Roasted Coffee Market Size, Share, Analysis, Growth, 2032

Roasted Coffee Industry Prospective:

The global roasted coffee market size was worth around USD 30.95 billion in 2023 and is predicted to grow to around USD 53.63 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.30% between 2024 and 2032.

Request Free Sample

Roasted Coffee Market: Overview

Roasted coffee is produced by changing the physical and chemical properties of green coffee beans. The process employed to impart the popular coffee taste and texture available commercially is through roasting. According to market analysis, coffee roasting is generally carried out in areas closer to where the final coffee product will be sold. However, the majority of coffee roasting is carried out at large-scale facilities equipped with machines and tools to carry out the process.

In addition to this, the demand for single-origin coffee-based beverages has been growing over the years due to the rising trend of specialty coffee shops offering the popular beverage in several flavors and as a combination with several other food items.

Roasted coffee is traditionally available in three formats that are dark roast coffee, light roast coffee, and medium roast coffee. Dark coffees, for instance, have pronounced bitterness as compared to the other two variants. The industry for roasted coffee has been registering higher returns on investment due to several factors including changing consumer lifestyle, rising ‘dining-out’ culture, and product innovation.

Additionally, the emergence of grocery delivery applications will generate market expansion opportunities for the industry players. Roasted coffee demand may diminish due to economic volatility and extreme market fragmentation.

Key Insights

• As per the analysis shared by our research analyst, the global roasted coffee market is estimated to grow annually at a CAGR of around 6.30% over the forecast period (2024-2032)
• In terms of revenue, the global roasted coffee market size was valued at around USD 30.95 billion in 2023 and is projected to reach USD 53.63 billion by 2032.
• The market is projected to grow at a significant rate due to the increasing trend surrounding coffee culture.
• Based on the product, the Arabica segment is anticipated to command the largest market share.
• Based on the distribution channels, the business-to-business segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on region, North America is projected to dominate the global market during the forecast period.

Roasted Coffee Market: Growth Drivers

Increasing trend surrounding coffee culture to promote market demand rate

The global roasted coffee market is expected to benefit from the rising trend surrounding coffee culture. It refers to social gatherings motivated by consuming coffee at restaurants or specialty cafes. Coffee culture is used to describe events where people meet each other over a cup of coffee either for business meetings or personal get-togethers. In recent times, coffee outing activities have increased across the globe. The trend initially originated in Middle Eastern countries and made its way to European nations.

For instance, countries such as the United Kingdom, Spain, and Portugal are home to several standalone and retail brands offering coffee-based beverages either specializing in the drink or serving coffee with other food items. According to market analysis, the European Union has one of the highest numbers of per capita coffee consumption. The trend is gaining traction in other parts of the world as well influenced by social media penetration, growing awareness, and international tourism. During the forecast period, roasted coffee brands can benefit from the coffee culture trend, especially in areas witnessing a steady rise in disposable income and changing consumer lifestyles.

Rising launch of new products in the market to generate extensive revenue during the long run

One of the key factors fueling the demand for roasted coffee is in the form of product innovation and expansion. Market players are extensively investing in developing new flavors. Additionally, they are also experimenting with novel packaging to attract a broader range of audiences in addition to exploring product and service expansion opportunities. For instance, in August 2024, CCL Products, one of India's prominent roasted coffee exporters, announced the launch of a small-format cafe concept.

In October 2024, Death Wish Coffee Co. announced the expansion of its product portfolio with the launch of the first-ever Light Roast blend. The new launch offers a perfect balance of bold, bright, and sweet. The new launch comes against the backdrop of changing consumer preferences, especially among younger audiences. The global roasted coffee market can further benefit from the increasing investments in the development of new coffee roasting facilities.

In June 2024, Westrock Coffee Company, a leading beverage brand, announced the launch of a new roast-to-ready-to-drink manufacturing facility in the North American market. The facility is made with an investment of USD 315 million and spans across 570,000 square feet.

Roasted Coffee Market: Restraints

Economic volatility and changing demand patterns will limit the industry’s overall revenue

The global roasted coffee industry is projected to be restricted due to the economic volatility observed worldwide. Roasted coffee products enjoy changing demand patterns since these products are not classified as ‘absolute necessity’. In addition to this, roasted coffee faces competition from alternate beverages such as energy drinks, tea, smoothies, milk, and others leading to extreme consumer fragmentation.

