PDF Cover

Decaffeinated Coffee Market

The market for Decaffeinated Coffee was estimated at $3.1 billion in 2025; it is anticipated to increase to $4.4 billion by 2030, with projections indicating growth to around $6.1 billion by 2035.

Report ID:DS1901079
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Decaffeinated Coffee
Share
Report Summary
Market Data
Methodology
Table of Contents

Global Decaffeinated Coffee Market Outlook

Revenue, 2025

$3.1B

Forecast, 2035

$6.1B

CAGR, 2026 - 2035

6.8%

The Decaffeinated Coffee (Decaf coffee) industry revenue is expected to be around $3.1 billion in 2026 and expected to showcase growth with 6.8% CAGR between 2026 and 2035. This robust outlook underscores the rising significance of Decaffeinated Coffee within the global retail coffee market, as health‑conscious consumers increasingly seek caffeine-free beverages that preserve the flavor and aroma of premium coffee products. Demand is being propelled by growing awareness of the health impacts of excessive caffeine, wider adoption of healthy coffee alternatives among pregnant women and sensitive consumers, and the expansion of the specialty coffee segment into caffeine-free formats. Supermarkets and hypermarkets together with online retail hold 70.9% of the distribution share, reinforcing the strong presence of Decaffeinated Coffee across mainstream and digital channels and making it readily accessible to everyday shoppers. Ground decaffeinated coffee remains the leading product format, generating $1.14 billion in sales in 2025 and benefiting from its compatibility with home brewers, traditional coffee makers, and premium coffee products used in foodservice

Decaffeinated Coffee is produced by removing most of the caffeine from coffee beans while preserving key flavor compounds, resulting in a beverage that offers the sensory experience of traditional coffee with significantly reduced stimulant effects. Key features include low-caffeine content, diverse formats such as ground Decaf coffee and instant Decaf coffee, and wide availability in blends, single-origin offerings, and organic decaf coffee variants. Major applications span at-home consumption, cafés and restaurants, office and institutional catering, and ready-to-drink caffeine-free beverages that target consumers seeking enjoyment without sleep disruption or jitters. Recent trends driving demand include premiumization of Decaf coffee within the specialty coffee segment, rising preference for sustainably sourced and ethically traded beans, rapid growth of online retail subscription models, and innovation in roasting and decaffeination technologies that enhance flavor consistency and quality across all caffeine-free beverages

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

Market Key Insights

  • The Decaffeinated Coffee market is projected to grow from $3.1 billion in 2025 to $6.1 billion in 2035. This represents a CAGR of 6.8%, reflecting rising demand across Culinary Uses, Health-Conscious Consumption, and Specialty Beverage Innovations.

  • Nestlé S.A., JDE Peet’s N.V., and Starbucks are among the leading players in this market, shaping its competitive landscape.

  • U.S. and UK are the top markets within the Decaffeinated Coffee market and are expected to observe the growth CAGR of 4.4% to 6.5% between 2025 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 7.8% to 9.4%.

  • Transition like Emergence of Speciality Decaf Brews has greater influence in United States and UK market's value chain; and is expected to add $123 million of additional value to Decaffeinated Coffee industry revenue by 2030.

  • The Decaffeinated Coffee market is set to add $2.9 billion between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.

  • With

    evolving consumer preferences, and

    Technological Advancements in Decaffeination Processes, Decaffeinated Coffee market to expand 93% between 2025 and 2035.

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

Opportunities in the Decaffeinated Coffee

Rising digital adoption in Asia-Pacific is also accelerating online purchases of Decaffeinated Coffee, particularly instant decaffeinated coffee suited to time-pressed, value-driven consumers. Globally, instant formats are set to expand from $0.74 billion in 2025 to $1.06 billion by 2030, the fastest 7.5% CAGR among product types. Leveraging e-commerce platforms, subscription models, and single-serve pods allows brands to differentiate caffeine-free coffee with localized flavors, targeting emerging middle-class buyers in markets such as Southeast Asia, India, and urban China.

Growth Opportunities in North America and Europe

In North America, the Decaffeinated Coffee market is driven by health-conscious consumers seeking caffeine-free coffee options for evening consumption and routine wellness, with online retail emerging as the most strategically relevant distribution channel as global data already shows it delivering the fastest CAGR among channels. Top opportunities include premium and organic Decaffeinated Coffee beans, instant decaf coffee and ready-to-drink coffee formats positioned for subscription-based e-commerce and direct-to-consumer platforms, leveraging high penetration of home brewing systems and strong adoption of sustainable coffee trends. Competition is intensifying as multinational brands, specialty roasters, and private label decaf offerings expand curated portfolios and exclusive online SKUs, prompting a focus on differentiated flavor profiles, ethically sourced decaf coffee beans, and targeted digital marketing to capture repeat buyers and upsell into broader coffee market assortments.
In Europe, the Decaffeinated Coffee market is propelled by mature coffee consumption habits, a strong preference for quality and sustainability, and increasing demand for caffeine-free coffee alternatives during late-day social occasions, with supermarkets & hypermarkets remaining the most relevant distribution channel due to consolidated grocery retail and high private label penetration. Key opportunities arise from positioning organic and sustainable Decaffeinated Coffee, including instant decaf coffee and specialty decaf coffee beans, as premium yet accessible options within large retail chains, supported by clear labeling on origin, decaffeination process, and environmental credentials to appeal to ethically minded consumers. Competitive dynamics feature a mix of pan-European brands, national champions, and retailer-owned private label decaf ranges, creating room for differentiation through single-origin decaf, barista-style blends, and cross-category promotions with ready-to-drink coffee and other hot beverage segments to strengthen in-store visibility and category leadership.

