Market Introduction

The global direct-to-consumer coffee market held a market value of USD 983.6 Million in 2020 and is estimated to reach USD 2,722.3 Million by the year 2027. The market is anticipated to register a CAGR of 15.3% during the forecast period. The estimated market volume for direct-to-consumer coffee is expected to reach 139.03-kilo tons by 2027.
Direct-to-consumer coffee companies, connect the local coffee roasters directly with their consumers. The direct-to-consumer coffee market is expected to be driven owing to the increasing demand for the single-serve coffee brewing system and surge in demand for certified coffee products. However, rising awareness regarding the detrimental effects of caffeine on human health is likely to restrain the market growth. Manufacturers reported a positive impact of the COVID-19 on the direct-to-consumer coffee market, as the local brewers would directly deliver the coffee to the rising remote workforce.

Growth Influencers:

Growing demand for the single-serve coffee brewing system

The single-serve coffee brewing systems are experiencing heavy demand owing to the high quality of coffee they offer. The efficiency and availability of diverse choices are also expected to boost market growth. According to a report by Statista, as of December 2020, around 40% of people in the U.S. own single-cup brewing systems. Furthermore, the rising popularity of certain single-serve coffee brewing system brands is also anticipated to boost market growth. These brands include Keurig K-Elite, Black+Decker Single Serve Coffee Maker, Keurig K-Duo Plus, Breville-Nespresso USA VertuoPlus, AeroPress Coffee & Espresso Maker, Cuisinart Premium Single-Serve Brewer, Jura E8 Automatic Coffee Machine, and Keurig K-Caf, among others. All these factors are expected to increase the demand for the single-serve coffee brewing system, hence fuelling the market growth.

A surge in demand for certified coffee products

Certified coffee products are usually well-known brands, whose coffee is known to be of the best quality and is also preferred. The demand for certified coffee is surging, especially in mature markets, such as the U.S., Japan, and the European Union. It is also sold at high retail prices in these markets. Moreover, demand for these certified coffees is also rising in urban areas of emerging nations, such as India, China, Brazil, and Mexico. Hence, a surge in demand for certified coffee products is anticipated to fuel the market growth.

Segments Overview:

The global direct-to-consumer coffee market is segmented based on product, packaging, subscription model, distribution channel, and end-user.

By Product,
Coffee Pod and Capsules
Soluble or Instant Coffee
Whole Beans
Ready-to-Drink
The coffee pods and capsules segment is expected to hold the largest market share of about 44% owing to their high demand. The soluble or instant coffee segment is expected to surpass the whole beans segments volume in 2021 and is also expected to become the second-largest contributing segment in terms of volume. Also, the ready-to-drink segments volume is anticipated to surpass around 70-kilo tons by 2027.

By Packaging,
Jars
Pouches/Sachets
Capsules/Pods
Ready to Drink (RTD)
The pouches/sachets segment is expected to grow at the fastest rate of 16.1% owing to its high adoption due to convenient use. The ready-to-drink (RTD) segment is anticipated to be the largest contributor in terms of volume over the forecast period, with a market volume of 28.21-kilo tons in 2020.

By Subscription Model,
Replenish
Access
Curation
The replenish segment is expected to hold the largest market share owing to their high demand, while the curation segment is anticipated to grow at the fastest rate of 16.6% during the forecast period.

By Distribution Channel,
Online (Company/Brand Websites)
Offline (Specialty Stores/Brand Stores)
The online segment is anticipated to hold the largest market share owing to the increasing adoption of e-commerce websites for ordering such consumer goods products. The offline segment is also expected to grow significantly owing to their high preference, especially in developing nations.

By End User,
Commercial
o Coffee Shops and Restaurants
o Offices
o Education Institutes
o Aviation & Transportation
o Other Commercial Places
Residential
The residential segment is anticipated to hold the largest market share owing to the high demand for direct-to-consumer coffee products by people working from home during the pandemic. On the other hand, the commercial segment is expected to grow at the fastest rate and within, the commercial segment, the offices segment is anticipated to grow at a CAGR of 18.9%.

Regional Overview


On a regional basis, the global direct-to-consumer coffee market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Europe region accounted for the largest market share of about 45% owing to the rising preference for direct-to-consumer coffee over conventional coffees, especially in Northern parts of Europe, which includes countries, such as Sweden, Denmark, Norway, and Germany, among others.
The Asia Pacific region is anticipated to surpass a market volume of about 24-kilo tons by 2027. This is owing to rising awareness regarding the certified direct-to-consumer coffee brands in emerging nations, such as India and China, among others, and the existing high demand in developed countries, such as Japan.

Competitive Landscape


Key players operating in the global direct-to-consumer coffee market include Bean Box, Blue Bottle, Craft Coffee, Gevalia, La Colombe Coffee, Nestle, Pact Coffee, Peets Coffee, Spinn Coffee, Sudden Coffee, Tata Consumer Products Ltd. (TCPL), Tandem Coffee, Vega Coffee, and Yes Plz Coffee, among others.

The cumulative market share of the top 4 players is near about 57%. These market players are engaged in partnerships, new product launches, mergers & acquisitions to strengthen their market presence. For instance, in May 2021, Peets Coffee launched the Carbon Neutral Series Coffee subscription. In this, the company partners with Enveritas, a global sustainability non-profit organization aimed at helping coffee farmers.


The global Direct-to-consumer coffee market report provides insights on the below pointers:


Market Penetration: Provides comprehensive information on the market offered by the prominent players
Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global Direct-to-consumer coffee market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments


The global Direct-to-consumer coffee market report answers questions such as:


What is the market size and forecast of the Global Direct-to-consumer coffee Market?
What are the inhibiting factors and impact of COVID-19 on the Global Direct-to-consumer coffee Market during the assessment period?
Which are the products/segments/applications/areas to invest in over the assessment period in the Global Direct-to-consumer coffee Market?
What is the competitive strategic window for opportunities in the Global Direct-to-consumer coffee Market?
What are the technology trends and regulatory frameworks in the Global Direct-to-consumer coffee Market?
What is the market share of the leading players in the Global Direct-to-consumer coffee Market?
What modes and strategic moves are considered favorable for entering the Global Direct-to-consumer coffee Market?