Decaf Coffee: The Growing Trend Fuelled by Health-Conscious Consumers

As younger consumers drive the trend of all-day coffee consumption, interest in decaf options is surging. With Gen Z’s focus on health and wellness, many are reducing their caffeine intake, supporting the movement toward decaf.

The once-popular ‘death before decaf’ sentiment is fading, as specialty coffee now embraces half-caf, low-caf, and decaf offerings. For instance, a decaffeinated Typica from Finca Los Nogales in Colombia even won the 2024 US Brewers Cup.

To sustain market growth in the specialty coffee sector, the quality of decaf products must be prioritized. I spoke with Pete Licata, 2013 World Barista Champion, and Erin Reed, Director of Marketing at Swiss Water Decaffeinated Coffee Inc, to learn more.

Exploring the Global Boom in Decaf Consumption

Recent market research suggests that the international decaf coffee market will grow by 6% to 7% annually for the next five years, projected to reach over $28.8 billion by 2030. According to Erin Reed, “This trend is relatively global in nature but especially prevalent in North America and key Asian geographies.”

Swiss Water reported a net income of CA $1.3 million (US $0.9 million) for 2024, marking a 340% increase from the previous year, attributed to the successful consolidation of its new Delta facility, aimed at enhancing operational efficiency.

According to the NCA’s Spring 2024 report, about 7% of Americans consumed decaf coffee the previous day, with increased consumption noted particularly among those aged 40 and over. Countries like India and Indonesia are experiencing significant demand increases, with the Asia Pacific decaf market expected to show the fastest growth rate of 8.2%.

Why Younger Consumers are Driving the Trend

Euromonitor International reported that self-reported interest in drinking less caffeine reached a record high at 46% of surveyed individuals. Pete Licata observes a cultural shift, “More people have become conscious of their health and wellness, focusing significantly on sleep quality in relation to overall health.”

Swiss Water’s findings indicate that 18- to 40-year-olds consume decaf coffee two or more times per week, primarily to improve sleep quality and reduce anxiety. Erin adds that an increase in decaf consumption parallels trends toward no/low alcohol options driven by health-conscious younger consumers.

Combatting the Effects of All-Day Coffee Consumption

The tendency of consumers, particularly Gen Z, to drink coffee throughout the day can lead to increased caffeine intake. The US FDA suggests 400 mg of caffeine per day is safe for healthy adults. To mitigate the effects of high caffeine levels, more consumers are opting for decaf. Pete notes, “Decaf coffee is still coffee, so it’s a healthy alternative if caffeine is your issue.”

Specialty Coffee’s Transformation Regarding Decaf

Historically, decaf faced stigma due to perceived low quality. Today, specialty roasters are offering a diverse range of decaf, half-caf, and low-caf options to meet shifting consumer habits. Competitions showcasing high-quality decaf, such as the 2024 US Brewers Cup, highlight this shift, creating opportunities for growth and increased acceptance.

As consumer demand for high-quality decaf rises, so does the innovation in production methods. Pete asserts, “New advancements in decaf processing are possible, and it will just take one person to figure out an innovative new method for there to be significant technological jumps.”

Ultimately, the brewing success of decaf relies on both quality sourcing and innovative processing methods that cater to the growing consumer base seeking healthier choices in coffee consumption.