Coffee Emerges As The Elixir Of Life

With 60 per cent of the world's population and a median age of 31 years, Asia presents significant growth opportunities. Countries like Indonesia, India, the Philippines, Thailand, and Vietnam are prominent as both consumers and producers of coffee

The global coffee market is projected to experience significant growth in 2025, driven by factors like health and wellness trends, the rise of specialty coffee, and increasing consumer demand for convenient and sustainable options.

The coffee market size has grown strongly in recent years. It will grow from $69.06 billion in 2024 to $73.98 billion in 2025 at a compound annual growth rate (CAGR) of 7.1 per cent. The growth in the historic period can be attributed to changing consumer preferences, convenience and on-the-go lifestyles, rising demand for artisanal and craft coffee products, globalization and trade.

The coffee market size is expected to see strong growth in the next few years. It will grow to $96.48 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to health and wellness trends, premiumization of coffee, sustainable and ethical sourcing, e-commerce and online retail, functional and specialty coffee.

Out-of-home revenue generated in restaurants and bars - will touch $376.70 billion in 2025. Combined revenue in 2025 is expected to hit $473.10 billion. The revenue, at home is expected to grow annually by 2.96 per cent (CAGR 2025-2029).

This significant market size reflects high global demand for coffee, stemming from both established markets in North America and Europe and emerging markets where coffee consumption is growing rapidly.

Europe was the largest region in the coffee market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the coffee market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. The countries covered in the coffee market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, USA, Canada, Italy and Spain.

With 60 per cent of the world's population and a median age of 31 years, Asia presents significant growth opportunities. Countries like Indonesia, India, the Philippines, Thailand, and Vietnam are prominent as both consumers and producers of coffee.

Countries in Eastern Europe and the Middle East, such as Romania, Lithuania, Slovakia, and Saudi Arabia, are also developing strong coffee cultures.

The anticipated increase in coffee consumption is set to drive the growth of the coffee market. Coffee, a beverage made from dark brown powder extracted from crushed coffee beans, is gaining popularity due to its taste and various nutritional benefits. Rich in antioxidants and vitamins such as riboflavin, magnesium, and potassium, coffee is also associated with a reduction in the onset of heart diseases.

Product innovation emerges as a notable trend that is gaining popularity in the coffee market. Major companies in the coffee sector are actively launching innovative products to enhance customer experience and solidify their market position.

A case in point is Blue Bottle, a Nestle-owned US-based cafe retailer and specialty coffee roaster, which introduced Craft Instant Espresso in October 2022. This premium instant coffee is produced using premium beans, a unique roasting method, and a slow freeze-drying process.

Product innovation remains a crucial factor in shaping the coffee market's landscape, while also catering to the evolving consumer preferences.

Coffee, derived from the roasted seeds of the coffee plant's fruits, is a popular beverage or powder enjoyed for its invigorating qualities.

The primary categories of these coffee concentrates include cold brew coffee concentrate, iced coffee concentrate, top roast coffee concentrate, and black coffee concentrate. Cold brew coffee concentrate involves a distinct process where roasted coffee beans are steeped in cold or room-temperature water over several hours.

Varieties consist of arabica and robusta beans, offering diverse caffeine content such as regular and decaffeinated options. These products are distributed through multiple retail channels, including supermarkets, online stores, and convenience outlets.

The coffee market consists of sales of Liberica coffee, Cappuccino, Caffe Americano, and Espresso. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The demographic landscape of coffee consumers has shifted dramatically. While most adults drink coffee, Millennials and Gen Z drive innovation within the coffee market. These two generations, accounting for 52 per cent of the global population, are crucial consumer bases.

Crucially, Millennials and Gen Z prioritize convenience. While they enjoy beverages spanning a range of temperatures, brewing styles, and functionalities, they want products that are easy to purchase, prepare, and consume.

This demand is fuelling innovation across the industry, including growth in RTD and mix formats, and the rise of app-powered coffee ordering.