Coffee Processing Industry is gaining traction amid the increasing popularity of coffee across various segments and increasing varieties of flavored and exotic coffee. Although the beverage is popular in Western countries, viz. Europe and the USA. Apart from it, there are various newer emerging markets such as the Asia Pacific. There has been an increasing demand for gourmet coffees, organic and sustainable sourcing, and the specialty and popularity of premium and single-origin coffee varieties impact market dynamics. These factors have led to the development of the surging market for coffee in the country.
Coffee Processing Industry: New Developments, Trends and Innovations
The coffee industry has seen a large number of innovations and the advent of new varieties of coffee. Further, the sourcing of the coffee beans has also emerged as an ethical issue. These beans are currently viewed through an ‘Organic’ lens and an ‘ethically sourced’ lens during consumption. The following are the new developments in the coffee processing industry.
Coffee Cocktails
There has been an ever-increasing number of new varieties of coffee cocktails. It has led to the development of innovative tastes and flavors. These new flavors have increased the popularity of the beverage and offered new scopes to the customers.
Specialty Coffee
There has been an ever-increasing demand for specialty coffee. It is the highest grade of green bean coffee available. The process of developing such coffee involves the entire supply chain. These coffees have features such as single-estate or single-origin coffees. Specialty Coffee is unique in flavor and taste, leading to an increase in its demand.
Organic Coffee
The rising demand for clean-label and sustainably produced coffee has expanded the market for organic coffee. Such coffee is produced without the use of fertilizers and pesticides. Although not significant, the organic coffee constitutes around 3% of the total coffee produced in the country.
Coffee Processing Industry: Market Analysis, Current Trends, and Market Drivers
According to Grand View Research, the global coffee market size was estimated at USD 269.27 billion in 2024. The agency has predicted it to reach USD 369.46 billion by 2030. The industry will grow at a CAGR of 5.3% from 2025 to 2030. There has been an ever-increasing demand for coffee across the globe. According to the agency, the coffee market in Europe has dominated the global market with the largest revenue share of 34.1% in 2024. The coffee market in Germany led the European market in 2024. Roasted coffee accounted for the largest share of 56.1% of the global revenue in 2024.
Drivers of the Coffee Market
Increased Consumption
There has been an ever-increasing consumption of coffee across the globe. The consumption is on the rise globally, particularly in emerging markets. There are a large number of factors, like urbanization and changing lifestyles are responsible for the increase in consumption of coffee.
Disposable Incomes
A rise in disposable income is also one of the factors behind the increasing consumption of coffee across the globe. The spending power of consumers has increased, allowing them to indulge in premium coffee experiences and specialty coffee beverages.
Innovative Coffee Culture
Innovations in the coffee industry have led to the development of nascent varieties of coffee. The inclination of consumers to better coffee quality, such as specialty coffee, gourmet blends, and unique brewing methods, has also led to an expansion of the coffee market.
Urbanization and Globalization
The adoption of the Western lifestyle is contributing to the growth of coffee consumption. It has become a part of daily routine and diets across the globe. For Example, consumers in East Asian and Indo-Pacific regions, which were once fond of beverages such as tea, now find coffee as an alternative beverage.
Coffee Processing Industry: Global And National Safety Standards
There are various national and international safety agencies that look after the regulations of food safety standards across the globe. However, we will cover FSSAI regulations in India and FDA regulations in the USA.
FSSAI
The Food Safety and Standards Authority of India is the nodal agency for ensuring food safety in India. FSSAI defines Coffee (green raw or unroasted) as the dried seeds of Coffea arabica, Coffea liberica, Coffea excelsa, or Coffea canephora (robusta) with their husks (mesocarp and endocarp) removed. According to the agency, the Roasted coffee means properly cleaned green coffee which has been roasted to a brown colour. It must have developed its characteristic aroma.
- The agency defines ground coffee as the powdered products obtained from ‘roasted coffee’ only and shall be free from husk.
- Furthermore, according to the agency, the Coffee (green raw or unroasted), ‘roasted and ground coffee’ must be free from any artificial colouring, flavouring, extraneous matter or glazing substance and shall be in sound, dry, and fresh condition, free from rancid or obnoxious flavour.
- The agency has set the following set of standards for Roasted coffee and ground coffee:
Apart from standards for roasted and ground coffee, the agency sets standards for Decaffeinated roasted and ground coffee, Soluble Coffee Powder, Decaffeinated soluble coffee powder, Chicory, coffee-chicory mixture, and Instant Coffee-chicory mixture.
FDA Regulations
The FDA (U.S. Food and Drug Administration) regulates the food safety standards in the United States. It regulates the production process of coffee from the farm to the fork.
Labelling Requirements
The agency requires specific requirements for coffee labels to ensure accurate information is provided to consumers. The following are the key elements mandated by the FDA for coffee packaging:
Product Identity
FDA requires the label to clearly state that the package contains coffee.
Net Contents
The labels must display the net weight or volume of the coffee product. It aims to make it transparent for the consumers while purchasing the coffee.
Nutrition Facts
The FDA requires coffee manufacturers to provide detailed nutritional information per serving. It must include data on calories, total fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, dietary fiber, sugars, added sugars, protein, vitamin D, calcium, iron, and potassium.
Ingredient Declaration
The labels must include the list of all ingredients present in the coffee. Further, these ingredients must be listed in descending order of predominance by weight.
Allergen Information
The FDA wants the coffee processors to clearly identify common allergens if present in the processed coffee.
Insect Infestation
The FDA has proposed a set of guidelines for the coffee infested with insects. According to the agency, 10% or more of green coffee beans that are insect-infested or moldy can get regulatory clearance.
Roasting Process
The FDA requires the beans to be heated to high temperatures (over 400°F) to effectively kill most microorganisms and reduce contaminants like insect parts and mold.
Caffeine Content
The FDA strictly regulates the caffeine content in coffee. According to the agency, 400 milligrams of caffeine per day is safe for most healthy adults. It is equivalent to 2-3 12-ounce cups of brewed coffee.
Way Forward
The expansion of coffee beyond the Western Markets towards Asia and the Indo-Pacific region has yielded a good sign for the coffee processors. New and innovative products have further led to the expansion of the coffee product portfolio. The current market expansion of coffee has forecasted a positive result for the coffee processors, which will ultimately maximize profits.