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Europe Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2018 - 2029

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  • 110 Pages
  • February 2024
  • Region: Europe
  • Mordor Intelligence
  • ID: 5332776
The Europe Coffee Market size is estimated at USD 47.88 billion in 2024, and is expected to reach USD 58.14 billion by 2029, growing at a CAGR of 3.96% during the forecast period (2024-2029).

According to the European Coffee Federation, Europe accounts for around 33% of all coffee consumed worldwide in 2020/21, which makes it a significant and attractive market for coffee. The European Union also has the highest per capita consumption of coffee in the world, even though their consumption varies from country to country. Coffee is considered to be one of the most popular drinks in Western Europe due to its deeply ingrained culture and widespread use in the daily routine of consumers. Additionally, the demand for coffee is also increasing in the region due to the number of new coffee shops opening, the growth of coffee chain stores, and the increasing number of people buying coffee machines. According to Project Café Europe 2022, the European coffee chain market grew by 3.2% during the past year to reach 40,675 outlets.

The European coffee market is driven by multiple factors, such as the increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by consumers, and constant innovation led by the top players in the coffee market. However, the changing weather conditions play a crucial role in coffee production in countries where production takes place, affecting the supply chain of coffee being imported into European countries.

The premiumization of whole-bean coffee products is driving the coffee market. Major players in the market are trying their best to introduce premium products by utilizing artisanal techniques or using the handpick method to get a premium product, which is increasing the demand for coffee in the region, hence boosting the growth of the market studied in the region.

Europe Coffee Market Trends

Consumer Preference for Premium Coffee Fuels Growth in Specialty Coffee Shops Market

The sharp growth in the premium coffee market has been partly driven by the continuous growth of out-of-home consumption. Coffee shops in European countries are leading the way by introducing sophisticated, high-value varieties to consumers, thereby boosting market growth significantly. The growing demand for premium coffee is in line with growing consumer interest in how the coffee is brewed, as well as how the crop is grown. It has, therefore, become essential for specialty coffee producers to tell the story behind their coffee, its origin, and its other environmental and social aspects.

In recent years, coffee in the United Kingdom has become reliant on coffee shop-driven premiumization. Over the last decade, consumers who had been witnessing rising incomes learned about value-added approaches to coffee at coffee shops. Thus, there was an increased appreciation for premium coffee in other food service and retail occasions. Further, the origin of coffee is receiving increasing attention from the industry and consumers in the premium category. Single-origin coffee is associated with high quality and uniqueness from a certain region or country. At Starbucks, the world's largest coffee chain, single-origin coffee has also started to gain space.

Germany Holds a Significant Share in the Coffee Market

Europe has minimal coffee production, and Germany is one of the coffee-producing countries in the region. As per the data published by the Centre for the Promotion of Imports Ministry of Foreign Affairs, an increasing number of Germans are consuming coffee at their homes, coffee shops, and cafes, leading to growth in the on-trade market segment in Germany. This is increasing the application of various coffee products in the country. According to Kaffeeverband, a German coffee organization, in 2021, the per capita consumption of coffee rose from 168 liters to 169 liters, a corresponding 500 million more cups (compared to 2020).

Coffee consumption at work is of great prominence in Germany. Germany is the largest importer of green coffee beans in Europe. The German coffee roasting industry has grown to be one of the most significant in the world, serving both its domestic market - the largest in Europe - as well as its export markets. For the German coffee market, sustainability has become a minimum requirement for entry. In recent years, specialty coffee has taken over a larger share of the market. Germany imports the greenest coffee beans in Europe. As per Eurostat, in 2021, Germany accounted for 34% of direct European imports from producing countries, totaling approximately 1.1 million tonnes worth USD 3.51 billion. The increasing demand for freshly brewed coffee is pushing companies to opt for roasted whole beans, thereby reducing the sales of roasted ground coffee in the country.

Europe Coffee Industry Overview

Some of the most active companies operating in the market studied are Starbucks Corporation, Tchibo GmbH, Strauss Group Ltd, Nestle SA, Luigi Lavazza SPA, and JAB Holdings. Companies such as Nestle SA have expanded their production capacity by creating new manufacturing units to capture market share and introducing new varieties of coffee for buyers. Companies are making investments in developing new Nespresso machines and Grand Cru coffee, including unique coffee varieties from rare origins. Furthermore, the companies actively invest in online distribution channels, targeting consumers seeking convenience. The ease of use of these products provides a premium flavor to coffee. Good marketing by the key players and the wide variety of flavors have contributed to their increasing popularity in European countries.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Product Type
5.1.1 Whole Bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 By Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade Supermarkets/Hypermarkets Convenience Stores Specialist Retailers Other Off-trade Channels
5.3 By Geography
5.3.1 United Kingdom
5.3.2 Germany
5.3.3 France
5.3.4 Russia
5.3.5 Italy
5.3.6 Spain
5.3.7 Rest of Europe
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 JAB Holding Company
6.3.2 Nestlé SA
6.3.3 The Kraft Heinz Company
6.3.4 J.J. Darboven GmbH & Co. KG
6.3.5 Strauss Group Ltd
6.3.6 Melitta Group
6.3.7 Starbucks Corporation
6.3.8 Krüger GmbH & Co. KG
6.3.9 Luigi Lavazza SpA
6.3.10 Maxingvest AG (Tchibo)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • JAB Holding Company
  • Nestlé SA
  • The Kraft Heinz Company
  • J.J. Darboven GmbH & Co. KG
  • Strauss Group Ltd
  • Melitta Group
  • Starbucks Corporation
  • Krüger GmbH & Co. KG
  • Luigi Lavazza SpA
  • Maxingvest AG (Tchibo)