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The global foodservice coffee market size was valued at USD 452.05 billion in 2022 and is projected to grow from USD 478.85 billion in 2023 to USD 729.09 billion in 2030, exhibiting a market growth of 6.20% during the forecast period.
The market is segmented by type into takeaway/ delivery and dine-in in the global market and is available in coffee shops/chains, bakery shops, and others. Countries such as the U.S., Germany, China, France, Spain, and others have a significant market share. Furthermore, the rising inclination towards out-of-the-home coffee consumption has significantly contributed towards the rapid market growth. This is owing to the rapid growth in urban lifestyle in countries in the Asia Pacific and South America region.
Lockdowns and Less Manpower in Production Plants amid COVID-19 Hindered Market Growth
The foodservice coffee market growth experienced a significant decline due to drop in the sales due to the pandemic owing to the sudden lockdown and closure of borders that various governments imposed to contain the spread of the virus. Coffee production, import, and export significantly declined due to the declining human resources and government restrictions. The coffee industry has suffered a setback in terms of employment, earnings, exports, and domestic consumption. For instance, a report by the International Coffee Organization stated that in 2020, the global coffee exports in March accounted for 11.06 million bags which was 3.7% lower than the previous year.
During the COVID-19 pandemic, the prices for beans increased due to disruptions in the supply chain, leading to increased transportation costs and delayed shipments. The transportation cost was very high during the pandemic, which also impacted the price of coffee beans.
Furthermore, the COVID-19 pandemic brought about a dramatic shift in consumer demand from restaurant, catering, and coffee shop chains, to takeaway delivery segment significantly changing how food supply chains operate as the COVID-19 pandemic gained momentum, out-of-home coffee sales fell, such as consumption in hotels, restaurants, catering, and cafes.
According to the National Coffee Association, in 2020, U.S., workplace coffee consumption decreased by 55%, whereas on-the-go options such as drive-through and app-based ordering flourished by 30%.
Rising Consumer Inclination toward Plant-Based Coffee Drinks
In recent years, the global plant-based products market has observed a significant growth in terms of demand among consumers. The rising awareness of the poultry industry's negative impact has been a significant factor in the growing demand for vegan products. Furthermore, the manufacturers, including startups and multinational companies, heavily invest in plant-based product innovation. The innovation has made the new generation of plant-based milk made from soy, almond, and other ingredients highly competitive with dairy regarding taste, price, and accessibility.
Foodservice coffee players are launching new coffee drinks induced with plant-based milk to cater to the changing consumer preference across various regions. For instance, in March 2021, Starbucks, one of the leading coffee chains globally, announced the launch of its four new coffee beverages made from oats milk to cater to the changing consumer demand and have a competitive edge in the market.
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Increasing Number of Coffee Shops to Drive Foodservice Coffee Market Growth
There has been a significant increase in coffee shops globally in recent years. The rise in coffee stores can be attributed to the rising demand for different coffee types and increasing competition among coffee operators to expand their presence globally. According to a news release, Starbucks had opened 34,317 new stores worldwide by January 2022.
The growing number of shopping malls and suburban retail stores supports the expansion of coffee outlets in developing countries, thereby fueling the away-from-home consumption of coffee. For instance, in February 2023, Third Wave Coffee (TWC) announced the opening of its 91st store in Oberoi Mall in Mumbai, India. The profitability of coffee shops and cafes is majorly driven by consumer taste, income level, and shop location. Moreover, coffee shops are becoming more popular and eminent among urban inhabitants, encouraging vendors to develop their operations to serve industrialized countries' populations.
Increasing Coffee Consumption in Emerging Economies and Strong Interest in Specialty Coffee to Boost the Market Growth
According to the U.S. Department of Agriculture (USDA) 2022, Indonesia is reported to be the largest consumer of coffee, followed by China and Mexico. Coffee consumption in Indonesia has grown among consumers in recent years due to its convenience, affordability, and ability to provide alertness and relaxation.
Changing consumer lifestyles and growing income in developing countries are the main factors for consumers to purchase food and beverages from outside and thus, to drive the market growth. The increase in the number of working households, frequent family visits to restaurants, or ordering coffee and snacks from outside are the major factors which help increase the café outlet's foot traffic and restaurant revenue, positively contributing to market growth.
Fluctuations in Coffee Prices to Restrain the Market Growth
In recent years, the rising population across the globe, high food prices, and increasing unemployment have contributed to the rising concern over food security and price volatility related to food ingredients, including coffee beans. Several other factors, such as transportation costs, storage costs, human resources costs, political environments, and various other features, have also led to a rise in the price of final products.
According to the International Coffee Organization Report 2020, the price of Colombian Milds increased by 8.6% in March and 1.8% in April. In contrast, the price of Robusta decreased by 0.9% in March and 5.2% in April.
Coffee prices constantly change and coffee is procured by professionals and vendors interested in benefiting via purchasing and marketing shares on the commodity market. This speculation is expected to drastically affect the coffee price since it artificially fudges demand and supply.
Rising Prevalence of Takeaway/Delivery to Fuel the Segment Growth
Based on type, the global market is divided into takeaway/delivery and dine-in. Takeaway is when a consumer orders food by walking into a restaurant but consumes it at home or elsewhere. The dine-in type is when the drink is consumed in a café, coffee house, restaurant, bakery, or others.
