Coffee and Tea Market Report 2025

The coffee and tea market size has grown strongly in recent years. It will grow from $124.72 billion in 2024 to $133.2 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to increased coffee and tea consumption, increasing focus on ready-to-drink (RTD) beverages, and government initiatives.

The coffee and tea market size is expected to see strong growth in the next few years. It will grow to $171.97 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing investments, the rising popularity of coffee among millennials, and an increasing number of coffee shops. Major trends in the forecast period include focusing on premium products, manufacturing organic products, leveraging blockchain technology, and introducing artificial intelligence to improve product quality.

The rising demand for ready-to-drink (RTD) beverages is anticipated to propel the coffee and tea markets during the forecast period. An RTD is a single-use packaged beverage that is prepared for immediate consumption upon purchase. These drinks are becoming increasingly popular among working adults due to their clean labels and functionality. The launch of new flavors in RTD tea and coffee, along with their portability and convenience, is expected to enhance the demand for these products. For example, in February 2023, Monster Beverage Corporation, a US-based beverage company that produces energy drinks, reported a 2.6 percent increase in net sales for its Monster Energy Drinks division, reaching $1.39 billion in the fourth quarter of 2022, compared to $1.35 billion in the same quarter of 2021. The growing demand for RTD beverages, including RTD coffee and tea, is expected to further drive the coffee and tea market.

The growing number of coffee shops is likely to accelerate the expansion of the coffee and tea market. Coffee shops are establishments that offer coffee and other beverages, along with food items like pastries, sandwiches, and snacks. The surge in coffee shops is fueled by various factors reflecting evolving consumer preferences and lifestyle choices. For instance, in April 2022, Restaurant Online, a UK-based company, projected the UK café market to grow by 14.4%, reaching £4.6 billion ($4.97 billion) in 2022, with a total of 11,132 outlets. Meanwhile, branded coffee shops and cafés are expected to see a 9.5% increase in value, rising to £3 billion ($3.24 billion). Therefore, the increasing number of coffee shops is contributing to the growth of the coffee and tea market.

Coffee companies are increasingly delving into coffee subscription services, offering consumers the convenience of home-delivered coffee products through weekly or monthly subscription models. These services open doors to a diverse array of specialty roasters, granting access to a multitude of unique products that might otherwise be unavailable locally. With the capability to source from numerous roasters, these subscriptions ensure freshness, shipping the products immediately post-roasting, thus bypassing the shelf time in stores. Notable coffee subscription services such as Atlas Coffee Club, Driftaway Coffee, Blue Bottle Coffee, JavaPress Coffee, Mistobox, Bean Box, Craft Coffee, and Pact Coffee are gaining popularity for their offerings.

Prominent players within the coffee market are directing their focus toward crafting distinct coffee blends that resonate with evolving consumer preferences. These unique blends, formed by combining various coffee beans, culminate in exclusive flavor profiles impossible to replicate through single-origin coffee. Tata Consumer Products, for example, introduced the tata coffee gold cold brew in June 2023, presenting a premium ready-to-drink cold coffee in classic, mocha, and hazelnut flavors. Brewed with cold water to preserve its smoothness, this product boasts of premium ingredients without artificial flavors. It aims to cater to consumers seeking an unmatched blend, quality, and convenience in their coffee experience, featuring low sugar content for health-conscious individuals without compromising on taste.

Major companies operating in the coffee and tea market include Nestle S.A., Louis Dreyfus Company B.V., Unilever plc, J.M. Smucker Company, Suntory Holdings Limited, Ito En, Ltd., Uni-President Enterprises Corporation, The Kraft Heinz Company, Tata Consumer Products Limited, CCL Products, Neelamalai Agro, Fukujuen, Harada Seicha, Cantarella Holdings Pty Ltd, Vittoria Food & Beverage, D E Holding Australia Pty Ltd, Caffe Bene, Luckin Coffee, Coffee Box, Pacific Coffee, Javaphile, JAB Holding Company, J Darboven GmbH & Co. KG, Alois Dallmayr KG, Tchibo, Golden Monkey Tea Company Limited, Olam International, Kerry Group plc, Orimi Ukraine, Greenfield, TESS, Java Coffee Company Sp. Z O.O, All4vending, Predom Service Fhu, Lafaye Sp. Z O.O, Serwis Ekspresow Do Kawy, Microcoff / Coffice Sp. Z O.O, Brijoye International Sp. Z O.O, PepsiCo, Mondelez International Inc, ADM, General Mills, Coco-Cola, The Hain Celestial Group, Cafe Arabo, Brazilian Canadian Coffee Co, Casa Fuentes, AVANTCHA Tea, RAW Coffee Company, AL Daria International, Afreeqya Naturally, Joffreys Coffee & Tea Company, & M. Smith (Pty) Ltd, Ethiopian Harrar Coffee, Kenya AA Coffee, Kaldi coffee.

Asia-Pacific was the largest region in the coffee and tea market in 2024. Western Europe was the second-largest region in the coffee and tea market. The regions covered in the coffee and tea market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the coffee and tea market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The coffee and tea market consists of sales of roasting coffee, blending tea, coffee and tea concentrate, herbal tea, coffee extracts, flavorings and syrups, and other coffee and tea products. The companies in the coffee and tea industry process raw materials into roasting coffee, blending tea, coffee and tea concentrates, herbal tea, coffee extracts, flavorings and syrups, package and distribute them through various distribution channels to both on-trade and off-trade establishments. 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.

Coffee is a beverage prepared from the roasted and ground seeds (coffee beans) of a tropical plant. Tea is a drink created by steeping the dried crushed leaves of a tropical plant in boiling water. Coffee serves as an energizing drink that boosts alertness, while tea is usually valued for its calming effects and potential health benefits.

The primary categories for both coffee and tea are coffee and tea. Coffee, a brewed drink, is derived from roasted coffee beans, the grains of specific flowering plants in the Coffea genus, and the berries of certain plants in the same genus. Various packaging options, such as containers, bags, packets, or pouches, are available in liquid, powder, or capsule forms. Distribution channels include supermarkets, hypermarkets, convenience stores, e-commerce, and others.

The coffee and tea research report is one of a series of new reports that provides coffee and tea statistics, including coffee and tea industry global market size, regional shares, competitors with coffee and tea shares, detailed coffee and tea segments, market trends and opportunities, and any further data you may need to thrive in the coffee and tea industry. This coffee and tea 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 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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