Coffee Market Size, Share & Trends Analysis Report By Product (Roasted, Instant, Ready to Drink), By Nature (Conventional, Organic), By Distribution Channel (B2B, B2C), By Region, And Segment Forecasts, 2024 - 2030

Coffee Market Size & Trends

The global coffee market size was estimated at USD 223.78 billion in 2023 and is expected to grow at a CAGR of 5.4% from 2024 to 2030. The overall demand for coffee is a significant driver of the market. Coffee is one of the most consumed beverages worldwide, and its popularity continues to grow, particularly in emerging markets such as Asia Pacific. Increasing disposable incomes, changing lifestyles, and a rising coffee culture among consumers across the globe is contributing to the overall growth of the market. According to the data published by the National Coffee Association of U.S.A., Inc. in March 2020, the overall consumption of coffee among consumers in the U.S. has increased by 5% since 2015.

Evolving consumer preferences and trends play a crucial role in shaping the coffee market. Factors such as the increasing demand for specialty and gourmet coffees, organic and sustainable sourcing, and the popularity of premium and single-origin coffee varieties impact market dynamics. Specialty coffee and gourmet coffee are often associated with higher quality and unique flavor profiles. Consumers are increasingly willing to pay a premium for these coffees, which drives up the overall value of the coffee market. This demand for specialty and gourmet coffee contributes to increased revenue and profitability for coffee producers, roasters, and retailers. In addition, the rise of convenient coffee formats such as coffee pods and capsules has transformed the market.

The availability and production of coffee beans significantly impact the market. Factors such as weather conditions, natural disasters, diseases affecting coffee plants (e.g., coffee rust), and geopolitical issues can affect the supply and prices of coffee. Brazil, Vietnam, and Colombia are among the leading coffee-producing countries, and their production levels influence market dynamics. According to a report published by the U.S. Department of Agriculture in June 2023, the coffee harvest in Brazil is expected to reach 66.4 million bags in 2023/24. In addition, the coffee harvest in Vietnam and Colombia is expected to reach 31.3 million and 11.6 million bags in 2023/24.

Changing demographics, including shifts in age distribution and lifestyles, influence the coffee market. Younger generations, such as millennials and Gen Z, are more likely to be avid coffee consumers and have specific preferences regarding specialty coffee, sustainable sourcing, and unique flavors. The aging population and their evolving tastes also impact the market, as older adults may seek milder or decaffeinated options.According to a survey The Fall 2021 National Coffee Data Trends (NCDT) found that 65% of Millennials (aged 25 to 39) and 46% of Gen Z-ers (aged 18 to 24) reported consuming coffee in the previous day.

Increasing awareness of health and wellness among consumers can affect coffee consumption patterns. Studies highlighting potential health benefits associated with moderate coffee consumption, such as antioxidants and potential protection against certain diseases, can influence consumer attitudes and preferences. Consumption of coffee in adequate amounts provides various health benefits such as supporting brain health, lowering the risk of diabetes, increasing longevity, supporting heart health, and others. However, concerns about caffeine intake and potential negative health effects can hinder market growth. In addition, excessive consumption of coffee can lead to caffeine-related issues such as anxiety, insomnia, gastrointestinal disturbances, and increased heart rate.

Market Concentration & Characteristics

The coffee market is experiencing a high degree of innovation, driven by evolving consumer preferences and advancements in technology. Companies are introducing new brewing methods, such as cold brew and nitro coffee, as well as ready-to-drink options that cater to convenience-seeking consumers. The rise of specialty coffee, with single-origin beans, unique flavor profiles, and sustainable sourcing practices, has added a premium aspect to the market.

The coffee market has seen a significant level of merger and acquisition activity, reflecting the industry's dynamic nature and competitive landscape. Major players are consolidating to expand their portfolios, enter new markets, and leverage synergies for operational efficiency. Acquisitions often involve specialty coffee brands, technology-driven companies, and sustainable coffee ventures, aiming to enhance product offerings and meet evolving consumer demands.

Regulations have a profound impact on the coffee market, shaping both product standards and operational practices. Food safety regulations mandate rigorous quality controls and traceability throughout the supply chain, ensuring that coffee products meet health and safety standards. Environmental regulations influence coffee production practices, encouraging sustainable farming methods and reducing the industry's carbon footprint.

In the coffee market, product substitutes are increasingly influencing consumer choices and market dynamics. Alternatives such as tea, matcha, and herbal infusions offer varied flavors and caffeine levels, appealing to those seeking different taste experiences or health benefits. In addition, plant-based coffee substitutes, like chicory and barley-based drinks, cater to individuals with dietary restrictions or those avoiding caffeine. The rise of ready-to-drink beverages and functional drinks, which blend coffee with other ingredients such as protein or vitamins, also serves as a substitute for traditional coffee.

