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Foodservice Coffee Market Size, Share & COVID-19 Impact Analysis, By Type (Takeaway/Delivery and Dine-in), By End-user (Coffee Shops/Chains, Bakery Shops, and Others), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI100798



The global foodservice coffee market size was valued at USD 406.68 billion in 2021. The market is projected to grow from USD 420.31 billion in 2022 to USD 554.02 billion by 2029, exhibiting a CAGR of 4.0% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with foodservice coffee experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a higher growth of 3.10 % in 2020 as compared to 2019.

The food service coffee industry is one of the developing industries which has seen an extraordinary growth over the last few years and continues to expand rapidly. This market growth is attributed to rapid urbanization, changing demographics, and rising disposable incomes across developing regions such as South America and Asia Pacific. Moreover, the market is expected to propel significant growth on the account of increased specialty coffee shops across the globe. According to the National Coffee Association, 2018, 44%of the global inhabitants who reported buying coffee within the past day at cafes, quick-service restaurants, donut shops, or convenience stores stated procuring coffee at a drive-through.


Supply Chain Disruptions Amid COVID-19 Pandemic to Limit the Market Growth

Changes in climatic conditions and various environmental factors have hindered the market's growth and supply of coffee beans. During the COVID-19 pandemic, the prices for beans increased due to disruptions in supply chains, leading to increased transportation costs and delayed shipments. The transportation costs were very high during the pandemic, which increased the foodservice coffee’s price in the market. Moreover, the COVID-19 brought about a dramatic shift in consumer demand from restaurants, catering, and coffee retail outlets, significantly changing how food supply chains operate. As the outbreak gained momentum, out-of-home coffee sales, such as consumption in hotels, restaurants, catering, and cafes, fell. The number of restaurant reservations dropped sharply, and the closure was implemented, resulting in virtually zero.


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Consumer Shift Toward Cold Brew Coffee to be a Prominent Trend

The trend of drinking cold brew coffee is increasing among consumers compared to other beverages since this coffee entails low-fat, refreshing, and instant energy drinks. Multinational companies such as Starbucks Corporation and Nestle S.A. have also hopped on the brew coffee trend. For instance, in 2018, Nestle S.A. launched a new cold brew coffee crafted into ready-to-drink coffee beverages tapping into the growing trend of bringing the coffee house experience into the fridge. It is available in sweet cream and mocha-flavored varieties. The coffee made up of Arabica beans has many health benefits such as antibacterial properties that maintain oral health, reduce stress, improve metabolism, and promote skin hydration. Arabica is lighter, has more flavor and aroma, and is preferred for specialty coffee and other coffee. The manufacturer uses these beans to make their product healthy and tasty as it includes richer flavors and aromas, each with a unique flavor, lower caffeine content, less acid, rich in antioxidants, low bitterness, and natural sweetness.


Increasing Coffee Consumption in Emerging Economies and Stronger Interest for Specialty Coffee to Boost Market Growth

The growing interest in premium coffee, coupled with an increasing demand for ethical and sustainably produced coffee, has made specialty coffee the fastest-growing segment across the globe. Europe is a home to an ever-growing number of coffee-focused shops and micro roasteries. Furthermore, the rapid expansion of varied-format food service outlets is gaining popularity across emerging markets globally. Franchising remains one of the most popular growth models. Franchising offers an opportunity to profit from an existing company's reputation and established brand. In a market as huge as coffee, independent baristas often struggle to stay ahead of their competitors. With the majority of the millennial population leaning toward coffee consumption, their spending on coffee restaurants is increasing compared to their spending in traditional family restaurants.

 Increasing Number of Coffee Shops and Food Courts to Drive the Market Growth

Coffee shops and cafes' success is driven by consumer taste, income level, location, and atmosphere. It is becoming more popular and eminent among urban inhabitants, encouraging vendors to develop their operations to serve the industrialized population. Incorporating technology in the coffee industry plays a vital role in the market. The companies are continuously improving productivity, identifying substantial areas for research & development, and launching new products into the market, which, in turn, will further drive the market growth over the forecast period.


