Europe Coffee Market Outlook, 2029

With a legacy deeply rooted in coffee culture, Europe has long been a hub for coffee enthusiasts, connoisseurs, and aficionados alike. From the historic cafes of Vienna to the bustling espresso bars of Italy, the continent boasts a diverse tapestry of coffee traditions, rituals, and experiences. Today, the European coffee market continues to thrive, propelled by a combination of factors including urbanisation, changing lifestyles, and a growing appreciation for specialty coffee. As consumers seek out high-quality, ethically sourced beans and innovative brewing methods, the European coffee landscape undergoes a transformation, characterised by a proliferation of artisanal cafes, specialty roasters, and third-wave coffee shops.

In 2020, over 1.9 million metric tonnes of coffee were produced in rope. With an approximate yearly per capita consumption of little over 5 kg of coffee, the European Union (EU) leads the globe in this regard. Additionally, the world's biggest exporter of roasted coffee is Europe. Europe exported more than a million metric tonnes of coffee in 2021. From 2017 to 2021. This is mostly due to the robust increase in customer spending at specialty coffee shops in Western Europe, where the focus is mostly on serving high-quality coffee. In Western Europe, there were more specialty coffee shops in 2020 - above 24,000 - than there were in 2018. This rise occurred between 2018 and 2020. More than €5 billion was sold in coffee shops around Europe in that same year. In recent years, Europe has witnessed the rise of the specialty coffee movement, with a growing emphasis on quality, sustainability, and traceability in coffee production and consumption. Third-wave coffee shops, specialty roasters, and barista competitions have proliferated, appealing to a new generation of coffee enthusiasts seeking unique and ethically sourced beans. Throughout Europe, iconic coffee establishments preserve centuries-old traditions and serve as cultural landmarks. From the historic cafes of Vienna frequented by luminaries like Freud and Trotsky to the literary cafes of Paris frequented by Hemingway and Sartre, these establishments continue to inspire and enchant visitors with their timeless charm.

According to the research report "Europe Coffee Market Outlook, 2029,", the Europe coffee market is projected to add more than USD 15 Billion from 2024 to 2029. Europe has a long-standing tradition of coffee consumption, and the market continues to grow steadily as coffee consumption per capita rises. With coffee ingrained in daily rituals and social interactions, Europeans consistently demonstrate a high demand for coffee products. European consumers exhibit a strong preference for premium and gourmet coffee products, including single-origin beans, specialty blends, and artisanal brewing methods. This trend towards quality and authenticity fuels the growth of the specialty coffee segment in Europe.

Cafe culture is deeply ingrained in European society, driving significant out-of-home coffee consumption. European cities are dotted with cafes and coffee shops where consumers gather to socialise, work, or relax, contributing to the overall growth of the coffee market. With busy lifestyles and increasing urbanisation, convenience plays a significant role in driving coffee consumption in Europe. Ready-to-drink coffee products, takeaway options, and coffee vending machines cater to consumers seeking quick and convenient caffeine fixes on the go. Health-conscious consumers are driving demand for healthier coffee options, such as low-acid coffees, organic coffee, and plant-based milk alternatives. Additionally, functional coffee products infused with vitamins, antioxidants, and adaptogens appeal to consumers seeking wellness benefits from their coffee consumption. The rise of the specialty coffee movement has significantly impacted the European market. Consumers are increasingly seeking high-quality, ethically sourced coffee beans, driving demand for specialty coffee shops, artisanal roasters, and premium coffee products.

Market Drivers

• Cultural Tradition: Europe has a deep-rooted coffee culture, with coffee playing a central role in daily rituals, social interactions, and culinary traditions. The long-standing tradition of coffee consumption fuels steady demand for coffee products across the continent.
• Urbanisation: With a significant proportion of the population residing in urban areas, Europe has a thriving cafe culture. Urban dwellers frequent cafes for their daily caffeine fix, contributing to the growth of the out-of-home coffee market.
• Premiumization: European consumers have a preference for high-quality, premium coffee experiences. These trends towards premiumization drive demand for specialty coffee, single-origin beans, artisanal roasts, and gourmet coffee beverages.

Market Challenges

• Competition and Saturation: The European coffee market is highly competitive and saturated, with numerous coffee shops, cafes, and retail outlets vying for consumer attention. This intense competition can make it challenging for new entrants and smaller players to establish themselves in the market.
• Climate Change: Climate change poses a significant threat to coffee production worldwide, including in the traditional coffee-growing regions of Africa, Asia, and Latin America. Rising temperatures, unpredictable weather patterns, and increased pest pressures can reduce yields, degrade coffee quality, and threaten the livelihoods of coffee farmers. Adapting to climate change and implementing sustainable farming practices are key challenges for the European coffee market.

