The global coffee market size was calculated to be USD 128.34 billion in 2024 and is anticipated to be worth USD 220.54 billion by 2033 from USD 136.30 billion In 2025, growing at a CAGR of 6.20% during the forecast period.
The global coffee market is shaped by key trends that influence consumer preferences and industry dynamics. In 2024, the coffee industry consumes approximately 60 million 60-kg bags of coffee beans annually with the United States being one of the leading consumers, responsible for nearly 25% of global coffee consumption. Furthermore, more than 2 billion cups of coffee are consumed worldwide each day, underscoring the ingrained coffee culture across various regions. Around 13% of global coffee production is now certified organic with growing awareness of sustainability and more than 30% is ethically sourced with organizations like Fair Trade playing a significant role in establishing sourcing standards. Additionally, technology is transforming the coffee industry with over 35% of consumers utilizing mobile apps to order coffee, reflecting a shift toward digital and convenience-focused experiences.
A key driver of the coffee market is the growing demand for specialty coffee, as consumers increasingly seek higher-quality, artisanal offerings. This shift includes a preference for single-origin beans and unique brewing methods. According to the Specialty Coffee Association (SCA), the specialty coffee sector has experienced 14% annual growth, and now accounts for 55% of the total coffee market in the U.S. This rise is driven by heightened consumer awareness alongside a desire for distinctive flavors and ethically sourced beans, prompting brands to focus on premium products and innovation.
Sustainability remains a strong driver as more consumers demand environmentally friendly and ethically sourced coffee. The International Coffee Organization (ICO) reports that 30% of globally traded coffee is now certified as sustainable through labels such as Fair Trade and Rainforest Alliance. This demand influences farming practices which is encouraging environmentally responsible methods and improved social conditions. Sustainable sourcing is increasingly seen as a crucial factor for brand loyalty and differentiation in the marketplace because the growing understanding of the climate change.
Climate change presents a major challenge to the coffee market, particularly as coffee plants, especially Arabica varieties, are highly sensitive to fluctuations in temperature and rainfall. The Food and Agriculture Organization (FAO) forecasts that climate change could cut coffee production by up to 50% by 2050 in key growing regions. This will result in supply chain disruptions, reduced yields and increased production costs. As a result, coffee prices are expected to rise which is creating instability in the global market.
Rising coffee prices due to supply shortages and increasing operational costs are another significant restraint. The International Coffee Organization (ICO) indicates that global coffee prices have surged by 20-30% in the past year driven by adverse weather conditions, labor shortages and rising transportation expenses. These price increases are impacting consumer affordability especially in price-sensitive markets that is potentially reducing consumption and limiting overall market growth.
The Ready-to-Drink (RTD) coffee segment presents a notable opportunity for growth, with a 6.8% annual growth rate from 2021 to 2024, according to the U.S. Department of Agriculture (USDA). This growth is driven by a consumer preference for convenience and on-the-go consumption, particularly in urban areas. Younger demographics, including millennials and Gen Z, are increasingly opting for bottled and canned coffee which are fueling innovation in flavor and packaging. Companies are expanding their RTD product lines to meet evolving consumer expectations as demand rises.
Emerging markets, especially in regions like Asia-Pacific and Latin America, offer significant growth potential. The International Coffee Organization (ICO) reports a 5-6% annual growth in coffee consumption in these markets. Countries such as China and India are seeing increasing coffee demand driven by changing lifestyles, urbanization, and growing disposable incomes. There is a substantial opportunity for both international and local coffee brands to capture market share by offering products tailored to regional preferences.
Price volatility continues to challenge the coffee market. According to the ICO, coffee prices have fluctuated by as much as 40% in recent years due to factors such as supply chain disruptions, adverse weather, and changing demand. Brazil and Vietnam which together account for over 50% of global coffee production and are the primary sources of this price fluctuation. These swings affect both producers and consumers with farmers struggling to maintain profitability while consumers face higher retail prices.