End-user concentration in the coffee market is relatively diverse, reflecting a broad range of consumer segments and preferences. The market caters to both individual consumers and businesses, including coffee shops, restaurants, and offices. Individual consumers, segmented by demographics such as age, income, and lifestyle, drive significant demand for various coffee products, from premium blends to convenient ready-to-drink options.

Product Insights

Roasted coffee accounted for a share of 53.7% of the global revenue in 2023. The globalization of coffee culture, driven by the expansion of international coffee shop chains such as Starbucks, has led to increased consumption of roasted coffee. These chains have popularized the idea of freshly roasted coffee, emphasizing its premium quality. In addition, there is a growing interest in craft and specialty coffee, with consumers seeking unique and high-quality coffee experiences. This trend has driven the demand for freshly roasted beans, often sourced from specific regions and with distinct flavor profiles. Moreover, the rise of home brewing has further fueled the sales of roasted coffee. Many consumers now invest in high-quality coffee beans and brewing equipment to replicate the coffee shop experience at home.

Ready to drink coffee market is projected to grow at a CAGR of 6.4% from 2024 to 2030. The busy and hectic lifestyle of consumers has led to an increased demand for convenient options, and RTD coffee fits well into this lifestyle. It allows consumers to enjoy their favorite coffee beverages without the need for brewing or waiting in coffee shops. Moreover, RTD coffee products offer a wide range of flavors and formulations, catering to diverse consumer preferences. The ability to choose from various flavors, brewing type, and others has contributed to the popularity of these beverages.

Nature Insights

Conventional coffee accounted for a share of more than 85% of the global revenue in 2023. Conventional coffee is often more affordable than organic coffee. This lower price point makes it accessible to a broader consumer base, attracting price-sensitive consumers who prioritize affordability. In addition, conventional coffee is typically produced on a larger scale, benefiting from economies of scale. This allows for mass production and distribution, meeting the high demand for coffee globally.

Organic coffee market is projected to grow at a CAGR of 7.4% from 2024 to 2030. Consumers are looking for goods that are viewed as healthier and more sustainable as a result of rising health and environmental concerns. These issues are addressed by organic coffee, which is produced without synthetic pesticides and fertilizers. Consumers are increasingly conscious of the environmental impact of their choices. Organic coffee production typically involves more environmentally friendly practices resulting in their increased demand.

Distribution Channel Insights

The sales of coffee through B2B channel is accounted for a share of 62.5% of the global revenue in 2023.  The global rise of specialty coffee culture has led to an increased demand for unique and high-quality coffee beans among consumers. B2C channels allow consumers to explore and purchase specialty coffees directly from hypermarket & supermarkets, convenience stores, specialty stores, or online platforms. In addition, the growth of e-commerce has facilitated direct-to-consumer sales models. Coffee producers, roasters, and brands can now sell their products directly to consumers through online platforms, reaching a wider audience and bypassing traditional retail channels. .

The coffee sales through B2C channels is projected to grow at a CAGR of 5.4% from 2024 to 2030. B2B coffee sales often involve bulk purchases by businesses such as restaurants, cafes, hotels, and others. These establishments require a large supply of coffee to meet the demands of their customers. B2B sales channel allows for customization to meet the specific needs of businesses. This could include custom blends, packaging, and even branding tailored to the business's preferences. Moreover, increasing cafes, hotels, and restaurants is further increasing the demand for coffee thus driving the global market.

Regional Insights

The coffee market in North America accounted for a share of 23.2% of the global revenue in 2023. The growing popularity and consumption of roasted coffee in the region are driving the market. The introduction of coffee chains such as Starbucks in North America has made roasted coffee increasingly sought-after, from light roast to dark roast. These chains offer roasted coffee based on customers’ varying individual tastes and preferences, thus fueling the market growth.

U.S. Coffee Market Trends

The coffee market in the U.S. is projected to grow at CAGR of 5.5% from 2024 to 2030.  The collective coffee consumption of individuals in the U.S. amounts to 400 million cups. On an individual basis, a typical coffee consumer in America drinks approximately three cups of coffee daily, according to U.S. Food and Drug Association (FDA). As per FDA this makes the U.S. one of the largest consumers of coffee in the world with over 150 million coffee drinkers, and this has continued to grow, leading to the increased demand for roasted coffee in the market. The presence of a large number of small local cafes, baristas, coffee bars, and even large coffee chains such as Starbucks and Dunkin Donuts is driving the market growth in the U.S.

