Decaf coffee is gaining popularity in global markets as more and more customers follow the current wellbeing trend, considering it as a healthy alternative to common coffee.

In contrast to Western markets that already have large numbers of decaf coffee consumers, the popularity of coffee without caffeine (or with a small content of it) is just gaining momentum in several emerging nations, many of which can provide significant growth opportunities for players operating in this market segment.

The existing big potential of the decaf coffee market is confirmed by research data. According to predictions of international research agency, Skyquest Technology, over the next seven years, the decaf coffee market will grow by six to seven percent annually, reaching USD $28.86 billion by 2030. By comparison, in 2022, this figure was $19.5 billion. The growth will be observed both in developed nations and emerging countries, where such growth rates are expected to be higher.

As for developed nations, it is expected the United States will be a major driver of growth for decaf coffee in years to come as the demand for coffee with less caffeine among local consumers remains high.

The National Coffee Association (NCA) of the USA reports that more consumers across the country are adopting healthier lifestyles, which may also be associated with increased coffee consumption, since scientific evidence continues to strengthen and shows that both decaffeinated and regular coffee are associated with decreased risk of multiple cancers and chronic diseases.

Speaking with T&CTJ, William “Bill” Murray, president and CEO of the NCA, said decaf coffee has already become an integral part of life for many Americans. “Like regular coffee, decaf is a mainstay in Americans’ lives, and we expect that to continue. Signs point to growth for decaf with Americans over the age of 40, and opportunities for decaf to adjust to consumers’ tastes and interests are abundant.”

Murray further noted that consumers are more interested in health and wellness than ever before and that “there is growing awareness that decaffeinated coffee is associated with decreased risk of multiple cancers and chronic diseases.”

In accordance with NCA’s Spring 2024 National Coffee Data Trends (NCDT) Report, seven percent of Americans had decaf coffee in the past day, and past-day decaf consumption is increasing among Americans ages 40-plus.

Per the NCDT report, past-day decaf consumption is highest for Americans in the 60-plus age group, ten percent of whom had decaf in the past day – up by 11 percent since July 2023. At the same time, past-day decaf consumption has also increased for Americans ages 40-59, with six percent drinking a decaf in the past day – up by 20 percent since July 2023.

Consumption grows in Scandinavia

In the European Union, the biggest growth in demand and consumption of decaf coffee has been observed in certain Nordic states – the countries which are known for their record coffee consumption in general.

One such country is Finland, where sales of decaf coffee have been rapidly growing since the beginning of the 2020s.

Löfbergs instant decaf coffee. Image: Löfbergs

Marleena Tanhuanpää, director of the Finnish Food and Drink Industries´ Federation, said that in recent years there has been a positive trend and continuous sales increase for decaffeinated coffee in Finland. “It is definitely trending at the moment as [there has been an increase in the number] of new locally roasted products, [along with] increased visibility and assortment availability, which is raising consumer interest [in decaf coffee].” Tanhuanpää further noted that decaf coffee innovations coming from local roasteries such as filter coffee with good taste profiles that meet the local needs and preferences are helping drive growth.

“The absolute user amount is still limited in the market but the potential for further growth is there,” Tanhuanpää explained, adding, “especially with the younger (under 35 years old) urban demographic, and women, in particular, are interested in decaffeinated coffee – they want to enjoy the taste of coffee, but regular coffee is not always the most suitable option.”

In neighbouring Denmark, the demand for decaf coffee also remains high, although the share of the segment in the overall Danish coffee market is small.

Henrik Frellsen, the chairman of the Danish Coffee Association and CEO of Frellsen Kaffe, one of the biggest local coffee producers, said decaf coffee currently makes up a small share of the coffee market in Nordic countries. “In Denmark, it accounts for less than one percent of the volume, [which is] constant and has historically remained at this level.”

