Coffee Shops Market Size, Share Report, Analysis, Trends, Growth, 2030

Coffee Shops Industry Prospective:

The global coffee shops market size was worth around USD 78.96 billion in 2022 and is predicted to grow to around USD 133.98 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.83% between 2023 and 2030.

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Coffee Shops Market: Overview

A coffee shop is an eating place or a restaurant that specializes in selling coffee-based drinks. Over time, coffee shops have started adding other offerings to their menu such as pastries, muffins, tea, sandwiches, and other beverages since consumer preference has evolved. Modern coffee shops are considered an affordable luxury experience. Coffee-based drinks can be easily made at home. However, professional coffee shops tend to provide an overall experience for the customers leading to a growing demand for coffee shops. Several parameters together determine the overall success rate of a coffee shop or brand.

For instance, randomly placed or located may not work as successfully as shops at carefully selected locations. Furthermore, coffee shop owners or brands must continuously try and keep up with the changing consumer drinking habits by introducing new services such as to-go counters and more flavors. During the forecast period, the global market for coffee shops is likely to grow as international brands enter new markets. However, it may become difficult for companies to survive in the rapidly changing world economic conditions.

Key Insights:

• As per the analysis shared by our research analyst, the global coffee shops market is estimated to grow annually at a CAGR of around 6.83% over the forecast period (2023-2030)
• In terms of revenue, the global coffee shops market size was valued at around USD 78.96 billion in 2022 and is projected to reach USD 133.98 billion, by 2030.
• The coffee shops market is projected to grow at a significant rate due to the changing consumer lifestyle to impact market demand
• Based on city size segmentation, metropolitan was predicted to show maximum market share in the year 2022
• Based on product segmentation, coffee was the leading segment in 2022
• On the basis of region, Europe was the leading revenue generator in 2022

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Coffee Shops Market: Growth Drivers

Changing consumer lifestyle to impact market demand for coffee shops

The global coffee shops market is projected to grow owing to the changing consumer lifestyle habits across the globe. As globalization and urbanization have taken over the world, consumers have steadily started changing their lifestyles. While restaurant services have been a part of the global culture for a longer time, the general population has now started preferring eating places that follow quick-service-restaurant (QSR) patterns.

Additionally, the increase in per capita income along with changing perception about coffee shops adds to the overall market revenue. Until a few years ago, high-end coffee shops were considered exclusive centers. However, as more affordable coffee shops have opened up globally, people have become more interested in exploring new eateries or restaurants such as coffee shops.

Increasing remote work culture further promoted market demand

Remote work culture has surged worldwide as a direct result of COVID-19. People prefer to work from the comfort of their homes or cafes as opposed to going to the office regularly. Furthermore, restaurant owners have adapted to the changing working style by accommodating and creating spaces that are friendly to business owners or working professionals.

For instance, since 2021, Starbucks, a leading coffee house brand, has witnessed a growing trend of working professionals working from Starbucks. Such behavior from certain segments of consumers has encouraged more people to follow suit.

Tourism plays an essential role in shaping the industry

The global coffee shops market is heavily influenced by the international and local tourism industry. As countries host international tourists, they are required to provide an authentic experience of the regional culture to the travelers. Coffee shops are extremely popular among international tourists as they provide an ideal place to satisfy the taste palate while also offering a unique experience allowing the customers a glimpse of the traditional culture.

Coffee Shops Market: Restraints

High price of coffee at shops restricts market growth

The global coffee shops industry will face growth difficulties due to the high prices of the products sold in coffee shops. The increasing inflation rate across the globe and the rising cost of living may cause more people to either reduce the visit frequency to coffee shops or refrain completely. Coffee shops are mainly a part of the modern lifestyle. They are not considered an absolute necessity since coffee and accompaniments can also be prepared at home. For instance, as per reports, on average, a person spends nearly USD 15 on a coffee at Starbucks.

Coffee Shops Market: Opportunities

Emerging markets hold exceptional growth possibilities

The global coffee shops market is yet to explore the true potential of emerging markets such as Africa, India, and China. While the cultural acceptance of modern coffee shops is more common in Western countries, the trend is slowly catching up in other parts of the world, especially nations that are witnessing a sudden yet steady surge in urban population.

