Foodservice Coffee Market Analysis

Global Foodservice Coffee Market Overview

Foodservice Coffee Market Size was valued at USD 408.9 Billion in 2023. The Foodservice Coffee industry is projected to grow from USD 427.3 Billion in 2024 to USD 607.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2024 - 2032). Greater interest in speciality coffee, rising coffee shop and food court numbers, rising coffee consumption in emerging economies, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Foodservice Coffee Market Trends

• Increasing coffee consumption in emerging economies and stronger interest for specialty coffee is driving the market growth

Speciality coffee is the fastest-growing market globally due to rising interest in premium coffee and rising demand for ethically and sustainably produced coffee. An increasing number of coffee-focused cafes and micro roasteries are located in Europe. Additionally, the quick development of diverse-format food service establishments is becoming more and more well-liked in rising markets all over the world. One of the most common expansion models is franchising. Franchising presents a chance to gain from the goodwill and recognised brand of an established business. Independent baristas frequently struggle to keep ahead of their rivals in the massive coffee market. Because the majority of millennials like to drink coffee, their spending at coffee shops is rising relative to their expenditure at traditional family eateries.

Consumer preferences, economic levels, geographic location, and ambiance all affect how successful coffee shops and cafes are. Urban residents are becoming more aware of it, which encourages vendors to expand their businesses in order to cater to the industrialised populace. Technology adoption in the coffee sector is crucial for the market. Over the course of the projected period, the companies' ongoing efficiency improvements, identification of important R&D opportunities, and introduction of new products will further fuel market expansion.

The market for foodservice coffee is expanding as a result of an increase in the number of coffee shops and the resulting rise in demand for coffee services. By offering a larger range of alternatives, several coffee makers have historically provided non-dairy coffee consumers with standard selections like almond or coconut milk. A lot of coffee establishments offer soy, oat, and matcha milk in place of dairy options. Coffee shops are more appealing to consumers who are lactose intolerant, vegan, on a dairy-free diet, or just searching for something new when they have a wide variety of options. During the anticipated period, all of these elements are anticipated to fuel market expansion.

80% of American adults, according to the Centres for Disease Control and Prevention (CDC), take caffeine daily. Caffeine has a half-life of 5 to 6 hours and takes about 30 minutes to take effect, but it can stay in the system for much longer, according to the most recent CDC statistics. The lengthened workdays of employees cause a rapid increase in coffee consumption, which is attributed with keeping workers awake. There are also more opportunities for encounters amongst coworkers at work. Coffee shops are seen to reflect a way of life that is being highlighted by the demand for modernism. Coffee shops have transformed into gathering places for people. Occasionally, because of the environment of late-night work, people will go out and select a café. Due to the rising trend of employees working longer hours, the foodservice coffee industry will keep growing. Thus, driving the Foodservice Coffee market revenue.

Foodservice Coffee Market Segment Insights:

Foodservice Coffee Type Insights

The Foodservice Coffee Market segmentation, based on Type, includes takeaway/delivery and dine-in. Takeaway/delivery segment accounted for the largest revenue share in 2022. This increase is the result of consumers using takeaway and delivery services more frequently to drink coffee from various coffee shops, which is thought to be a result of people being unable to go out and socialise due to the epidemic. Cafés have developed to meet customers' needs without them having to physically visit the establishment as a result of the rise in at-home consumption. The rise of this market is being further fueled by the skyrocketing number of customer orders from only reputable brands like Starbucks, which has led to a skyrocketing number of coffee shops owned by various reputable brands and increased coffee delivery.

Figure 1: Foodservice Coffee Market, by Type, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Foodservice Coffee End User Insights

The Foodservice Coffee Market segmentation, based on End User, includes coffee shops/chains, bakery shops, and others. Coffee shops/chains segment dominated the Foodservice Coffee Market in 2022. This increase can be attributed to the growing popularity of coffee shops as the ideal places to unwind with a nice book and a hot beverage or to chat with friends. In American culture, coffee shops have a long tradition of serving as places where people may come together to socialise, discuss ideas, or just to enjoy each other's company. Starbucks and Dunkin' Donuts significantly expanded the function and reach of traditional coffee shops by introducing specialty drinks and uncommon coffee blends to the general public.

