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Market Overview:
The Coffee Market size is estimated to reach $192 Billion by 2031, growing at a CAGR of 4.8% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, “Coffee Market – By Product Type (Whole Bean Coffee, Ground Coffee, Instant Coffee, and Others), By Type (Robusta, Arabica, Liberica and Others), By Roast Type (Light Roast, Medium Roast and Dark Roast), By Processing Method (Dry (Natural) Processed, Wet (Washed) Processed and Honey Processed), By Caffeine Content (Caffeinated and Decaffeinated), By Packaging (Bottles, Pouches, Tins, Coffee Pods & Capsules and Others), By Distribution Channel (Online and Offline) and By Geography - Global Opportunity Analysis & Industry Forecast, 2025-2031”
The coffee market is experiencing robust growth driven by an increasing preference for plant-based beverages and a surge in global coffee consumption. Additionally, the widespread popularity of coffee culture and the rising number of cafes are also contributing to market growth.
Europe Dominated the Market in 2024:
Europe accounted for the largest share of 37% of the Coffee Market in 2024 due to high per capita consumption of coffee. Coffee culture is highly prevalent in Europe with a long history of coffee consumption. Countries like Italy, France and Germany are renowned for their coffee traditions and café culture. According to the International Coffee Organization’s Coffee Report and Outlook 2023, Europe accounted for 31% of global coffee consumption in 2022. The total amount of coffee consumed in Europe was 55 thousand bags of coffee.
Coffee Market: Key Takeaways
Growing Number of Cafes and Chain Stores
The increasing number of cafés and coffee chain stores worldwide is significantly driving coffee demand. Leading brands like Starbucks, Dunkin and Costa Coffee have expanded their presence globally making high-quality coffee more accessible. For instance, as per company data, Starbucks opened 377 net new stores in Q1 2025, ending the period with 40,576 stores. These cafes and chain stores serve as social hubs, workspaces and study spots and attract a diverse consumer base. Additionally, the rise of independent specialty coffee shops introduced consumers to unique brewing methods, premium beans and artisanal coffee experiences. The trend of third-wave coffee culture which emphasizes quality, sustainability and craftsmanship also contributes to market growth.
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Popularity of Plant Based Beverages
Consumers are increasingly aware of the health benefits associated with plant-based diets. Coffee, being a natural plant-based beverage fits seamlessly into this. It is rich in antioxidants and has been linked to various health benefits including improved metabolism and reduced risk of certain diseases. Nestlé reported organic growth at 2% for the first nine months of 2024, with coffee being the largest growth contributor of this growth. The growing trend of plant-based beverages significantly drives the coffee market as more consumers seek dairy-free alternatives for their coffee beverages. Plant-based milk options such as almond, oat, and soy milk are become increasingly popular as they cater to vegan consumers. Major coffee chains and independent cafés have adapted to this shift by offering a variety of dairy-free options for lattes, cappuccinos and other specialty coffees.
Scope of the Report:
Recent Developments:
- In January 2025, Swedish alternative milk company Oatly partnered with Nespresso to create a limited-edition oat coffee blend. The blend is available in more than 15 countries and will be available to buy through Nespresso’s official channels, online, and in Nespresso boutiques around the world for a limited period.
- In January 2025, Nescafé launched its Espresso Concentrate in the United States. Nescafé Espresso Concentrate is made with 100% Arabica beans and is available in a 300ml bottle
Coffee Market: Competitive Landscape
Key companies profiled in the Coffee Market are Nestlé S.A., J.M. Smucker Company, Starbucks Corporation, Luigi Lavazza S.p.A., JAB Holding Company, JDE Peet’s N.V., The Coca-Cola Company, Massimo Zanetti Beverage Group, Lofbergs Group, Tata Consumer Products Limited and Others
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