Coffee Machine Market is segmented by type (drip, espresso, single-serve), end-user (residential, commercial), distribution channel (online, offline), and region (North America, Europe, Asia-Pacific)- Market Size, Trends, Opportunity, Forecast 2023-2032
The global coffee machine market accounted for USD 9,965.7 Million in 2022, registering a compound annual growth rate (CAGR) of 1.6% between 2023 and 2032. Rising consumption of coffee in Asian countries is believed to drive the demand for the global coffee machine market. The regional space of Asia Pacific region comprises of three fastest retail coffee markets including Indonesia, India, and Vietnam. For instance, as per the stats, released by the Specialty Coffee Association of Asia in 2022, Indonesia observed a growth of nearly 17.2% from 2014 to 2022 in its coffee retail marketspace, followed by India at approximately 14.3% and Vietnam at 13.7%.
On the basis of product, the market is segmented into Bean-to-Cup, Drip Filter, Capsule, Espresso and others. Within this category, drip filter coffee is projected to dominate the global market. However, the segment is projected to lose its market share to capsule and expresso product segment respectively. As people around the globe are restricted to go out due to the lockdown imposed in various countries. This has influenced the consumer’s preference of coffee drinking from commercial spaces such as cafes and restaurants to homes. The demand for drip filter coffee is expected to remain stagnant as buyers shift towards capsule or pod coffee. This trend has been prominent in terms of reducing sales of drip filter coffee machines since 2016. In addition, continuous innovations by the manufacturers with introduction to new technology is expected to further restrain the market growth of the product segment. The segment is poised to rebound post pandemic situation owing to the pent up orders from commercial spaces.
On the basis of the distribution channel, the market is segmented into specialty retailers, department stores, hypermarkets and supermarkets and online distribution channels. Among this category, hypermarkets and supermarkets accounted for significant market share. However, over the coming years, the online stores are projected to witness lucrative growth owing to the larger penetration of e-commerce platforms in developing countries. Majority of the companies tie up with specialty distributors, this segment is expected to witness a dip in the market due to the breakout of the pandemic. The sales through specialty stores is expected to increase post 2021 as the commercial centers around the world normalizes itself in this pandemic world.
In terms of geography, the coffee machine market is segregated into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Europe accounted for the significant share of the global coffee machine market. Europe coffee machine market was evaluated at USD 3,871.8 Million in 2022.
Growth Drivers & Issues in Global Coffee Machine Market
Growth Drivers:
Increased consumption of coffee especially among the millennial population is projected to drive the market growth over the forecast period. For instance, as per the stats published by the National Coffee Association, nearly 70% of the coffee consumed by the millennial population in the U.S. is in form of gourmet beverage.
Further, the rise in cafe culture is expected to boost the demand for global coffee machines during the forecast period. Moreover, the increased awareness about various health benefits related with coffee including weight loss, boosts physical performance, burns fats, reduces risk of cancer, Parkinson's diseases, etc. is expected to drive the coffee machines market.
Market Restraints:
Hospitality industry over the globe is expected to decline due to the pandemic, which is expected to further affect the market:
Covid-19 has majorly impacted the hospitality industry in 2022-2023 and is expected to further impact the industry until 2021. The occupancy rates are expected to further reduce due to the pandemic, this is expected to affect the hospitality industry, which is likely to further affect the coffee machines market. In addition, due to the current pandemic scenario, the majority of the companies around the globe have asked their employees to work from home. This is expected to reduce the construction activities for office spaces, showrooms, commercial spaces, etc. which in turn is expected to reduce the demand for coffee machines from commercial application segment.
Demand for white goods and other high-end consumer durables is expected to remain impaired as consumers are expected to postpone their purchases due to lower disposable income, and uncertainty over growth prospects. In addition, majority of the components and raw materials are imported from Asia Pacific region and the shortage of electronic components from countries including China, is expected to increase the prices. In addition, imposed restriction due to the global pandemic is projected to restrain trade and movement of coffee goods over the short term period.
Global Coffee Machine Market Trends
The growing trend of smart/automatic coffee machines with features including timer, wifi, and touchscreens is widely becoming popular among the millennial consumers. The technological development is expected to fuel the growth during the forecast period. Furthermore, increased consumption of instant coffee especially amongst the working population around the globe is expected to propel the demand for automatic coffee machines.
Opportunities in Global Coffee Machine Market
The parent coffee machine companies have strong connections with their component and raw material suppliers in order to achieve new materials, new technologies, new processes in order to ensure high quality of and innovative machines, this is expected to increase the demands for coffee machines mainly in the residential segment.
Market Value Chain and Supply Chain Analysis
|
Attribute |
Details |
|
Market Size (2022) |
USD 9,965.7 Million |
|
Market Size Projection (2032) |
USD 10,744.2 Million |
|
CAGR (2023-2032) |
1.6% |
|
Growth Drivers |
- Rising coffee consumption in Asian countries |
|
- Growth of retail coffee markets in Asia Pacific region |
|
|
Market Dynamics |
- Shifting consumer preferences from commercial to home coffee consumption |
|
- Impact of pandemic on coffee machine demand and distribution |
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- Publication date: 3rd September 2023
- Base year: 2022
- Forecast year: 2023-2033
- Format: PDF, PPT,Word,Excel
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