Global Nitrogenated Coffee Market to Reach USD 1,272.4 Million by 2035, Growing at a 5.6% CAGR | FMI

Rising vending machine use and demand for premium coffee are driving Japan's nitrogenated coffee market, fueled by convenience and innovation.

NEWARK, DE, UNITED STATES, January 27, 2025 /EINPresswire.com/ -- The global nitrogenated coffee market was valued at USD 666.0 million in 2023, with demand witnessing a 5.5% year-on-year growth in 2024. Projections indicate that the market will reach USD 741.2 million by 2025. Over the forecast period from 2025 to 2035, global sales are expected to grow at a CAGR of 5.6%, reaching a total market value of USD 1,272.4 million by the end of 2035.

The global Nitrogenated Coffee Market is set to experience significant expansion, driven by evolving consumer preferences, innovations in ready-to-drink (RTD) beverages, and the growing popularity of premium coffee products. With increasing demand across North America, Europe, and the Asia-Pacific, the market is expected to witness a notable CAGR from 2025 to 2035.

Geographically, North America held the largest market share, exceeding 80% of total revenue in 2018, attributed to a substantial base of regular coffee consumers and the presence of major industry players. Manufacturers are also expanding into the Asia Pacific region, recognizing the growing popularity of nitrogenated coffee in countries like Japan, China, South Korea, and Indonesia.

Key Takeaways

• The global nitrogenated coffee market is projected to grow steadily due to rising consumer preference for nitrogen-infused beverages.
• The USA (5.4%), Germany (4.9%), Japan (3.5%), India (7.8%), and Australia (6.7%) are key markets witnessing significant CAGR.
• Increasing demand for healthy, flavorful, and innovative coffee variants is fueling market growth.
• Ready-to-drink (RTD) coffee and specialty coffee shop chains are major growth drivers.
• Key players are expanding their product portfolios to cater to shifting consumer preferences.

Market Growth Drivers and Applications

1. Surging Demand for Premium Coffee Beverages: Consumers are increasingly opting for specialty coffee with unique flavors, leading to higher demand for nitrogen-infused coffee.
2. Health Benefits and Clean Label Trends: Nitrogenated coffee is known for its smooth texture, creamy mouthfeel, and reduced acidity, making it a preferred choice for health-conscious consumers.
3. Expansion of RTD Coffee Segment: The ready-to-drink coffee segment is growing rapidly, with nitrogenated coffee emerging as a leading category.
4. Growing Coffee Culture: Rising disposable incomes, urbanization, and changing lifestyles are driving the consumption of premium and innovative coffee varieties.
5. Sustainability and Ethical Sourcing: Brands are focusing on sustainable sourcing of coffee beans, aligning with consumer demand for ethically produced beverages.

“Market analysts observe that nitrogenated coffee is no longer a niche category but is steadily becoming a mainstream premium offering. The rise of third-wave coffee culture, increasing consumer preference for alternative brewing methods, and the popularity of on-the-go coffee consumption are key factors shaping market growth. Additionally, the increasing availability of nitrogenated coffee in retail stores, cafés, and online platforms is expected to further boost sales.” - says Nandini Roy Choudhury, Client Partner at Future Market Insights

Recent Trends in the Nitrogenated Coffee Market

• Innovative Flavors and Blends: Brands are introducing unique nitrogenated coffee variants infused with flavors like vanilla, caramel, and chocolate.
• Premiumization of RTD Beverages: Companies are launching organic and ethically sourced nitrogenated coffee.
• Expansion of Distribution Networks: Growth in e-commerce and retail availability of nitrogenated coffee products.
• Sustainable Packaging Initiatives: Companies are shifting towards eco-friendly cans and biodegradable packaging.

Competition Outlook

Starbucks and Nitro Brew Coffee are amongst the leading firms able to expand their share in the market through brand recognition, product development, and innovation. They have managed to increase the preference of coffee drinkers by offering a variety of nitrogenated coffees ranging from ordinary to even innovative flavors. This variety not only makes it possible to expand the number of consumers but also enables these firms to be competitive with other companies.

Moreover, various new types of packaging ideas have also continuously been considered by these manufacturers to improve the usability of the contained nitrogen-infused coffee. Also, through strategic partnerships and collaborations, the nitrogen coffee market has a lot of growth opportunities. Integrating themselves with already established food and beverage chains has aided Nitrogen Coffee brands increase their brand visibility and reach as these food chains have attached customers and distributions already.

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For instance
• Starbucks has modified the drink by adding creamy oat milk while also retaining its original version. Adding oat milk serves the purpose of offering vegan-friendly options as well as broadening the company's reach in the nitrogen-infused coffee business ecosystem.
• La Colombe has partnered with a network of small-scale coffee producers who practice sustainable farming. This partnership gives the company the ability to procure quality beans for its Draft Latte which are ethically sourced, therefore remaining in touch with its responsibilities as a social and environment-conscious brand within the industry of nitrogenated coffee.

Leading Brands
• La Colombe
• Stumptown Coffee Roasters
• Starbucks
• Rise Brewing Co.
• High Brew Coffee
• Caveman Coffee Co.
• Lucky Jack Coffee
• Califia Farms
• Black Rifle Coffee Company
• Peet's Coffee
• Others

Segment Analysis

By Product Type:
• Cold Brew Nitrogenated Coffee – Leading the segment due to its rich, smooth texture and lower acidity.
• Hot Brew Nitrogenated Coffee – Emerging category as brands innovate to meet diverse consumer preferences.

By Packaging:
• Cans & Bottles – Dominating due to the increasing demand for RTD beverages.
• On-tap Dispensing – Gaining popularity in specialty coffee shops and cafés.

By Distribution Channel:
• Supermarkets & Hypermarkets – Major retail channels for packaged nitrogenated coffee.
• Specialty Coffee Shops – High preference for on-tap dispensing systems.
• E-commerce – Growing segment due to convenience and wider product availability.

Regional Analysis
• North America: The largest market, led by the United States (5.4% CAGR) due to a strong café culture and RTD coffee consumption.
• Europe: Germany (4.9% CAGR) is witnessing growth due to increasing demand for organic and specialty coffee products.
• Asia-Pacific: India (7.8% CAGR) and Japan (3.5% CAGR) are key emerging markets with increasing urbanization and rising disposable incomes.
• Australia: (6.7% CAGR) is showing robust growth due to a thriving specialty coffee industry and high coffee consumption rates.

Beverages Industry Analysis: https://www.futuremarketinsights.com/industry-analysis/beverages

Authored by:  

Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.   

She has exceptional analytical skills and often brings thought leadership to the table.  

Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results. 

Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor’s Degree in Electrical Engineering from Nagpur University, India.  

Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor. 

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