Global Coffee Market Report and Forecast 2024-2032

Global Coffee Market Size

The global coffee market reached approximately USD 138.15 billion in 2023. The market is assessed to grow at a CAGR of 4.6% in the forecast period of 2024-2032 to reach a value of around USD 207.07 billion by 2032.

Coffee Market Outlook

• Coffee is one of the top traded commodities in the world, and its largest producer is Brazil with around 2.6 million metric tonnes produced on average a year.

• Reportedly, in 2022, 66% of Americans drank coffee on a daily basis, rising by 14% since January 2021.

• As per coffee market analysis, Asia & Oceania, and Africa’s coffee production decreased by 4.7% and 7.2% respectively owing to adverse weather conditions.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Coffee Market Growth

Coffee is one of the most popular caffeinated drinks brewed from roasted coffee beans that are harvested from certain species of the Coffea plant. It is served both hot and cold and is prepared in a variety of ways. Some of the popularly consumed coffee variants include arabica and robusta.

All commercially grown coffee is harvested in the coffee belt region of the world, located along the equatorial zone. This is because the coffee belt provides the best suitable conditions, such as rich soil, mild temperature, shaded sun, and frequent rain, for the coffee crop to thrive. Moreover, coffee is associated with health benefits, including reduced risk of cardiovascular diseases, increased alertness and concentration levels, and increased energy levels, among others.

Coffee has established its place as a key ingredient in many sectors, including sweets, beverages, and skincare, among others, owing to the presence of caffeine. Moreover, the beverage industry has grown significantly due to the widespread consumption of coffee across all age groups. This is attributed to its unique flavour and potentially addictive chemical composition, eventually boosting the growth of the coffee market globally.

Key Trends and Recent Developments

Increasing popularity of instant coffee; rising popularity of specialty coffee houses; and the growing use of milk alternatives are positively impacting the coffee market opportunities.

Global Coffee Market Trends

The market growth is propelled by the increasing awareness about sustainability, which is propelled by initiatives such as the utilisation of reusable cups and recycling programmes. The focus on reducing packaging waste is part of a broader trend toward sustainability in the coffee market. This encompasses not just packaging but also sourcing coffee sustainably, reducing water and energy use, minimising food waste, and supporting fair trade practices.

In addition, specialty coffee houses have become a major trend of the coffee market owing to their emphasis on quality, often sourcing single-origin or direct-trade beans that offer unique flavour profiles. Speciality coffee shops frequently pair their coffee offerings with high-quality baked goods and other food items, often sourced from local bakeries or made in-house. This not only enhances the coffee experience but also supports local producers, creating a sense of community and localism that appeals to many consumers.

Industry Outlook

The landscape of coffee production shows remarkable changes over the years, as seen through data provided by the Foreign Agricultural Services, U.S. Department of Agriculture. Brazil still is the leader in the Arabica coffee industry; volumes are forecast at 44,900 thousand 60-kilogram bags in 2023/24 and 48,000 thousand bags in June 2024/25. This makes for a strong recovery from the 2021/22 dip to 36,400 thousand bags, underscoring the resilience and capacity to rebound of Brazil after difficult periods.

Colombia, the second major producer of Arabica, is supposed to increase its production from 11,800 thousand 60-kg bags in 2023/24 to 12,200 thousand 60-kg bags in 2023/24. The steady rise mirrors non-stop momentum by Colombia in improving its methods and infrastructure regarding coffee production. Ethiopia, with its peculiar coffee varieties, is also on the rise: from an estimated 7,600 thousand 60-kg bags in 2020/21 to 8,360 thousand 60-kg bags in June 2024/25, thus aiding the global coffee demand growth.

Of course, Vietnam takes a front seat in the global market for coffee. Having traditionally been strong in producing Robusta, Vietnam's Arabica production is expected to remain steady at 1,100 thousand 60-kg bags through 2024/25. When it comes to Robusta, however, Vietnam can be called the outright champion, with production of 27,850 thousand 60-kg bags as of June 2024/25. This increase truly cements Vietnam's position as a critical supplier of Robusta coffee to global demand.

The case of Robusta shows quite high growth in the Brazil section, where production is prophesied to grow from 18,500 thousand 60-kg bags in 2019/20 to 27,850 thousand 60-kg bags in June 2024/25. This increase mirrors the strategic expansion by Brazil in growing Robusta to balance its strong Arabica origin. Next, Indonesia, another giant producer of Robusta, had its production augmented from 6,800 thousand 60-kg bags in 2023/24 to 9,500 thousand 60-kg bags in June 2024/25, thus showing stable yet gradual growth.

