USD 24.46 billion
Specialty Coffee Market Size, Share, Growth Analysis, By Product Type, By Application, By Distribution Channel, By Certification, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG30G2048 |
Region:
Global |
Published Date: December, 2024
Pages:
198
|Tables:
62
|Figures:
75
Specialty Coffee Market Insights
Specialty Coffee Market size was valued at USD 24.37 Billion in 2023 and is poised to grow from USD 27.12 Billion in 2024 to USD 63.89 Billion by 2032, growing at a CAGR of 11.3% during the forecast period (2025-2032).
The purpose of the specialty coffee market is to cater to coffee enthusiasts and connoisseurs who appreciate the nuances and complexities of coffee flavor profiles. This market aims to provide a unique and elevated coffee experience, highlighting the origin, processing methods, and distinctive characteristics of the coffee beans. It offers consumers a chance to explore a wide range of flavors and discover new taste sensations. The driving factors behind the growth of the specialty coffee market is the rising consumer interest in unique and high-quality food and beverage experiences. Consumers are becoming more discerning and willing to pay a premium for products that offer exceptional quality and taste. Specialty coffee satisfies this demand by offering a diverse range of coffee varieties, brewing methods, and flavor profiles. Another challenge is the potential for market saturation and competition.
As the popularity of specialty coffee continues to grow, more players enter the market, leading to increased competition among coffee roasters, cafes, and retailers. Maintaining a competitive edge and differentiating oneself in a crowded market becomes crucial for long-term success. The global specialty coffee market caters to consumers seeking exceptional coffee experiences. It offers unique flavors, origins, and brewing methods, providing a distinct and elevated coffee journey. While facing challenges such as limited supply and market competition, there are opportunities to leverage sustainability practices and tap into the growing home brewing trend. The specialty coffee market continues to evolve and captivate coffee enthusiasts worldwide.
US Specialty Coffee Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Commercial
Fastest Growth
Commercial
Growth Rate
11.2% CAGR
Global Specialty Coffee Market ($ Bn)
Country Share for Europe Region (%)
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Specialty Coffee Market Segmental Analysis
Global Specialty Coffee Market is segmented by product type, application, distribution channel, certification and region. Based on product type, the market is segmented into single origin coffee (estate coffee, micro-lot coffee) and blended coffee (house blends, signature blends). Based on application, the market is segmented into commercial (coffee shops, restaurants, offices) and residential (home brewing, specialty coffee, subscription services). Based on distribution channel, the market is segmented into online (e-commerce platforms, brand websites) and offline (supermarkets, specialty stores, convenience stores). Based on certification, the market is segmented into organic, fair trade, rainforest alliance and UTZ certified. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Application
In 2022, The commercial segment holds a significant share in the application segment of the global specialty coffee market. With a share of 74.3% commercial establishments such as coffee chains, cafes, and restaurants dominate this segment. These businesses have a wide network of stores, enabling them to cater to a larger consumer base across different regions. As consumers become more aware and appreciative of higher-quality coffee, the demand for specialty coffee continues to rise. To meet this demand and stay competitive, commercial establishments are increasingly offering specialty coffee options to attract customers and enhance their overall coffee experience.
The home application segment is expected to witness substantial growth during the forecast period, with a projected CAGR of 11.8%. This growth is driven by several factors, including the increasing availability and affordability of specialty coffee brewing equipment. Home consumers now have access to a wide range of equipment such as espresso machines, pour-over setups, and high-quality grinders that allow them to replicate the cafe experience in the comfort of their own homes. This trend has empowered coffee enthusiasts to experiment with different brewing methods, explore unique coffee flavors, and enjoy specialty coffee without the need to visit commercial establishments.
Analysis by Distribution Channel
In 2022, the online distribution channel held the largest share in the distribution channel segment of the global specialty coffee market, accounting for 44.4%. It is also projected to exhibit the highest compound annual growth rate (CAGR) of 12.3% during the forecast period. This dominance can be attributed to the shifting consumer preference towards online channels for purchasing specialty coffee. Online platforms offer numerous conveniences, including attractive discounts, a wide range of products from different brands, easy payment options, doorstep delivery, and more. Consumers can explore and choose from a diverse selection of specialty coffees, including popular brands like Blue Tokai, Araku Coffee, Grey Soul, and Coffeeza, which may not be readily available at traditional brick-and-mortar stores. The online distribution channel provides consumers with the flexibility to find and purchase specialty coffee that aligns with their specific preferences and needs.
The convenience stores distribution channel segment is estimated to witness significant growth during the forecast period, with a projected CAGR of 10.8%. Convenience stores are strategically located in easily accessible areas such as neighborhoods or near workplaces, making it convenient for consumers to grab their preferred specialty coffee on the go. These stores often offer in-store tasting or sampling events, allowing customers to experience the flavors and aromas of specialty coffee before making a purchase. This interactive approach creates opportunities to engage with customers, generate interest, and drive sales of specialty coffee products. The accessibility and promotional activities of convenience stores contribute to the growth of this distribution channel segment in the global specialty coffee market.
Global Specialty Coffee Market By Application
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Specialty Coffee Market Regional Insights
In 2022, Europe emerged as the dominant region in the global specialty coffee market, capturing a significant share of 30.8%. This dominance can be attributed to the rising interest in premium specialty coffee varieties among European consumers. A report by CBI highlights the rapid growth of specialized coffee shops in Western Europe, where consumption of high-quality coffees is on the rise. Between 2018 and 2020, the number of coffee shops offering specialty coffee in Western Europe increased by 18% to reach 24,290 in 2020. The expansion of mainstream coffee players, increasing disposable incomes, and a more sophisticated coffee culture are driving the growth of the specialty coffee market in this region.
