Revenue from decaf coffee suddenly decreased, will the market change?
– DESCRIBE THE ORIGIN –
The continuous improvement of technology and techniques has allowed coffee manufacturers to continuously upgrade the decaffeination process. This makes the taste and quality of decaf coffee increasingly improved, meeting the demanding tastes of consumers. Decaffeinated coffees are also gradually becoming popular globally. The decaf coffee market has expanded at a positive growth rate over the past few years. However, some manufacturers say sales from decaf coffee show signs of a sharp decline. What is the cause and will the general market be affected? Explore with 43 Factory Coffee Roaster.
Revenue from decaf coffee at manufacturers dropped sharply
According to Maximize Market Research magazine, the decaffeinated coffee market is growing at a steady pace with a valuation of 15.3 billion USD from 2022. In the period from 2023 to 2030, this market is predicted to increased at a significant rate. It is expected that it can reach 22.58 billion USD by 2029, growing at a CAGR (Compound Annual Growth Rate) of 6.7% during the forecast period.
Meanwhile, recent reports show that some decaf coffee manufacturers are showing signs of declining revenue. For example, Swiss Water Company is famous for producing decaf coffee in Canada. The company’s third-quarter 2023 revenue dropped by 29%.
Is the decaf coffee market slowing down as sales decline?
Commenting on the cause of this decrease, Swiss Water company said this was the result of moving the production location from Burnaby to Delta. This change causes production capacity to be limited, leading to a decrease in sales volume. In addition, the price of green coffee beans has been significantly lower compared to the same period in 2022, causing consumer behavior to change.
According to Business Developer at Decadent Decaf Coffee Co, the recent drop in sales is temporary. This may be because the current quality of decaf coffee is not unique and perfect enough to compete with other products. However, decaf coffee is still a potential niche market in the coming years. Especially when the number of health-conscious consumers and the need to control their caffeine intake is increasing. This is driving manufacturers to create new solutions to meet consumer demands for taste and quality. Decaf options will become more popular driving market revenue growth.
Decaf coffee is still an attractive market with great breakthrough opportunities. Although sales of some large enterprises decreased, this did not have much impact on the development opportunities they brought. Because of the health benefits, this type of coffee is undeniable. However, decaffeination and supply and marketing processes need to be invested in to ensure quality improvement while improving customer accessibility.
Decaf coffee at XLIII Coffee is reduced using the Swiss Water method from Cundinamarca Viani #047 specialty coffee beans. Coffee is decaffeinated up to 90% but still ensures the same delicious extracted flavor as the original. If you like it, please visit XLIII Coffee – Brand developed from 43 Factory Coffee Roaster to enjoy.
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