The Global Specialty Coffee Market size is expected to reach $41.9 billion by 2029, rising at a market growth of 10.8% CAGR during the forecast period.
Handcrafted, high-quality coffees that have been carefully cultivated and processed are referred to as specialty coffee. Coffee beans that are labeled specialty grade must adhere to a set of criteria and are typically sourced from particular areas or nations. These requirements cover the bean's color, dimensions, shape, flavor profile, aroma, and degree of acidity. In order to bring out the greatest flavors of each individual bean, specialty coffee is often roasted in small quantities by skilled roasters who pay close attention to every detail of each roast.
The third wave of coffee is called specialty coffee, which is connected to the brewer and the farmers. Specialty coffee, which can be defined as coffee brewed using the current brewing methods and using high-quality coffee beans, has benefited from the trend of adopting artisanal products. Additionally, the term "specialty coffee" describes coffee that has received a score of 80 or higher on a scale of 100 by a qualified coffee taster or a licensed Q Grader (CQI). A series of more specific requirements are provided by the specialty coffee association. The specialty coffee organization also establishes precise guidelines for the grading of coffee. The specialty coffee organization also establishes standards for specialty coffee at every step of the coffee production process, including allowable flaws in water, green beans, and brew strength requirements.
The right cultivation and harvesting techniques, which reduce flaws and guarantee peak ripeness, are used to find high-quality coffee beans. Additionally, graders establish quality requirements for the coffee beans to ensure they meet specialized standards. Finally, to bring out the right bean scents, qualities, and flavors, roasters must use the proper roasting procedures. When coffee is brewed correctly, the flavor character of the coffee beans is highlighted rather than the coffee being acidic or unpleasant.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Starbucks Corporation, Inspire Brands, Inc., F. Gavina and Sons, Inc., Barista Coffee, Coffee Day Enterprises Ltd., Blue Bottle Coffee, Inc. (Nestle S.A.), Eight O'Clock Coffee Company (Tata Consumer Products Limited), Keurig Dr Pepper, Inc., Costa Coffee (The Coca-Cola Company) and The J.M Smucker Company.
Handcrafted, high-quality coffees that have been carefully cultivated and processed are referred to as specialty coffee. Coffee beans that are labeled specialty grade must adhere to a set of criteria and are typically sourced from particular areas or nations. These requirements cover the bean's color, dimensions, shape, flavor profile, aroma, and degree of acidity. In order to bring out the greatest flavors of each individual bean, specialty coffee is often roasted in small quantities by skilled roasters who pay close attention to every detail of each roast.
The third wave of coffee is called specialty coffee, which is connected to the brewer and the farmers. Specialty coffee, which can be defined as coffee brewed using the current brewing methods and using high-quality coffee beans, has benefited from the trend of adopting artisanal products. Additionally, the term "specialty coffee" describes coffee that has received a score of 80 or higher on a scale of 100 by a qualified coffee taster or a licensed Q Grader (CQI). A series of more specific requirements are provided by the specialty coffee association. The specialty coffee organization also establishes precise guidelines for the grading of coffee. The specialty coffee organization also establishes standards for specialty coffee at every step of the coffee production process, including allowable flaws in water, green beans, and brew strength requirements.
The right cultivation and harvesting techniques, which reduce flaws and guarantee peak ripeness, are used to find high-quality coffee beans. Additionally, graders establish quality requirements for the coffee beans to ensure they meet specialized standards. Finally, to bring out the right bean scents, qualities, and flavors, roasters must use the proper roasting procedures. When coffee is brewed correctly, the flavor character of the coffee beans is highlighted rather than the coffee being acidic or unpleasant.
COVID-19 Impact Analysis
Despite the unprecedented difficulties faced by the coffee industry amidst the pandemic, there have been notable positive trends that have surfaced. The rise of remote work and the closure of cafes and restaurants resulted in a surge in the consumption of coffee at home, leading to an increase in sales of coffee beans, grounds, and capsules. Retail coffee sales witnessed a surge in growth, especially in the e-commerce sector, as consumers opted for online shopping due to its convenience and safety. Customers aimed to recreate the coffee shop ambiance in their homes, and opted for premium coffee products aiding the specialty coffee market to recover after the initial fall due to the pandemic.Market Growth Factors
Coffee consumption enhancing health
Regulated coffee intake can aid in the prevention of chronic conditions such as type 2 diabetes. The presence of chlorogenic acids in coffee, a potent antioxidant, is linked to a lowered risk of diabetes. In addition, coffee has the potential to regulate hormones and gut peptides, which can aid in slowing down digestion and managing blood sugar levels. The numerous health benefits associated with coffee have significantly impacted its consumption. In addition, the increasing demand for premium-quality coffee, especially in the developed regions, has led to a rise in sales of specialty coffee. Thus, these factors are contributing to the expansion of the market.Growing popularity of cafes and restaurants serving coffee
Specialty cafes are experiencing a surge in demand for high-quality coffee and premium coffee beans sourced globally. Specialty coffee shops have become popular for business meetings and gatherings due to their selection of exotic coffee beans, a diverse range of coffee types, and sophisticated preparation methods like that of specialty coffee. In addition, remote work is becoming increasingly popular in the business world. As a result, cafes that offer complimentary internet, reasonable pricing, and uninterrupted seating have experienced significant growth in the past year. The growing popularity of coffee shops and cafes presented an opportunity for the specialty coffee market to expand, given their premium quality and added advantages.Market Restraining Factors
The fluctuating prices of coffee beans
The current market competition among vendors has led to decreased profit margins, despite the rising costs of raw materials. The need to maintain competitiveness in the market prompts manufacturers to explore low-cost alternatives like instant coffee powder and low-grade coffee beans. This factor plays a significant role in their decision-making process. Furthermore, raw material suppliers have the ability to offer their products at varying and competitive price ranges. As a result, the specialty coffee market growth is expected to be limited during the forecast period due to the fluctuating prices of coffee beans and increased market competition, forcing some manufacturers to sell products at a loss.Age Group Outlook
Based on age group, the specialty coffee market is segmented into 18-24, 25-39, 40-59 and Above 60. The 25-39 segment acquired a significant revenue share in the specialty coffee market in 2022. This is because the age group of 25-39 has experienced significant growth in popularity in recent years. As these consumers increasingly seek out new and unique coffee experiences, specialty coffee offers a wide range of flavors, brewing techniques, and origins to satisfy their curiosity.
