Coffee Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The coffee market attained a value of USD 138.15 Billion in 2024. The market is expected to grow at a CAGR of 4.60% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 216.60 Billion.

The popularity of ready-to-drink (RTD) beverages is contributing to the coffee market share for meeting growing consumer demand for convenience, portability, and innovation. These beverages appeal to busy, on-the-go lifestyles and those seeking quick yet high-quality coffee experiences. Major brands are leading the charge with cold brews, flavoured lattes, and functional options. In May 2025, Solo Coffee launched its Ready-to-Go Espresso ideal for iced lattes and cocktails in Tesco United Kingdom stores. This format is also benefitting from strong retail and online distribution for enhancing accessibility and impulse purchases.

Consumers are increasingly opting for premium and craft coffee products due to their unique flavour profiles and artisan production. In March 2025, Nestlé expanded its premium coffee portfolio by launching its first Nespresso boutique in New Delhi. This is driving growth in micro-roasters, limited edition batches, and single-origin beans. Premiumization is also influencing packaging innovation, such as resealable bags and informative labels explaining origin and tasting notes. The trend is strongest in developed markets with established coffee cultures but is expanding globally.

The rise of coffee subscription services is driving the coffee market development for offering consumers a personalized, convenient, and consistent supply of high-quality coffee. These services are catering to the evolving preferences by delivering freshly roasted beans or specialty brews directly to the homes of customers, often tailored to individual taste profiles. In December 2024, London-based specialty coffee and brunch chain Yolk launched its BrewClub subscription service for offering a premium alternative to the existing United Kingdom coffee subscriptions. This model also enhances brand loyalty and customer retention, giving roasters and retailers recurring revenue streams.

Key Trends and Recent Developments

June 2025

Nestlé invested 7 billion reais (USD 1.27 billion) in Brazil, with over 500 million reais earmarked specifically for coffee ventures. This move helped to boost local supplier productivity and support Nestle’s premium coffee brands, such as Nespresso, with a strong focus on strengthening its core.

May 2025

Across Indonesian Seas (AIS) and Frinsa Estate formalized a partnership to introduce specialty Indonesian green coffee to Canadian roasters and cafés. This collaboration helped to source premium beans from Frinsa for direct Canadian distribution. Available in both single-origin specialty and high-volume grades, this launch aimed to enrich Canada’s coffee scene.

January 2025

Popular Greek coffee chain Mikel Coffee entered the Indian market through a strategic partnership with Greko India. The first café was set to launch in Delhi-NCR, with expansion plans targeting major metros, such as Mumbai, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai. This marked Mikel's growing international footprint and brand ambition.

November 2024

Luckin Coffee and Brazil’s ApexBrasil signed a 10 billion RMB memorandum deal to purchase 240,000 tons of Brazilian coffee beans from 2025-2029, doubling their previous deal. This landmark agreement helped to establish a Brazil office, a support centre for growers, and plantation while deepening SinoBrazil coffee industry collaboration.

Rising Demand for Specialty Coffee

Specialty coffee, characterized by unique flavour profiles and high-quality beans, is significantly driving the coffee market revenue. Consumers are increasingly seeking single-origin beans, artisanal roasting, and brewing precision. Several brands are focusing solely on specialty coffee, capitalizing on connoisseur interest. In March 2025, Texas-based Farmer Bros launched Sum>One Coffee Roasters, its first specialty coffee brand, featuring eight direct-trade blends. This trend is pushing the market toward premium pricing and education, with coffee festivals, barista competitions, and tasting events gaining popularity.

Focus on Ethical Sourcing

Sustainability is driving consumer choice and brand strategy in the global coffee industry with buyers preferring ethically sourced products. Several companies are committing to 100% sustainable sourcing to respond to environmental concerns and farmer welfare, promoting shade-grown coffee and reducing carbon footprints. In October 2022, Nescafé introduced the Nescafé Plan 2030 to assist in making coffee farming more sustainable. Brands are also adopting green practices for stronger loyalty amongst eco-conscious millennials as well as Generation Z consumers.

