Specialty Coffee Market Size, Share, Industry Growth, Analysis, Trends, 2032

Specialty Coffee Industry Prospective:

The global specialty coffee market size was worth around USD 22.32 billion in 2023 and is predicted to grow to around USD 59.46 billion by 2032 with a compound annual growth rate (CAGR) of roughly 11.5% between 2024 and 2032.

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Specialty Coffee Market: Overview

The distinctive flavors, outstanding quality, and careful farming of exceptionally high-grade coffee set the specialty coffee apart. This variety of coffee is distinct from regular commercial-grade coffee in several aspects, primarily because it is typically grown in certain locations that are known to have appropriate growth conditions. The different temperatures, elevations, and types of soil in various regions usually result in unique flavor profiles in coffee. According to the Specialty Coffee Association's (SCA) 100-point rating system, coffee beans need to score 80 points or more to be considered a specialty coffee. A multitude of factors, including body, balance, sweetness, acidity, flavor, and aftertaste, are considered while determining the score. This stands out in general because of its stringent policies, commitment to quality, encouragement of sustainability, and morality.

Key Insights

• As per the analysis shared by our research analyst, the global specialty coffee market is estimated to grow annually at a CAGR of around 11.5% over the forecast period (2024-2032).
• In terms of revenue, the global specialty coffee market size was valued at around USD 22.32 billion in 2023 and is projected to reach USD 59.46 billion by 2032.
• The increasing disposable income is expected to drive the global specialty coffee market growth over the forecast period.
• Based on the age group, the 18-24 segment is expected to dominate the market during the forecast period.
• Based on the application, the commercial segment is expected to hold a prominent market share over the projected period.
• Based on the sales channel, the online segment is expected to grow at the highest CAGR during the forecast period.
• Based on region, Europe is expected to dominate the market during the forecast period.

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Specialty Coffee Market: Growth Drivers

Rising demand for certified coffee products drives market growth

In the food and beverage industry, there is an increasing demand for "certified" & "sustainability" brands and labels due to consumer concerns about poverty, social injustice, and environmental degradation. A variety of coffees that satisfy social, environmental, and economic standards and have been verified by an unbiased third party are referred to as sustainable coffee. Given that, coffee is becoming a more popular target for food counterfeiters, certified coffee offers consumers additional assurance regarding the product's dependability. Numerous organizations that certify coffee are examining the supply chain and production processes used in coffee. A few of these are USDA Organic Certification, Rainforest Alliance Certification, Fair Trade Certification, UTZ Certification, and many more. All these factors are projected to drive the global specialty coffee market growth.

Specialty Coffee Market: Restraints

Volatility in the price of coffee beans hinders market growth

Coffee prices fluctuate due to several causes, including lower coffee production, differences in the supply and demand for coffee, rising labor expenses, and poor weather. Additionally, as raw material costs rise, prices rise and manufacturers' profit margins shrink. Furthermore, despite the rising cost of raw materials, the industry's companies are operating on poor profit margins due to escalating competition. Due to this and the need to maintain industry competitiveness, producers are compelled to experiment with less expensive alternatives, such as instant coffee powder and low-quality coffee beans. Therefore, it is expected that the specialty coffee industry will grow more slowly due to the variable costs of coffee beans.

Specialty Coffee Market: Opportunities

Growing demand for coffee subscriptions offers a lucrative opportunity for market growth

Consumers who earn more money buy more coffee because they are willing to spend more, suggesting that a customer's financial situation influences their propensity to purchase a good. Moreover, online subscription services usually function in an uncomplicated manner. Customers pay for a roaster regularly and obtain freshly ground coffee. Additionally, the coffees available through subscription services will regularly change depending on the roaster's stock, allowing customers to sample a "coffee of the month" and discover different origins and processing methods. Furthermore, coffee roasters are now able to provide direct-to-consumer sales and subscription coffee services at scale because of the availability of coffee software and simple e-commerce platform connections. This is the specialty coffee market growth's opportunity factor.

Specialty Coffee Market: Challenges

Unpredictable weather conditions pose a major challenge to market expansion

Rich soil, a cold to warm tropical temperature, and the lack of most tropical pests and diseases are all ideal for coffee growth. Production of coffee is spread across North, Central, and South America, the Caribbean, Africa, the Middle East, and Asia, forming a worldwide coffee belt. At the moment, Brazil is the country that produces the most coffee globally. If Earth's temperature rises over the coming decades, developing obstacles to coffee production may increase and negatively impact the amount and quality of the product, which might decrease coffee sales.

Specialty Coffee Market: Segmentation

The global specialty coffee industry is segmented based on age group, application, sales channel, and region.

Based on the age group, the global specialty coffee market is bifurcated into 18-24, 25-39, 40-59 and Above 60. The 18-24 segment is expected to dominate the market during the forecast period. Specialty coffee is becoming more and more popular in this category. It may be ascribed to several factors, including the impact of social media & digital technologies, the appeal of food & beverage, the importance of authenticity & unique experiences, and the focus on health & sustainability.

Based on its application, the global specialty coffee industry is bifurcated into home and commercial. The commercial segment is expected to hold a prominent market share over the projected period. Chains of commercial specialty coffee cafes have a broader store network, which enables them to reach more customers in different areas. Specialty coffee demand has also increased as a result of consumers' rising understanding of and appreciation for higher-quality coffee. This forces commercial establishments, including eateries and coffee shops, to provide specialty coffee selections to draw clients and maintain their position as market leaders.

Based on the sales channel, the global specialty coffee market is bifurcated into online, supermarkets/hypermarkets, and convenience stores. The online segment is expected to grow at the highest CAGR during the forecast period. Due to conveniences like large discounts, a wide selection of products on one platform, simple payment options, door-to-door delivery, and more, consumers are shifting their preferences toward online outlets. Online merchants also frequently have a wide range of specialty coffees with various flavors and brands, like Blue Tokai, ARAKU coffee, Grey Soul, and Coffeeza, which might not be found at conventional brick-and-mortar stores. Moreover, it enables customers to select the product that best suits their requirements.

Specialty Coffee Market: Report Scope

Specialty Coffee Market: Regional Analysis

Europe is expected to dominate the market during the forecast period

Europe is expected to dominate the global specialty coffee market during the forecast period. The region's growth has been greatly aided by the growing demand for premium specialty coffee varieties. According to CBI, consumption at specialty coffee shops serving primarily high-quality coffees is rising quickly in Western Europe; the number of coffee shops offering specialty coffee in this region increased by 18% between 2018 and 2020, to 24,290 in 2020. Other factors that are anticipated to further boost the specialty coffee market growth in this region include the expansion of mainstream coffee players, rising disposable incomes, and a more sophisticated coffee culture.

Specialty Coffee Market: Competitive Analysis

The global specialty coffee market is dominated by players like:

• Barista Coffee Company Limited
• Starbucks Coffee Company
• F. Gaviña & Sons Inc. (Don Francisco’s Coffee)
• Coffee Day Enterprises Ltd.
• Blue Bottle Coffee Inc.
• Eight O’Clock Coffee Company
• Keurig Green Mountain Inc.
• Costa Coffee
• The J.M. Smucker Company
• Inspire Brands(DD IP Holder LLC)

The global specialty coffee market is segmented as follows:

By Age Group

• 18-24
• 25-39
• 40-59
• Above 60

By Application

• Home
• Commercial

By Sales Channel

• Online
• Supermarkets/Hypermarkets
• Convenience Stores

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