According to the Market Statsville Group (MSG), the global recycle coffee grounds market size is expected to grow at a CAGR of 7.2% from 2023 to 2033.
After providing warmth and caffeine to coffee consumers, a great resource with numerous uses is being severely wasted. Used coffee grounds are the byproduct of brewing coffee and are what remains after coffee preparation. Although used coffee grounds contain several useful chemical components, they are typically viewed as waste and are either thrown away or composted. Over 2 billion cups of coffee are consumed every day worldwide. Six million tons of the coffee grounds required to produce those cups are disposed of each year, making up most of the grounds utilized. Decomposing coffee grounds emit methane into the atmosphere, which is harmful to the climate because methane is the second-most abundant greenhouse gas and has the potential to warm the planet up to 86 times more than carbon dioxide. Hence, with these environmental concerns, the concept of recycling coffee grounds was taken up by various companies. The coffee ground can be recycled for various applications such as cosmetics, consumer products, furniture, food and oils, and many more.
The COVID-19 pandemic has had a severe impact on the world economy, but it has also helped the ecosystem recover by greatly reducing air pollution as a result of government directives to stay at home and moderate the spread of the novel coronavirus. Additionally, due to a shortage of tourists due to the social isolation policies imposed by the majority of governments, numerous beaches worldwide have been cleaned up. The novel coronavirus has produced adverse indirect impacts on the ecosystem in addition to favorable ones. For instance, some communities in the USA had ceased their recycling operations as health officials were worried about the virus spreading in recycling facilities. However, sustainable waste management has been constrained in the impacted European countries. For instance, Italy prohibited infected citizens from sorting their trash. Coffee ground recycling was also put on hold globally due to the pandemic.
Around 2.25 billion-plus cups of coffee are consumed globally every day, or 2.5 cups per person on average. Over 90% of coffee is grown in underdeveloped countries, particularly South America. Coffee sales provide a living for 25 million small growers around the world. As per the International Coffee Organization, global coffee exports totaled 10.12 million bags in July 2022, up from 10.83 million in July 2021. With the aforementioned facts, it is evident that the demand and supply of coffee are abundant as its one of the most prevalent beverages. Freshly brewed coffee is preferred over instant coffee with the spread of brewing machines. Hence, this continuous coffee consumption and increasing demand for brewed coffee are driving the generation of used coffee grounds needed to be recycled.
Various developing and under-developed countries lack awareness regarding the recycling industry. Despite the government's efforts toward promoting sustainability, the population remains redundant and continues the conventional production methods. The coffee recycling ground market is yet to go a long way to enter these regions and spread awareness.
According to a survey, more consumers, particularly Millennials, claim to choose brands that value convenience, sustainability, and purpose. In fact, a recent investigation indicated that growth in several product categories with sustainability claims was twice as high as growth in comparable categories without such claims. People who were confined to their homes during the peak of the COVID-19 pandemic had access to one resource that was unlimited: time. Many people started considering how their shopping habits affected the environment as they had more time to think about daily activities and decisions. After the pandemic, consumers have begun to give sustainability a higher emphasis. Hence, the products made out of used coffee grounds is expected to gain popularity in the light of sustainability. The players could tap this opportunity and promote their recycled after-products through mass advertising modes like social media and gain a competitive advantage.
The study categorizes the recycle coffee grounds market based on distribution and application at the regional and global levels.
Based on application, the market is bifurcated into food & beverage, skincare and cosmetics, consumer products, healthcare, accessories and furniture, and others. In 2022, the skincare & cosmetics segment accounted for the largest market share. Serine, derived from caffeine, is an antioxidant that helps rejuvenate skin, clear up acne, and minimize acne scars. Caffeine also encourages the production of collagen. Blackheads, whiteheads, and acne scars can all be removed from the skin by using caffeine as an exfoliant. As a result, coffee-based skincare and cosmetics are becoming more and more popular. Due to the two benefits – caffeine and coffee grounds recycling- businesses have started using old coffee grounds in producing such items. Gentle cleansers, skin scrubs, moisturizers, face serums, masks, and many other skincare products can all be manufactured from recycled coffee grounds.
Based on the regions, the global recycle coffee grounds market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Europe will dominate the global recycle coffee grounds market in 2022. Europe has the world's largest coffee consumption, generating the maximum amount of used coffee grounds. Most recycling companies have originated from this region and are providing services globally. Lastly, the people in Europe are also aware of this wastage therefore, they promote the recycling of coffee grounds at the personal level as well.
The global recycle coffee grounds market is not much competitive. It is a relatively new and diverse market where companies recycle the used coffee grounds and make different products. For instance, in June 2021, Costa Coffee extended its partnership with bio-bean to continue recycling its spent coffee grounds with bio-bean for a further two years, building on our successful partnership that started in 2016.
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