Market opportunity

• Premiumization: There is a growing demand for high-quality, specialty coffee experiences among European consumers. Coffee businesses can capitalise on this trend by offering premium single-origin beans, artisanal roasts, and gourmet coffee beverages that cater to discerning palates and preferences.
• Health and Wellness: Health-conscious consumers are increasingly seeking healthier coffee options, such as organic, low-acid, and decaffeinated coffee. Coffee businesses can capitalise on this opportunity by expanding their product offerings to include health-focused coffee products, such as functional coffee blends infused with vitamins, antioxidants, and superfoods.

Based on the product types, they include instant coffee, ground coffee, whole bean, and coffee pods and capsules.

In Europe, ground coffee significantly contributes to the market. Ground coffee offers convenience to consumers who prefer a quick and easy brewing process. Unlike whole beans that require grinding before brewing, ground coffee can be used directly in various brewing methods, including drip coffee makers, French presses, and espresso machines, saving time and effort for consumers. Ground coffee is readily available in supermarkets, grocery stores, specialty shops, and online retailers across Europe. Its widespread availability makes it accessible to a broad range of consumers, including those who do not have access to coffee grinders or prefer the convenience of pre-ground coffee.

Ground coffee provides consistency in flavour and extraction, ensuring that each cup of coffee delivers a uniform taste profile. Manufacturers carefully grind coffee beans to specific particle sizes and textures to optimise flavour extraction and consistency, resulting in a reliable and predictable coffee experience for consumers. Many European consumers prefer the convenience and ease of use offered by ground coffee, especially in households with busy lifestyles or limited time for coffee preparation. Ground coffee eliminates the need for grinding equipment and simplifies the brewing process, making it a popular choice for everyday consumption. Ground coffee accounts for a significant portion of coffee sales in Europe, driven by consumer demand for convenient and accessible coffee options. Manufacturers and retailers recognise the importance of ground coffee in meeting consumer preferences and cater to this demand by offering a wide selection of ground coffee products in various flavours, blends, and packaging sizes.

In terms of the distribution channel, it includes off-trade and on-trade; among them, on-trade is a growing market.

Europe has a rich cafe culture, with a long-standing tradition of socialising and enjoying coffee in cafes and coffeehouses. These on-trade establishments serve as gathering places where people meet, socialise, and relax over a cup of coffee, contributing to significant coffee consumption outside the home. European cities are densely populated, with a high concentration of cafes, restaurants, bars, and hotels. Urbanisation has fueled the growth of on-trade establishments, providing ample opportunities for coffee businesses to distribute their products to a large and diverse customer base. Europe attracts millions of tourists each year, many of whom visit cafes, restaurants, and hotels to experience the local culture and cuisine.

On-trade establishments catering to tourists provide an important distribution channel for coffee products, showcasing regional specialties and attracting international visitors. On-trade establishments offer a wide range of coffee options, including espresso, cappuccino, latte, and specialty coffee beverages. These establishments often invest in professional-grade coffee equipment and train baristas to deliver high-quality coffee experiences to customers, further enhancing the appeal of on-trade distribution channels. Partnering with on-trade establishments allows coffee companies to increase brand visibility and promote their products to a targeted audience of coffee enthusiasts and connoisseurs. Establishing relationships with cafes, restaurants, and hotels provides opportunities for product placement, sampling, and promotional activities that can drive sales and brand recognition.

According to the report, nature types include conventional and organic; among them, organic is a growing market.

European consumers are increasingly health-conscious and are seeking organic products as part of a broader wellness lifestyle. Organic coffee is perceived as a healthier option compared to conventionally grown coffee because it is produced without synthetic pesticides, herbicides, and fertilisers and is often free from genetically modified organisms (GMOs). There is growing concern among European consumers about the environmental impact of agriculture, including coffee production. Organic farming practices prioritise soil health, biodiversity, and sustainability, aligning with the values of environmentally conscious consumers who seek to minimise their ecological footprint.