Market Dynamics and Supply Chain

01

Driver: Growing Health Awareness Alongside Rising Demand for Flavorful, Caffeine‑Free Coffee Experiences

The decaffeinated coffee market is also being significantly bolstered by two interrelated growth factors- increased consumer health consciousness and a desire for rich coffee flavor without caffeine. First, more consumers are also prioritizing health and wellness, seeking to reduce caffeine intake to avoid issues like sleep disruption, anxiety, and elevated heart rate. This trend is also especially strong among older adults, pregnant women, and those with sensitive systems. As a result, decaf options are also now mainstream in coffee shops and retail shelves, catering to this mindful consumer base. Second, advancements in decaffeination technologies ensure that flavor profiles are also preserved even after caffeine removal. Methods like the Swiss Water Process and supercritical CO2 extraction maintain the bean’s natural aromatic compounds, allowing specialty coffee roasters to offer decaf variants that maintain complexity and depth. Together, these drivers expand both the volume and premium segments of the decaf coffee market.
A key driver of decaffeinated coffee growth is also the adoption of innovative, chemical‑free decaffeination processes such as Swiss Water and CO2 methods. These technologies gently remove caffeine while preserving essential flavor compounds and antioxidants, addressing past perceptions of decaf as inferior. This has also empowered specialty coffee producers to deliver high‑quality decaf that appeals to discerning consumers and health‑oriented buyers who prefer natural, clean‑label products, ultimately increasing market demand and improving brand reputation across global coffee markets.
02

Restraint: Perception of Inferior Flavor Compared to Caffeinated Coffee Limits Consumer Adoption

A major restraint on the decaffeinated coffee market is the enduring perception that decaf lacks the full flavor and aroma of regular coffee. Many traditional coffee drinkers view decaf as a second‑choice product, which depresses demand and pushes consumers toward premium caffeinated options. For example, specialty cafés often promote regular artisan roasts over decaf on menus, reducing decaf sales and limiting revenue growth despite improvements in decaffeination technology.
03

Opportunity: Premium decaffeinated coffee for health-focused millennials in North America and Sustainable organic Decaf coffee adoption in European premium hospitality outlets

Health-conscious consumers in North America increasingly seek Decaffeinated Coffee that delivers specialty-level flavor without caffeine, creating a premium niche across cafés and at-home brewing. Whole bean Decaf coffee, projected to grow globally from $1.00 billion in 2025 to $1.41 billion by 2030 at 7.2% CAGR, is expected to outperform other types in this segment. Brands that emphasize organic Decaf coffee, ethical sourcing, and low-caffeine coffee as part of broader functional beverages can capture loyalty among urban millennials and young professionals.
European hotels, restaurants, and cafés are upgrading beverage menus to include sustainably sourced Decaf coffee that aligns with corporate responsibility targets and guest wellness expectations. Ground Decaf coffee, forecast to rise globally from $1.14 billion in 2025 to $1.54 billion by 2030 at 6.2% CAGR, should benefit most as foodservice operators prioritize consistency and efficiency. Suppliers offering organic Decaf coffee, recyclable or compostable packaging, and barista-quality specialty decaf coffee can secure long-term contracts with upscale hospitality chains and boutique properties.
04

Challenge: Higher Production Costs of Quality Decaffeination Processes Restrict Market Expansion

Advanced decaffeination techniques like Swiss Water Process and supercritical CO2 extraction yield better taste but entail significantly higher costs than conventional methods. These expenses increase retail prices, making high‑quality decaf less competitive against standard coffee products. Smaller roasters and producers may avoid premium decaf lines due to tight margins, slowing broader adoption and constraining market growth in cost‑sensitive segments.

