Organic
is the latest buzzword and the food and beverage industry is one of
the frontrunners in adopting it to grow its sales. The coffee market,
for example, has come up with the organic variety grown without the
use of inorganic pesticides and fertilizers. Its market has already
become worth US$50 bn. In fact, organic coffee account for about a
third of the organic beverages sold worldwide. The market is
projected to expand at a healthy clip in the near future as well due
to more and more people switching to organic stuff.
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Organic
coffee not just finds application in food and beverage, but also in
the cosmetic, pharmaceutical, and personal care sectors. However, it
is the food and beverage sector that is at the forefront of driving
demand for it. The different types of organic coffee purveyed in the
market are espresso coffee, fair trade coffee, coffee pods, and
gourmet coffee. Of them, espresso and fair trade and espresso coffee
will see their demand surge in the future.
Depending
upon the type of distribution channel, the organic coffee market can
be split into direct and indirect. The indirect segment can be
further divided into specialty store, modern trade format,
convenience store, e-tailing, and other retail formats. Among them,
the modern trade format and e-commerce segment are predicted to pick
up maximum steam and contribute to maximum sales in terms of volume
on account of the convenience they accord.
Geographically,
North America is a key market for organic coffee by dint of being in
an already established market for organic food. Europe and Latin
America are expected to emerge as prominent markets too because of
massive consumption of coffee in the two regions. Asia-Pacific market
is also predicted to rise to prominence because of the swift pace of
urbanization and penetration of western culture café concept.
Organic
Coffee is produced under strict conditions with the absence of
inorganic pesticides and fertilizers. The coffee plant used for
production is strictly non-GMO and the whole production process is
carried under GMP practice regulated by different regulatory bodies
like USDA and Agricultural and Agri-food Canada. The Organic
food market is already valued approximately more than 50
Billion globally with organic coffee covering one-third of the
organic beverage available in the market. The organic coffee market
is expected to have a high growth through the forecast period due to
the rise of organic trend globally. The attachment of fair trade with
organic coffee products also adds a good amount of ethical consumer
base in the global organic coffee market.
North
America is anticipated to stay strong market for the organic coffee
as it is an already established organic food market globally with
over 40% share in the total organic food industry. Europe and Latin
America to capture the following spots respectively as a major
consumer due to large consumption of coffee traditionally.
Asia-Pacific to also show healthy growth with its rapid urbanization
and penetration of western culture café concept.
The
main driver for the organic coffee market will be the advent of
ethical-ness aligned with it. Most of the organically grown coffee
producer uses fair trade method to rightfully pay the growers which
are to attract a large number of ethical consumers globally. Benefits
of organic coffee over conventional coffee and premium pricing is
also anticipated to further drive the organic coffee market globally.
Low
market penetration and premium pricing may result in restraint for
the organic coffee market. The manufacturers of the organic coffee
market should concentrate on marketing strategy to gain the untapped
market successfully.
The
global player for the organic coffee market are Rogers Family
Company, Death Wish Coffee Co., Burke Brands Llc., Jungle Products
Cr., Camano Island Coffee Roasters Llc., Specialty Java Inc., Coffee
Bean Direct Llc., and Allegro Coffee Company.
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