Labor shortages in key coffee-producing regions are another critical challenge. The FAO reports that over 50% of coffee production in countries like Brazil and Colombia relies on seasonal workers. However, many farmers face difficulties in recruiting labor due to low wages, poor working conditions, and migration patterns. This shortage has caused delays in harvests and a reduction in production output. Moreover, there is a lack of new entrants into the coffee industry owing to ageing workforce and is threatening the long-term sustainability of coffee production in these regions.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2024 to 2033 |
|
Base Year |
2024 |
|
Forecast Period |
2025 to 2033 |
|
CAGR |
6.20% |
|
Segments Covered |
By Product, Nature, Distribution Channel, and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
|
Starbucks Corporation, Dunkin' Brands, Nestlé S.A., Keurig Dr Pepper Inc., Lavazza Group, JAB Holding Company (Peet's Coffee, Caribou Coffee, etc.), Tchibo GmbH, Costa Coffee (Coca-Cola), The Kraft Heinz Company (Maxwell House), and McCafé (McDonald's) |
Roasted coffee segment was accounted in holding 65.7% of coffee market share in 2024. The world’s demand for this coffee continues to rise and escalated by a growing preference for rich and flavorful coffee. According to data from the Specialty Coffee Association, 60% to 70% of the coffee consumed globally is roasted including roast & ground, pods, and whole beans. The availability of diverse types of roasted coffee across both high-end and mass-market offerings helps maintain its leading position in the coffee market.
The Ready-to-Drink (RTD) coffee segment is swiftly emerging with a CAGR of 7.4% projected between 2024 and 2032. This rapid growth is attributed to the increasing demand for convenient, portable coffee options. The RTD coffee sales is expected to reach $25.5 billion globally which is fuelled by consumer preference for ready-to-consume beverages. According to the U.S. Department of Agriculture (USDA), younger demographics including millennials and Gen Z are significantly contributing to this surge in RTD coffee sales
Conventional coffee segment was accounted to hold 80% of global coffee share in 2024. The widespread accessibility and lower production costs of conventional coffee contribute to its dominant position. It remains the go-to choice for consumers worldwide due to its affordability and availability in various forms, from ground coffee to pods.
Organic coffee is the quickest-growing segment with a CAGR of 6.2% from 2024 to 2032. The demand for organic coffee is growing as consumers seek more health-conscious and sustainable options. According to the International Coffee Organization (ICO), organic coffee now accounts for 13% of global coffee production driven by consumer awareness of environmental and health issues. Organic coffee's appeal lies in its cultivation methods, which avoid synthetic chemicals and emphasize environmental sustainability
The B2C (Business-to-Consumer) segment accounts for more than 60% of global coffee sales in 2024. This segment includes various retail channels such as grocery stores, supermarkets, hypermarkets, and online retailers. According to MarketsandData, consumers prefer purchasing coffee through these direct channels for convenience, accessibility and a broad product selection.
Online retailers are the fastest-growing distribution channel in the coffee market, with a projected CAGR of 5% during the forecast period. The ease of online shopping and the ability to offer a wide variety of coffee products often with subscription models and delivery services has contributed to this growth. According to Exactitude Consultancy, e-commerce platforms like Amazon and specialized coffee retailers are becoming the preferred shopping choice for coffee consumers seeking convenience and product variety.
The North American coffee market is holding 30.4% of share with a projected Compound Annual Growth Rate (CAGR) of 4.0% throughout the forecast period. The region’s growth is largely driven by shifting consumer preferences, a growing coffee culture, and increasing demand for convenience-focused products. The U.S. stands as the largest consumer, with 64% of American adults drinking coffee regularly, averaging 3 cups per person per day. Additionally, sustainability concerns are pushing ethical sourcing with over 30% of coffee in North America now certified as Fair Trade or organic.
