The global sparkling coffee market size was valued at USD 587.45 million in 2021. It is projected to reach USD 1,757.71 million by 2030, growing at a CAGR of 12.95% during the forecast period (2022–2030).
The ingredients for traditional cold brew coffee are used in preparing fizzy cold brew coffee, including the addition of carbonated water. The water gives it carbonation that provides a nice bubbly kick that, combined with the robust taste and familiar coffee flavor, is entirely unbeatable.
The water also gives it carbonation which provides a nice bubbly kick. Energy drinks with caffeine are increasingly popular because studies show that caffeine can help people stay more focused and alert throughout the day. Shops and cafes typically stock canned or bottled versions of sparkling coffee. This ready-to-drink (RTD) form makes the product more accessible to a wider variety of consumers as it is more convenient.
The market for sparkling coffee is growing as consumers' demand for ready-to-drink beverages is rising. These ready-to-drink products are more popular among millennials. The addition of caffeine and various tastes will offer more expansion opportunities. Sparkling coffee is gaining popularity worldwide as consumers look for healthier alternatives to soda and other carbonated drinks without giving up the taste or texture of carbonation. Customers seek wholesome substitutes that will improve their health and enable them to consume less sugar. The market will have several growth opportunities as long as this trend holds during the projection period. Rising consumer awareness of healthy beverages and their willingness to try new healthy beverage variants on the market, especially among millennials, have fueled the growth of the sparkling coffee market.
Manufacturers are launching new products to address the rising demand for sparkling coffee among consumers, particularly the younger generation. Many consumers, especially those who favor portable goods, are drawn to ready-to-drink (RTD) coffee, particularly sparkling coffee. The increase in demand for ready-to-drink goods is mainly due to millennials. Additionally, many customers have been drawn in by the availability of RTD coffee in liquid and powder form with various flavorings and organic variations. Consumers are switching from freshly brewed to instant coffee due to ongoing innovation in the RTD category, such as introducing the cold brew concept.
The bubbles in this effervescent beverage can result in bloating, burping, and other gas-related symptoms since the sparkling water used to make the coffee contains CO2. Some sparkling water brands may contain artificial sweeteners like sucralose and other sweeteners, which can cause diarrhea and change the gut microbiota. This might reduce sparkling coffee's appeal to consumers concerned about their health. Increased government scrutiny of clean labels and ingredients will limit market growth during the anticipated period. Due to growing consumer health consciousness, businesses are concentrating more on creating products that use natural ingredients, like stevia sweeteners.
The global sparkling coffee market is segmented by product and distribution channel.
Based on the product, the market is bifurcated into caffeinated and decaffeinated.
The caffeinated product category held the most market share. The fact that manufacturers now offer a wide variety of energizing flavors has contributed to the popularity of sparkling flavored coffee. The significant players in the market are introducing brand-new products to meet the ever-increasing customer demand. Decaffeinated sparkling coffee is still in its infancy as a concept and is very specialized. These businesses include Manhattan Special and Union Coffee, which provide a decaf beverage version. The decaffeinated market is expected to expand since decaffeinated beverages help prevent aging and cancer.
Based on the distribution channel, the market is categorized into hypermarkets and supermarkets, convenience stores, online, and others.
The market leadership and largest share belonged to the other distribution channel segment. Convenience stores, hypermarkets, and supermarkets collectively held a sizeable portion. Most consumers prefer to purchase grocery items from hypermarkets and supermarkets where they can physically inspect the product quality. These segments are expected to maintain their market share during the forecast period. The online distribution channel is anticipated to proliferate due to the growing consumer preference for online platforms, and direct-to-consumer marketing is now standard practice for businesses.
The global sparkling coffee market is segmented into North America, Europe, and the Rest of the World.
North America held the most significant portion of the global sparkling coffee market. Consumers' increased preference for the beverage over conventional caffeinated drinks since it boosts energy and concentration is anticipated to fuel the market. Additionally, it is anticipated that numerous manufacturers in this area, including Manhattan Special and Spindrift, will further spur regional market expansion. Due to rising consumer demand for portable, caffeinated drinks, the European market is anticipated to grow at a notable CAGR during the forecast period. Additionally, quick-service restaurants are growing significantly in Europe. To increase their presence in an environment that is becoming more and more competitive, they have been introducing several new drinks and food items that are inspired by both national and international cuisines.
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