Europe Specialty Coffee Market Size, Share & Industry Analysis, By Product Type (Single-Origin Coffee, Microlots/Nanolots, and Blends), By Coffee Variety (Arabica Varietals and Fine Robusta), By Form (Roasted Coffee, RTD, Pods & Capsules, and Instant), By Distribution Channel (Retail [Supermarkets & Hypermarkets, Gourmet & Specialty Stores, Convenience Stores, and E-commerce] and Foodservice [Hotels, Restaurants, Cafes/Specialty Coffee Shops]), and Regional Forecast, 2025-2032

The Europe specialty coffee market size was valued at USD 7.74 billion in 2024 and is projected to grow from USD 8.30 billion in 2025 to USD 15.82 billion by 2032, exhibiting a CAGR of 9.64% during the forecast period.

The market is experiencing a robust growth, driven by a combination of deep-rooted café cultures, a highly sophisticated consumer base prioritizing quality and sustainable and ethically sourced coffee, and the rapid rise of third-wave coffee movements across both Southern and Northern Europe. A rich heritage of espresso-based drinks, expanding consumer interest in artisan and premium coffee products, and increased interest in distinctive taste profiles, responsible sourcing, and sustainability labelling such as Rainforest Alliance, Fairtrade, and Organic are the prime factors driving the market expansion.

Major players in the market include Nestlé S.A. (Nespresso), Starbucks Corporation, Costa Coffee, Illycaffè, and independent artisanal roasters such as Five Elephant and Tim Wendelboe. These companies compete alongside a growing ecosystem of specialty cafés, niche roasters, and emerging local brands that emphasize quality, traceability, and unique single-origin coffees.

Europe Specialty Coffee Market Key Takeaways

Market Size & Forecast:

• 2024 Market Size: USD 7.74 billion
• 2025 Market Size: USD 8.30 billion
• 2032 Forecast Market Size: USD 15.82 billion
• CAGR: 9.64% from 2025–2032

Market Share:

• Germany led the Europe specialty coffee market in 2024, accounting for the largest value share, driven by strong café culture, premiumization, and growing preference for high-quality Arabica and single-origin blends. Western European nations such as the U.K., France, and Italy also recorded strong demand, supported by expanding coffee shop chains, artisanal roasters, and evolving consumer tastes for traceable, ethically sourced, and sustainable coffee products.
• By product type, the blends segment dominated the market in 2024 with a 47.42% share, as consumers favored balanced flavor profiles and convenient brewing options for at-home and foodservice consumption. The arabica varietals segment also held the leading share, reflecting European consumers’ preference for refined taste and aroma over robusta varieties.

Key Country Highlights:

• Germany: The largest specialty coffee market in Europe, valued at USD 1,732.36 million by 2025, supported by strong demand for premium Arabica blends, sustainability-focused purchasing, and high urban café density.
• United Kingdom: Demonstrates one of the fastest growth rates (~10.46% CAGR), fueled by dynamic café culture, increasing number of independent roasters, and consumer preference for ethically sourced, high-quality coffee.
• France: Rapid expansion of specialty cafés and growing consumer interest in single-origin and fair-trade coffee varieties are contributing to strong market performance.
• Italy: Despite its traditional espresso culture, Italy is witnessing increased adoption of specialty and single-origin coffees, supported by innovation from leading brands like Illycaffè.
• Poland & Czechia: Emerging specialty coffee hubs in Eastern Europe, with rising numbers of micro-roasters and café chains promoting premium and locally roasted beans.

MARKET DYNAMICS

MARKET DRIVERS

Rise of Café Culture and Out-of-Home Consumption to Propel the Market Growth

The European market for specialty coffees is rapidly growing. This growth is partly driven by out-of-home coffee consumption. Coffee shops in European cities lead the way in introducing new varieties to consumers. The growing demand for specialty coffee follows the growing consumer interest in taste profiles and the coffee’s origin. Most of the European countries have experienced rising numbers of small, independent specialty coffee roasters, outlets, and cafes. Mass market coffee retailers are also extending their ranges to encompass specialty coffee.

• As per the Centre for the Promotion of Imports from developing countries, Costa Coffee is the largest coffee chain in Europe in 2024, with 3,112 outlets, followed by Starbucks (3,075) and McCafé (2,923).

