Organic Coffee Market: Introduction:
Organic Coffee is produced under strict conditions with the absence of inorganic pesticides and fertilizers. The coffee plant used for production is strictly non-GMO and the whole production process is carried under GMP practice regulated by different regulatory bodies like USDA and Agricultural and Agri-food Canada. The Organic food market is already valued approximately more than 50 Billion globally with organic coffee covering one-third of the organic beverage available in the market. The organic coffee market is expected to have a high growth through the forecast period due to the rise of organic trend globally. The attachment of fair trade with organic coffee products also adds a good amount of ethical consumer base in the global organic coffee market.
Organic Coffee Market: Segmentation:
The organic coffee market can be segmented on the basis of origin, end-user, type, and distribution channel.
On the basis of source, the organic coffee market can be segmented into Coffea Arabica and Coffea Canephora. Coffea Arabica is the widely consumed in the organic coffee market. The Coffea Canephora is an exotic variety and is only found in the African region, hence limiting production opportunity for it.
On the basis of end-user, the organic coffee market can be segmented into food and beverage, pharmaceutical, cosmetic and personal care and others. Food and beverage are the primary user of organic coffee and hence is expected to dominate over the forecast period.
The Organic Coffee market can be segmented on the basis of the type such as fair trade coffee, gourmet coffee, espresso coffee, and coffee pods. The fair trade and espresso segments are expected to dominate over the organic coffee type segment due to widely accepted types of organic coffee by consumers.
The Organic Coffee market can be segmented on the basis of distribution channels direct and indirect. The indirect can be sub-segmented into modern trade format, specialty store, convenience store, e-commerce and other retail formats. The modern trade format and e-commerce are expected to have a larger share in terms of volume as targeted consumers are easy to achieve under such formats.
Organic Coffee Market: Region-wise Outlook:
North America is anticipated to stay strong market for the organic coffee as it is an already established organic food market globally with over 40% share in the total organic food industry. Europe and Latin America to capture the following spots respectively as a major consumer due to large consumption of coffee traditionally. Asia-Pacific to also show healthy growth with its rapid urbanization and penetration of western culture café concept.
Organic Coffee Market: Drivers and Restraints:
The main driver for the organic coffee market will be the advent of ethical-ness aligned with it. Most of the organically grown coffee producer uses fair trade method to rightfully pay the growers which are to attract a large number of ethical consumers globally. Benefits of organic coffee over conventional coffee and premium pricing is also anticipated to further drive the organic coffee market globally.
Low market penetration and premium pricing may result in restraint for the organic coffee market. The manufacturers of the organic coffee market should concentrate on marketing strategy to gain the untapped market successfully.