Gaining ground: Demand for high-quality coffee and rising consumption support industry revenue

Coffee is one of the most popular drinks in the world and is one of the most traded  commodities, second only to oil. According to the British Coffee Association, Britons consume approximately 95 million cups of coffee per day, up from 70 million in 2008. However, this is significantly less than other European nations. Finland, for instance, ground its way through 12.2 kilograms of coffee per capita per year in 2016, compared with 3.3 kilograms in the United Kingdom, according to the International Coffee Organization. This indicates that there is substantial room for growth in the British market...read more.

Industry Statistics & Market Size
Revenue
£1.2bn
Annual Growth 15-20
-1.3%
Forecast Growth 20-25
Profit
Employment
3,354
Businesses
64

Industry Threats & Opportunities

  • Revenue fell sharply in the base year of the past five-year period due to declining coffee prices
  • Enterprise numbers are increasing as new firms aim to take advantage of changing consumer tastes
  • Coca-Cola’s acquisition of Costa may facilitate growth in the company’s market share
  • Industry Report - Starting a New Business Chapter

    The barriers to entering the Coffee Processing industry are moderate. The level of initial capital investment required may be prohibitive for small entrants but the biggest threat facing potential new entrants is the extremely well-entrenched position of the industry’s major players. These companies maintain high brand and customer loyalty and have considerable resources to invest in advertising and promotions in order to increase their market share.The major players are highly integrated companies that have their own coffee plantations across the globe. They are therefore able to protect themselves from commodity price volatility and guarantee a supply of key inputs when global supply is low. Giv...purchase to read more.

    Additional Insights for the Coffee Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee Processing Industry are

  • Access to high quality inputs
  • Having an integrated operation
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from cafes and coffee shops and Demand from supermarkets in the Coffee Processing industry impact industry performance..

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    What's in this report

    What is the Coffee Processing Industry?

    Firms in this industry roast and process coffee into ground coffee, instant coffee, coffee pods, and coffee extracts and concentrates.

    Industry Products
  • Instant coffee
  • Ground coffee
  • Decaffeinated coffee
  • Coffee pods and capsules
  • Coffee extracts, syrups and concentrates
  • Industry Activities
  • Manufacturing ground coffee
  • Manufacturing instant coffee
  • Manufacturing coffee extracts and concentrates
  • Manufacturing decaffeinated coffee
  • Manufacturing coffee substitutes
  • Manufacturing coffee pods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from cafes and coffee shops
  • Demand from supermarkets
  • World price of coffee
  • Real effective exchange rate
  • Real household disposable income

  • Current Performance
  • International influences
  • Chart: Revenue Growth

  • Industry Outlook
  • Artisanal coffee
  • Equality and sustainability
  • Trading uncertainty
  • Table: Coffee Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Coffee, Tea & Spices Wholesaling
  • Supermarkets
  • Food-Service Contractors
  • Cafes & Coffee Shops

  • Key Selling Industries
  • Beverage Crop Growing
  • Hollow Glass Manufacturing
  • Light Metal Packaging Manufacturing

  • Products & Services
  • Instant coffee
  • Ground coffee
  • Coffee pods and capsules
  • Coffee extracts, syrups and concentrates
  • Decaffeinated coffee
  • Chart: Coffee Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Food-service industries
  • Food manufacturers
  • Wholesalers
  • Other
  • Chart: Major Market Segmentation for the Coffee Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Coffee Processing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee Processing Industry

  • Industry Globalization
    Nestle UK Ltd, Jacobs Douwe Egberts GB Ltd, Costa Ltd,
  • Table: Nestle UK Ltd - financial performance
  • Table: Jacobs Douwe Egberts GB Ltd - financial performance
  • Table: Costa Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Coffee Processing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Arabica
  • Often called mountain coffee and indigenous to Africa, it is thought to produce better quality coffee than the other major commercially grown species, robusta.
  • Decaffeination
  • The act of removing caffeine from coffee beans, cocoa, tea leaves and other caffeine-containing materials.
  • Robusta
  • A species of coffee indigenous to Africa, robusta coffee is cheaper to produce and typically has a stronger, more bitter flavour than arabica.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coffee Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coffee Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coffee Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coffee Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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