MARKET RESTRAINTS

Volatility in Coffee Bean Prices and Supply Chain Risks to Restrict Market Expansion

Specialty coffee relies on high-quality Arabica beans sourced from regions such as Latin America and Africa. Climate change, supply chain setbacks, and geopolitics, though, have interrupted the global price of coffee. For example, droughts in Brazil or export bans in Ethiopia instantly impact availability and price. It creates challenges for European roasters and cafés to have stable prices and quality while also restricting the scale of specialty offerings.

• According to the European Commission, in 2023, the EU imported 2.7 million tonnes of coffee from non-EU countries, showing Europe’s heavy reliance on external supply for coffee.

MARKET OPPORTUNITIES

E-commerce & Omnichannel Retail Expansion to Create Lucrative Growth Opportunities

Health-conscious European consumers are receptive to functional drinks that blend coffee with ingredients such as collagen, adaptogens, probiotics, or plant-based proteins. Specialty coffee companies can take advantage of this trend by launching "better-for-you" coffee formats that meet wellness and indulgence requirements. The European Food Safety Authority (EFSA) permits certain functional ingredients to be eligible for health claims, which present regulatory-supported opportunities for formulating specialty coffee.

For instance, in May 2025, Puurfection and Baytown Coffee Company collaborated to launch a Lion's Mane mushroom coffee, a medium-roast coffee blended with organic Lion's Mane mushroom extract for enhanced focus and energy in the U.K.

EUROPE SPECIALTY COFFEE MARKET TRENDS

Premiumisation and Consumer Willingness to Pay More are the Major Market Trends

European consumers, particularly millennials and Gen Z, are increasingly demanding better-quality coffee with clear flavour profiles, origins, and ethical sources. This has generated the high speed of growth for single-origin, micro-lot, and third-wave products, frequently sold in premium terms in cafés or through retail and online channels. The premiumization of traceable and differentiated products has been one of the most powerful growth drivers in Western and Northern Europe.

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Segmentation Analysis

By Product Type

Customizable Flavor Profiles And Convenience Contributed To The Blends’ Segmental Growth

On the basis of product type, the market is classified into single-origin coffee, microlots/nanolots, and blends.

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The blends segment accounted for the most significant Europe specialty coffee market share, i.e., 47.42% in 2024. The blends segment leads the European coffee market chiefly because of consumer’s need for balanced and customizable flavor profiles, convenience, and the desire for café-style experience at home. Blends provide roasters with flexibility in creating consistent taste, appealing to retail and foodservice consumers alike. This is supplemented by strong launches from both independent specialty roasters and large brands, particularly through pods, capsules, and upscale ground blends.

The single-origin coffee segment is expected to grow at a high CAGR of 10.41% over the forecast period.

By Coffee Variety

Taste & Sensory Profile of Arabica Varietals Fuels the Segment Dominance

On the basis coffee variety, the market is classified into arabica varieties and fine robusta.

The arabica varietals segment dominated themarket share in 2024. Arabica is predominantly favored by European consumers due to its better cup profile, aromatic depth, and subtle flavors, aligning with the market's artisanal and quality positioning. Also, out-of-home eating, café culture, and the expansion of specialty roasters across Europe give rise to a constant demand for better-grown, single-origin, and varietal Arabicas.

The fine robusta segment is expected to grow at a significant CAGR of 9.00% over the forecast period.

By Form

Greater Control Over Brewing and Flavor Extraction to Fuel the Roasted Coffee Segment Dominance

On the basis of the segmentation of form, the market is classified into roasted coffee, RTD, pods & capsules, and instant.

The roasted coffee segment dominated the market share in 2024. European consumers are highly discerning, seeking out freshness, artisanal craftsmanship, and single-origin characteristics available primarily in roasted whole bean or ground form rather than instant or soluble variants. Roasted coffee provides the flexibility of controlling brewing and flavor extraction, appealing to the specialty market segment, and driving new product launches.

• For instance, in August 2024, John Farrer & Co (Farrer's), the U.K's oldest coffee roaster, released three new small-batch, single-origin coffees for its 'Signature' specialty range.

The pods & capsules segment is expected to grow at a high CAGR of 9.37% over the forecast period.

By Distribution Channel

Out-Of-Home Consumption & Café Culture Fuels The Growth Of The Food Service Segment

In terms of distribution channel, the market is categorized into retail and food service.

The food service segment captured the largest share of the market in 2024. In 2025, the segment is anticipated to dominate with a 55.56% share. It is further segmented into hotels, restaurants, and cafes/specialty coffee shops. Out-of-home consumption plays a significant role since coffee shops lead the way in introducing new varieties and educating consumers about coffee origins, processing, and brewing techniques. This is encouraged by a trend of increasing consumer interest in taste profiles and sustainability and ethical sourcing as well as an increased willingness to pay for premium and specialty coffees. Specialty coffee houses also target traceability and artisanship, in line with consumer demand for artisanship and ethically produced products.