For instance, a December 2023 report suggested that China has now exceeded the US in terms of branded coffee shops. As per the World Coffee Portal, around 90% of its respondents in the latest survey claimed that they visit coffee shops at least once in a week. The rising purchasing power and introduction of international culture in terms of the coffee-drinking experience is a powerful selling point.

Rising innovation strategies adopted by coffee shop owners may deliver better results

The industry for coffee shops is expected to benefit from the innovation-led approach adopted by owners of coffee shops. For instance, international brands are known to alter their menu depending on the cultural preferences of the region. Additionally, coffee shops offer several flavors and types of coffee including hot drinks and cold drinks thus catering to different flavor palettes.

For instance, in July 2022, Japan witnessed a rise in the demand for espresso tonic coffee. Moreover, innovation also extended to coffee-making techniques and machines. In November 2023, Tone Kaffeemaschinen, a Switzerland-based coffee machine maker, launched Tone Touch E. It is the company’s first coffee machine designed specifically for brewing espresso.

Coffee Shops Market: Challenges

Maintaining product and service quality is a key challenge for many players

The global coffee shops market faces challenges in terms of maintaining or improving products and services. With time, coffee shops tend to lose on the quality of the service or the products offered at the shops. Moreover, the competition among coffee shop owners is extremely high since consumers have multiple options. Quality of the products is an essential aspect of continued brand loyalty which is difficult to achieve in the industry for coffee shops.

Coffee Shops Market: Segmentation

The global coffee shops market is segmented based on city size, product, and region.

Based on city size, the global market segments are rural, urban, and metropolitan. In 2022, the highest growth was observed in the metropolitan sector. The growth rate is not the result of a single contributing factor but an alignment of multiple reasons. For instance, the restaurant or cafe culture in metropolitan cities is more prominent. Additionally, these areas are generally home to working professionals who may not have enough time to cook or prepare meals at home thus depending on coffee houses for their daily food and beverages necessities. This is further strengthened by the presence of several affordable and luxury coffee shop options in metropolitan areas. As of 2023, New York City has over 570 coffee shops.

Based on product, the global market divisions are coffee and coffee complements. The highest revenue-generating segment in 2022 was coffee. The primary goal of visiting a coffee shop is to order a coffee of preferred choice. The drink may or may not be enjoyed with complements such as biscuits, croissants, and other complementary items. Additionally, people across the globe are addicted to coffee which leads to higher segmental growth. As per EarthWeb, more than 1 billion people globally are addicted to coffee.

Coffee Shops Market: Report Scope

Coffee Shops Market: Regional Analysis

Europe is the leading region and will continue the trend during the projection period

The global coffee shops market is currently dominated by Europe and the same trend is expected in the future. The growth rate can be attributed to the presence of coffee culture since the 19th century which first originated in European nations such as France and Austria. In addition to this, the role of Paris cannot be denied in terms of influencing the coffee or cafe society. In modern times, one of the most interesting aspects of tourism that attracts travelers from across the globe to Europe is its restaurant culture that offers exquisite experiences starting from traditional coffee shops to modern and more commercial brands.

Apart from the revenue generated from international tourism, the regional industry is highly popular in the domestic market as well since enjoying coffee at a cafe is an irreplaceable part of the overall European culture. North America will continue to grow at a rapid rate. It is home to some of the world’s most popular commercial and branded coffee shops. US-based Starbucks has managed to change how coffee shops operate with the introduction of a fine line of options depending on regional preference. Currently, the brand enjoys revenue from more than 35000 stores globally.

Coffee Shops Market: Competitive Analysis

The global coffee shops market is led by players like:

• Caffè Nero
• Starbucks
• Peet's Coffee
• Dunkin' (formerly Dunkin' Donuts)
• Coffee Bean & Tea Leaf
• Costa Coffee
• Tully's Coffee
• Tim Hortons
• Caribou Coffee
• Blue Bottle Coffee
• Gloria Jean's Coffees
• Lavazza
• Panera Bread
• Pret A Manger
• Second Cup.

The global coffee shops market is segmented as follows:

By City Size

• Rural
• Urban
• Metropolitan

By Product

• Coffee
• Coffee Complements

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa