Coffee Extract Market Set to Reach USD 2.33 Billion by 2035, Driven by Functional Beverages and AI-Optimized Production

According to Towards FnB, the global coffee extract market size reached USD 1.57 billion in 2026 and is anticipated to surge USD 2.33 billion by 2035, reflecting at a CAGR of 4.5% from 2026 to 2035. This growth reflects not only rising coffee consumption but also the diversification of extract formats, including liquid concentrates, powders, and specialty functional blends, which cater to evolving consumer lifestyles.

Ottawa, Dec. 18, 2025 (GLOBE NEWSWIRE) -- The global coffee extract market size stood at USD 1.50 billion in 2025 and is predicted to increase from USD 1.57 billion in 2026 to reach around USD 2.33 billion by 2035, according to a report published by Towards FnB, a sister firm of Precedence Research. Beyond sheer volume growth, this trend is fueled by innovation in product formulations, such as organic, decaffeinated, and cold-brew extracts, which appeal to health-conscious and premium-seeking consumers globally.

The market’s growth is further supported by increasing demand for functional beverages, natural caffeine alternatives, and ready-to-drink (RTD) coffee products that offer convenience without compromising taste. Urbanization, fast-paced lifestyles, and a surge in eco-friendly and ethically sourced coffee options are creating new avenues for product differentiation, especially among millennials and Gen Z consumers seeking both wellness and sustainability in their beverage choices.

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Key Highlights of the Coffee Extract Market

By region, Europe dominated the coffee extract market with 47% revenue in 2025, while the Asia Pacific region is expected to grow the fastest during the forecast period.
By type, the powder coffee extract segment held a major market share of 53.5% in 2025, whereas the liquid coffee extract segment is projected to grow at a notable CAGR between 2026 and 2035.
By solubility, the soluble/instant segment accounted for 70.5% of revenue in 2025, while the non-soluble segment is expected to grow steadily during the forecast period.
By form, the spray-dried segment led the market with 63.3% revenue in 2025, whereas the freeze-dried segment is projected to experience growth between 2026 and 2035.
By application, the food and beverages segment held a major market share of 38.6% in 2025, while the functional beverages segment is expected to grow at a healthy rate in the coming years.

Growing Health and Wellness Trends Are Helpful for the Growth of the Coffee Extract Industry

The coffee extract market is expected to grow due to factors such as hectic lifestyles demanding convenient options and the higher demand for organic and clean-label options. The growing population of health-conscious consumers demanding functional, organic, and clean-label options also helps to fuel the market’s growth. Demand for coffee extracts across other industries, such as pharmaceuticals, cosmetics, and ready-to-drink beverage manufacturing, also helps fuel the market’s growth. Longer shelf life, multiple health benefits, and use across different industries are other major factors driving the market’s growth.

Technological Advancements Helpful to Propel the Market’s Growth

Technological advancements in the coffee extract industry help meet consumers’ demands, such as sustainability, intact aroma and flavor, and longer shelf life. Technology, such as precision extraction and the use of single-cell and automated systems to manage taste profiles according to consumer preferences, is another major factor driving the market’s growth. Such factors also help smart brewing with advanced applications, manage quality control, and enhance overall customization, further fueling the market's growth.

Impact of AI in the Coffee Extract Market

Artificial intelligence (AI) is influencing the coffee extract market by improving extraction precision, strengthening quality consistency, and supporting more efficient sourcing and demand planning. In raw material selection, AI tools analyze green coffee bean data, including origin, varietal characteristics, moisture content, and defect rates. These systems help processors select beans best suited for specific extract formats, including liquid coffee extracts, spray-dried powders, and freeze-dried concentrates. AI models also predict how roasting profiles will affect soluble solids, aroma retention, and bitterness in downstream extraction.

During extraction and concentration, AI-driven process control systems monitor temperature, pressure, extraction time, and solids concentration in real time. Machine learning models adjust parameters to maximize yield while preserving volatile aroma compounds and minimizing harsh flavor notes. This is especially important for coffee extracts used in ready-to-drink beverages, confectionery, bakery fillings, and flavor systems, where consistency is critical. AI also supports optimization of spray drying and freeze drying by controlling particle size, bulk density, and solubility.

New Trends of Coffee Extract Market

Higher demand for functional options enriched with vitamins, proteins, and other essential nutrients is one of the major drivers for the growth of the market.
Strong demand for non-GMO, additive-free, and chemical-free options also helps to fuel the growth of the market.
Higher demand for convenient options such as ready-to-drink beverages, instant coffee extracts, and capsule formats also helps fuel the market's growth.

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Recent Developments in the Coffee Extract Market

In April 2025, Nescafé Espresso Concentrated range announced its official arrival in Europe, allowing the consumers of the region to enjoy barista-style iced coffee at the ease of their homes. The new range involves three flavors: vanilla, caramel, and classic.
In March 2025, The Coffee Bean and Tea Leaf announced it would open 25 coffee shops in India. The announcement was made at the launch of the brand’s second location in GK1 in South Delhi, India.

Product Survey of the Coffee Extract Market

Product Category	Description or Function	Common Forms or Variants	Key Applications or End Use Segments	Representative Producers or Suppliers
Liquid Coffee Extract	A concentrated coffee solution produced through aqueous extraction of roasted coffee.	Light roast extract, dark roast extract, spray concentrated liquid	RTD coffee, iced coffee, coffee-flavored beverages	JDE Peet’s Ingredients, Kerry Group, Döhler
Spray Dried Coffee Extract	Powdered coffee extract produced via spray drying has a long shelf life.	Fine powder, agglomerated powder	Instant coffee, bakery, confectionery	Nestlé Coffee Ingredients, Tata Coffee
Freeze Dried Coffee Extract	Premium extract dried at low temperatures to retain aroma and flavor.	Granular freeze-dried extract	Premium instant coffee, specialty beverages	Nestlé, JDE Peet’s
Decaffeinated Coffee Extract	Coffee extract with caffeine removed through solvent or CO2 methods.	Liquid decaf extract, powdered decaf extract	Decaf beverages, confectionery, supplements	Swiss Water Process suppliers, coffee ingredient firms
Coffee Aroma Extracts	Volatile aroma fractions captured during roasting or extraction.	Liquid aroma concentrates	Flavor enhancement in RTD coffee and desserts	Givaudan, Firmenich
Cold Brew Coffee Extract	Extract produced via cold extraction for smoother flavor and lower acidity.	Liquid cold brew concentrate	RTD cold brew, coffee concentrates	JDE Peet’s Cold Brew Solutions, specialty extract houses
Green Coffee Bean Extract	Extract from unroasted coffee beans rich in chlorogenic acids.	Powder extract, standardized liquid extract	Weight management supplements, functional beverages	Naturex (Givaudan), Indena
Caffeine Extract from Coffee	Purified caffeine isolated from coffee processing streams.	Anhydrous caffeine powder	Energy drinks, sports nutrition, and pharmaceuticals	BASF Nutrition, DSM Firmenich
Organic Coffee Extract	Extracts produced from certified organic coffee beans.	Organic liquid extract, organic powder	Organic beverages, clean label foods	Martin Bauer Group, organic coffee processors
Coffee Extract for Bakery and Desserts	Flavor-optimized extracts for heat-stable applications.	Heat-stable liquid extract, encapsulated powder	Cakes, biscuits, ice cream, fillings	Kerry Taste and Nutrition, Sensient
Coffee Extract for Dairy Applications	Extracts designed for stability in milk-based systems.	Dairy stable liquid extract	Coffee flavored milk, ice cream, yogurt	Döhler, Kerry
Coffee Extract for Nutraceuticals	Functional extracts positioned for antioxidant or metabolic benefits.	Standardized chlorogenic acid extract	Dietary supplements, functional foods	Sabinsa, Indena
Encapsulated Coffee Extract	Coffee extract was used to improve stability and mask bitterness.	Microencapsulated powder	Supplements, nutrition bars, instant mixes	Givaudan, specialty ingredient suppliers
Spent Coffee Extracts and Upcycled Coffee Ingredients	Extracts derived from spent coffee grounds for sustainability.	Polyphenol-rich extracts, fiber-enriched extracts	Functional foods, cosmetics, and sustainable products	Upcycled ingredient startups, specialty processors
Coffee Oleoresin	Lipid-soluble coffee extract captures flavor compounds.	Oleoresin paste	Confectionery, flavor systems	Flavor and fragrance companies

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Coffee Extract Market Dynamics

What Are the Growth Drivers of the Coffee Extract Market?

The coffee extract market is expected to grow significantly due to high demand from health-conscious consumers, driven by its multiple health-beneficial properties, including antioxidants and anti-inflammatory effects. Coffee extracts are also essential to the food and beverage industry, as they are used to prepare various options that fuel the market's growth. It is also highly demanded for the preparation of ready-to-drink beverages and other options. Coffee extracts are also helpful in various other domains, such as the pharmaceutical and cosmetics industries, further fueling the market's growth.