E-Commerce and Direct-to-Consumer Models

The surging online sales, accelerated by the growing digital adoption is influencing the coffee market dynamics. Leading brands are using subscriptions, personalized offerings, and education to deepen engagement. E-commerce is enabling access to specialty and niche products beyond local retail availability. In June 2024, California’s Reborn Coffee was launched on Amazon for driving its omnichannel strategy to wider reach, data-driven marketing, and consistent delivery. Online channels also offer convenience and customization for attracting younger and urban demographics.

Technological Innovations in Brewing

Advances in brewing technology, such as precision grinders, smart coffee machines, and app-controlled espresso makers for transforming home and commercial experiences are adding to the growth of the coffee market. Brands are offering IoT-enabled devices providing consistent, barista-quality coffee. Automated systems are helping to reduce waste and improve efficiency in cafés and offices. In January 2025, Meticulous introduced its smart espresso maker, which is the first-ever robotic lever espresso machine across the globe. This tech-driven trend is popular among tech-savvy consumers and younger generations as it is helping to bridge the gap between specialty coffee and home brewing.

Sustainability in Packaging

Sustainability concerns are boosting the adoption of eco-friendly packaging in the coffee industry. Compostable pods, biodegradable bags, and recyclable materials are increasingly used as eco-conscious consumers are expecting brands to reduce plastic waste and carbon emissions. In May 2025, TricorBraun Flex launched a recyclable coffee bag featuring a degassing valve that maintains coffee freshness while supporting sustainability efforts. Brands are also adopting green packaging to strengthen consumer trust and brand reputation for aligning with broader environmental goals and regulatory trends globally.

Coffee Machines Industry Segmentation

The report titled “Coffee Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Roasted
• Whole-Bean
• Ground Coffee
• Instant Coffee
• Coffee Pods
• Capsules
• Ready to Drink

Key Insight: The roasted segment dominates the coffee market due to its widespread use in cafés, restaurants, and homes. Leading brands are thriving on roasted bean offerings. For instance, in February 2025, Starbucks introduced the Sunsera Blend, a light roast using 100% Arabica beans from Brazil and Colombia. Across India and Southeast Asia, the demand for freshly roasted beans is surging with café culture. Roasting is also allowing brands to create unique flavour profiles, differentiating themselves in a competitive landscape.

Market Breakup by Nature

• Conventional
• Organic

Key Insight: Conventional coffee market value is growing, making it the standard in supermarkets, chain cafés, and instant coffee brands. Major players are heavily relying on conventional beans for their scale and consistency. In Brazil and Vietnam, conventional farming is sustaining the large export volumes. In October 2024, Bayer Vietnam launched the Better Life Farming Alliance in Đắk Lắk to support conventional coffee farmers. Many specialty blends are also using conventionally grown beans, keeping this segment commercially essential and widespread.

Market Breakup by End Use

• HoReCa
• Retail

Key Insight: The retail segment is leading the coffee demand forecast and includes sales via supermarkets, convenience stores, e-commerce, and specialty shops. Consumers are purchasing various formats such as ground coffee, beans, instant, and pods for home brewing. Brands like Starbucks, Lavazza, Nescafé, and Tim Hortons are dominating this space. For instance, in April 2025, Tim Hortons launched its first retail coffee line in South Korea for offering whole-bean and ground Arabica in five Flavors at Lotte Mart and department stores. This segment also thrives on convenience, price range, and brand loyalty, accounting for most of the global consumption.

Market Breakup by Distribution Channel

• B2B
• B2C
• Supermarkets and Hypermarkets
• Convenience Stores
• Speciality Stores
• Online
• Others

Key Insight: The business-to-consumer (B2C) segment is gaining traction in the coffee market, driven by individual consumption through cafés, retail stores, and online platforms. This channel encompasses packaged products, such as ground coffee, beans, instant blends, and ready-to-drink options purchased for home use. Coffee consumption is becoming a daily ritual worldwide, especially in urban areas. As per industry reports, more than 1 billion people worldwide consumed coffee every day as of May 2025. B2C is further driving high volume and shaping product innovation based on flavour, convenience, and sustainability preferences.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: Europe is largely contributing to the coffee market, with consistently high per capita consumption. Finland, Sweden, and Germany have emerged as the top coffee consumers globally. The region embraces both traditional and specialty formats, driving innovation in pods, sustainable sourcing, and organic products. In March 2025, German coffee group Melitta unveiled products by utilizing CoffeeB compostable coffee balls developed by Switzerland’s Migros. Regulations promoting traceability and Fairtrade practices are also shaping the supply chain choices. Europe’s well-established infrastructure and evolving tastes are continuing to make it a leading market.

