Global functional coffee market is projected to register a CAGR of 5.77% during the forecast period 2020 - 2025.

  • Global coffee producers have been adding ginseng to instant coffee for a number of years, to offer additional benefits of improving blood circulation and memory. Manufacterers combined the convenience and energy boost of instant coffee to increase the functionality of the coffee beans.
  • The market for functional coffee has expanded to include products with weight loss claims as well. There is a high demand for detox-oriented coffee rich in antioxidants.



Key Market Trends

Growing Demand for Healthy Hydration

Healthy hydration refers to the ability of functional beverages like RTD coffee, to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee or tea. Thus consumers are developing an affinity for functional beverages, due to its ready-to-drink version that offers enhanced convenience, thereby providing suitable, convenient, and healthy alternative to soft drinks. The organoleptic versatility associated with functional coffee makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market. Functional coffee and enhanced water are becoming popular among consumers all around the world, as a result of which the demand for functional beverages is growing.

North America Dominates the Market

Asia-Pacific is the fastest growing region for sales of fortified/functional coffee with Indonesia, India and Vietnam being the fastest-growing functional coffee markets in the across the globe. The market is driven by a surge in new coffee products. The organoleptic versatility associated with functional coffee makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market. Functional coffee and enhanced water are becoming popular among consumers all around the world, as a result of which the demand for functional coffee is growing in the forecast period.

Competitive Landscape

Key players in the market are focusing on expansion through merger and acuisition strategy. Some of the major key players in the functional coffee market, globally includes Nestle S.A., Eight O’ Clock Coffee, FM Cosmetics UK Ltd, Bulletproof 360, Inc, Tata Coffee among others.

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