The retail segment is expected to grow at a CAGR of 10.34% over the forecast period.  

Specialty Coffee Market Country-Level Outlook

By geography, the market is categorized into Germany, France, Italy, the U.K., Spain, Russia, Austria, Romania, Croatia, Poland, Slovakia, Czechia, Serbia, Bulgaria, Bosnia, and Hungary.

Germany is the largest specialty coffee market in Europe by value, with a fast-growing demand for Arabica and specialty blends. Market value is expected to reach USD 1,732.36 million by 2025. Innovation hubs and sustainability trends are prominent here, along with increasing consumption in urban areas. France's specialty coffee industry is growing very rapidly, with a projected CAGR of approximately 9.96% by 2032. Italy continues to be an important market with its culture rooted in espresso. Still, it is witnessing growth in specialty and single-origin coffees, with the support of innovation from local brands such as Illycaffè. The U.K. market is growing at a significant CAGR of approximately 10.46%. Sturdy café culture, combined with the expansion of independent artisanal roasters and chains such as Costa Coffee, drives the demand in the country. Eastern European nations such as Croatia, Poland, Slovakia, and Czechia demonstrate increasing the market demand. Poland displays increasing presence of specialty roasters such as JAVA Coffee Roasters. Czechia has the Coffee Embassy in Prague, facilitating coffee culture, with slight but consistent Europe specialty coffee market growth.

COMPETITIVE LANDSCAPE

Key Industry Players

Expansion of Production Capacity by Key Companies supported their Leading Position

The competitive landscape of the European specialty coffee market is moderately consolidated. The market is dominated by major players such as Nestlé S.A., Starbucks Corporation, Jacobs Douwe Egberts (JDE Peet’s), and Luigi Lavazza S.p.A., which hold significant market shares and influence. These key players compete on the basis of product innovation, geographic expansion, sustainability initiatives, and strategic collaborations or mergers and acquisitions. In addition to these large companies, there is a strong presence of smaller artisanal roasters and independent specialty coffee brands focusing on high-quality, single-origin, and ethically sourced products, which adds diversity to the market.

LIST OF KEY EUROPE SPECIALTY COFFEE COMPANIES PROFILED

• Square Mile Coffee Roasters (K.)
• The Barn Coffee Roasters (Germany)
• Starbucks Corporation (Switzerland)
• JDE Peet's (Netherlands)
• Luigi Lavazza S.p.A. (Italy)
• Illycaffè SpA (Italy)
• Gardelli Specialty Coffees (Italy)
• Coffee Collective (Denmark)
• Costa Coffee (U.K.)
• Tim Wendelboe (Norway)

KEY INDUSTRY DEVELOPMENTS

• September 2025: Lost Sheep Coffee launched a new range of barista-crafted Espresso Coffee Concentrates in the U.K., available in two varieties: Pure Espresso and Caramel. These concentrates are made from the brand's signature specialty-grade "Get To The Hopper" coffee blend, composed of high-quality Guatemalan and Brazilian Arabica beans.
• May 2025: DIRTEA, one of the U.K.’s leading functional mushroom coffee brands, announced a series of major retail partnerships that significantly expanded its market presence. Key retail partnerships include high-profile collaborations with Oliver Bonas, Selfridges, Boots, Planet Organic, and Vitamin Shoppe in the US, among others.
• April 2025: Lavazza launched its new coffee system called Tablì at Milan Design Week. Tablì is a revolutionary single-serve coffee system that uses 100% coffee tabs instead of traditional capsules. The tabs are made entirely of ground and pressed coffee with no plastic or aluminum packaging, aligning with sustainability trends.
• January 2024: Roastery Coffee House, an Indian specialty coffee chain based in Hyderabad, opened its first store in Europe, specifically in Helsinki, Finland. The brand would be the first Indian coffee chain in the Nordic branded coffee shop market, with its flagship store.
• September 2023: ORGANO introduced the world's first and only Nespresso-compatible mushroom-enhanced Italian specialty coffee blend. This innovative product combines high-quality coffees from Brazil, Peru, and Uganda with organic Ganoderma ("Reishi") mushrooms, offering a unique flavor profile with the health benefits of medicinal mushrooms.

REPORT COVERAGE

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Report Scope & Segmentation