Coffee Market Size & Trends
The global coffee market size was estimated at USD 461.25 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. Theglobal demand for coffee is a significant driver of the market. Globally, coffee is one of the most consumed beverage items, and its popularityis steadily rising, particularly in emerging markets such as the Asia Pacific.Growing disposable incomes, changing consumer lifestyles, andthe strengthening coffee culture among consumers worldwide contribute to the overall industry expansion. As per data published by the National Coffee Association of U.S.A., Inc., in March 2020, the overall product consumption in the countrygrew by 5% since 2015.
The availability and production of coffee beans significantly impact the market growth. Factors including weather conditions, diseases affecting coffee plants (e.g., coffee rust), natural disasters, and geopolitical issues, can greatly affect the prices and supply of these beans. Vietnam, Brazil, and Colombia lead globally in terms of coffee production, and the production levels in these economies influence market dynamics.A report published by the U.S. Department of Agriculture in June 2023 stated that Brazil's coffee harvest isprojected to reach 66.4 million bags in 2023/24. Moreover, the coffee harvest in Vietnam and Colombia ispoisedto reach 31.3 million and 11.6 million bags respectively in this period.
Changing demographics, including shifts in lifestyles, influence the global 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 from The Fall 2021 National Coffee Data Trends (NCDT), 65% of millennials (25 to 39 years) reported having coffee within the past day compared to 46% of Gen Z-ers (18 to 24 years).
Coffee Market Size, Share & Growth Insights:
- The U.S. coffee market size was estimated at USD71.9 billion in 2021.
- The global market size is expected to grow at a CAGR of 5.2% from 2023 to 2030.
- Europeaccounted for the largest market share of 32.7% in 2022.
Increasing awareness about health and wellness among consumers can affect caffeine consumption patterns. Studies highlighting potential health benefits associated with moderate caffeine consumption, such as antioxidants and potential protection against certain diseases, can influence consumer attitudes and preferences. Product consumption in adequate amounts provides various health benefits, such as supporting brain & heart health, lowered diabetes risk, and longevity. However, concerns regarding caffeine intake and potential adverse health effects can hinder market growth. In addition, excessive consumption can lead to caffeine-related issues, such as anxiety, insomnia, gastrointestinal disturbances, and increased heart rate.
Distribution Channel Insights
The B2B segment accounted for a share of 73.7% in 2022 and is anticipated to grow at a CAGR of 4.9% from 2023 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 consumer demands. 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, the increasing number of cafes, hotels, and restaurants is boosting the product demand, thereby driving the global market growth.
The B2C segment isexpected to advance at the fastest CAGR of 5.8%through 2030. The steadily risingspecialty coffee culture across the globe hascreated a strong demand for unique and high-quality coffee beans among consumers. B2C channels allow consumers to explore and purchase specialty coffees directly from hypermarkets & supermarkets, convenience stores, specialty stores, or online platforms. Furthermore, the expansion of the e-commerce sector hasencouraged direct-to-consumer sales models. Coffee producers, roasters, and brandsare now able to sell their products directly through online platforms to consumers, which has helped them reach a wider audience and bypassconventional retail channels.
Product Insights
The roasted product segment size was estimated at USD 246.32 billion in 2022 and is expected to grow at a CAGR of 4.8% from 2023 to 2030. The globalization of coffee culture, driven by the expansion of international food & beverage 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. Also, there is a rising interest in craft and specialty coffee, with consumers seeking unique andpremium coffee experiences. This has boostedthe demand for freshly roasted beans, which are usually sourced from specific regions and have unique flavor profiles. Moreover, the rising trend of home brewing has fueled the sales of roasted beans.
Many consumers are investing in high-quality coffee beans as well as brewing equipment to replicate the coffee shop experience at home. The ready-to-drink (RTD) segment isanticipated to advance ata CAGR of 6.0%through2030. Hectic consumer lifestyle patterns have led to a strong demand for convenient beverage options, and RTD coffee addresses this space well. It allows consumers to enjoy their favorite coffee beverages without the need for brewing or waiting in long queues. Moreover, RTD caffeine products offer a wide range of flavors and formulations, catering to diverse consumer preferences. The ability to choose from various flavors, brewing types, etc. has contributed to the popularity of these beverages.
Regional Insights
Europehelda significant revenue share of 32.7% in 2022 and is expected to grow further at a CAGR of 5.0% from 2023 to 2030. There has been an increasingdemand for premium coffees in this region, aided by thehigh product consumption at specialty coffee shops in Western Europe. According to data published by the Centre for the Promotion of Imports from Developing Countries (CBI), in Europe, the number of coffee shops serving specialty coffeegrew to 24,290 in 2020, showcasing a surge of 18% between 2018 and 2020.European consumers are increasingly becoming interested in both Robusta andArabica forms of specialty coffee, thus creating growth opportunities for suppliers. Exporters regularly providing high-quality products are expected to find these prospects particularly interesting.