The takeaway segment accounts for a major share in the market owing to the rising prevalence of ready-to-drink and fast-service coffee chains. The demand for takeaway has increased post-COVID-19 as the pandemic forced restaurants worldwide to shut down their dine-in service and focus on takeout and delivery. Thus, restaurants have been promoting their offerings with ideas for takeout and delivery.
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Frozen baked goods have attracted more consumers in recent years due to their taste and freshness. Frozen bread is expected to gain more traction among the other categories in this segment. These baked products consume less time for preparation and do not require thawing. This segment is expected to grow at a significant CAGR in the upcoming years.
Rising Number of Coffee Houses and Beverage Shops to Drive the Global Market Expansion
Based on end-user, the market is segmented into coffee house & beverage shops, bakery shops and restaurants, and others.
The coffee house & beverage shops segment is expected to show significant growth over the forecast period. This is owing to rising consumer preference for specialty coffees such as iced coffee, coffee with ice cream, and others offered by the coffee chains. Furthermore, coffee houses and beverage shops are updating their offerings based on the changing consumer demand in different regions including Southeast Asia and Latin America. In addition, the rapid penetration of coffee chains in various regions fuels the demand for specialty coffee among consumers to boost the growth of the global food service coffee market.
Europe to Dominate the Market due to Increasing Consumer Purchasing Power
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Europe is expected to dominate the global food service coffee market share as the region is a major hub of foodservice institutions. These include restaurants, specialist coffee shops, hotels and resorts, quick-service restaurants, and foodservice outlets at leisure parks, pubs, educational institutes, and hospitals. Changing consumer patterns benefit the demand for specialty coffee drinks and modern retail outlets in the region. More European consumers are willing to pay more for premium coffees. The demand for cold brew coffee with delicious taste and high nutritional value is growing in Europe as more consumers follow this trend.
North America is expected to show steady growth in the market owing to the increasing number of retail stores, rising acceptance of coffee among youth, and other factors. Coffee consumption in the region has increased to a two-decade high as Americans brew up new post-COVID routines. According to the National Coffee Association, the number of people visiting drive-thrus at their local coffee shops has increased by 8% since 2020. Furthermore, the growing acceptance of coffee in the region is attributed to premium stores such as Starbucks Corporation, Dunkin', Peet's Coffee, and others.
The Asia Pacific market is expected to grow at a substantial rate over the forecast period. This is due to the increasing product demand, especially in China, Japan, and India. The growing popularity of cold brew coffee brands in India has led to an increasing preference for specialty products over conventional products, providing lucrative growth opportunities for the market in the country. In the Asia Pacific region, numerous coffee products are becoming increasingly popular. Coffee-producing countries such as India, Thailand, the Philippines, and Indonesia see an increase in the number of cafés. In addition, Southeast Asia's climate and geographic position make it suitable for coffee cultivation. The region's enhancing coffee culture and expertise in coffee cultivation support the burgeoning coffee business.
Consumed by millions of inhabitants across the globe, coffee is the second-largest traded commodity after petroleum. In South America, coffee contributes to the livelihood of millions of families. Of the top 50 coffee-producing countries across the globe, 19 are located in South America. According to the International Coffee Organization (ICE), Brazil is the top producer of coffee in the global market, followed by Vietnam and Colombia.
The Middle East & Africa region has experienced good economic growth recently. The African continent is home to a few of the fastest-growing economies globally, such as Ethiopia, Rwanda, Ivory Coast, and Tanzania, while the Middle East region includes popular tourist destinations such as the UAE, Saudi Arabia, Qatar, and Egypt. Saudi Arabia and the UAE have become key hubs for the innovation and growth of branded coffee shops owing to the rising tide of premium and specialty operators across the region.
Global Expansion and New Product Variations by Market Players to Fuel Market Growth
Starbucks Corporation and Nestle SA is the leading market player, with its coffee chains spread across the globe focused on new product developments based on rapidly changing consumer preferences in different regions. For instance, in February 2023, Starbucks introduced a transformational innovation in coffee, Oleato – a line of coffee beverages.
Other key players in the foodservice coffee market include Costa Coffee, J. M. Smucker, Kraft Heinz Company, Peet’s Coffee, Eight O'clock Coffee, and others. The leading companies in the global market focus on advancement in product development, new outlet launches, geographical expansion, acquisitions, and collaborations for growth.
An Infographic Representation of Food Service Coffee Market
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The global foodservice coffee market report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, types, and leading end-users of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
CAGR of 6.20% from 2023-2030
Value (USD Billion)
Volume (Million Kg)
Fortune Business Insights says the global market size was USD 452.05 billion in 2022.
The market is likely to grow at a CAGR of 6.20% over the forecast period (2023-2030).
Based on type, the dine-in segment is expected to lead the market during the forecast period.
The increasing number of coffee shops is the key market driver.
Starbucks Corporation, J.M. Smucker Company, and Costa Limited are the major players in the market.
Europe dominated the market in 2022.
Europe dominated the global market in 2021.
The increasing coffee consumption among youth is expected to drive the global adoption of foodservice coffee items.
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