Europe Coffee Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Europe Coffee Market with a value of USD 47.88 billion in 2024, is expected to reach USD 66.98 billion by 2033, growing at a CAGR of 3.80% during the period from 2025 to 2033. The growth is fueled by growing coffee consumption, growing demand for premium and specialty coffee, and growing coffee culture in Europe. Developments in sustainable sourcing and brewing technologies also support market growth.

Europe Coffee Market Forecast Report by Product Type (Whole Bean, Ground Coffee, Instant Coffee, Coffee Pods and Capsule), Distribution Channel (On-Trade, (Off-Trade (Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers, Other Off-trade Channels))), Countries and Company Analysis 2025-2033.

Europe Coffee Market Outlooks

Coffee is a type of brewed drink prepared from roasted coffee beans and is characterized by its strong scent, caffeine levels, and varying flavors. Coffee is among the most popular beverages globally, savored for its stimulating properties as well as its cultural appeal. Types of coffee like espresso, cappuccino, and latte are particularly favored, with varying methods of brewing determining taste and experience.

In Europe, coffee assumes profound cultural significance and forms an integral part of everyday life. Italy, France, and Germany have a strong tradition of coffee culture, with espresso drinks being a favorite choice. Growth of specialty coffee, artisanal roasters, and environmentally sound sources of procurement has further pushed demand. Coffeehouses and cafes function as social gathering places, and thus, coffee becomes a key component of European lifestyle. The growing demand for high-quality coffee, third-wave coffee culture, and brewing innovation are among the factors driving the popularity of coffee. Also, the growing consumption of organic and sustainably sourced coffee demonstrates Europe's focus on sustainability and high-end coffee experience.

Drivers of Growth in the Europe Coffee Market

Surging Demand for Specialty and Premium Coffee

Consumers in Europe are rapidly adopting specialty and premium coffee, propelling market growth. The third-wave coffee movement has made artisanal brewing methods and high-quality beans commonplace. Independent roasters and specialty cafés thrive, selling single-origin, organic, and sustainably produced coffee. Buyers want distinct flavor profiles and fair sourcing, causing a movement away from mass-market coffee towards premium products. Western Europe in particular is where this trend is prominent, with coffee culture being an integral part of everyday life. The European Coffee Federation points out that Europe represented 31% of world coffee consumption in 2022, making it a major actor in the world coffee market. The European Union, especially, has the highest per capita coffee consumption in the world, albeit differing from one country to another.

Increased Popularity of Coffee Consumption at Home

Increased popularity for coffee brewing at home has been responsible for considerable market growth. Consumers spend money on quality coffee machines, grinders, and brewing accessories to recreate café-style experiences in the home. The COVID-19 pandemic also helped speed up this trend, with consumers wanting to make coffee at home rather than going to cafés. Companies are taking advantage of this by providing a broader range of coffee pods, whole beans, and ground coffee designed for home use. On a per-capita basis, cups, per day, per lifetime, cups, per lifetime Every Luxembourgian consumes an average of 5.31 cups of coffee per day, totaling 118,227 cups per lifetime - far exceeding cups, per lifetime cups, per day Finland, the runner-up, which consumes 3.77 cups per day and 83,939 cups per lifetime.

Consumers increasingly prioritize Europeans place more importance on sustainability and ethical sourcing in buying choices
Certifications such as Fair Trade, Rainforest Alliance, and organic certifications affect purchasing decisions. Coffee companies and retailers are reacting by embracing sustainable sourcing, minimizing carbon footprints, and supporting direct trade with coffee farmers. This emphasis on environmental and social responsibility increases brand loyalty and drives growth in the European coffee market. In accordance with the EU Deforestation Regulation (EUDR), companies need to make sure that the coffee imported by them is not involved in deforestation. This would either involve companies using beans that come from certified sustainable farms or installing traceability systems to confirm that their supply chain is free from deforestation. While it is a major task, it is something crucial to the health of the planet.

Challenges in the Europe Coffee Market

Price Volatility and Supply Chain Disruptions

Price fluctuations in coffee beans based on climate change, unfavorable weather conditions, and geopolitical tensions are the biggest challenge. Coffee crop yields and quality are very sensitive to temperature and rainfall changes. Supply chain volatility in terms of transport costs and availability of labor adds to the volatility of the coffee market. These factors increase production costs, and these in turn can push up retail prices for consumers.

Growing Competition from Other Drinks

The European drinks market is seeing growth in alternatives like tea, energy drinks, and plant-based lattes. Younger consumers are trying non-caffeinated and functional drinks with health benefits like herbal teas, matcha, and kombucha. Some consumers have also turned to decaffeinated drinks because of concerns about too much caffeine intake. Coffee companies need to innovate and diversify their portfolios to stay ahead in this changing market.