Asia Pacificheld amarket revenue share of 23.0% in 2022 and is expected to expand at a CAGR of 6.1%through 2030. Coffee culture isbecoming popular in several Asian economies due to the influence of Western coffee trends on the region and the emergence of a younger and more cosmopolitan population. Urban areas particularly have witnessed a surge in the popularity of coffee shops. Asia Pacific has a large population of young people who arewilling to adopt global trends. This demographic is drawn to the café culture and the experience of specialty coffees, which is expected to create growth opportunities for the regional market.
Nature Insights
The conventional coffee segment size was estimated at USD 407.61 billion in 2022 and is expected to grow at a CAGR of 4.7% from 2023 to 2030. Conventional coffee is often more affordable than its organic counterpart. This lower price point makes it accessible to a broader consumer base, attracting price-sensitive consumers. 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 product demand, globally.
The organic coffee segment is poised to advance at a CAGR of 8.4% during the forecast period. Consumers areseeking goods that are considered to be healthier and more sustainable, aided by rising health and environmental concerns. These issues are addressed by organic coffee, which is produced without the use of synthetic pesticides and fertilizers. Consumers are becoming highly aware of the environmental impact of their choices. Organic coffee production typically involves more environmentally friendly practices resulting in their increased demand.
Key Companies & Market Share Insights
Key players are adopting various strategies, such as partnerships, mergers & acquisitions, development & launch of new products, global expansions, and redesigning their packaging solutions, to strengthen their presence in the market.
Key Coffee Companies:
- Nestlé
- Starbucks Coffee Company
- JDE Peet's
- Tchibo Coffee
- Luigi Lavazza SPA
- Strauss Coffee BV
- The J.M. Smucker Company
- Melitta
- UCC Ueshima Coffee Co., Ltd.
- Massimo Zanetti Beverage USA
Coffee Market Report Scope
Report Attribute | Details |
Market size value in 2023 | USD 483.91 billion |
Revenue Forecast in 2030 | USD 690.09 billion |
Growth rate | CAGR of 5.2% from 2023 to 2030 |
Base year for estimation | 2022 |
Historical data | 2017 - 2021 |
Forecast period | 2023 - 2030 |
Quantitative units | Revenue in USD million/billion and CAGR from 2023 to 2030 |
Report coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered | Product, nature, distribution channel, region |
Regional scope | North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope | U.S.; Canada; Mexico; Germany; UK; France; Italy; Spain; China; Japan; India; South Korea; Indonesia; Brazil; Ethiopia |
Key companies profiled | Nestlé; Starbucks Coffee Company; JDE Peet's; Tchibo Coffee; Luigi Lavazza SPA; Strauss Coffee BV; The J.M. Smucker Company; Melitta; UCC Ueshima Coffee Co., Ltd.; Massimo Zanetti Beverage USA |
Customization scope | Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options | Avail customized purchase options to meet your exact research needs.Explore purchase options |
Global Coffee Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the coffee market report on the basis of product, nature, distribution channel, and region:
Product Outlook (Revenue, USD Billion, 2017 - 2030)
Roasted
Roast & Ground
Pods & Capsules
Whole Beans
Instant
Ready to Drink
Nature Outlook (Revenue, USD Billion, 2017 - 2030)
Conventional
Organic
Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)
B2B
Cafes & Bars
Hotels & Restaurants
Workplace
Others
B2C
Hypermarkets & Supermarkets
Convenience Stores
Specialty Stores
Online
Others
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
Asia Pacific
China
Japan
India
South Korea
Indonesia
Central & South America
Brazil
Middle East & Africa
Ethiopia
Frequently Asked Questions About This Report
How big is the coffee market?
b. The global coffee market size was estimated at USD 461.25 billion in 2022 and is expected to reach USD 483.91 billion in 2023.
What is the coffee market growth?
b. The global coffee market is expected to grow at a compounded growth rate of 5.2% from 2023 to 2030 to reach USD 690.09 billion by 2030.
Which segment accounted for the largest coffee market share?
b. Roasted coffee was valued at USD 246.32 billion in 2022 of the global revenue and is expected to grow at a CAGR of 4.8% over the forecast period from 2023 to 2030. The globalization of coffee culture, driven by the expansion of international coffee shop chains like Starbucks, has led to increased consumption of roasted coffee. These chains have popularized the idea of freshly roasted coffee, emphasizing its premium quality.
Who are the key players in the coffee market?
b. Some key players operating in coffee market are Nestlé, Starbucks Coffee Company, JDE Peet's, Tchibo Coffee, LUIGI LAVAZZA SPA, Strauss Coffee BV, The J.M. Smucker Company, Melitta, UCC UESHIMA COFFEE CO., LTD., and Massimo Zanetti Beverage USA
What are the factors driving the coffee market?
b. 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. Additionally, the rise of convenient coffee formats like coffee pods and capsules has transformed the market.