Coffee and Tea Market Report 2026

The coffee and tea market size has grown strongly in recent years. It will grow from $126.48 billion in 2025 to $133.22 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to expansion of global coffee and tea consumption, strong café culture development, growth of retail beverage distribution, rising disposable incomes, increasing product variety availability.

The coffee and tea market size is expected to see strong growth in the next few years. It will grow to $168.41 billion in 2030 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to increasing demand for functional beverages, rising adoption of eco-friendly packaging, expansion of e-commerce beverage sales, growing focus on ethical sourcing practices, increasing investments in premium beverage branding. Major trends in the forecast period include rising demand for sustainable coffee and tea sourcing, growing popularity of specialty and premium beverages, expansion of ready-to-drink formats, increasing focus on health-oriented tea variants, enhanced emphasis on traceability and quality assurance.

The rising demand for ready-to-drink (RTD) beverages is expected to drive the coffee and tea markets during the forecast period. RTD beverages are single-use packaged drinks ready for immediate consumption at the time of purchase. These drinks are increasingly popular among working adults due to their clean labels and functional benefits. The introduction of new flavors, portability, and convenience of RTD tea and coffee is expected to further boost market demand. For example, in August 2025, Monster Beverage Corporation, a U.S.-based energy drink manufacturer, reported that net sales for its Monster Energy Drinks segment rose 11.2 percent to $1.94 billion in the second quarter of 2025, up from $1.74 billion in the same quarter of 2024. Therefore, the growing demand for RTD beverages, including RTD coffee and tea, is expected to drive the coffee and tea market forward.

Leading companies in the market are focusing on unique coffee blends to maintain their market position. A unique coffee blend combines two or more different coffee beans to create a distinct flavor profile that cannot be achieved with a single-origin coffee. For instance, in June 2023, Tata Consumer Products, an India-based FMCG company, launched Tata Coffee Gold Cold Brew, a premium ready-to-drink cold coffee available in three flavors: classic, mocha, and hazelnut. The coffee is brewed with cold water to preserve smoothness and uses high-quality ingredients without artificial flavorings. The product offers a unique flavor experience for consumers who value taste, quality, and convenience, with low sugar content catering to health-conscious individuals.

In December 2025, JDE Peet's, a Netherlands-based coffee and tea company, acquired Maratá for an undisclosed amount. This acquisition aims to strengthen JDE Peet's presence in the Brazilian coffee and tea market, expand its product portfolio, enhance distribution capabilities, and drive long-term growth across retail and foodservice channels. Maratá is a Brazil-based company specializing in coffee and tea products.

Major companies operating in the coffee and tea market are Nestle S.A., Unilever plc, J.M. Smucker Company, Suntory Holdings Limited, Ito En Ltd., Tata Consumer Products Limited, CCL Products, Neelamalai Agro, Fukujuen, Harada Seicha, Cantarella Holdings Pty Ltd, Vittoria Food & Beverage, D E Holding Australia Pty Ltd, Caffe Bene, Luckin Coffee, Pacific Coffee, Javaphile, JAB Holding Company, J Darboven GmbH & Co. KG, Alois Dallmayr KG, Tchibo, Golden Monkey Tea Company Limited, Olam International, Orimi Ukraine, Greenfield, TESS, PepsiCo, Mondelez International Inc, ADM, The Hain Celestial Group, Cafe Arabo, Brazilian Canadian Coffee Co, AVANTCHA Tea, RAW Coffee Company, AL Daria International, Afreeqya Naturally, Joffreys Coffee & Tea Company, & M. Smith (Pty) Ltd, Ethiopian Harrar Coffee, Kenya AA Coffee, Kaldi Coffee.

Asia-Pacific was the largest region in the coffee and tea market in 2025. Western Europe was the second-largest region in the coffee and tea market. The regions covered in the coffee and tea market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coffee and tea market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The coffee and tea market consists of sales of roasting coffee, blending tea, coffee and tea concentrate, herbal tea, coffee extracts, flavorings and syrups, and other coffee and tea products. The companies in the coffee and tea industry process raw materials into roasting coffee, blending tea, coffee and tea concentrates, herbal tea, coffee extracts, flavorings and syrups, package and distribute them through various distribution channels to both on-trade and off-trade establishments. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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