Supply Chain and Environmental Issues Hampering the Market’s Growth

Climatic issues such as drought or excessive rainfall hamper coffee yields, further disrupting market growth. It affects the final stage of raw coffee beans, further driving up the prices of other coffee-based products. Hence, such issues hamper market growth. It also affects the consistent pricing and profit margins, further hampering the market’s growth.

Higher Demand for Functional Options Is Helpful for the Market’s Growth

Health-conscious consumers are always in search of functional, fortified, organic, and clean-label products. Hence, such factors help fuel the market's growth. The market also shows growth driven by its multiple health benefits, including antioxidants and anti-inflammatory properties, further fueling growth. The functional properties of coffee extracts also make them essential for use in many other domains, such as the pharmaceutical, cosmetic, and supplement industries.

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Coffee Extract Market Regional Analysis

Europe Led the Coffee Extract Market in 2025

Europe dominated the coffee extract market in 2025, driven by higher demand for specialty, premium, functional, organic, and clean-label coffee extracts in the region. Such options are highly sought after by health-conscious consumers who wish to maintain their health profile with nutritious options. It is also used to manufacture supplements and other nutritional products, further fueling the market's growth. Germany has a major contribution to the market's growth due to factors such as premiumization, specialty, and higher usage across multiple industries, including food and beverage, baking, pharmaceuticals, and cosmetics.

How Big is the Europe Coffee Extract Market?

The Europe coffee extract market size calculated at USD 0.71 billion in 2025 and is anticipated to grow from USD 0.74 billion in 2026 to reach around USD 1.1 billion by 2035, witnessing a CAGR of 4.5% during the forecast period from 2026 to 2035.

Asia Pacific Is Observed to Be the Fastest-Growing Region in the Foreseeable Period

Asia Pacific is expected to be the fastest-growing region over the forecast period, driven by rising coffee culture, urbanization, growing disposable income, and a growing population of health-conscious consumers, fueling market growth. Countries such as India, China, Japan, and South Korea have made major contributions to the region's market growth due to higher demand for ready-to-drink beverages and coffee at domestic levels, fueling the market.

North America Is Observed to Have a Notable Growth in the Foreseen Period

North America is expected to show notable growth over the forecast period due to higher demand for functional and organic options. Rising disposable income, urbanization, and higher demand for coffee-based beverages also help fuel the market's growth. Higher demand for cold-brew beverages and increased use of coffee extracts across other domains also help fuel the market’s growth. The US has a major role in the market's growth, driven by higher demand for coffee extracts for their multiple health benefits, rich aroma, and flavor.

Trade Analysis for the Coffee Extract Market

What Is Actually Traded (Product Forms and HS Proxies)

Liquid coffee extracts and concentrates are supplied in drums or totes for beverage and flavour use, classified under HS 2101.
Spray-dried instant coffee powders used in retail sachets and food applications are classified under HS 2101.
Freeze-dried coffee extracts and granules are positioned as premium instant coffee products, also under HS 2101.
Specialty coffee extracts with controlled caffeine or flavour profiles for nutraceutical and functional beverage use, generally declared under HS 2101 with product descriptions.

Top Exporters (Supply Hubs)

Brazil: Largest coffee producer globally and a leading exporter of instant coffee and liquid extracts, supported by abundant raw material supply and large-scale processing plants.
Vietnam: Major exporter of soluble coffee products derived from robusta beans, with strong cost competitiveness and export-oriented processing.
Germany: Key exporter of high-value coffee extracts and instant coffee, acting as a processing and re-export hub within Europe.
Switzerland: Exporter of premium instant coffee and specialty extracts supported by advanced processing technology and brand-led production.

Top Importers (Demand Centres)

United States: Large importer of coffee extracts for ready-to-drink beverages, food applications, and retail instant coffee.
European Union: Strong intra-EU and extra-EU imports driven by beverage manufacturing and private-label instant coffee production.
China: Rapidly growing importer of coffee extracts for RTD beverages and foodservice expansion.
Japan: Imports high-quality extracts for canned coffee, beverages, and confectionery applications.

Typical Trade Flows and Logistics Patterns

Green coffee beans are sourced from producing countries and processed into extracts in origin countries such as Brazil and Vietnam or in consumer markets such as Germany and Switzerland.
Liquid extracts move in food-grade drums or IBCs, while spray-dried and freeze-dried products ship in multi-layer bags or cartons.
Long-distance trade relies on containerised sea freight, with moisture and aroma protection critical to maintaining extract quality.
Re-export hubs in Europe distribute extracts to regional beverage and food manufacturers.