He does not expect a sharp growth of the segment in years to come despite believing in its huge future potential. “We foresee no significant development at this level. In recent years, coffee has transitioned from a product perceived as less healthy to one that naturally fits into a healthy lifestyle. Therefore, caffeine no longer appears to be harmful,” Frellsen explained. “However, increased awareness of the importance of sleep for health pulls in the opposite direction. In Nordic food culture, there is a loyalty to pure raw materials. Hence, [those] with this concern would choose an alternative beverage later in the day rather than a decaf coffee.”

Some analysts report that the estimated potential of decaf coffee is too exaggerated and does not correspond to some current realities. Referencing the most recent edition of Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey, Matthew Barry, insight manager, Food and Beverage at Euromonitor International, said that self-reported interest in drinking less caffeine or none at all reached a new record high, at 46 percent of respondents. “You could interpret that to mean we were at the verge of an explosion in decaf. After all, that is nearly half of adults in the world saying they want to drink less caffeine. But I don’t see things that way. The reality is that caffeine is just too important for people to get through their days so this represents an aspiration more than anything else. I think this signals that people recognise that they need to take actions to mitigate some of the negative side effects of excess caffeine consumption.”

Barry noted that the data absolutely shows there has been a real explosion of products with calming, relaxing, or sleep-promoting claims across food and beverage in recent years. “Essentially, rather than switch their morning coffee to decaf, consumers are sticking with the regular coffee and looking for something in the evening to calm them down and help them sleep. People want to have it all,” he said.

The decaf coffee market is also of great interest to the global majors, many of which have significantly strengthened their positions in it in recent years. For example, illycaffè, the Italian coffee producer, considers the decaf coffee segment a priority.

Francesco Bosso, chief commercial officer of illycaffè, said the company offers decaffeinated coffee in its range with all preparations to satisfy the taste of all consumers. In recent years, he said, the

illy’s low caffeine coffee, Idillyum. Image: illycaffè

demand for such coffee has significantly increased, noting that “usually, decaffeinated coffee is preferred by one out of four consumers and mainly as an alternative to coffee in the evening.” Bosso said that illy coffee is a blend composed of 100 percent Arabica beans of the best quality, which by its nature contains a lower amount of caffeine than Robusta coffee. “In addition, for consumers who are looking for a preparation with a very low caffeine content, we also propose Idillyum, a coffee composed only of the fine Arabica variety called Laurina, grown specifically for our company in El Salvador. This product naturally has a very low caffeine content, less than one percent (a third less than the classic Arabica varieties and less than half of Robusta).”

Bosso expects the demand for decaf coffee will continue to grow, while the growth of the segment will be comparable to the dynamics of the entire coffee market.

Regarding further market prospects, most of the interviewed analysts and producers believe the demand for decaf coffee will continue to grow in years to come, as more and more customers will position it as a heathy alternative to traditional coffee. That will be primarily observed in such countries as Russia, which has low decaf coffee consumption.

Tanhuanpää believes that decaffeinated coffee will continue to increase its share driven by the wellbeing trend that has for many years already been present in many food and drink categories, for example, driving growth of non-alcoholic beer. “The need for relaxation without compromising the enjoyment of coffee is one driver for decaffeinated coffee consumption,” she said. “And according to our research, the usage situations for decaf coffee can be varied, not only limited to evening use. One motivation can be the stomach friendliness of decaf coffee.”

• Eugene Gerden is an international freelance writer who specialises in covering the global coffee, tea and agricultural industries. He works for several industry titles and may be reached at gerden.eug@gmail.com.

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The vibrant three-day event was packed with significant activities, including the launch of the Green Coffee Connect programme and the Retail Buyers Lounge in Europe. These new features provided platforms for learning, networking, and fostering business partnerships. The Sustainable World of Coffee initiative, in collaboration with Caravela Coffee and supported by Barista Attitude, inspired positive changes within the coffee industry, says the organisation, such as planting over 6,000 trees, supporting 150+ farms, and offsetting 1,600-2,000 tons of CO₂.

Attendees also enjoyed the Best New Product Competition, Coffee Design Awards, Cupping Exchange, and two Roaster Villages and the event was highlighted by several awards programmes.