Supply Chain Landscape

1

Coffee Beans Farming

Neumann Kaffee GruppeVolcafeOlam Group
2

Decaf Beans Processing

Swiss Water Decaffeinated Coffee Inc.CR3 KaffeeveredelungDescamex
3

Decaffeinated Coffee Manufacturing

Nestlé S.A.JDE Peet’s N.V.Starbucks Corporation
4

Caffeine-Free Coffee

Instant CoffeeGround CoffeeCoffee Pods
Decaffeinated Coffee - Supply Chain

Use Cases of Decaffeinated Coffee in Culinary Uses & Specialty Beverage Innovations

Culinary Uses : Decaffeinated coffee is widely used in culinary applications such as desserts, ice creams, tiramisu, sauces, and baked goods where coffee flavor without caffeine is desired. Roasted decaf beans or ground decaf coffee provide rich flavor and aroma while avoiding the stimulating effects of caffeine, making them ideal for evening treats or children’s desserts. Brands like Starbucks, Nestlé, and Peet’s Coffee supply high-quality decaf products that are popular in restaurants and bakeries due to consistent taste and ease of use. Chefs value decaf for its ability to enhance flavor complexity without affecting customer alertness or sleep patterns.
Health-Conscious Consumption : Decaffeinated coffee appeals strongly to health-conscious consumers who want the taste and experience of coffee without caffeine’s potential side effects like insomnia or increased heart rate. Swiss Water Process and CO2 decaf options are preferred for their chemical-free or minimal-processing perceptions, preserving flavor and antioxidants attractive to wellness seekers. Major players such as Swiss Water Decaffeinated Coffee Inc., Green Mountain Coffee Roasters, and Starbucks use these processes to meet demand for clean-label, chemical-free decaf options that align with lifestyle trends. This drives decaf’s growth in retail and specialty channels.
Specialty Beverage Innovations : In the specialty beverage sector, decaffeinated coffee is being innovated into cold brews, artisanal pour-overs, and chef-crafted espresso blends that retain complexity despite caffeine removal. Companies like Explorer Cold Brew have expanded offerings to include high-quality 99.9% caffeine-free brews using the Swiss Water Process, challenging perceptions of decaf as inferior. Premium roasters such as Peet’s Coffee and Lavazza focus on small-batch decaf with distinctive flavor profiles, while Starbucks introduces unique seasonal decaf options to capture adventurous consumers seeking novel experiences without caffeine.

Recent Developments

Recent decaffeinated coffee market developments highlight growth in specialty decaf blends, chemical‑free decaffeination methods, and expanded ready‑to‑drink decaf beverages to satisfy evolving consumer preferences. A key trend is the rising demand for clean‑label, low‑caffeine coffee that maintains rich aroma and flavor profiles, driven by health‑aware drinkers and specialty cafés. Producers are investing in Swiss Water Process and CO2 extraction technologies to deliver premium decaf that appeals to wellness‑oriented and discerning coffee consumers.

August 2025 : Keurig Dr Pepper entered a definitive agreement to acquire Dutch coffee company JDE Peet’s in an all‑cash transaction valued at approximately €15.7 billion. This strategic acquisition will create a global coffee leader combining Keurig’s North American single‑serve strength with JDE Peet’s worldwide brand portfolio, and will be followed by a planned spin‑off into two independent U.S. public companies, boosting decaf and overall coffee market reach.
January 2025 : Nestlé Japan introduced the Nescafé Gold Blend Caffeine Half product to address rising demand for low‑caffeine and decaf alternatives. While not a full decaf product, this launch reflects Nestlé’s strategic emphasis on caffeine‑reduced beverages and expands its decaf‑related portfolio in the health‑driven market. 

Impact of Industry Transitions on the Decaffeinated Coffee Market

As a core segment of the Packaged & Processed F&B industry, the Decaffeinated Coffee market develops in line with broader industry shifts. Over recent years, transitions such as Emergence of Speciality Decaf Brews and Rise in Health-conscious Coffee Drinkers have redefined priorities across the Packaged & Processed F&B sector, influencing how the Decaffeinated Coffee market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Emergence of Speciality Decaf Brews

The emergence of specialty decaf brews is transforming the Decaf coffee value chain, particularly in the United States and the UK, where demand is shifting from generic decaf to differentiated, flavor-forward offerings such as specialty decaf coffee and flavored Decaf coffee. By aligning with health-conscious consumers and premium trends shaped by third-wave coffee, brands are expanding portfolios into single-origin decaf and organic decaf coffee, supported by sustainable coffee sourcing narratives. This shift from traditional, low-engagement decaf to higher-margin, experience-led products is expected to add approximately $123 million in incremental industry revenue by 2030, reinforcing Decaf coffee as a strategic growth pillar rather than a niche afterthought and compelling roasters, retailers, and private labels to recalibrate positioning, pricing, and innovation pipelines.
02

Rise in Health-conscious Coffee Drinkers

The rise in health-conscious coffee drinkers is reshaping the decaffeinated coffee market as more consumers seek to enjoy their favorite coffee flavors without caffeine’s stimulating effects. This shift has encouraged specialty cafés, retail brands, and roasters to expand decaf offerings, including cold brews, espresso blends, and single-origin options. Health-focused grocery chains now feature chemical-free decaf variants, appealing to pregnant women, older adults, and wellness-oriented consumers. In the functional beverage sector, decaf coffee is being incorporated into ready-to-drink drinks and meal replacement products, while dessert and bakery industries leverage decaf espresso and ground beans to create flavorful, caffeine-free treats. Overall, this transition strengthens demand, fosters innovation, and supports growth across multiple coffee-related industries.