Coffee Market Share

Whole-Bean & Ground Coffee to Garner Popularity

Whole-bean coffee market share is growing as it appeals to premium and specialty consumers for grinding their coffee fresh to preserve aroma and flavour. This segment is mainly strong in North America and Europe, where home brewing using burr grinders and espresso machines is popular. Third-wave coffee roasters, such as Blue Bottle, Intelligentsia, and Stumptown are emphasizing whole-bean sales. The format is also preferred by artisanal roasters and subscription services. Whole-bean coffee further commands higher margins due to its artisanal and freshness appeal.

The rising demand for ground coffee can be attributed to its higher dominance in supermarkets across Europe, Latin America, and parts of Asia. Established brands are offering various grinds suited for different brewers, from moka pots to drip machines. In May 2025, Café Bustelo® expanded its ground coffee lineup with new offerings to attract a broader audience by introducing diverse roast profiles beyond its traditional bold espresso-style coffee. This segment also appeals to households lacking grinders or time for complex brewing.

Organic Coffee to Record Huge Demand

Organic coffee consumption is growing due to rising consumer awareness around sustainability and health. Certified organic coffee is cultivated using eco-friendly farming practices and appeals to ethically and environmentally conscious buyers, especially in the United States, Europe, and Japan. Several brands are offering 100% organic ground and whole-bean options. In October 2023, Vietnam's L’amant Café signed an MoU to enter India for bringing organic Vietnamese beans in powder and bean form, alongside plans for cafés by 2025.

Growing Coffee Consumption in HoReCa Applications

The HoReCa segment, comprising hotels, restaurants, and cafés, is playing a key role in the coffee industry for offering specialty experiences and diverse brewing methods. This segment is driving high-margin growth and brand exposure. In September 2024, A&W Canada entered an exclusive agreement to serve Pret A Manger’s 100% organic Classic Blend coffee across all its restaurants. HoReCa outlets also serve high-quality beans, highlight single-origin selections, and introduce customers to diverse brewing techniques.

Supermarkets and Hypermarkets & Online Stores to Bolster Coffee Sales

Supermarkets and hypermarkets are crucial distribution channels in the coffee industry as they offer wide coffee selections at competitive prices. This segment dominates physical retail due to its accessibility and variety, ranging from instant and ground coffee to premium whole-bean options. Major brands are actively partnering with retail chains for shelf presence. Supermarkets also provide bulk buying and promotions, making them highly influential in reaching mass-market consumers and scaling brand reach.

The online coffee market is growing rapidly, fuelled by e-commerce platforms and direct-to-consumer (D2C) websites. Online platforms are offering consumers access to specialty, organic, and global coffee brands not readily available in stores. For example, in March 2025, Coffeeverse launched an ecommerce platform for delivering premium, singleorigin Arabica coffees from Chikmagalur, Coorg, and Tamil Nadu in India. Amazon, Walmart, and brand-owned sites also dominate online sales. This segment is also supporting smaller roasters and ethical brands that emphasize transparency and traceability.

Coffee Market Regional Analysis

Surging Coffee Intake in North America & Asia Pacific

North America is an important player in innovation and consumption in the coffee market, especially in the United States and Canada. As per the Coffee Association of Canada, 71% of Canadians consumed coffee every single day in 2023. The region leads in specialty trends, such as cold brew, single-origin, and ready-to-drink beverages. Major brands like Starbucks and Dunkin’ dominate, while premium roasters and sustainable labels are growing via online and retail channels. With rising demand for health-conscious, ethical options, North America is a powerful, trend-setting market, especially in B2C retail and HoReCa.