Europe Whole Bean Coffee Market

Europe's whole bean coffee market is gaining momentum as consumers look for fresher, high-quality coffee experiences. Whole beans are the preferred choice of many coffee aficionados as they retain flavors longer than pre-ground coffee. With increasing home brewing practice, consumers are spending money on grinders and espresso machines, yet again, increasing demand. Specialty coffee roasters are increasing their range of single-origin and organic whole beans to tap into the premium market. The market is booming in nations such as Germany, France, and Italy, where coffee enthusiasts enjoy freshly ground coffee for better taste and aroma.

Europe Instant Coffee Market

Instant coffee is still a favorite among Europeans, especially in Eastern European nations and the United Kingdom. Its convenience, affordability, and longer shelf life make it a desirable choice for busy consumers. The market is seeing innovations like premium instant coffee, freeze-dried coffees, and single-serve sachets that provide better taste and quality. Instant coffee remains strong despite competition from specialty coffee, particularly among older consumers and office workers who appreciate ease of preparation.

Europe Coffee Supermarkets/Hypermarkets Market

Supermarkets/hypermarkets are the dominant retail channels for coffee sales across Europe, providing extensive varieties of brands and prices. Consumers choose to shop in these stores due to convenience, sales, and bulk-buying capabilities. Major supermarket retailers are increasing their private-label coffee offerings, both for price-sensitive and high-end coffee consumers. Increased demand for organic and sustainable coffee has caused supermarkets to carry ethically sourced varieties. In-store coffee tastings and customer loyalty programs also increase the sale and foster consumer interaction.

Europe Coffee Specialist Retailers Market

Specialty coffee retailers are key drivers of the premium coffee segment in Europe. They provide high-quality beans, brewing equipment, and expert guidance to customers seeking a superior coffee experience. Independent roasters and boutique coffeehouses have become increasingly popular, especially in urban centers where coffee culture is prevalent. Specialist retailers also emphasize direct trade and sustainable sourcing, which appeal to ethically aware consumers. The segment continues to expand as more consumers move toward artisanal and specialty coffee beverages.

United Kingdom Coffee Market

The UK boasts a lively coffee culture with a high demand for café-style beverages and instant coffee. Due to the entry of specialty coffee chains, independent coffee houses, and premium home brewing, the market has expanded remarkably. Consumers are also more interested in ethical sourcing and quality coffee experiences. The growth of coffee subscription services and online shopping has further contributed to market growth. Economic uncertainties notwithstanding, the UK coffee market is robust, fueled by innovation and changing consumer trends.

Germany Coffee Market

Germany is a leading coffee consumer in Europe, with a strong affinity for filter coffee and whole beans. The nation's vibrant café culture and increasing demand for high-end coffee drive market growth. Specialty coffee roasters and brands are doing well, serving the growing demand for high-quality and sustainable coffee. Discounters and supermarkets also have an important role to play, providing a large range of coffee products at various prices. The growth of organic and fair-trade coffee also shapes consumer buying habits. March 2022: Peet's Coffee launched a vegan and dairy-free coffee bar in its Spring Coffeebar lineup, with new coffee and espresso beverages that highlight the taste of oat and almond milk.

Italy Coffee Market

Italy is the land of espresso culture, and coffee is part of everyday life. Classic espresso bars are the market leaders, with customers preferring short, intense shots of coffee. Although traditional coffee is still the favorite, there is an increased demand for specialty and single-origin coffee. Increased use of home espresso machines has also helped coffee consumption away from cafés increase. Young Italians, despite being strong in traditions, are venturing into new brewing techniques and global coffee trends.In January 2022, Starbucks unveiled its first Italian drive-thru in Erbusco, Lombardy, together with its licensee partner Percassi and Q8 service stations.

France Coffee Market

There is a firmly established coffee culture in France, with a desire for café-type beverages like espresso and café au lait. The market is expanding as a result of expanding demand for specialty coffee, organics, and fair trade sourcing. Home use of coffee is on the up, with people spending money on high-end coffee machines and superior beans. Third-wave coffee shops and independent roasters are affecting the market as more French consumers accept artisanal and sustainable coffee. In 2023, France is among the top countries consuming coffee in Europe, with a per capita consumption of 5.4 kg annually.

Europe Coffee Market Segments

Product Type

1. Whole Bean
2. Ground Coffee
3. Instant Coffee
4. Coffee Pods and Capsule

Distribution Channel

1. On-Trade
2. Off-Trade

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialist Retailers
• Other Off-trade Channels

Countries - Europe Coffee Market

1. United Kingdom
2. Germany
3. France
4. Russia
5. Italy
6. Spain
7. Rest of Europe

All the Key players have been covered from 4 Viewpoints:

• Overview
• Recent Development & Strategies
• Product Portfolio & Product Launch in Last 1 Year
• Revenue

Company Analysis

1. JAB Holding Company
2. Nestlé SA
3. The Kraft Heinz Company
4. J.J. Darboven GmbH & Co. KG
5. Strauss Group Ltd
6. Melitta Group
7. Starbucks Corporation
8. Krüger GmbH & Co. KG
9. Luigi Lavazza SpA
10. Maxingvest AG (Tchibo)