Coffee Market Report 2025

The coffee market size has grown strongly in recent years. It will grow from $69.06 billion in 2024 to $73.98 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to changing consumer preferences, convenience and on-the-go lifestyles, rising demand for artisanal and craft coffee products, globalization and trade.

The coffee market size is expected to see strong growth in the next few years. It will grow to $96.48 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to health and wellness trends, premiumization of coffee, sustainable and ethical sourcing, e-commerce and online retail, functional and specialty coffee. Major trends in the forecast period include customization and diy trends, collaborations and limited edition offerings, health and wellness focus, packaging innovations for convenience, global exploration of coffee origins.

The anticipated increase in coffee consumption is set to drive the growth of the coffee market. Coffee, a beverage made from dark brown powder extracted from crushed coffee beans, is gaining popularity due to its taste and various nutritional benefits. Rich in antioxidants and vitamins such as riboflavin, magnesium, and potassium, coffee is also associated with a reduction in the onset of heart diseases. The heightened consumption of coffee has significantly boosted sales and revenue. As of March 2022, statistics from the National Coffee Association, a US-based coffee industry trade association, revealed that 66% of Americans consume coffee every day, surpassing other beverages, including tap water, and witnessing a growth of nearly 14% since January 2021. The increasing consumption of coffee is a key driver propelling the coffee market.

The expanding e-commerce industry is anticipated to drive growth in the coffee market in the coming years. E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the Internet. As the e-commerce sector grows, it offers coffee producers and retailers a dynamic and efficient channel to reach consumers, providing a convenient and diverse shopping experience that contributes to the overall expansion of the coffee market. For example, in August 2024, the United States Census Bureau, a US-based government agency, reported that U.S. retail e-commerce sales for the second quarter of 2024 reached an estimated $282.3 billion, reflecting a 5.3% increase compared to the first quarter of 2023. Thus, the growth of the e-commerce industry is a key driver of the coffee market's expansion.

Product innovation emerges as a notable trend gaining popularity in the coffee market. Major companies in the coffee sector are actively launching innovative products to enhance customer experience and solidify their market position. A case in point is Blue Bottle, a Nestle-owned US-based cafe retailer and specialty coffee roaster, which introduced Craft Instant Espresso in October 2022. This premium instant coffee is produced using premium beans, a unique roasting method, and a slow freeze-drying process. Craft Instant Espresso aims to empower consumers to prepare premium drinks at home without the need for expensive equipment or brewing knowledge. Product innovation remains a crucial factor in shaping the coffee market's landscape and meeting evolving consumer preferences.

Major players in the coffee market are actively pursuing innovations, such as the development of fully automated drive-thru kiosks, as part of their strategy to reach larger customer bases and drive increased sales and revenue. A fully automated drive-thru kiosk represents a self-service ordering and payment system that enables customers to place and pay for their orders without the need for interaction with a human employee. A notable example is Octane Coffee, a US-based coffee roasting company, which launched a Drive-thru Kiosk in March 2023. This innovative kiosk employs a robotic system to prepare and dispense beverages. Customers utilize the Octane Coffee app for order placement and payment, with the system utilizing GPS technology to track the customer's car and ensure that their order is ready upon arrival.

In December 2023, Chobani, a US-based food company, acquired La Colombe for $900 million. This acquisition enables Chobani to leverage La Colombe's strong brand and innovative product range, especially its nitrogen-infused canned lattes and cold brew coffees. By incorporating La Colombe's offerings, Chobani aims to enhance its portfolio of coffee-related products. La Colombe is a US-based coffee company.

Major companies operating in the coffee market include Grady's Cold Brew LLC, PepsiCo Inc., Tata Coffee Limited, Royal Cup Inc., Ueshima Coffee Co. Ltd., Red Thread Coffee Co., Christopher Bean Coffee, Nestle SA, Slingshot Coffee Co., Synergy Flavors Inc., Artemis Brew LTD., Monin Incorporated, S&D Coffee Inc., Aspen Beverage Group, The J.M. Smucker Company, Illycaffe SpA, The Coca-Cola Company, Tate & Lyle PLC, Jacobs Douwe Egberts BV, Folgers Coffee Company, Sensient Technologies Corporation, Cafe de Colombia, Keurig Dr Pepper Inc., Tchibo GmbH, Strauss Group Ltd., Massimo Zanetti Beverage Group S.p.A., The Kraft Heinz Company, Segafredo Zanetti S.p.A., UCC Holdings Co. Ltd.

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

Coffee, derived from the roasted seeds of the Coffee plant's fruits, is a popular beverage or powder enjoyed for its invigorating qualities.

The primary categories of these coffee concentrates include cold brew coffee concentrate, iced coffee concentrate, top roast coffee concentrate, and black coffee concentrate. Cold brew coffee concentrate involves a distinct process where roasted coffee beans are steeped in cold or room-temperature water over several hours. Varieties consist of arabica and robusta beans, offering diverse caffeine content such as regular and decaffeinated options. These products are distributed through multiple retail channels, including supermarkets, online stores, and convenience outlets.

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

The coffee market consists of sales of Liberica coffee, Cappuccino, Caffe Americano, and Espresso. 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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