Coffee Machines Market

• The rising premiumization trend of coffee consumption is expected to drive market growth.

The rising consumption rate of refreshing beverages is primarily driving the demand for such appliances. Additionally, shifting consumer preferences towards the purchasing of energy-saving kitchen appliance items has strongly influenced consumers towards developing energy-efficient & automated coffee machines. Besides this, the growing necessity of completing quick coffee orders by the workers at their café and food stalls has strongly given rise to the demand for such appliances.

Additionally, the growing premiumization trend of coffee consumption as well as the awareness regarding its health benefits among the people is further fuelling the demand for such machines. Additionally, growing innovation in the design of various beverage vending machines is likely to attract users toward purchasing coffee makers for their daily needs. For instance, in April 2020, 7-Eleven Inc. launched a new beverage dispenser machine the various touchscreen feature that allow users to select a quantity, temperature, and intensity of coffee during brewing each cup of drink.

However, However, higher repair & maintenance cost of vending machines is anticipated to restrain the market growth. Additionally, growing transportation issues, labor shortage problems, and the incidences of longer delivery times due to the uncertain supply chain disruption in the electronic appliances sector during the COVID-19 outbreak have temporarily hampered the market.

An increasing awareness of health and wellness among consumers influences the Global Coffee Machines Market Industry. Coffee is often associated with various health benefits, such as improved cognitive function and antioxidant properties. This trend encourages consumers to invest in high-quality coffee machines that allow for healthier brewing methods, such as cold brew or espresso. As the market evolves, manufacturers are likely to focus on producing machines that promote healthier coffee options, thereby aligning with consumer preferences for wellness-oriented products.

Sustainability is becoming a crucial factor in the Global Coffee Machines Market Industry, as consumers increasingly prioritize environmentally friendly products. The demand for machines that utilize sustainable materials and energy-efficient technologies is on the rise. Companies are responding by developing coffee machines that minimize waste and promote eco-friendly practices, such as reusable filters and biodegradable components. This shift not only appeals to environmentally conscious consumers but also aligns with broader global sustainability goals, potentially enhancing brand loyalty and market share.

The Global Coffee Machines Market Industry experiences a notable surge in demand driven by the increasing global coffee consumption. As coffee becomes a staple beverage across various demographics, the market is projected to reach approximately 9330.3 USD Billion in 2024. This growth is indicative of a broader trend where coffee is not merely a drink but a cultural phenomenon, influencing consumer preferences and purchasing behaviors. The rise in specialty coffee shops and home brewing trends further fuels this demand, suggesting that consumers are increasingly seeking quality and convenience in their coffee experiences.

Innovations in coffee machine technology significantly impact the Global Coffee Machines Market Industry. The introduction of smart coffee machines, which offer features such as app connectivity and customizable brewing options, caters to the evolving preferences of tech-savvy consumers. These advancements not only enhance user experience but also improve the efficiency and quality of coffee preparation. As a result, the market is likely to witness a compound annual growth rate of 5.15% from 2025 to 2035, reflecting the potential for growth driven by continuous technological improvements.

The expansion of coffee culture globally significantly impacts the Global Coffee Machines Market Industry. As coffee becomes more integrated into daily life, particularly in emerging markets, the demand for coffee machines is expected to grow. This cultural shift is evident in the increasing number of coffee shops and cafes, which in turn drives consumer interest in home brewing. By 2035, the market is projected to reach 16210.8 USD Billion, indicating a robust growth trajectory fueled by the proliferation of coffee culture and the desire for premium coffee experiences.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America is accounting for 39.01 % of the market proportion in the year 2021 and it is projected to expand at a high CAGR of 5.30% in the forecast period of 2022-2030. The growing benefits associated with the consumption of coffee in the region are expected to increase its demand during the forecast period.

For instance, according to the American College of Cardiology, the largest benefit was associated with two to three cups of coffee per day, which equated to a 10%–15% decreased risk of coronary heart disease, heart failure, a cardiac rhythm issue, or passing away for any reason. People who drank one cup of coffee each day had the lowest risk of heart disease or stroke. Apart from this, the growing expansion policies adopted by major players operating in the region are expected to further contribute to its market growth.

As a part of this, in June 2022, Nespresso Professional expanded its momento coffee system portfolio with the addition of a momento coffee and milk machine. The momento coffee & milk machine use touchless technology and has been created to provide a variety of options, including lattes, macchiatos, espressos, and americanos. The presence of key players in the North America region such as Keurig Dr. Pepper and Starbucks Corporation is projected to fuel the growth of the North America market during the forecast period.

Figure 3: COFFEE MACHINES MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe is also accounting for a significant market share in the Coffee machines market in the year 2021 and is expected to grow at a CAGR of 5.35% during the forecast period 2022-2030. The market in Europe is expected to grow significantly during the forecast period owing to the increasing demand for several specialty coffees, the development of new technologically advanced products, and rising demand for easy-to-use capsules/pod coffee and automatic bean-to-cup machines.

For instance, in May 2021, Lavazza Professional launched, Flavia Creation 600 (C600) coffee machines which the company describes as “the single biggest step-change Flavia has ever come across. The company also introduced a new selection of coffee alternatives to UK employees as part of a reinvented beverages menu in advance of the reopening of offices there. Strategic partnerships and collaborations between major players are expected to contribute to the growth of the market in the region. For instance, Nestlé S.A. and Starbucks Corporation entered into a long-term licensing partnership in May 2021.

According to the terms of this partnership, Nescafé is expected to market Starbucks’ products in Europe and Latin America. The key players operating in the region, especially in Italy, such as Nestlé S.A., The Tassimo Hot Beverage System, Luigi Lavazza S.p.A., and Dualit Limited, are boosting the growth of the market.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Coffee Machines market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Coffee Machines industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Coffee Machines. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Coffee Machines industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Coffee Machines industry to benefit customers and expand the market sector. The Coffee Machines market has recently given medicine some of the most important advantages. Major hair care product market players, including Keurig Green Mountain Inc. (U.S.), Panasonic Corporation (Japan), Nestlé S.A. (Switzerland), and others, are attempting to increase market demand by funding R&D initiatives.

Green Mountain Coffee Roasters (GMCR) was established in 1981. After regional and national expansion in the late 1980s and an IPO in 1993, the company completed its acquisition of the brewing-machine manufacturer Keurig, Inc. in 2006, enabling rapid growth through the high-margin sales of its many varieties of single-serve K-Cup pods. In March 2014, GMCR changed its name to Keurig Green Mountain.