The global coffee pouch market is anticipated to accumulate a market value of US$823 million this year and will surge in size by more than 50 per cent, to a valuation of US$1.45 billion over the next decade, according to a report by Future Market Insights.
The report states that the coffee pouch market reflected a growth of 4 per cent CAGR in the period of 2018 to 2022. Booming coffee sales, driven by rising consumption of coffee among younger people, is a key factor driving the market growth of coffee pouches. This is being driven by their increasing preference for pouch-form packaging.
Pouch proponents say they come with many benefits, including being lightweight in nature, flexible, and taking less space. More importantly, the packaging requires significantly less raw material, and in line with the push towards the adoption of renewable packaging solutions, will help the paper coffee pouches to expand substantially. During the forecast period, the paper segment will grow by 1.3 times, which will benefit the expansion of the overall market, the report claims.
The surge in demand for on-the-go beverages has also led to the need for re-closable stand-up coffee pouches as they offer convenience to consumers.
The evolving consumer demand, from rigid to flexible packaging patterns, is also contributing to market growth, says the report. The rising preference for stand-up pouches, over other rigid packaging products like metal cans and bottles, is expected to provide "lucrative growth opportunities" for key product manufacturers.
Innovation in technology, sustainability concerns, and attractive economics have driven considerable growth in coffee packaging worldwide over the last two decades.
Also, convenience, affordability of pouches, and growing demand for packaged beverage products are assisting in market growth. Stand-up pouches are generally made with lightweight materials, which significantly cuts the cost of transportation. The demand is also fuelled by the fact that pouches come with numerous closure options, such as a spout, zipper, and tear notch.
The report finds that North America is projected to dominate the market with more than 39 per cent market share by end of the forecast period. Factors such as rising coffee consumption, and the powerful presence of companies like Black Rifle Coffee Company and Colectivo Coffee Roasters in the region, are primarily responsible for the growth there.
Asia Pacific, on the other hand, is projected to advance at the fastest CAGR of 5.6 per cent during the forecast period. India and China have emerged as potentially lucrative with increasing production and export of coffee from these countries. All emerging economies combined are expected to account for more than half of the shares of the Asia Pacific market.
This report was published by Future Marketing Insights. You can get a full copy of the report here.