Europe Coffee Market Trends

The coffee market in Europe accounted for a share of 32.6% of the global market in 2023. Consumers in the region are increasingly consuming high-quality coffees. This is majorly driven by the significant increase in consumption at specialty coffee shops in Western Europe, which provide primarily high-quality coffees. According to the data published by the Centre for the Promotion of Imports from developing countries (CBI), the number of coffee shops in Europe serving specialty coffee increased to 24,290 in 2020, a surge of 18% between 2018 and 2020. There are more opportunities for suppliers as European consumers are becoming increasingly interested in both Arabica and Robusta specialty coffees. Exporters that can regularly provide high-quality coffees are expected to find these prospects to be particularly interesting.

The coffee market in the UK is projected to grow at a CAGR of 6.4% from 2024 to 2030. The UK coffee market has witnessed significant growth, with a considerable shift toward specialty and premium coffees. As stated in a report from the British Coffee Association, approximately 95 million cups of coffee are consumed daily in the UK, amounting to an astounding total of 2.8 billion cups annually. A substantial majority of adults, exceeding 80%, engage in regular coffee consumption, with the average individual consuming three cups per day.

Asia Pacific Coffee Market Trends

Asia Pacific coffee marker is projected to grow at CAGR of 6.1% from 2024 to 2030. Coffee culture is gaining traction in many Asian countries, driven by the influence of Western coffee trends and the rise of a younger, more cosmopolitan population. Urban areas, in particular, have seen a surge in the popularity of coffee shops. The Asia Pacific region has a large population of young people who are more open to adopting global trends. This demographic is increasingly drawn to the café culture and the experience of specialty coffees.

The Japan coffee market accounted for a share 33.2% of the global revenue in 2023. There has been a significant increase in coffee consumption across Japan, spurred by a burgeoning coffee culture and a growing preference for specialty coffee. This shift towards higher quality and specialty blends has elevated the demand for premium roasted coffee beans, as consumers seek unique flavors and distinct profiles in their coffee experiences.

Key Coffee Company Insights

Key players operating in the market are adopting various steps to increase their presence in the market. These steps include strategies such as partnerships, mergers & acquisitions, development & launch of new products, global expansion, redesigning their packaging, and others. Some of the initiatives include:

Coffee Market Report Scope

Global Coffee Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segment from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global coffee market report on the basis of product, nature, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Roasted

    • Roast & Ground

    • Pods & Capsules

    • Whole Beans

  • Instant

  • Ready to Drink

• Nature Outlook (Revenue, USD Billion, 2018 - 2030)

  • Conventional

  • Organic

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • B2B

    • Cafes

    • Hotels & Restaurants

    • Offices

    • Bakeries and coffee shops

    • Others

  • B2C

    • Grocery Stores/Supermarkets

    • Hypermarkets

    • Convenience Stores

    • Online Retailers

    • Online Direct-to-Consumer (DTC)

    • Others

• Product By Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Beans

    • B2C

      • Grocery Stores/Supermarkets

      • Hypermarkets

      • Convenience Stores

      • Online Retailers

      • Online Direct-to-Consumer (DTC)

      • Others

    • B2B

      • Cafes

      • Hotels & Restaurants

      • Offices

      • Bakeries and coffee shops

      • Others

  • Ground Coffee

    • B2C

      • Grocery Stores/Supermarkets

      • Hypermarkets

      • Convenience Stores

      • Online Retailers

      • Online Direct-to-Consumer (DTC)

      • Others

    • B2B

      • Cafes

      • Hotels & Restaurants

      • Offices

      • Bakeries and coffee shops

      • Others

  • Coffee Pods

    • B2C

      • Grocery Stores/Supermarkets

      • Hypermarkets

      • Convenience Stores

      • Online Retailers

      • Online Direct-to-Consumer (DTC)

      • Others

    • B2B

      • Cafes

      • Hotels & Restaurants

      • Offices

      • Bakeries and coffee shops

      • Others

  • RTD

    • B2C

      • Grocery Stores/Supermarkets

      • Hypermarkets

      • Convenience Stores

      • Online Retailers

      • Online Direct-to-Consumer (DTC)

      • Others

    • B2B

      • Cafes

      • Hotels & Restaurants

      • Offices

      • Bakeries and coffee shops

      • Others

  • Instant

    • B2C

      • Grocery Stores/Supermarkets

      • Hypermarkets

      • Convenience Stores

      • Online Retailers

      • Online Direct-to-Consumer (DTC)

      • Others

    • B2B

      • Cafes

      • Hotels & Restaurants

      • Offices

      • Bakeries and coffee shops

      • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa

    • Saudi Arabia