Application Outlook
On the basis of application, the specialty coffee market is divided into home and commercial. The home segment procured a substantial revenue share in the specialty coffee market in 2022. This is owing to the rise in demand for specialty coffee brewing equipment, including espresso machines, pour-over setups, and high-quality grinders, which has contributed to the growth of the segment. This is due to the increased availability and affordability of such equipment, enabling consumers to recreate the cafe experience in the comfort of their homes.Distribution Channel Outlook
By distribution channel, the specialty coffee market is classified into supermarkets/hypermarkets, and online. The online segment witnessed the largest revenue share in the specialty coffee market in 2022. This is because the trend toward online channels among consumers is driven by the convenience they offer, including attractive discounts, access to a wide variety of products on a single platform, simple payment options, doorstep delivery, and more. Moreover, e-commerce vendors frequently offer an extensive range of distinct coffee blends and labels, which may not be accessible at conventional physical outlets.Regional Outlook
Region-wise, the specialty coffee market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region registered the highest revenue share in the specialty coffee market in 2022. This is owing to the increasing demand for high-quality specialty coffee types that have played a significant role in the growth of the European market. The demand for premium coffee is on the rise in Western Europe, particularly at specialized coffee shops. As a result, there has been an increase in the number of specialty coffee shops in Western Europe in recent years.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Starbucks Corporation, Inspire Brands, Inc., F. Gavina and Sons, Inc., Barista Coffee, Coffee Day Enterprises Ltd., Blue Bottle Coffee, Inc. (Nestle S.A.), Eight O'Clock Coffee Company (Tata Consumer Products Limited), Keurig Dr Pepper, Inc., Costa Coffee (The Coca-Cola Company) and The J.M Smucker Company.
Strategies Deployed in Specialty Coffee Market
- Apr-2023: Barista Coffee announced the opening of its 350th store in Udaipur, the city of lakes, for expanding its footprint throughout the country. The company would cater to both domestic and foreign customers at this store.
- Feb-2023: Costa Coffee came into partnership with Lagardere Travel Retail for further developing the transfer of control of the brand’s 142 stores in Poland and Latvia to Lagardere Travel Retail, as master franchisee. This partnership emphasizes both companies' desire to expand the brand quickly in Poland by utilizing the local partner's experience running retail establishments, developing new ones, and creating jobs.
- Jan-2023: Starbucks extended its partnership with DoorDash, a company that operates an online food ordering and food delivery platform. With this expansion, customers can get their Pistachio Cream Cold Brew delivered through DoorDash in Texas, Northern California, Florida, Georgia, and some other markets.
- Oct-2022: Blue Bottle Coffee introduced Craft Instant Coffee, Espresso that brings the Blue Bottle espresso into the home instantly. Blue Bottle wants to give customers a quick and easy option to make high-quality iced lattes.
- Jul-2021: Starbucks Corporation collaborated with Nestle for bringing Starbucks Ready-to-Drink (RTD) coffee beverages to selected markets throughout Oceania, Southeast Asia, and Latin America. With the help of Nestle, Starbucks aims to expand its brand reach globally.
- Dec-2020: Inspire Brands acquired Dunkin' Brands Group, Inc., a restaurant holding company. The acquisition of Dunkin' Brands advanced Inspire's mission to unite a family of differentiated and complementary brands.
- Jun-2020: Cafe Coffee Day partnered with Wow Momo Foods, a company that owns two quick-service restaurant brands Wow China and Wow Momo. Following the partnership, the companies aimed to bring innovative food and beverage experience for coffee and momo lovers throughout India.
Scope of the Study
By Distribution Channel
- Online
- Supermarkets/hypermarkets
- Others
By Application
- Commercial
- Home
By Age Group
- 18-24
- 25-39
- 40-59
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Starbucks Corporation
- Inspire Brands, Inc.
- F.Gavina and Sons, Inc.
- Barista Coffee
- Coffee Day Enterprises Ltd.
- Blue Bottle Coffee, Inc. (Nestle S.A.)
- Eight O'Clock Coffee Company (Tata Consumer Products Limited)
- Keurig Dr Pepper, Inc.
- Costa Coffee (The Coca-Cola Company)
- The J.M Smucker Company
Unique Offerings
- Exhaustive coverage
- The highest number of Market tables and figures
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- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 4. Global Specialty Coffee Market by Distribution Channel
Chapter 5. Global Specialty Coffee Market by Application
Chapter 6. Global Specialty Coffee Market by Age Group
Chapter 7. Global Specialty Coffee Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Starbucks Corporation
- Inspire Brands, Inc.
- F. Gavina and Sons, Inc.
- Barista Coffee
- Coffee Day Enterprises Ltd.
- Blue Bottle Coffee, Inc. (Nestle S.A.)
- Eight O'Clock Coffee Company (Tata Consumer Products Limited)
- Keurig Dr Pepper, Inc.
- Costa Coffee (The Coca-Cola Company)
- The J.M Smucker Company
Methodology
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