A partnership was announced between Cup of Excellence, Alliance for Coffee Excellence, and Specialty Coffee Association (SCA). This collaboration aims to set new industry standards and enhance the entire coffee ecosystem. Key initiatives include supporting the Coffee Value Assessment (CVA) form, increasing visibility at CoE competitions, offering collaborative training programmes, and launching educational initiatives to advance industry skills.

World of Coffee Copenhagen also marked the next phase of the SCA Coffee Value Assessment (CVA), introducing three new cupping standards, a beta version of the extrinsic assessment, and updated supporting documents. These resources aim to integrate the CVA into daily practice, fostering a growing community of professionals dedicated to discovering value in coffee. Start using the SCA Coffee Value Assessment and its tools at sca.coffee/value-assessment.

The 2024 Best New Product Awards winners are:

• People’s Choice: SQUEAKY – The King Eddy (Electric)
• Commercial Coffee Preparation & Serving Equipment: Bellwether Coffee – “Bellweather Shop Roaster”
• Consumer Coffee Preparation & Serving Equipment: Fellow – “Aiden Precision Coffee Maer”
• Coffee Accessories: Hauck Tamper – “Vibra Tamper”
• Open Class: Kavekalmar – “ROASTINO Manual Roaster”
• Specialty Non-Coffee Beverage Stand alone: DRYK Brew – “DRYK Pea Barista”
• Specialty Coffee Beverage Additive: Beyond the Bean – “Sweetbird Popcorn Syrup”

Four World Coffee Championships were held, including World Latte Art, World Coffee in Good Spirits, World Coffee Roasting, and Cezve/Ibrik Championships.

World of Coffee Copenhagen was made possible through the generous support of the 2024 Portrait Country, Peru. “We are very proud to be the Portrait Country at World of Coffee 2024, showcasing the quality of Peruvian specialty coffees to international buyers. Coffee has become one of Peru’s traditional agricultural export products, with exports totaling USD 829 million in 2023. This participation represents a great opportunity for our producers,” said Claricia Tirado, executive president of PROMPERÚ. The event was also supported by Host Sponsor BWT water+more, Platinum Sponsor Barista Attitude, and Gold Sponsor Alpro.

Save the dates for upcoming events:

• World of Coffee Dubai: 10-12 February 2025, World Trade Centre, Dubai, UAE
• Specialty Coffee Expo: 25-27 April 2025, George R. Brown Convention Center, Houston, USA
• World of Coffee Jakarta: 15-17 May 2025, Jakarta Convention Center, Jakarta, Indonesia
• World of Coffee Geneva: 26-28 June 2025, Palexpo Exhibition and Convention Center, Geneva, Switzerland

For more information, visit sca.coffee.

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The private label tea and coffee market in Eastern European and Nordic states is steadily growing this year, thanks to a stable demand and the ongoing expansion of portfolios by leading local players. 

In contrast to Western Europe, where the tea and coffee private label segment has been actively developing since the 1980s, most Eastern European states have registered significant market growth and massive launches of new, private label products in recent years. The same, however, cannot be said for the Nordic states, where the popularity of private label tea and coffee brands, produced by leading local retail chains has always been high. 

One such brand is Norwegian chain, REMA, which is implementing its REMA 1000 private label strategy that involves actively developing its private label brands in both the Nordic states and other Eastern European states. REMA has significantly expanded its portfolio of private label tea and coffee brands over the past few years, and most of analysts expect the company will continue to develop this segment. 

REMA’s current list of tea and coffee brands is wide and includes some iconic brands in the Nordic market. An example of this Kolonihagen, a well-known Norwegian coffee and tea private label supplier within REMA, which in recent years has strengthened its positions both in the domestic market and overseas.  

Arnt Ove Dalebø Englund, co-founder and director of innovation at Kolonihagen, said that Kolonihagen recently entered the premium tea category with a range of four variants. “This is part of the REMA 1000 private label strategy, having alternatives — [opening price point] (Prima), mid-range (R) and now finally also covering the premium through the organic Kolonihagen brand.” He said that this series of teas is nationally distributed and is present in all 650 REMA 1000 stores in Norway. According to the size of the category [in each store] (both shelf space, rotation and turnover), there are four premium products at the moment. 