Trade Drivers and Structural Factors

Growth of ready-to-drink coffee and instant beverage formats increases demand for stable, standardised extracts.
Urbanisation and convenience-driven consumption patterns support soluble coffee usage.
Volatility in green coffee supply and prices influences extraction margins and export competitiveness.
Technological capability in freeze-drying and aroma recovery differentiates exporters in premium segments.
Brand ownership and private-label manufacturing shape cross-border sourcing decisions.

Regulatory, Quality and Market-Access Considerations

Coffee extracts must comply with food-safety regulations covering contaminants, acrylamide limits in some markets, and microbiological standards.
Labelling rules apply to caffeine content, origin claims, and ingredient declarations.
Import documentation typically includes certificates of analysis, allergen statements where relevant, and traceability records.
Some markets apply specific standards to instant coffee composition and permitted additives.

Government Initiatives and Public-Policy Influences

Agricultural and export-support policies in coffee-producing countries influence the availability of beans for extraction.
Food-safety harmonisation and mutual recognition arrangements facilitate extract trade between major markets.
Sustainability and deforestation-related policies increasingly affect sourcing requirements for coffee inputs.

Coffee Extract Market Report Scope

Report Attribute	Key Statistics
Base Year	2025
Forecast Period	2026 to 2035
Growth Rate from 2026 to 2035	CAGR of 4.5%
Market Size in 2026	USD 1.57 Billion
Market Size in 2027	USD 1.64 Billion
Market Size by 2035	USD 2.33 Billion
Dominated Region	Europe
Fastest Growing Region	Asia Pacific
Regions Covered	North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

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Coffee Extract Market Segmental Analysis

Type Analysis

The powdered coffee extract led the coffee extract market in 2025, due to its versatility, allowing various industries to incorporate it into the manufacturing of different products. The form is highly essential in the cosmetics, pharmaceuticals, health and nutrition, and baked products industries. The market also shows growth driven by higher demand for powdered coffee extracts for the manufacture of ready-to-drink coffee-based beverages and baked goods. It is also highly in demand by the supplements and functional food manufacturing industries, further fueling the market's growth.

The liquid coffee extract is expected to grow over the forecast period due to its versatility and use in manufacturing a range of food and beverages options across different domains. The segment also facilitates easy use and integration across various options, further fueling the market's growth in the foreseeable period. Liquid coffee extract is essential for the manufacturing of various organic, functional, and clean-label food and beverage options. It is also used by the bakery and ready-to-drink beverages industry. The segment also observes growth due to higher consumer demand for its multiple health benefits, such as the caffeine kick to start the day afresh.

Solubility Analysis

The soluble/instant extract segment led the coffee extract market in 2025, driven by high consumer demand in daily life. Its convenience, versatility, ease of use, and ease of storage further fuel the market's growth. The availability of instant coffee in sachets makes it more convenient for consumers to carry it with them and enjoy a cup of coffee anytime by simply adding hot water. It helps to get instant energy to carry on with a long day. Such forms have a longer shelf life as well, further fueling market growth.

The non-soluble segment is expected to be the fastest-growing in the foreseeable period, as it relates to hemicelluloses, cellulose, and lipids. All of these play a crucial role in upcycling by-products as well. The non-soluble coffee extracts are helpful for flavor retention, foam stability, and brewing, further fueling the market's growth in the foreseeable period. Oil fractions, including non-compounds such as kahweol and cafestol, enhance the mouthfeel and taste. Hence, these factors collectively help fuel the market's growth.

Form Analysis

The spray-dried extract segment dominated the coffee extract market in 2025, owing to its advantages, including cost-effectiveness, longer shelf life, instant solubility, and high speed. Spray-drying is a physical and chemical-free method, further fueling market growth. Hence, the segment helps fuel market growth due to higher demand for such options among health-conscious consumers.

The freeze-dried coffee extract segment is expected to grow over the forecast period, as it helps maintain the aroma and flavors of freshly brewed coffee. The segment also helps lock in volatile compounds, maintaining the coffee's fresh flavors and aroma, further fueling the growth of the coffee extract market in the foreseeable future.

Application Analysis

The food and beverage segment dominated the coffee extract market in 2025, driven by higher demand for the preparation of various organic, functional, and clean-label food and beverage options. The segment also focuses on maintaining the freshness, aroma, and flavor of coffee extracts, further fueling market growth. Higher demand for coffee extracts for the manufacturing of plant-based, functional, and organic ready-to-drink coffee-based beverages, higher demand in the bakery industry, and other similar options further fuel the market's growth.