Europe coffee market is expected to grow at a 4.4% CAGR in future. Coffee culture is ingrained in many European countries, with the highest demand for specialty coffee found in regions such as Germany, Italy, and the Netherlands. The European Coffee Federation (ECF) highlights that coffee consumption is a daily ritual for millions which is propelling the market's evolution towards premium and artisanal offerings.
The Asia Pacific coffee market is expanding rapidly with is projected to grow at a 7.2% CAGR over the estimation period. Key propellants include rising urbanization, disposable income and a shifting lifestyle. In China, coffee consumption surged to 2.5 million bags in 2024 witth 15% increase from the previous year, according to the China Coffee Association. India’s coffee consumption reached approximately 200,000 tons in 2024 with a 7.5% increase from the prior year, according to the India Coffee Board. These developments mark the Asia Pacific region as a significant growth engine for the coffee industry.
The Latin American coffee market is deemed to grow at a 4.8% CAGR during the forecast period. Brazil remains the dominant force in both production and consumption, with 23 million 60-kg bags consumed in 2024, representing over 50% of regional consumption, according to the Brazilian Coffee Industry Association (ABIC). Colombia and Mexico also contribute significantly to the market, with consumption levels of 2.5 million bags and 2.2 million bags, respectively and marks a steady annual growth.
The Middle East and Africa (MEA) coffee market is expanding at a 6.1% CAGR. Coffee consumption in countries like Saudi Arabia, Turkey, and Ethiopia is particularly strong. Saudi Arabia, with a population of over 30 million has nearly 90% of households consuming coffee more likely to be as a traditional Arabic coffee. Turkey with its rich coffee culture recognized by UNESCO, sees 97% of households consuming coffee which is making it one of the leading coffee-consuming nations in the region. These cultural integrations of coffee contribute to the region’s rapidly growing market.
Major Players of the coffee market include Starbucks Corporation, Dunkin' Brands, Nestlé S.A., Keurig Dr Pepper Inc., Lavazza Group, JAB Holding Company (Peet's Coffee, Caribou Coffee, etc.), Tchibo GmbH, Costa Coffee (Coca-Cola), The Kraft Heinz Company (Maxwell House), and McCafé (McDonald's)
The coffee market is highly competitive, with several global and regional players striving for dominance. Major multinational coffee chains like Starbucks, Dunkin', and Costa Coffee are at the forefront, each employing distinct strategies to capture market share. Starbucks, for instance, focuses on premium coffee offerings and expanding its reach globally through both company-owned stores and licensed partnerships. Meanwhile, Dunkin' leans heavily on value propositions and a broad consumer base, particularly in the U.S., to stay competitive.
In addition to these giants, newer players like Luckin Coffee from China have gained significant traction by offering convenience, including mobile ordering and delivery services. Emerging trends, such as ready-to-drink coffee and sustainable, eco-friendly practices, also fuel competition, with brands like Atomo Coffee and Cometeer Coffee innovating with beanless and recyclable options.
The market is also affected by fluctuations in coffee bean prices due to supply chain issues and climate change, forcing companies to adjust their pricing strategies. Moreover, the rise of premium and specialty coffee, along with increasing consumer demand for ethical sourcing, has led to a heightened focus on product quality and sustainability practices.
Overall, the competition in the coffee market is fierce, with companies continuously adapting to shifting consumer preferences and market dynamics.
This research report on the global coffee market has been segmented and sub-segmented based on product, nature, distribution channel, and region.
By Product
By Nature
By Distribution Channel
By Region
Frequently Asked Questions
Increasing coffee consumption, the rise of specialty coffee, and the growing café culture are major drivers.
Coffee consumers range from millennials driving demand for specialty coffee to traditional drinkers who prefer instant or brewed coffee.
Trends include the rise of premium and specialty coffee, sustainable and ethical sourcing, and the popularity of ready-to-drink coffee beverages.
Consumers increasingly demand Fair Trade and Rainforest Alliance-certified coffee, encouraging companies to adopt sustainable practices.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region