Roasted Coffee Market: Opportunities

Growing innovation in the field of coffee roasting equipment will generate new expansion possibilities

The global roasted coffee market is expected to generate growth opportunities due to the rising rate of innovation in the field of equipment for coffee roasting. In September 2024, Coffee Crafters, a leading roasting equipment company based in the US, announced the launch of the Valenta 3. The new product is next in line with its existing range of all-electric fluid-bed roasters. Valenta 3 has a capacity of 3 pounds and is available in the price range of USD 4,800 up to USD 6,899. The tool is designed to be used in low-volume commercial settings. However, it can also be used for coffee roasting enthusiasts.

In July 2024, Rostino Roasters, one of the prominent players in the coffee industry, launched a novel product in the form of a state-of-the-art machine. It offers advanced control over the roasting process thus setting new standards for coffee flavor and quality. The growing innovation in terms of improved and wider applications, easy-to-manage user interface, and low energy consumption rate will help the industry thrive in the long term. In March 2024, Bellwether Coffee launched the Bellwether Shop Roaster. It is a countertop and affordable version of the existing electric roasting machine.

Roasted Coffee Market: Challenges

Fluctuations in coffee bean production rate will challenge the market expansion trends

The global roasted coffee industry is expected to be challenged by the fluctuating production rate of coffee beans. These are essential raw materials required for the production of roasted coffee. In addition to this, growing concerns about malpractices observed in the coffee bean production industry may further impact the market’s overall revenue.

Roasted Coffee Market: Report Scope

Roasted Coffee Market: Segmentation

The global roasted coffee market is segmented based on product, distribution channel, and region.

Based on the product, the global market divisions are robusta and arabica. In 2023, the highest demand was listed in the arabica segment. The product offers a superior flavor profile as compared to robusta and hence enjoys higher consumption across personal and commercial scales. In 2023, Arabic accounted for 57.65% of the total market share. Furthermore, growing product innovation, changing consumer preferences, and increased sales of products through specialty coffee centers will fuel segmental revenue in the coming years.

Based on the distribution channels, the global market segments are B2C and B2B. The former refers to business-to-customers and the latter stands for business-to-business. In 2023, the highest demand was listed in the B2B segment. According to market research, the segment dominated nearly 54.2% of the total revenue. The rising commercial-scale demand for roasted coffee across restaurants, cafes, hotels, and other similar public service facilities is fueling the segmental revenue. During the projection period, the B2C segment is expected to grow at a CAGR of 6.1%.

Roasted Coffee Market: Regional Analysis

North America to generate the highest revenue during the forecast period

The global roasted coffee market will be led by Europe during the projection period. Europe is a crucial market for roasted coffee. European nations observe a widely prevalent coffee culture. The demand for roasted versions of the caffeinated drink is flourishing due to increased tourism. Nations such as France, Italy, Germany, and the UK will emerge as prominent players in the European market.

According to market analysis, in 2023, it held dominance over 32.05 % of the global revenue. Higher integration of new technologies in terms of roasted coffee production will be crucial to shaping regional dominance in the coming years. North America is a growing market. During the forecast period, the US market is expected to deliver a CAGR of 6.12%. The regional market growth rate is influenced by the presence of several domestic and international-scale coffee houses serving the population.

According to the latest reports, Starbucks, one of the US-based largest retail brands offering beverages and snacking items, has around 16,000 stores across the US alone. Moreover, increased demand for roasted coffee on smaller scales especially among coffee enthusiasts is growing rapidly across North America.

Roasted Coffee Market: Competitive Analysis

The global roasted coffee market is led by players like:

• Bridge City Coffee
• Fjord Coffee Roasters
• Onyx Coffee Lab
• Stumptown Coffee Roasters
• Square Mile Coffee Roasters
• Proud Mary Coffee
• Five Elephant
• JBC Coffee Roasters
• Cat & Cloud Coffee
• Verve Coffee Roasters
• La Cabra Coffee
• Counter Culture Coffee
• Intelligentsia Coffee
• April Coffee Roasters
• Coffee Collective.

The global roasted coffee market is segmented as follows:

By Product

• Robusta
• Arabica

By Distribution Channel

• B2C
• B2B

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