Coffee Roaster market COVID-19 Impact, Trends & Business Statistics By 2028
Posted by Mrudula Karmarkar on September 30th, 2022
The global coffee roaster market size is expected to reach USD 639.7 million by 2028, registering a CAGR of 6.0% over the forecast period, according to a new report by Grand View Research, Inc. Increasing specialty coffee consumption and rising popularity is expected to propel the growth of the market. Many coffee shops and cafes are increasingly roasting coffee beans in-house and serving this fresh coffee to the customers. Surging demand for flavor, aroma, and fresh coffee is anticipated to boost the coffee roasting machines market. Fresh-roasted coffee is loaded with nutrients and antioxidants, which benefit the overall health of the consumers by preventing cancer risk by boosting the immune system and other brain & liver-related health problems. Furthermore, the expansion of coffee shops and café culture in developed and developing economies is contributing positively to the market growth.
The COVID-19 pandemic had a negative impact on the market growth as it disrupted the global supply chain and trade activities. To curb the infection, various nations imposed restrictions and lockdowns, declining consumer coffee intake at cafes and restaurants, majorly in the European countries and U.S. However, the market is expected to recover and perform well with the relaxed restrictions and regulations. The pandemic also resulted in the surge in demand for household consumption of coffee giving a boost to the sales of residential coffee roasters, significant in the U.S.
Residential segment by application is expected to grow at a CAGR of 5.6% over the forecast period. Residential roasting offers several benefits for coffee addicts/enthusiasts and caters to the preference for freshly roasted coffee. Many coffee drinkers are adopting and following the home roasting trend as they want to experience the complete aroma and freshness of the coffee bean. Residential roasting is something undertaken recreationally, without any goals of profit and purely to enjoy the taste. Companies like Roastmasters, Gene, and Aillio have been selling a wide range of home roasting equipment to consumers. Furthermore, new product launches are likely to positively drive the growth of the segment. For instance, IKAWA Ltd. Launched the IKAWA Pro100 sample roaster with a batch capacity of 120 gm.
By type, the hot air segment accounted for the highest share in 2021. Hot air segment of coffee roasters accounted for over 40% market share on a revenue basis. Hot air style coffee roaster is available for industrial as well as commercial applications. The hot air is produced by burning fuel and is passed through the chamber of coffee beans, where the roasting process is carried out. The higher preference for this type is due to the even roasting of coffee beans by surface contact of hot air. In this type, coffee beans are roasted over a longer period and produce a more developed and rich flavor of coffee beans.
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Central and South America is expected to register 2nd growth rate, with a CAGR of 6.5% over the forecast period. In 2022, Brazil’s largest coffee roaster Tres Coracoes held a 27% market share in the country’s overall roasted coffee production volume. The company has planned to expand in Central & South America through acquisitions in Chile, Paraguay, Uruguay, Argentina, and Bolivia, driving the demand for a coffee roaster. The company has acquired eight companies in Brazil since 2005.
Coffee Roaster Market Report Highlights
During the COVID-19 pandemic, online coffee roaster sales have shown a positive growth rate in 2020. However, the effect of continuous social distancing measures and the shutdown of restaurants during lockdown caused a reduction in coffee consumption. This key factor has particularly affected the small and medium-sized coffee roasters that mainly supply to restaurants, cafes, and hotels. The above-mentioned factor hampered the U.S. and European market growth rate in 2020. As a countereffect, consumer preference for home roasting grew and the COVID-19 pandemic boosted the sales of home roasters.
Coffee roasting enhances the flavor, aroma and increases the solubility of green coffee beans. The rate of solubility plays a crucial role in achieving the right extraction through grind size, time, and temperature. The roasted coffee has prompted an interest in quality coffee for many consumers. Coffee roasting has made it easier for coffee to experiment with innovative ways of brewing and has made coffee and brewing machines accessible on commercial and domestic platforms. The above-mentioned factors are boosting the business demand.
The global coffee roaster market is consolidated and characterized by the presence of global key players. To stay ahead in the market competition, key players are opting for strategies such as product innovation, regional expansion, mergers and acquisitions. With the regional expansion, and product innovation key players are aiming to reach wider consumer groups and increase their revenue and market share. For instance, from 2012 to 2018, JAB Holding Company (parent company of Jacobs Douwe Egberts.) acquired around 30 brands. Also, in August 2022, Bolster Investment Partners acquired majority stakes in Giesen Coffee Roasters. Some of the key players operating in the global coffee roaster market include:
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
Articles Posted: 500
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