“We do not have plans to expand the [number of products, [instead] bringing in new flavours [as a] one in-one out. Additional value propositions are also highly relevant and part of a continuous strive to do things better. That is the core of our brand,” said Dalebø Englund. “One example of this is to put regenerative principles (and certifications) on top of the organic standards. Seasonal products are [also always being considered].” 

Dalebø Englund expects Norway’s private label market and that of other regional countries as well as Eastern Europe will show stable growth rates in years to come. “It’s hard to answer this on behalf of competitors in FMCG market in Norway, but in general, the private label category share is lower than that of other Nordic and European countries. [I predict] that moving from 20 percent to between 40 and 50 percent is likely in a two to three-year period, and this will probably be even higher for the tea and coffee category. 

Other major players are also considering accelerating their expansion both in the market of Nordic states and Eastern Europe. 

Bethany Physick, marketing manager at Finlays Europe Extracts, shared that across Europe, Finlays is continuing to help European brand owners tap into the health and wellbeing trend with its Just Add Water solution, a range of sachets containing tea and botanical powder blends that are designed to meet consumers’ desire to drink functional water on the go. “Later this year, Finlays’ new cold brew coffee extraction facility will open in the United Kingdom bringing an exciting range of cold brew coffee extracts to the fast-growing European market,” she said. “The coffee extraction facility will produce for branded and [private]-label suppliers in the UK and European and Eastern European retail and hospitality sectors.” Physick noted that Finlays is already a global leader in cold brew in the United States, and it expects growth in the category in the European market. 

Regarding future market prospects, Sian Edwards, insights manager, Finlays Group, explained that tea in all formats offers major potential in Eastern Europe, in terms of the market scale and growth prospects. “There are big markets, many of which are fast premiumising, as consumers seek a wide range of healthy, functional and indulgent beverages. The ready-to-drink (RTD)/iced tea market was valued at USD $2 billion in 2022, and has yet to reach maturity, with a forecast of 18 percent CAGR between 2022 and 2027, to reach an estimated market size of $5 billion in 2027.” Furthermore, he noted that RTD/iced tea is being bolstered by consumers seeking healthy and innovative alternatives to traditional soft beverage categories. 

“Hot tea and infusions are a more mature category for consumers in Eastern Europe. The category was valued at USD $9 billion in 2022 and is expected to exceed $10 billion by 2027 – with a 2 percent CAGR,” said Edwards. “Per capita consumption in the region is particularly high, with tea established as a habitual, daily necessity in many Eastern European markets. There is continued consumer demand for both RTD/iced tea and hot tea and infusions, and we see private label continuing the play a valuable role in this market growth.” 

PL still strong in Western Europe 

The private label market is traditionally within the interests of some major Western European players. 

Jens Schneider, managing director of Kloth & Köhnken Teehandel GmbH, one of leading tea suppliers in Europe, said the company has big plans for the further expansion this year. “There is an ongoing demand for organic and the wish for a sustainable supply chain throughout the world. The Nordic states, and Eastern Europe are markets we have good contacts in for many years, and we [see] steady, growing consumption [in both]. 

Still, according to Schneider, after three years of continuous challenges with consequential influences in sales channels, filled stocks and market movements, “it is currently difficult for the company to predict what trend or demand it really has in the market. [However], the focus on and trends toward organic, transparency and sustainable sourcing will be ongoing and rising.” 

PL optimism fades in the Nordics 

Representatives of some leading Nordic and Northern European retailers are less optimistic, regarding further prospects of the private label market, particularly in the coffee segment. Juhani Haara, a senior sales manager, S Group, a Finnish retailing cooperative organisation, said that private label, the coffee segment in particular, has decreased. “According to our sales data, there is a clear decline in private label coffee sales volume – a nearly 19 percent drop – this year. The reason for this is the increased campaigning with branded products both in S-Group and in the market. On the other hand, private label tea sales volume has increased significantly, by about 25 percent, during this year,” she said, adding, “this is certainly influenced by the economic situation. We expect this trend to continue towards the end of the year.” 

