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Barley Coffee Market

The market for Barley Coffee was estimated at $1.4 billion in 2025; it is anticipated to increase to $2.2 billion by 2030, with projections indicating growth to around $3.5 billion by 2035.

Report ID:DS1901163
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Barley Coffee
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Report Summary
Market Data
Methodology
Table of Contents

Global Barley Coffee Market Outlook

Revenue, 2025

$1.4B

Forecast, 2035

$3.5B

CAGR, 2026 - 2035

9.3%

The Barley Coffee industry revenue is expected to be around $1.4 billion in 2026 and expected to showcase growth with 9.3% CAGR between 2026 and 2035. Building on this outlook, the Barley Coffee market is consolidating its position as a mainstream caffeine-free coffee alternative, underpinned by rising health-conscious consumers, clean-label preferences, and the broader shift toward functional beverages. Strong visibility in supermarkets/hypermarkets and online stores, which together account for 69.9% of Barley Coffee distribution, is reinforcing brand awareness and trial rates across both mature and emerging markets. Instant product formats remain the growth engine of the category, with instant Barley Coffee generating $0.61 billion in sales in 2025, reflecting consumer demand for convenience, consistent taste, and easy preparation at home and in offices. The market’s ongoing relevance is further supported by the alignment of Barley Coffee with plant-based diet trends, perceived digestive comfort, and its role as a roasted barley drink that mimics coffee’s sensory profile without the side effects associated with caffeine.

Barley Coffee is a roasted barley beverage designed to deliver a coffee-like aroma and flavor profile while remaining naturally caffeine-free, low in acidity, and suitable for consumers seeking gentler, stomach-friendly hot drinks. Key features include its use of whole or ground roasted barley, availability in instant Barley Coffee and ground formats, and its positioning as a functional beverage that can be consumed plain or blended with chicory and other grains for enhanced taste and aroma. Major applications span household consumption, foodservice outlets, cafés, and specialty coffee shops that offer Barley Coffee as a substitute or complement to traditional coffee, as well as incorporation into instant beverage mixes for on-the-go lifestyles. Recent trends driving demand include the rise of organic Barley Coffee and clean label products, growing interest in gut health and natural ingredients, increasing penetration through online stores that broaden access to niche flavors and premium blends, and product innovation focused on flavored, sugar-free, and sustainable Barley Coffee variants tailored to evolving consumer preferences.

Barley Coffee market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Barley Coffee Market Outlook

Market Key Insights

  • The Barley Coffee market is projected to grow from $1.4 billion in 2025 to $3.5 billion in 2035. This represents a CAGR of 9.3%, reflecting rising demand across Nutritional Supplements, Non-Alcoholic Beverage, and Bakery & Confectionery.

  • Teeccino, Orzo Coffee, and Postum are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Italy are the top markets within the Barley Coffee market and are expected to observe the growth CAGR of 6.8% to 9.8% between 2025 and 2030.

  • Emerging markets including Brazil, South Africa and Indonesia are expected to observe highest growth with CAGR ranging between 8.9% to 11.6%.

  • Transition like Adoption of Organic Barley Coffee is expected to add $187 million to the Barley Coffee market growth by 2030.

  • The Barley Coffee market is set to add $2.0 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.

  • With

    rising health consciousness, and

    Technological Advancements in Barley Processing, Barley Coffee market to expand 143% between 2025 and 2035.

barley coffee market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Barley Coffee - Country Share Analysis

Opportunities in the Barley Coffee

Among Asian urban professionals, RTD barley coffee represents an underdeveloped functional beverage segment aligned with busy, on-the-go lifestyles. Globally, RTD formats are also forecast to grow from $0.28 billion in 2025 to $0.51 billion by 2030, delivering the fastest CAGR of about 12.7% within Barley Coffee products. Innovation opportunities include low-sugar recipes, fortified functional beverages with botanicals, and recyclable packaging tailored to convenience stores, transit hubs, and vending. Co-branding with established plant-based beverages portfolios can accelerate awareness and distribution.

Growth Opportunities in Europe and North America

In Europe, Barley Coffee benefits from strong familiarity with roasted barley beverage traditions, making supermarkets and hypermarkets the most influential distribution channel, while online stores rapidly gain relevance for niche organic barley coffee and premium grain-based coffee offerings. Top opportunities include co-developing private-label Barley Coffee ranges with leading retail chains, expanding barista-grade formats for cafés and hotel channels, and introducing sustainable packaging to strengthen positioning as a natural coffee substitute with lower environmental impact. Competitive intensity is high from established cereal beverages and herbal blends, so brands must differentiate through provenance storytelling, clean-ingredient recipes, and region-specific flavor profiles rather than price alone. Key regional drivers include rising concern around digestive comfort, a shift toward reduced-caffeine routines, and growing demand for naturally caffeine-free coffee experiences that still mimic the aroma and ritual of traditional espresso or filter coffee, supported by targeted education in-store and via digital platforms.
In North America, Barley Coffee is emerging within the broader healthy coffee alternatives segment, with online stores and direct-to-consumer channels holding the highest strategic weight, complemented by presence in natural food retailers and selected convenience outlets for trial and impulse purchases. The most attractive opportunities center on positioning Barley Coffee as a versatile caffeine-free coffee and functional beverages option for wellness-focused consumers, through instant barley coffee formats, ready-to-drink blends, and single-serve barley coffee pods tailored to home and office brewing systems. Competition comes not only from other coffee substitutes but also from mushroom coffees, chicory blends, and non-coffee hot drinks, requiring clear messaging on taste familiarity, gut-friendly positioning, and smoother energy profiles without jitters. Growth is driven by heightened interest in sleep-supportive evening rituals, pregnancy- and breastfeeding-friendly beverage choices, and the preference of younger consumers for innovative, plant-based, and ritual-rich drinks purchased via e-commerce subscriptions and social-commerce discovery.

