Global Sparkling Coffee Market Grows Tremendously at a CAGR of 13.20%

Introduction

Carbon dioxide may make coffee sparkling. Coffee flavor and acidity are minimized. Sparkling coffee is popular as a chilly alternative to ordinary coffee. The sparkling coffee business will grow as more people learn about its benefits. This coffee is popular at cafés and restaurants as well as grocery stores.

Several methods produce sparkling coffee. Most people use carbonators. This apparatus seals coffee after adding carbon dioxide. After that, serve carbonated coffee hot or cold. Kegs makes sparkling coffee. Cafes and restaurants use this method. Coffee is kegged after brewing. After filling the keg with carbon dioxide, the coffee sits for several days. Thus, tap-dispensable carbonated coffee is made. Sparkling coffee is a fun alternative to coffee. If you want to spice up your coffee, try sparkling coffee.

Market Dynamics

Introduction of RTD Coffee Drives the Global Market

Ready-to-drink (RTD) coffee, especially carbonated RTD coffee, is popular among diverse consumers, especially those who prefer portable consumables. The rise in the prevalence of RTD coffee drinks can be largely attributed to the millennial generation. In addition, the availability of ready-to-drink (RTD) coffee in liquid and powder form, infused with various flavors and organic variants, has attracted many consumers. Additionally, ongoing innovation in the RTD sector, such as introducing cold brew coffee, has led consumers to prefer instant coffee over freshly produced coffee. This change is a direct consequence of the increasing popularity of cold brew coffee.

Few customers opt to prepare this coffee at home because preparing cold brew coffee at home requires a specific extraction method and a time-consuming process. After this, it became one of the most popular ready-to-drink (RTD) coffee products on the market, whereas previously, it was merely a featured beverage at coffee establishments.

People are Transitioning to Sugar-Free Beverages Creates Tremendous Opportunities

According to new research, Americans no longer consume sugar-free beverages. The Lancet analysis indicates that sweetened drink sales in the United States had decreased since 2000, when the country ranked first. Its per capita consumption of sweetened drinks has decreased. Governments have attempted taxation, public education, and sales restrictions in schools to limit the consumption of sugary drinks with varying degrees of success. These measures were adopted because excessive added sugar consumption is associated with obesity and poor cardiometabolic health. Multiple brands offer effervescent coffee with natural sugar to consumers. Vivic sells licorice-flavored, lightly carbonated effervescent coffee on Amazon.

Therefore, people prefer sugar-free cold beverages and carbonated coffee. Carbon dioxide is injected under pressure into modern effervescent coffee. Even with flavoring, this water contains significantly less sugar than seltzer. To meet consumer demand, manufacturers introduced sugar-free effervescent coffee. Sail Away Coffee Company offers Nitro Unsweetened carbonated coffee with a robust, acidic, toasted flavor and no added chemicals. Americans are increasingly ordering effervescent or flavored coffee in restaurants. These factors should stimulate the market for effervescent coffee during the forecast period.

Regional Analysis

North America is the most significant global sparkling coffee market shareholder and is estimated to exhibit a CAGR of 12.8% over the forecast period. The region held the largest market share due to consumers' increased desire for sparkling coffee rather than more conventional caffeinated beverages. It is anticipated that the presence of a substantial number of manufacturers in the area, such as The Coca-Cola Company, Manhattan Special, and Spindrift, will further fuel the expansion of the market. This is one of the factors that will contribute to the market's growth.

Additionally, it is projected that increasing consumer preference for the beverage, which, in comparison to traditionally caffeinated beverages, serves to raise both energy levels and attention, will be the key factor driving expansion in the market. This prediction is based on the fact that it is anticipated that increasing customer preference for the beverage will serve to increase both energy levels and focus. It is not out of the question that this compulsion will become even more intense over the next few years. It is anticipated that a sizeable number of producers in this region, such as Manhattan Special and Spindrift, will be of considerable assistance in developing the market in this area.

Europe is anticipated to exhibit a CAGR of 11.9% over the forecast period. The market has successfully attracted the attention of members of the younger generation, who are enthusiastic about coffee due to various inventions and advancements in specialty drinks, including sparkling coffee. In addition, social media influencers across various networks have been contributing to the movement, along with corporations that manufacture soft drinks, several coffee shops, and roasters all over the continent.

In addition, during the past few years, this area has seen a significant increase in fast-food restaurants opening their doors for business. To expand their reach in a market that is becoming increasingly competitive, they have been releasing several new beverages and food items that both traditional American cuisine and cuisines have influenced from around the world. It is anticipated that this will be favorable for the market for sparkling coffee in the years to come.

Key Highlights

• The global sparkling coffee market size was valued at USD 47 billion in 2022. It is estimated to reach USD 4.49 billion by 2031, growing at a CAGR of 13.20% during the forecast period (2023–2031).
• Based on the product, the global sparkling coffee market is bifurcated into caffeinated and decaffeinated. The caffeinated segment dominates the global market and is projected to exhibit a CAGR of 12.3% over the forecast period.
• Based on distribution channels, the global sparkling coffee market is divided into hypermarkets and supermarket, convenience stores, online, and others. The online segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 14.7% over the forecast period.
• North America is the most significant global sparkling coffee market shareholder and is estimated to exhibit a CAGR of 12.8% over the forecast period.

Competitive Players

Competitive Players

The key players in the global sparkling coffee market are DrinkVIVIC, MATCHLESS COFFEE SODA, Keepers Sparkling Coffee, Upruit; Union Coffee, Paulig; Slingshot Coffee Co.; Nongfu Spring; Stumptown Coffee Roasters; and Manhattan Special.

Recent Developments

Market News

• In April 2022, Illycaffè, a global leader as a coffee supplier, expanded its cold brew coffee portfolio by adding new ready-to-drink flavors. It has been done to satisfy coffee enthusiasts' desire for extremely premium cold coffee recipes.

• In June 2022, Paulig started new climate projects in the coffee-origin countries to accelerate sustainable farming practices. Paul's new coffee climate projects in the coffee origins encourage implementing climate-smart farming practices to meet Paulig's science-based target to reduce greenhouse gas (GHG) emissions in its value chain by 50% by 2030.

Segmentation

Global Sparkling Coffee Market: Segmentation

By Product

• Caffeinated
• Decaffeinated

By Distribution Channel

• Hypermarket and Supermarket
• Convenience stores
• Online
• Others

By Regions

• North America
• Europe
• Rest of World