The Asia Pacific region is expected to witness the fastest growth in the specialty coffee market, with a projected CAGR of 13.6% from 2023 to 2030. This growth is fueled by several factors, including the growing popularity of pickup shops, rapid urbanization, and the adoption of modern lifestyles. As the region embraces Western coffee culture, there is an increasing demand for specialty coffee among Asian consumers. The emergence of pickup shops, which offer convenient access to specialty coffee on-the-go, has further contributed to the market's expansion. The evolving preferences and lifestyles of consumers in Asia Pacific present a significant opportunity for the specialty coffee market to thrive in the coming years.
Global Specialty Coffee Market By Geography
- Largest
- Fastest
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Specialty Coffee Market Dynamics
Specialty Coffee Market Drivers
Growing Consumer Preference for High-Quality Coffee
- Consumers worldwide have developed a greater appreciation for specialty coffee due to its unique flavors, aromas, and production methods. The demand for premium and specialty coffee varieties has been rising as consumers seek more distinctive and satisfying coffee experiences.
Expansion of Specialty Coffee Chains
- Major specialty coffee chains, such as Starbucks, Costa Coffee, and Blue Bottle Coffee, continued their expansion efforts in 2022. These chains offer a wide range of specialty coffee options, cater to evolving consumer preferences, and provide a consistent coffee experience across their locations, driving the overall market growth.
Specialty Coffee Market Restraints
Price Sensitivity
- Specialty coffee often comes with a higher price tag compared to regular coffee. The premium pricing can be a restraining factor for price-sensitive consumers, limiting the market's potential growth. However, as consumer awareness and understanding of specialty coffee increase, they are more willing to pay a premium for the quality and unique experience it offers.
Supply Chain Challenges
- Specialty coffee production requires meticulous attention to detail, including the sourcing, processing, and roasting of high-quality beans. However, maintaining consistent quality and supply can be challenging due to factors like climate change, unpredictable weather conditions, and limited availability of specialty-grade coffee beans. These supply chain challenges can pose restraints on the market's growth.
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Specialty Coffee Market Competitive Landscape
The global specialty coffee market is highly competitive, with the presence of numerous players vying for market share. These companies are constantly striving to differentiate themselves by offering unique flavors, sourcing practices, and innovative brewing techniques. companies, along with several other players in the market, compete through product innovation, brand positioning, distribution channels, and marketing strategies. They continuously invest in research and development to introduce new coffee varieties, brewing methods, and customized offerings to meet evolving consumer preferences. The competitive landscape of the global specialty coffee market remains dynamic, driven by the quest for superior quality, sustainability, and the ability to capture the attention of coffee enthusiasts worldwide.
Top Player’s Company Profiles
- Starbucks Coffee Company
- Nestlé Nespresso S.A.
- The J.M. Smucker Company
- Keurig Dr Pepper Inc.
- JAB Holding Company
- Tata Coffee Limited
- Strauss Group Ltd.
- Tchibo Coffee International Ltd.
- illycaffè S.p.A.
- Lavazza Group
- Peet’s Coffee & Tea, Inc.
- Caribou Coffee Company, Inc.
- Blue Bottle Coffee Inc.
- Bulletproof 360, Inc.
- Death Wish Coffee Company
- Stumptown Coffee Roasters
- Intelligentsia Coffee Inc.
- Counter Culture Coffee
- La Colombe Coffee Roasters
- Philz Coffee Inc.
Recent Developments
- In March 2023, Blue Bottle Coffee raised USD 700 million in funding. This funding will be used to expand Blue Bottle's retail and wholesale operations, as well as to invest in new product development.
- In February 2023, Peet's Coffee acquired Stumptown Coffee Roasters for USD 1.1 billion. This acquisition is a major consolidation in the specialty coffee industry, and it is expected to lead to increased competition and innovation in the market.
- In January 2023, Starbucks announced plans to open 3,000 new stores in China over the next five years. This is a significant investment in the Chinese market, which is expected to be one of the fastest-growing markets for specialty coffee in the coming years.
Specialty Coffee Key Market Trends
- Rise of Direct Trade and Sustainable Practices: In 2022, there was a continued emphasis on direct trade relationships between coffee producers and roasters. This trend focuses on fostering transparency, fair pricing, and sustainable practices throughout the supply chain. Consumers increasingly prioritize ethically sourced and sustainably produced specialty coffees, driving the adoption of direct trade practices by coffee industry stakeholders.
- Increased Focus on Single-Origin and Microlot Coffees: Single-origin coffees, sourced from specific regions or farms, gained popularity in 2022. These coffees are known for their distinct flavors and characteristics unique to their origin. Additionally, microlot coffees, which are produced in small quantities and showcase exceptional quality, garnered attention from specialty coffee enthusiasts seeking rare and exclusive flavors.
Specialty Coffee Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global specialty coffee market analysis, the increasing consumer demand for premium and specialty coffee experiences are the key growth drivers. The key factors driving the specialty coffee market is the rising consumer preference for unique and flavorful coffee. Consumers are becoming more knowledgeable about coffee varieties, brewing methods, and the overall coffee experience. They seek out specialty coffee to indulge in the rich flavors, aroma, and craftsmanship that goes into each cup. The global specialty coffee market has witnessed substantial growth due to consumer demand for unique and high-quality coffee experiences. While cost and supply chain challenges exist, the market offers opportunities for brands that focus on sustainability and ethical practices. With the rising appreciation for specialty coffee and the emergence of innovative distribution channels, the market is poised for continued growth in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 24.46 billion |
| Market size value in 2031 | USD 63.59 billion |
| Growth Rate | 11.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Specialty Coffee Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Specialty Coffee Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Specialty Coffee Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Specialty Coffee Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Specialty Coffee Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Specialty Coffee Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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