The functional beverages segment is expected to grow over the forecast period due to higher demand for functional, organic, and clean-label options among health-conscious consumers. Such options help maintain consumers' nutritional profile while maintaining a palatable taste. Such beverages are enriched with protein and various other essential elements and are hence highly demanded by health-conscious consumers, further fueling the market's growth in the foreseeable period.

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Top Companies in the Coffee Extract Market

Heinz Foodservice: Heinz Foodservice, a division of Kraft Heinz, is known for its extensive portfolio of foodservice solutions, including coffee extracts. Leveraging its strong global distribution network, the company provides innovative coffee products tailored to commercial applications, focusing on consistency and quality.
Tate & Lyle: Tate & Lyle is a leading global provider of ingredients and solutions for the food, beverage, and industrial markets. Their coffee extracts are used in a variety of products, emphasizing sustainability, innovation, and the development of functional beverages with a focus on health and wellness.
Starbucks Corporation: Starbucks, a global leader in coffee retail and product innovation, also offers a range of coffee extracts through its diverse portfolio, including premium RTD beverages and coffee-based ingredients. The company is known for its strong brand presence and its focus on ethically sourced, high-quality coffee.
Olam International: Olam International is a global agricultural commodities supplier, including coffee. With a vertically integrated supply chain, Olam produces and supplies coffee extracts focusing on sustainability, traceability, and quality, catering to the growing demand for functional and premium coffee products.
Naturex: Naturex, a part of Givaudan, specializes in natural ingredients, including coffee extracts used in functional foods, beverages, and cosmetics. The company emphasizes its commitment to natural sourcing and product innovation, offering coffee extracts that meet the growing demand for clean-label and organic solutions.
Synergy Flavors: Synergy Flavors, a global leader in flavor development, provides coffee extracts and flavors for various industries, including food, beverage, and health products. Their solutions focus on offering clean, authentic coffee profiles while catering to the increasing demand for customized and functional beverage formulations.
Bell Flavors & Fragrances: Bell Flavors & Fragrances provides natural and sustainable coffee extracts for use in beverages, bakery, and dairy products. Known for its innovative approach to flavor creation, Bell specializes in creating premium, ethically sourced coffee solutions that appeal to health-conscious and environmentally aware consumers.
Givaudan: Givaudan is a major player in the flavor and fragrance industry, offering a range of coffee extracts that meet the demands of the food and beverage market. Their coffee solutions focus on high-quality, natural extracts, and they are known for leveraging cutting-edge technology to preserve the integrity and flavor profile of their products.
Firmenich: Firmenich, a global leader in flavors and fragrances, produces high-quality coffee extracts and concentrates for the food and beverage industry. The company is committed to sustainability and ethical sourcing, offering coffee solutions that align with consumer preferences for natural and organic ingredients.
Jacobs Douwe Egberts (JDE): Jacobs Douwe Egberts, a subsidiary of the Dutch multinational JDE Peet's, is a leading global coffee roaster and provider of coffee extracts. The company specializes in high-quality coffee products, including liquid and powder coffee extracts, and is known for its strong sustainability practices in sourcing and production.
Berner Foods: Berner Foods is a key supplier of coffee extract products, providing high-quality solutions for the foodservice, retail, and bakery sectors. They emphasize innovation and customization, offering extracts that are both functional and flavorful, catering to the needs of modern consumers.
Blue Mountain Coffee: Blue Mountain Coffee is renowned for producing some of the world’s most premium and sought-after coffee. In addition to its high-quality beans, the company also produces specialty coffee extracts, known for their rich flavor profiles and premium attributes, often used in high-end beverages and food applications.

Segments Covered in the Report

By Type

Liquid Coffee Extract
Powder Coffee Extract
Capsule/Concentrate Extract

By Solubility

Soluble/Instant
Non-soluble

By Form

Spray-dried
Freeze-dried
Liquid Concentrate

By Application

Food & Beverages
Functional Beverages
Bakery & Confectionery
Dietary Supplements
Cosmetics & Personal Care

By Region

North America

U.S.
Canada

Asia Pacific

China
Japan
India
South Korea
Thailand

Europe

Germany
UK
France
Italy
Spain
Sweden
Denmark
Norway

Latin America

Brazil
Mexico
Argentina

Middle East and Africa (MEA)

South Africa
UAE
Saudi Arabia
Kuwait

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