Fluctuations in Coffee Prices and Use of Expensive Machinery to Hamper the Market Growth

Significant factors, such as rising population across the globe, high food prices, and increasing unemployment, have contributed to the rising concerns over food security and price volatility related to coffee beans. Several other factors, such as transportation costs, storage costs, workforce costs, political environments, and various other features, have also led to a rise in the cost of the final product. Coffee crops require specific temperature, light, and humidity to grow. In recent years, climate change, pests, and falling coffee prices have threatened the livelihoods of millions of coffee growers and their families. Global warming, extreme rain, and drought are making farming even worse. For instance, in June 2018, Howard Schultz, the former Chairman, and CEO of the Starbucks Company stated, “Climate change is going to play a bigger role in affecting the quality and integrity of the coffee. As temperature rises and drought intensifies, good coffee will become increasingly difficult to grow and expensive to buy”.


By Type Analysis

Rising Consumer Preference to Trigger the Demand for Takeaway/Delivery

Based on type, the market is segmented into takeaway/delivery and dine-in.

Takeaway/delivery segment accounted for the largest share of the market and is among the most popular product categories globally. Takeaway includes food ordered and made in a restaurant that is then taken away to be eaten at home or elsewhere. It offers a menu in multiple selection type delivery, including breakfast, lunch, and dinner. The demand for takeaway has increased in the market. In early 2020, the COVID-19 pandemic forced restaurants globally to shut down dine-in services and focus on takeout and delivery. The restaurant has, thus, promoted its café with ideas that work for takeout and delivery, such as a takeout happy hour, a social media contest, limited-time offers, and others.

By End-user Analysis

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Coffee Shops/Chains to Hold Substantial Market Share Owing to Availability of Multiple Brands

Based on end-user, the market is segmented into coffee shops/chains, bakery shops, and others. The coffee shops/chains segment is expected to grow in the coming years owing to consumers' increasing preference for specialty coffees such as iced coffee, coffee with ice cream, and others offered by coffee chains.

Over the past few years, an increasing number of working households frequently spent more time in cafes and coffee shops. Moreover, a growing number of coffee chains offering international flavors is the center of attraction in developing countries where a large proportion of the population is in the young age group, which is the forefront consumer of foodservice coffee chains. With increasing coffee outlets, millennials spend more on beverages outside their home. This factor is strengthening the growth of the coffee chain in the market.


Europe Foodservice Coffee Market Size, 2021 (USD Billion)

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Based on geography, the global market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe emerged as the largest market in 2021. The region is observing a change in consumer consumption patterns such as increasing demand for specialty coffee drinks and modern retail outlets in the region. The demand for foodservice coffee with a delicious taste and high nutritional value is growing among consumers in Europe. Multinational companies have also hopped on the brew coffee trend. For instance, in 2018, Nestle launched a new cold brew coffee crafted into ready-to-drink coffee beverages tapping into the growing trend of bringing the coffee house experience into the fridge. It is available in sweet cream and mocha-flavored varieties.

The foodservice coffee market growth of North America will be significant in the study period. The U.S. is the key market in the North America coffee industry. Demand for coffee is high in countries such as the U.S. and Canada due to the popularity of coffee in these countries due to millennials' growing purchasing power and preference for coffee over other beverages. In addition, several key players, such as Nestle S.A. and Starbucks Corporation, are focusing on introducing new variations of their products through different coffee chains and bakeries, which is also likely to impact the coffee market positively in the near future.

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Asia Pacific is expected to grow due to increasing foodservice coffee demand, especially in countries such as China, Japan, and India. Coffee products, such as cold brew coffee brands, in India have led to an increasing preference for specialty products over conventional products, thus providing lucrative growth opportunities for the market in the country. China drives the growth of the market as the young generation's spending power is higher than the others. China, which was the epicenter of COVID-19 pandemic, is steadily resuming café operations post-pandemic. Moreover, with the launch of automated, contactless coffee machines, the food service coffee industry is developing novel initiatives to meet the seismic shift in consumer mindset and purchasing behavior.