Haara said that new private label products have been added to the tea selection this year: two Kotimaista herbal teas and four different X-tra products. “There hasn’t been any promotion in tea products, but our own PL products are remarkably affordable compared to brands. This year there have been no private label novelties in coffee yet, but we are developing our selection.” 

Most independent analysts also do not expect sharp market growth rates in years to come. Julija Poliscuk, a senior consultant at global market research firm, Euromonitor International, believes that private label tea and coffee items are not growing as quickly as in other food and drinks categories. “The slow dynamics in current value and flat or declining volume share can be attributed to these products’ association with rituals and thus, the demand for high-quality offerings, reflecting the cultural and image significance they hold.” 

She said that in 2022, the current value share of private label in Nordic countries for coffee and tea increased slightly, reaching 9.3 percent. “This cooling trend aligns with stabilised consumer financial confidence and desire to spend after the challenging years of Covid-19. Notably, the volume share of retailers’ own brands in coffee rose by 0.7 percentage points, reaching 11.8 percent in 2022, signaling better performance compared to the overall coffee market in Norway, Sweden, Finland, and Denmark combined,” Poliscuk explained. “In Eastern Europe, historically known for brand-oriented preferences in tea and coffee, the current value share declined by 0.2 percentage points in 2022, reaching 5 percent. Coffee’s volume share was 7.2 percent (versus 7 percent in 2021), which pales in comparison to the strong growth of discounters and retailers’ own brands’ performance in other categories.” 

She added that many Eastern European markets offer big promotions for national tea and coffee brands, which reduces price gap between those products and private label ones. This market situation, according to Poliscuk, favours branded products. “When the price difference is marginal, consumers opt for familiar brands, purchasing them on discount. This hampers the development of private labels in tea and coffee in the region.” 

Poliscuk said that the hyperinflation in Eastern Europe, did not boost private label in 2022, as consumers inertially continued their ‘revenge’ spending after the Covid-19 period. “However, 2023 might bring a different outcome as consumers already started downtrading, potentially making private label a more attractive option. The level of sophistication and price segmentation within private label is more prominent in countries with well-developed modern grocery retail.” Additionally, recent launches of private label coffee and tea products in the Nordics target audiences seeking added value, which leads to the appearance of more specialty coffee (eg, specific bean origins). “Retailers are also expanding their assortment to align with sustainability strategies, offering more organic teas and coffee in modern, environmentally friendly packaging.” 

Per Poliscuk, private Labels primarily are considered ‘anti-crisis products’, allowing consumers to save or maintain their preferences without compromising on quality. The hyperinflation in Eastern Europe during 2022 and continuing into 2023 will impact consumer behaviour and drive the surge in private label adoption. As people seek cost-cutting measures, price increases in coffee and tea will push them to revise their previous preferences. “While Private Label won’t dominate the hot drinks market due to the nature of these products, its expansion alongside aggressive discounters will positively influence retailer’s offerings.” 

In Nordic countries, Poliscuk said the volume of private label hot drinks is expected to stagnate, even decline, but the value share will increase alongside the price. More premium coffee and tea aimed at quality seekers eager for better prices will emerge. “More caffeine-free and health-improving teas are expected, while coffee offerings will focus on specific beans and roasting variations. Retailers in these Western countries have the expertise to develop premium store brands based on specific needs like sustainability or fair trade.” 

Despite the impact of war on logistics chains and prices, with a small private label market and a decreased national brands presence, Eastern Europe expects a stronger demand than ever before for retailers’ own brands. 

• Eugene Gerden is an international freelance writer, who specialises in covering the global coffee, tea and agricultural industries. He worked for several industry titles and may be reached at gerden.eug@gmail.com. 

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