Market Dynamics and Supply Chain

01

Driver: Rising Health Consciousness Driving Demand for Caffeine‑Free Beverages and Functional Nutrition

Increasing awareness about the adverse effects of excessive caffeine and sugar intake has also fueled demand for caffeine‑free beverages such as barley coffee. Consumers are also actively seeking alternatives that provide a satisfying roasted coffee flavor without stimulants, making barley coffee a popular choice in households, offices, and wellness-focused establishments. Simultaneously, the trend toward functional nutrition has also encouraged the incorporation of barley coffee into health products like meal replacements, digestive aids, and dietary supplements. Its natural fiber, antioxidants, and prebiotic properties align with consumer interest in foods that support gut health, heart wellness, and overall metabolic balance. Niche industry players are also leveraging advanced roasting and instantization technologies to preserve nutrients and flavor, making barley coffee a versatile ingredient for both beverages and functional formulations. Together, these growth factors expand its appeal across retail, food service, and online channels, driving market penetration and brand recognition.
Consumer preference for organic, non-GMO, and clean label products has also become a key driver for barley coffee. Shoppers increasingly prioritize minimally processed ingredients with transparent sourcing. Barley coffee brands emphasizing certified organic or gluten-free credentials are also better positioned to capture health-conscious audiences. This trend has also encouraged product innovation, such as instant barley blends and flavored variants, enhancing adoption across households, cafés, and functional beverage segments.
02

Restraint: Strong Competition from Traditional Coffee and Popular Coffee Alternatives Limiting Market Expansion

Barley coffee faces stiff competition from well‑established traditional coffee and widely marketed coffee alternatives like chicory and dandelion coffee. Many consumers still prefer the familiar taste and caffeine boost of regular coffee, restricting barley coffee’s ability to attract mainstream drinkers. Retailers also allocate more shelf space to popular substitutes, making barley coffee harder to discover. For example, slower turnover of barley coffee SKUs in supermarkets can lead to reduced reorder rates and lower revenue. This competitive pressure limits demand growth and discourages new entrants from investing heavily in barley coffee product lines.
03

Opportunity: Rising demand for caffeine-free hot drinks among European adults and Specialty cafés expanding barley coffee menus for global vegans

The Barley Coffee market in Europe can capture rising demand for non-caffeinated beverages among adults seeking healthier daily rituals. Instant barley coffee, already generating about $0.61 billion globally in 2025 and projected to reach $0.95 billion by 2030, will capture home-use occasions as a convenient caffeine-free coffee alternative, driving the strongest growth in European Barley Coffee consumption. Positioning Barley Coffee as a roasted barley drink for digestive health and as a flavorful decaf coffee substitute can unlock premium pricing in organic retail and pharmacy channels.
Specialty cafés, hotels, and cafeterias worldwide are seeking distinctive non-caffeinated menu additions for vegans, pregnant consumers, and evening guests. Ground barley coffee, expected to rise globally from $0.45 billion in 2025 to $0.65 billion by 2030, can be optimized for espresso machines, filter brewers, and capsule systems. Strategic collaborations between organic barley coffee roasters and hospitality chains can standardize recipes and barista training, capturing incremental revenue from breakfast and dessert occasions. Curated Barley Coffee tastings alongside traditional coffee deepen experiential differentiation.
04

Challenge: Perceived Taste Differences and Limited Consumer Awareness Restricting Wider Adoption

Barley coffee’s distinct roasted grain flavour does not resonate with all consumers, especially those expecting traditional coffee taste profiles. Limited consumer awareness about its health benefits and versatility further impedes trial and repeat purchases. Many potential buyers equate barley coffee solely with niche wellness markets rather than everyday beverages, which depresses overall demand. For instance, lower online search interest and fewer product reviews compared with mainstream coffee alternatives signal restrained consumer engagement. This restraint hampers market penetration and hinders investment by larger beverage manufacturers into barley coffee innovations.

