the basis of flavours, packing type, nature, end –user, sales and region.

Based on the flavours, Coffee Substitutes market can be divided into:

  • Almond
  • Carmel
  • Chocolate
  • Vanilla
  • Hazelnut             
  • Orange
  • Flavours blends

Based on the packaging, Coffee Substitutes market can be divided into:

  • Bulk packaging
  • Variety pack
  • Tea bags
  • Standup pouch
  • Box packaging

Based on nature, Coffee Substitutes market can be divided into:

  • Organic
  • Convectional

Based on the end-users, Coffee Substitutes market can be divided into:

  • Residential
  • Hotels, restaurants, catering (HoReCa)

  Based on the sales channel, Coffee Substitutes market can be divide into:

  • Direct sales
  • Supermarket sales
  • Convenience Stores
  • Speciality Stores
  • Third-Party Online
  • Company Website
  • Other Channels

Based on the regions, Coffee Substitutes market can be divide into:

  • North America
  • Latin America
  • Europe
  • South Asia
  • Oceania
  • Middle-East and Africa (MEA)

Coffee Substitutes Market: Regional Impact

The cut down in the consumption of coffee can be primarily attributed to a radical change in the dietary habits of consumers. The 2015-2020 Dietary Guidelines for Americans (DGA) stated that, consuming high amounts of coffee can prove to be harmful to health, as it can cause headaches, anxiety, or restlessness in less severe cases. A caffeine overdose can cause diarrhea, chest pain, or uncontrollable muscular movements in serious cases. According to DGA consumption of coffee is dangerous for pregnant and lactating women.

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It is likely to act as a driver for the growth of the global Coffee Substitutes market in the near future.  Coffee Substitutes emulate coffee but ha no caffeine which are encouraging global coffee consumer to shift towards Coffee Substitutes. Steady growth of the global Coffee Substitutes market can identify as a great opportunity for Coffee Substitutes manufacturers to target a larger consumer base.

 Leading players in the global Coffee Substitutes market are adopting strategies to spread awareness about the adverse effects of coffee, and health benefits of Coffee Substitutes to boost sales. According to the World Allergy Organization (WAO), the allergy prevalence in the world is estimated to be in the range of 10-40%. In 2016, the European Academy of Allergy and Clinical Immunology (EAACI) stated that, over 150 million Europeans suffered from one or more allergic diseases.

 It also predicts that, by 2025, half of the European population will be suffering from several allergic diseases. Though caffeine allergies are rare as compared to other food allergies, the prevalence of caffeine sensitivity is increasing around the globe. High awareness among consumers about the harsh allergic reactions to coffee is accelerating the development of the global Coffee Substitutes market.

Coffee Substitutes Market: Key players

Most manufacturers in the global Coffee Substitutes market are addressing the increasing consumer needs for following healthy dietary habits. Consumers are becoming highly conscious about the ingredients in food products before making a purchasing decision.

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Leading market players such as Teeccino and Ayurvedic Roast Company are using natural and organic ingredients with no artificial additives. With the addition of gluten-free and vegan ingredients, these manufacturers are targeting a larger global audience.  Ayurvedic Roast Company are using herbs such as Brahmi, Shatavari, and Ashwagandha during the manufacturing of the substitute. Using herbal ingredients can add a wide range of health benefits to Coffee Substitutes, which can help market players augment their global sales.

Leveraging Various Sales Channels to Help Market Players in Ensuring Rapid Growth in the Market. Growing health-consciousness among consumers is redefining the future of healthy products in the food retail industry. As consumers are linking their food choices to health, retailers ensure the availability of healthful food products, such as Coffee Substitutes, in grocery store aisles.

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Bhagyashri bhangale

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Bhagyashri bhangale
Joined: April 20th, 2021
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