Organic coffee is often associated with fair trade and ethical sourcing practices, including fair wages for farmers, community development initiatives, and support for small-scale producers. European consumers are increasingly interested in the social and ethical aspects of coffee production, driving demand for organic and fair trade-certified coffee products. Organic coffee is often perceived as having superior quality and taste compared to conventionally grown coffee. Organic farming methods, such as shade-grown cultivation and natural processing techniques, can enhance the flavour profile and complexity of coffee beans, appealing to discerning coffee enthusiasts who prioritise taste and aroma. Awareness campaigns, educational initiatives, and media coverage have contributed to increased consumer awareness about the benefits of organic agriculture and the importance of supporting organic products. As consumers become more informed about the environmental, social, and health benefits of organic coffee, demand for organic coffee products continues to rise in Europe.

In terms of the source types, they are segmented into Arabic and Robusta; among them, Robusta significantly contributes to the market.

Because of their robust and intense flavour character, robusta coffee beans are a great fit for the specialty coffee beverages and espresso mixes that are popular in Europe. Robusta coffee beans are in high demand, just like the desire for drinks made with espresso. European consumers often prefer stronger and more intense coffee flavours compared to their counterparts in other regions. Robusta coffee, with its higher caffeine content and more pronounced bitterness, appeals to European coffee drinkers who enjoy a robust and full-bodied coffee experience. Robusta coffee is generally more affordable than Arabica coffee, making it an attractive option for coffee companies, especially in price-sensitive markets.

As coffee prices fluctuate, robusta coffee provides a cost-effective solution for maintaining product affordability without compromising on quality. Robusta coffee is often used as a component in coffee blends to add body, crema, and depth of flavor. Coffee roasters and manufacturers in Europe leverage the versatility of robusta coffee to create custom blends that cater to diverse consumer preferences and brewing methods. While robusta coffee consumption in traditional coffee-drinking countries like Italy and France remains strong, there is also growing demand for robusta coffee in emerging markets within Europe, such as Eastern Europe and the Balkans. These markets often have a preference for stronger coffee and are driving the growth of robusta consumption in the region. Coffee companies in Europe are increasingly diversifying their product offerings to include robusta-based blends and single-origin coffees. By introducing new robusta coffee products and innovations, coffee companies can cater to evolving consumer preferences and tap into new market segments within Europe.

Based on the report, the major countries covered in the report include Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe.

Germany leads the coffee market; Germans are among the highest consumers of coffee per capita in Europe, with a strong coffee-drinking culture deeply ingrained in daily life. Coffee is a staple beverage enjoyed throughout the day, with Germans valuing the ritual of coffee breaks, socialising over coffee, and savouring quality coffee experiences. Germany has a vibrant cafe culture, particularly in cities like Berlin, Munich, and Hamburg, where cafes serve as social hubs for locals and tourists alike. German cafes offer a wide range of coffee beverages, including espresso, cappuccino, and specialty coffee drinks, catering to diverse tastes and preferences.

German consumers prioritise factors such as taste, aroma, and ethical sourcing when choosing coffee products. They are increasingly interested in sustainability, fair trade, and organic certifications, driving demand for ethically sourced and environmentally friendly coffee options on the market. The amount of roasted coffee consumed domestically at home climbed by above 7,000 metric tonnes, according to the German Coffee Association. Germany's cultural influence extends beyond its borders, with German coffee brands and products enjoying popularity and recognition across Europe and beyond. German coffee culture, characterised by a blend of tradition, innovation, and quality, sets the standard for excellence in the European coffee market. The German coffee market is characterised by innovation and diversity, with coffee companies constantly introducing new products, flavours, and brewing methods to meet evolving consumer trends. Germans embrace innovation in coffee culture, experimenting with cold brews, nitro coffee, and alternative milk options alongside traditional favourites.

The coffee market is highly competitive and is dominated by players like Nestlé S.A., Kraft Heinz Company, JAB Holding Company, Luigi Lavazza S.p.A., and Massimo Zanetti Beverage Group. The leading players in the coffee market recorded a significant scope in their market shares through innovations in products and expansions in other regions via joint ventures. For instance, in September 2021, Louis Dreyfus Company Asia Pte Ltd signed a joint venture agreement with Zephyr Japan, a Japanese specialty coffee retailer that provides premium coffees. With this joint venture, the company aims for specialty business expansion, positioning it to increase excellent coffee flows into Japan and other East Asian markets.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Coffee market Research Report with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Instant Coffee
• Ground Coffee
• Whole Bean
• Coffee Pods and Capsules

By Nature

• Conventional
• Organic

By Source

• Arabica
• Robusta

By Distribution Channel

• Off-trade (Supermarkets/hypermarkets, Convenience Stores, Specialist Retailers, Other Off-trade Channels)
• On-trade

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Coffee industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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