Supply Chain Landscape

1

Barley Coffee Sourcing

Nature’s HarvestPero
2

Barley Coffee Roasting

TeeccinoOrzo CoffeePostum
3

Herbal Coffee Packaging

TeeccinoPeroNature’s Harvest
4

Coffee Alternative Consumption

Health & wellness beveragesFunctional food & beverageRetail & e-commerce
Barley Coffee - Supply Chain

Use Cases of Barley Coffee in Nutritional Supplements & Non-Alcoholic Beverage

Nutritional Supplements : In the nutritional supplements segment, barley coffee is valued for its rich antioxidant properties and soluble fiber content, particularly beta-glucans that support heart health and digestive balance. Supplement manufacturers often use roasted barley extract or finely ground barley coffee as an ingredient in wellness powders, meal replacements, and functional drink blends aimed at health‑conscious consumers. Leading brands like Barleycup, Nestlé’s Nestlé BARLEYcup, and Alce Nero’s organic barley drink leverage barley coffee’s natural nutrient profile to differentiate their products as caffeine‑free, digestive‑friendly alternatives. Their strong distribution in health food stores and online platforms combines quality sourcing with clean label messaging, appealing to individuals focused on preventive nutrition and holistic wellness routines.
Non-Alcoholic Beverage : As a non‑alcoholic beverage, barley coffee is enjoyed by consumers seeking a caffeine‑free alternative with a rich, roasted flavor that resembles traditional coffee. Products like Barleycup Instant Cereal Drink, Crastan Orzo, and Alce Nero Organic Barley Beverage are popular in retail grocery aisles and specialty stores across Europe and beyond. These variants are easy to prepare by simply adding hot water or milk, making them convenient for daily consumption at home, cafés, and office environments. Their appeal extends to families and individuals with dietary restrictions, including those avoiding caffeine or gluten‑free diets. Barley coffee’s mellow taste and functional benefits strengthen its position in the broader caffeine‑free drink category, supported by brands with decades of heritage and strong quality assurance.
Bakery & Confectionery : In bakery and confectionery, barley coffee finds applications as a flavoring agent and ingredient that enhances texture and aroma. Bakers incorporate roasted barley coffee powder into bread, cookies, and cakes to impart a toasty, malty note while reducing reliance on traditional coffee. Specialty producers utilize barley coffee as a natural, caffeine‑free flavor enhancer in artisanal chocolates and truffles, appealing to niche consumers who value novel taste profiles. Companies like Barleycup, Golden Fields, and regional organic mills supply high‑quality roasted barley coffee ingredients to bakeries and confectioners seeking clean label, plant‑based components. This functional versatility, coupled with consumer interest in innovative, wholesome treats, bolsters barley coffee’s role in specialty baked goods and dessert formulations.

Recent Developments

Recent developments in the barley coffee market show growing functional beverage innovation and expanded ecommerce distribution as key growth drivers. Brands are introducing instant roasted barley drinks and flavored variants, enhancing appeal to health‑conscious consumers seeking caffeine‑free alternatives. A key trend is the rising demand for clean label and organic coffee substitutes, which encourages product diversification across retail and specialty foodservice channels. Enhanced digital marketing and online availability support broader market reach and stronger brand visibility in global beverage aisles.

June 2024 : Teeccino Caffé Inc. expanded its California production facility by about 40 percent, adding new roasting equipment and packaging lines to meet rising demand for herbal coffee alternatives (including barley blends). This investment in manufacturing capacity supports broader distribution and supply stability for its organic and gluten‑free product offerings amid strong market growth.
November 2025 : In a 2025 United States Coffee Substitutes Market snapshot, Postum was highlighted alongside major players such as Teeccino Caffé Inc. as a key brand in the expanding coffee substitute category driven by health‑conscious, caffeine‑free beverage demand. This recognition reflects ongoing brand relevance and positioning in alternative roasted grain beverages.

Impact of Industry Transitions on the Barley Coffee Market

As a core segment of the Packaged & Processed F&B industry, the Barley Coffee market develops in line with broader industry shifts. Over recent years, transitions such as Adoption of Organic Barley Coffee and Ecommerce Boom in Barley Coffee Sales have redefined priorities across the Packaged & Processed F&B sector, influencing how the Barley Coffee market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Adoption of Organic Barley Coffee

The accelerating adoption of organic barley coffee is shifting Barley Coffee from a niche health beverage to a mainstream caffeine-free coffee alternative, with this transition alone projected to unlock around $187 million in additional market value by 2030. Driven by rising health and wellness priorities, consumers are trading traditional coffee for low-caffeine, plant-based functional beverages that minimize jitters while supporting digestive comfort. This is catalyzing premium product innovation in vegan and gluten-free barley coffee formats, expanding shelf space in health-focused retail channels, and incentivizing sustainable agriculture practices in barley farming. As brands reposition Barley Coffee on clean-label, organic, and better-for-you platforms, they are capturing higher margins, deepening customer loyalty, and structurally elevating long-term category growth beyond conventional hot beverage trends.
02

Ecommerce Boom in Barley Coffee Sales

The digital revolution has not only left the barley coffee industry untouched. The upsurge in online shopping, fueled by conveniencedriven consumer behavior and the global pandemic, has provided a muchneeded impetus to barley coffee sales on ecommerce platforms. Brands are aggressively utilizing digital marketing strategies for maximum visibility and engagement. This paradigm shift has led to the expansion of digital sales channels, increased competition, and the establishment of new market players.