Foodservice Coffee Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Foodservice Coffee market dominated this market in 2022 (45.80%). The area is noticing a shift in consumer consumption habits, as evidenced by the rising demand for speciality coffee drinks and contemporary retail establishments. Consumers in Europe are increasingly seeking foodservice coffee with a delectable flavour and excellent nutritional content. International businesses have joined the brew coffee craze as well. For instance, Nestle introduced a new cold brew coffee in 2018 that was created into ready-to-drink coffee beverages, capitalising on the expanding trend of bringing the coffee shop experience home. There are sweet cream and mocha flavours available. Further, the German Foodservice Coffee market held the largest market share, and the U.K Foodservice Coffee market was the fastest growing market in the European region

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FOODSERVICE COFFEE MARKET SHARE BY REGION 2024 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Foodservice Coffee Market accounted for the healthy market share in 2022. Due to the rising popularity of everyday coffee consumption among consumers, this area has experienced expansion. Numerous companies started making investments in coffee shops as the demand for coffee increased. The availability of various coffee treats in coffee shops nowadays draws customers in, increasing the number of coffee shops visited and the amount of coffee being served. Further, the U.S. Foodservice Coffee market held the largest market share, and the Canada Foodservice Coffee market was the fastest growing market in the North America region.

The Asia Pacific Foodservice Coffee market is expected to register significant growth from 2023 to 2032. This is a result of  . India's desire for speciality goods over traditional goods has been influenced by coffee products, such as cold brew coffee companies, creating attractive growth potential for the market there. Moreover, China’s Foodservice Coffee market held the largest market share, and the Indian Foodservice Coffee market was the fastest growing market in the Asia-Pacific region.

Foodservice Coffee Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Foodservice Coffee market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Foodservice Coffee industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Foodservice Coffee industry to benefit clients and increase the market sector. In recent years, the Foodservice Coffee industry has offered some of the most significant advantages to medicine. Major players in the Foodservice Coffee market, including Starbucks Corporation, The J.M Smucker Company, Costa Limited, The Coffee Bean & Tea Leaf, Peet's Coffee, Inc., Soho Coffee Co., The Kraft Heinz Company, Ediya Co. Ltd., Juan Valdez, and Tim Hortons, are attempting to increase market demand by investing in research and development operations.

Reliance Industries Ltd. (RIL) is a diverse firm with operations in the telecommunications, materials, textiles, retail, entertainment, and petrochemical industries. The business engages in crude oil refining, sale of petroleum products, and production of petrochemicals in addition to the exploration, development, and production of oil and gas. Propylene, petrol, naphtha, kerosene, alkylate, sulphur and petroleum coke are some of its refined products. The business sells petrochemical goods such polyesters, elastomers, and aromatics. It runs a variety of retail businesses, including hypermarkets, footwear, specialist food and grocery stores, and other shops. Additionally, it offers digital services including security, broadband internet, and telephone. Mumbai, Maharashtra, India serves as the home base for RIL. Reliance Brands Ltd. established a strategic agreement with the international chain of fresh food and organic coffee, Pret a Manger, in June 2022 for the introduction and expansion of the brand in India.

Starbucks Corp. (Starbucks) is a retailer of speciality coffee. Speciality coffee is roasted, marketed, and sold in stores. The business sells a variety of coffee blends, artisan beverages, goods, and food products through its outlets. Additionally, Starbucks provides ready-made drinks, pastries, whole bean and ground coffee, as well as other libations. Teavana, Starbucks Reserve, Princi, and Ethos are some of its brands. The corporation has operations across Asia-Pacific, the Middle East, Africa, Europe, and the Americas through its owned and licenced stores. In Nevada, Pennsylvania, Tennessee, Washington, China, and other US states, the corporation runs roasting operations as well as production, storage, and distribution facilities. In the United States, Seattle, Washington, is home to the business. As part of its most important expansion strategy, Starbucks increased its presence in six additional regions of India in January 2022. In addition to Siliguri, the business also opened new locations in Nashik, Guwahati, Thiruvananthapuram, Goa, and Bhubaneswar.

Key Companies in the Foodservice Coffee market include

• Starbucks Corporation


• The J.M Smucker Company


• Costa Limited


• The Coffee Bean & Tea Leaf


• Peet's Coffee, Inc.


• Soho Coffee Co.


• The Kraft Heinz Company


• Ediya Co. Ltd.


• Juan Valdez


• Tim Hortons

Foodservice Coffee Industry Developments

A line of "bean-free brews," a substitute for coffee made from roasted rice hulls, chickpeas, and green tea caffeine, was introduced in 2024 by the US company Voyage Foods. The introduction of a beanless coffee line by California-based Voyage Foods highlights the growing interest in beanless coffees due to concerns about the sustainability of coffee agriculture and the growing price of coffee beans.

August 2021: To diversify its sales, SOHO Coffee Co. developed its internet channels. The coffee and food-to-go franchise with locations in the UK is diversifying its customer base and increasing the range of products it offers.

Foodservice Coffee Market Segmentation

Foodservice Coffee Type Outlook

• Takeaway/Delivery


• Dine-in

Foodservice Coffee End User Outlook

• Coffee Shops/Chains


• Bakery Shops


• Others

Foodservice Coffee Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America