Asia Pacific is the fastest-growing coffee market, driven by rising incomes, urbanization, and shifting consumer lifestyles in China, India, Vietnam, and South Korea. Though historically tea-dominant, the region is witnessing a surge in café chains and retail demand. In June 2025, Continental Coffee introduced the United Kingdom-based Percol brand to India for offering premium instant coffee crafted for connoisseurs. While Japan and South Korea have a mature ready-to-drink coffee market, Southeast Asia is focusing on Robusta cultivation and café expansion.

Competitive Landscape

Key players in the coffee market are employing several key strategies to gain competitive benefits and meet the evolving consumer preferences. Product innovation is enabling the development of specialty blends, ready-to-drink options, cold brews, and health-focused variants, such as organic or functional coffees with added nutrients. This is helping brands to cater to niche markets and stand out in a crowded space. With sustainability initiatives, companies are investing in ethically sourced beans, fair trade certifications, and eco-friendly packaging to appeal to environmentally conscious consumers.

Building direct relationships with farmers is also growing in importance for ensuring supply chain transparency and improving quality control. Expansion into emerging markets is a key growth tactic. As coffee consumption rises in Asia, the Middle East, and Africa, brands are tailoring products to local tastes and investing in distribution networks to reach new consumers. In addition, digital transformation is assisting businesses to leverage e-commerce, mobile apps, and data analytics to personalize marketing, enhance customer engagement, and optimize supply chains.

Nestlé

Founded in 1866, Nestlé is headquartered in Vevey, Switzerland and offers a vast range of coffee products, including instant coffee, capsules, and ready-to-drink beverages under brands, such as Nescafé and Nespresso. Nestlé focuses on innovation, sustainability, and global distribution to remain a dominant player in the global coffee market.

Starbucks Coffee Company

Established in 1971, Starbucks is headquartered in Seattle, the United States and operates thousands of coffeehouses globally to offer whole-bean coffee, handcrafted beverages, and ready-to-drink options. Starbucks emphasizes customer experience, ethical sourcing, and sustainability while expanding its global footprint via retail outlets and digital engagement.

JDE Peet’s

JDE Peet’s was launched in 2019 via the merger of Jacobs Douwe Egberts and Peet’s Coffee and is headquartered in Amsterdam, Netherlands. The company offers a broad coffee and tea portfolio for serving retail, out-of-home, and e-commerce markets through its brands including Jacobs, L’OR, and Douwe Egberts that have strong international presence.

Tchibo Coffee

Founded in 1949, Tchibo is headquartered in Hamburg, Germany and is known for its high-quality coffee. Tchibo offers ground coffee, beans, capsules, and machines, and is recognized for combining retail innovation with a strong focus on sustainability and consumer convenience.

Other players in the coffee market are LUIGI LAVAZZA SPA, Strauss Coffee BV, The J.M. Smucker Company, Melitta, UCC UESHIMA COFFEE CO., LTD., Massimo Zanetti Beverage USA, The Kraft Heinz Company, JAB Holding Company, Tata Consumer Products Limited, UCC Europe Limited, Gloria Jean’s Gourmet Coffees Corp., Unilever plc, Panera Brands, Nero Holdings Limited, Coffee Beanery, Swmabhan Commerce Private Limited (RAGE Coffee), International Coffee & Tea, LLC, and BEVZILLA PRIVATE LIMITED, among others.

Key Features of the Coffee Market Report

• In-depth market size and forecast analysis with historical and projected data
• Comprehensive coverage of key drivers, restraints, and emerging opportunities
• Regional insights across North America, Europe, Asia-Pacific, and other key markets
• Competitive landscape profiling major players with strategic developments
• Segmentation by product type, nature, distribution channel, and end-user applications
• Quantitative and qualitative insights supporting strategic business decision-making

Why Choose This Research?

• Trusted industry source offering accurate, data-driven market insights
• In-depth research tailored to support informed strategic planning
• Expert analysis covering global and regional market dynamics
• Timely updates with current trends and forecasts you can rely on