Coffee Shops Market Report 2025

The coffee shop market size has grown strongly in recent years. It will grow from $83.27 billion in 2024 to $89.17 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth during the historic period can be credited to rising urbanization, the expanding coffee culture, increasing disposable incomes, the growth of international chains, and heightened demand for convenience.

The coffee shop market size is expected to see strong growth in the next few years. It will grow to $115.87 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The anticipated growth in the forecast period can be attributed to a shift toward health-conscious consumers, rising demand for specialty brews, expansion into tier-2 cities, the emergence of sustainable practices, and the increase in digital ordering. Key trends in the forecast period include advancements in ordering technology, innovations in brewing techniques, progress in sustainable packaging, research and development in coffee varieties, and the adoption of automation in operations.

The rise in coffee consumption is expected to fuel the expansion of the coffee shop market in the future. Coffee consumption refers to the growing intake and cultural integration of coffee beverages among people of various ages, lifestyles, and regions globally. This growth is propelled by coffee’s increasing appeal as a functional beverage that supports energy and wellness in everyday routines. Higher coffee consumption enhances the coffee shop sector by generating greater demand, attracting more customers, and increasing sales of coffee and related products. It also fosters a strong coffee culture, making coffee shops popular social and work-friendly environments, which supports their development and sustained success. For example, in June 2024, according to Tridge Co., Ltd., a South Korea-based agri-food intelligence and global trade solutions company, global coffee demand reached 177 million 60 kg bags between October 2023 and September 2024, marking a 2.2% rise compared to the previous period. Hence, the growing coffee consumption is driving the coffee shop market’s growth.

Leading companies in the coffee shop market are concentrating on creating advanced services, such as European-style coffee shops, to improve customer experience and attract a more varied and sophisticated clientele. European-style coffee shops embody classic European café culture, offering a refined atmosphere, premium coffee, and a leisurely experience. They emphasize comfort, encouraging guests to relax, socialize, or enjoy light meals at their own pace. For instance, in April 2024, Edinburgh Airport in the UK launched a new Caffè Nero coffee shop that provides travelers with a European-style coffee house experience both before and after security. The locations include just before security and various airside gates. This new outlet serves high-quality espresso-based coffee and Italian cuisine in a warm and welcoming environment, catering to passengers at all hours.

In July 2024, Jollibee Foods Corporation, a Philippines-based food service company, acquired Compose Coffee Co., Ltd. for around $340 million. Through this acquisition, Jollibee aims to accelerate its global expansion by integrating Compose Coffee’s rapidly growing, capital-light franchise model and extensive presence in South Korea. This strengthens Jollibee’s position in the value coffee segment and boosts its contribution to international revenue. Compose Coffee Co., Ltd. is a South Korea-based coffee shop chain company.

Major players in the coffee shops market are Starbucks Corporation, Luckin Coffee Inc., Dunkin' Donuts, Pret A Manger, The Coffee Bean & Tea Leaf, Blue Bottle Coffee, Tim Hortons, Caffè Nero, Zus Coffee, Intelligentsia Coffee, Scooter’s Coffee, Caffenio, % Arabica, PJ’s Coffee of New Orleans, Fore Coffee, Mercury’s Coffee Co., Aroma Espresso Bar, 321 Coffee, Te & Kaffi, 5 to go.

North America was the largest region in the coffee shop market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in coffee shops report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coffee shops market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the hospitality sector, particularly in the areas of imported food and beverage supplies, furniture, electronics, and kitchen equipment. Hotels and restaurants are facing higher costs for imported wine, seafood, coffee machines, linens, and smart appliances, many of which have limited domestic alternatives. Budget and mid-scale hospitality providers, operating on tight margins, are especially vulnerable, with some reducing service offerings or delaying renovations to manage expenses. Event venues and catering services are also experiencing disruptions due to increased costs of imported décor, lighting, and AV equipment. In response, the industry is turning to local sourcing for food and furnishings, renegotiating supplier contracts, and advocating for tariff relief on key hospitality imports.

A coffee shop is a casual dining venue that primarily offers coffee, various beverages, light snacks, pastries, and occasionally simple meals. It usually provides a relaxed and informal environment where people can sit, socialize, work, or read, often featuring comfortable seating and complimentary Wi-Fi. Coffee shops come in different styles, ranging from large commercial chains to small independent cafés, and are commonly located in urban areas, business districts, shopping malls, and near educational institutions.

The main categories of coffee shops include franchises, independents, and others. Franchise coffee shops operate under a unified brand and business model, delivering consistency, brand recognition, and support to individual owners through an established system. They function across various city sizes, including metropolitan, urban, and rural areas, serving multiple purposes such as beverage sales, food sales, and more.

The coffee shops market research report is one of a series of new reports that provides coffee shops market statistics, including the coffee shops industry global market size, regional shares, competitors with the coffee shops market share, detailed coffee shops market segments, market trends, opportunities, and any further data you may need to thrive in the coffee shops industry. This coffee shops market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The coffee shops market consists of revenues earned by entities through beverage preparation and serving, food services, dine-in experience, online ordering and delivery, and mobile app services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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