Decaf Coffee Market Size To Reflect Impressive Growth Rate By 2027

Decaf Coffee Market Size Share to reach a valuation of USD 26.20 Billion by 2027 at 6.90% CAGR


Market Overview

Decaf Coffee means coffee with less caffeine content as compared to conventional coffee. 90%-95% caffeine content of coffee beans is removed through various processes resulting in decaf coffee. Decaf coffee has grown significantly in the hot beverages industry due to the growing consumption of decaffeinated beverages.

The value of the global Decaf Coffee Market Size stood at USD 1.65 billion in the year 2019. This value is projected to reach USD 2.8 billion by the year 2027. The compound annual growth rate during the forecast period is estimated to be 7%.

A huge percentage of the global population, especially those 18-24 years, prefer low caffeine intake. Growing awareness about the harmful effects of caffeine, such as digestive problems, high blood pressure, muscle breakdown, anxiety, fatigue, insomnia, and more, is fuelling the demand for decaf coffee, which boosts the growth of this market. Demand for decaf coffee is also coming from the pregnant female population because scientific research has shown that drinking caffeinated beverages during the first 7 weeks of pregnancy increases the risk of miscarriage. This trend is also propelling the growth of the global Decaf Coffee Market Size.

The covid-19 pandemic resulted in the closure of cafes and restaurants. It had a negative effect on the market growth of decaf coffee. The availability of multiple substitutes for decaf coffee is a major restraining factor for this market.

Market Segmentation

On the basis of product, the global Decaf Coffee Market Size is divided into roasted and raw. Raw decaf coffee accounted for 60% of the global revenues in 2019 and continues to have the largest market share. Lower price, soft aroma and growing popularity of home coffee roasters are the main reasons for the dominance of the raw segment. The roasted segment is expected to register the highest CAGR in the forecast period due to growing demand fuelled by roasted decaf coffee's better aroma and flavour.

On the basis of bean type, the market is divided into Arabica and Robusta. Arabica holds the largest market share due to large scale cultivation and high demand owing to naturally low caffeine content, naturally sweet taste due to high sugar content and superior aroma and flavour. The Robusta segment is expected to grow at the fastest rate in the forecast period, mainly due to lower prices of robusta beans.

On the basis of distribution channels, the market is divided into offline stores and online retailers. Offline stores hold the largest share because customers widely prefer to purchase decaf coffee from supermarkets, hypermarkets and convenience stores. The online segment is likely to register the highest CAGR in the forecast period due to the growing popularity of online retail platforms.

Regional Segmentation

On the basis of regions, the global Decaf Coffee Market Size is divided into North America, Europe, Asia Pacific, Latin America and the Middle East and Africa.

Europe holds the largest market share, accounting for 35% of the global revenues in 2019. This is because coffee is very popular in this region, and people are becoming more health-conscious. The Asia Pacific is estimated to grow at the fastest rate in the forecast period due to the rising demand for decaf coffee.

Which region is expected to lead the decaf coffee market?

Due to the availability of various types of decaf coffee at affordable prices, North America is dominating region in the Decaf coffee market. This has driven the growth of the regional market.

Industry News

  • In January 2020, Mc Donalds launched its decaf coffee under the brand name McCafe

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