Coffee Packaging Market - Innovative Packaging and Promotions Bode Well for Growth

From: TMR
Published: Mon Oct 08 2018

The global coffee packaging market is expected to see remarkable growth throughout the forecast period, primarily due to the increase in demand for coffee in institutional sales such as hotels, restaurants, office cafeterias, and others. Coffee packaging keeps coffee fresh for longer time and has a direct impact on the taste of the beans.

In addition, every coffee producing company needs to distinguish itself from its competitors and packaging is one of the easiest ways to achieve it. The companies are thus striving to introduce innovative, airtight, and attractive coffee packages since recent past.

Manufacturers in coffee packaging market are inclined more towards making their products user friendly. They are taking efforts in promoting their packaging products in diverse geographies, without any language barrier. In addition, due to the growing concern towards obesity and other health problems, the demand for functional beverages such as ready-to-drink (RTD) coffee is recently gaining popularity worldwide. Owing to its low calorie content, there are increasing chances of bolstering adoption of ready-to-drink coffee in near future.

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According to packaging type, sacks segment is anticipated to be the highest contributor to the global coffee packaging market revenues. This segment currently holds more than 16% share of the market value and the report estimates its expansion at a CAGR of 4.7% through to 2027, up from a value worth US$ 105.8 Mn attained in 2017. Block bottom bags segment is anticipated to expand at a highest CAGR of 5.5% by value, among all the packaging types.

Among material types, the paper and paper board segment is the fastest growing material segment among all the coffee packaging material formats. This segment is anticipated to expand at a promising CAGR of 4.8% during the forecast period. Increasing demand for sustainable packaging is one of the main factors influencing the penetration of paper and paper board in the coffee packaging.

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Among distribution channel segments, retail sales segment is the fastest growing segment among all the coffee packaging distribution channel segments.  Institutional sales segment is anticipated to dominate the global coffee packaging market, creating an estimated incremental $ opportunity of US$ 211.8 Mn throughout the forecast period.

The global market for coffee packaging has been segmented into five regions, i.e. North America, Latin America, Europe, Asia Pacific region (APAC), and Middle East & Africa (MEA). Europe is likely to remain the global leader on account of having the largest consumer base. In addition, a majority of youngsters are shifting their preferences towards RTD coffee. Latin America’s coffee packaging market is anticipated to expand at a lucrative CAGR of 5.9% during 2017-2027. Brazil is the major contributor in Latin America, whereas China and India spearhead the coffee packaging market in APAC.

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