Arabica and Robusta production in Uganda are trending upward. Production of Arabica increased from 730 thousand 60-kg bags in the 2020/21 crop year and is forecast at 1,000 thousand 60-kg bags in June 2024/25. That for Robusta reached 5,400 thousand 60-kg bags in June 2024. This increase reflects Uganda's growing contribution to global coffee supplies, underpinned by favourable growing conditions and government support for the growth of the coffee market.

Coffee production in India is likely to remain stable, with minor fluctuations in the segments of Arabica and Robusta. Arabica production reached 1,400 thousand 60-kg bags, while that of Robusta stood at 4,600 thousand 60-kg bags in June 2024/25. Steady output from India seems to be an indication of a coffee industry that has matured in this nation with continuous domestic demand.

Countries like Honduras, Guatemala, and Costa Rica from Central America reflect stable production trends and help in the steadiness of the global coffee market. Honduras produced 5,300 thousand 60-kg bags of Arabica during June 2024/25 and continued its trend of being a consistent supplier.

On the whole, growth and recovery are expected to be strong in the global coffee market, driven by major supplying countries like Brazil, Vietnam, and Colombia. Steady production increase, from Arabica to Robusta, is a good indicator that things are looking up in the coffee industry, driven by technological innovation, strategic investment, and favourable weather conditions. It is in the described setting released by the Foreign Agricultural Services, U.S. Department of Agriculture, showing how global coffee producers were resilient and flexible in response to increasing global demand for coffee.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Coffee Industry Segmentation

“Global Coffee Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

On the basis of product type, the market can be divided into:

• Whole-Bean

• Ground Coffee

• Instant Coffee

• Coffee Pods 

• Capsules

On the basis of end use, the market can be bifurcated into:

• HoReCa

• Retail

On the basis of distribution channel, the market can be segregated into:

• Supermarkets and Hypermarkets

• Convenience Stores

• Speciality Stores

• Online

• Others

On the basis of the region, the market can be segmented into:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Global Coffee Market Share

The Rising Popularity Of Whole-Bean Coffee Is Aiding The Market Growth

As per coffee industry analysis, whole coffee is likely to cover a substantial portion of the market in the coming years owing to its preference among coffee connoisseurs and enthusiasts. The trend towards premiumisation, where consumers are willing to pay more for superior quality and unique coffee experiences, is a significant driver for the whole-bean segment.

Manufacturers in the global coffee market are adopting advanced technologies in the production of coffee to innovate their products and further expand their market share. With the advent of coffee pods and capsules, coffee’s popularity has skyrocketed due to its ease of use, reduced preparation time, and minimal effort required in the brewing process, thereby resonating with evolving consumer demands. This shift has notably extended to workplaces where the practicality of pods and capsules has made them a preferred choice.

Manufacturer Are Increasingly Collaborating With HoReCa Companies To Bolster Their Presence In The Coffee Market

The demand of the coffee market is expected to grow rapidly during the forecast period owing to the expanding HoReCa sector. The HoReCa sector serves as a critical touchpoint for introducing a wide variety of coffee products to a diverse consumer base. Hotels, restaurants, and cafés offer unique platforms for coffee brands to showcase their products, from specialty coffees to international blends, thus broadening consumer exposure and preferences.

On the other hand, the retail sector is expected to account for a significant portion of the global coffee market share with a focus varying from mass-market products that prioritise convenience and affordability to premium brands that emphasise origin, quality, and sustainability. The sector, consisting of supermarkets, grocery stores, specialty stores, and online platforms is instrumental in making coffee accessible to a wide audience, accommodating various tastes and preferences, and boosting the coffee industry revenue.

Although coffee has been, and remains, one of the most consumed beverages in the world; steady demand is maintained across different regions.

• In many countries, consumption relates to daily routine or social convention; hence, it will always be in constant demand.

• Different kinds of coffee offer both specialty and gourmet coffees to suit a wide range of consumer tastes.

• New ways of coffee cultivation, processing, and brewing technologies enhance product quality and production efficiency, bolstering the coffee market dynamics and trends.

Rising disposable incomes in developing countries increase the consumption of coffee.

• Increasing demand for out-of-home coffee and specialty coffee fuels the demand for quality and diversified coffee products.

• Increasing research toward the many health benefits of coffee intake enhances the allure of coffee toward health-conscious consumers, thus boosting the coffee market revenue.