Global Expansion and New Product Variations by Market Players to Fuel Market Growth

The global market is highly fragmented, with large food and beverage service companies and small players competing against each other to expand their market share. Some of the major foodservice coffee players include Starbucks Corporation, the J.M. Smucker Company, Costa Limited, The Coffee Bean & Tea Leaf, and Peet's Coffee, Inc. The foodservice coffee industry is experiencing significant growth owing to the increased demand for innovative, flavorful, and aesthetically appealing coffee products among consumers. Hence, major players in the market are regularly updating their food offerings and increasing their global presence in the market. Although with premium quality food products, they are also working on providing a delightful experience to their customers. Companies are continuously improving their current technology and launching innovative food items in the online channel market. This includes launching various coffee, such as cold brew and iced coffee, that provides a unique taste experience to the consumers. They are also launching new products specially targeted toward customers.



  • January 2022 – Starbucks expanded its presence in six new regions in India as a part of its most significant expansion strategy. The company opened new stores in Siliguri, Nashik, Guwahati, Thiruvananthapuram, Goa, and Bhubaneswar.

  • August 2021: SOHO Coffee Co. expanded digital channels to diversify sales. The U.K.-based coffee and food-to-go chain is expanding its product offering to meet new consumers and diversify sales.

  • July 2021 –Starbucks Corporation and Nestle S.A. will bring a ready-to-drink coffee beverage to Southeast Asia and Latin America. With this expansion plan into RTD coffee, the company continued building on its global coffee presence. It benefited from new growth opportunities in a rapidly developing segment and attracting new and younger consumers.

  • November 2021 – Restaurant Brands International Inc. announced its acquisition of Firehouse Restaurant Group Inc. The entire deal was expected to cost around USD 1 billion to the company.


An Infographic Representation of Food Service Coffee Market

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The global foodservice coffee market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, type, and end-users. Besides this, the report covered insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)


By Type

  • Takeaway/Delivery

  • Dine-in

By End-user

  • Coffee Shops/Chains

  • Bakery Shops

  • Others

North America (By Type, End-user, and Country)

  • U.S. (By End-user)

  • Canada (By End-user)

  • Mexico (By End-user)

Europe (By Type, End-user, and Country)

  • Germany (By End-user)

  • U.K. (By End-user)

  • France (By End-user)

  • Italy (By End-user)

  • Spain (By End-user)

  • Russia (By End-user)

  • Rest of Europe (By End-user)

Asia Pacific (By Type, End-user, and Country)

  • China (By End-user)

  • India (By End-user)

  • Japan (By End-user)

  • Australia (By End-user)

  • Rest of Asia Pacific (By End-user)

South America (By Type, End-user, and Country)

  • Brazil (By End-user)

  • Argentina (By End-user)

  • Rest of South America (By End-user)

Middle East and Africa (By Type, End-user, and Country)

  • Saudi Arabia (By End-user)

  • UAE (By End-user)

  • Rest of Middle East & Africa (By End-user)

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 406.68 billion in 2021 and is anticipated to reach USD 554.02 billion by 2029.

In 2021, the global market value stood at USD 406.68 billion.

Growing at a CAGR of 4.0%, the global market will exhibit steady growth over the forecast period (2022-2029).

By type, the takeaway/delivery segment is expected to dominate the market throughout the forecast period (2022-2029).

Increasing coffee consumption in emerging economies and stronger interest in specialty coffee boost the market growth.

Starbucks Corporation, The J.M. Smucker Company, Costa Limited, The Coffee Bean & Tea Leaf, and Peets Coffee, Inc are the leading companies worldwide.

Europe dominated the global market in 2021.

Increasing number of coffee shops and food courts will accelerate the product adoption in the near term.

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