• Advertisement of sustainable and fair-trade coffee practices attracts an environmentally sensitive consumer market segment.

Climatic factors are quite crucial to coffee growing, and any fluctuations affect yields and the quality of the harvest.

• The profit is affected by changes in the price of coffee, mainly due to an imbalance in demand and supply and speculation in the markets.

• Coffee plants could be prone to diseases and pests. Given this nature, they need constant monitoring and management, adding to the costs.

• The bulk of global coffee output comes from just a few countries, leaving the market quite vulnerable to regional factors, restricting the coffee consumption across various regions. 

• Increased competition from other beverages—like tea, energy drinks, and plant-based coffee alternatives—might soon squeeze the market for coffee.

• Strengthening environmental and health legislation may further burden coffee producers.

• Erratic consumer preferences could shift towards healthier and more sustainable beverage options, which would be difficult to maintain the market position of coffee.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Coffee Market Regional Analysis

Europe holds a substantial share of the coffee market, aided by the huge demand and per capita consumption of coffee in countries like Italy, the Netherlands, Germany, France, and Finland. In the North American market, the United States of America and Canada have a robust coffee culture, boasting a significant consumption of coffee, with a growing trend towards speciality and gourmet coffee experiences.

Coffeehouses, specialty cafes, and artisanal roasters have been flourishing, catering to a consumer base that values quality, sustainability, and unique flavours. The coffee industry in North America relies on the increasing focus of international coffee chains on meeting customer expectations which is likely to enhance the coffee market demand in the coming years.

Competitive Landscape

Players in the coffee market are increasingly innovating with the latest technologies and ingredients to expand and innovate their offerings. Some of the latest technologies utilised include app-based transactions, automation, and even drones for convenience and faster delivery of products.

Founded in 1866, Nestlé, with headquarters in Vevey, Switzerland, is the world leader in coffee sales because of the high demand for its renowned brands Nescafé and Nespresso. Forgoing ease in dominant positions, Nestle has a rather wide portfolio that ranges from instant coffee all the way to the more premium capsules and a large distribution network worldwide.

JDE Peet’s base is in Amsterdam, and it was founded in 2019, unique for holding under its portfolio a broad range of coffee brands such as Jacobs, Douwe Egberts, and Peet's Coffee. The company dominates the retail and out-of-home playing field, having deeply penetrated the market and stamped global presence.

Starbucks Corporation is headquartered in Seattle, United States, and was founded in the year 1971. Major claims to fame include coffeehouses and premium positioning. Quality standards at Starbucks are set very high, if not for the industry, at least for customer experience on any other ground; this has helped it maintain global leadership in the coffee sector.

Based in Chicago, United States, and founded in the year 2015, The Kraft Heinz Company has been able to bank on its deep portfolio of brands which Maxwell House for wider outreach of the customers. Its marketing and distribution expertise puts it to the front for the mass coffee market.

Founded in 1895 and headquartered in Piemonte, Italy, Lavazza is an organisation that deals with high-end coffee products. Combining its traditional heritage and excellence of products, the company provides a range of whole-bean, ground, and capsule coffee catering to discerning coffee lovers worldwide.

The group Strauss was founded in the year 1939 with its headquarter in Petah Tikva, Israel. It has been trying to enhance its position by focusing on the emerging markets through the business unit Strauss Coffee. It offers various types of roast, ground, and instant coffee products to jostle for growth through joint ventures and acquisitions.

The J.M. Smucker Company is an Ohio-based corporation founded in 1897 and is known more for their fruit spreads and peanut butter products. It also owns Folgers and Café Bustelo, their coffee companies that target coffee consumers of the widest variety.

JAB Holding Company is a "Luxemburg-based holding company founded in 2012 involved in luxury goods, health, and wellness along with fast-casual eateries." Its portfolio includes Keurig Dr Pepper, Jacobs Douwe Egberts, and Peet's Coffee, among others.

Other key players in the global coffee market report are Tata Consumer Products Limited, UCC Europe Limited, Gloria Jean’s Gourmet Coffees Corp., Unilever plc, Panera Brands, Nero Holdings Limited, Coffee Beanery, Swmabhan Commerce Private Limited (RAGE Coffee), International Coffee & Tea, LLC, and BEVZILLA PRIVATE LIMITED, among others.

Key Highlights of the Report

Coffee Market Report Snapshots

Coffee Market Size

Coffee Market Growth

Coffee Market Trends

Coffee Market Share

Coffee Companies

Coffee Market Regional Analysis