Out-of-Home Coffee Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 39.26 Billion |
| Market Size (2029) | USD 47.08 Billion |
| CAGR (2024 - 2029) | 3.70 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Out-of-Home Coffee Market Analysis
The Out-of-Home Coffee Market size is estimated at USD 39.26 billion in 2024, and is expected to reach USD 47.08 billion by 2029, growing at a CAGR of 3.70% during the forecast period (2024-2029).
The market is primarily driven by consumers' extensive coffee consumption patterns worldwide. Coffee is one commonly preferred beverage people can also consume in workplaces. For instance, the National Coffee Association (NCAUSA) revealed that coffee consumption among the age groups 18-24 years old increased, and about 66% of the United States aged above 18 consume coffee frequently, and 28% of the coffee drinkers in the country account for Out-of-home coffee as of January 2022.
Moreover, ready-to-drink coffee places are preferred as socializing places where consumers like to meet and hang out for the taste and ambiance of the retail establishment. Coffee products like traditional coffee and specialty coffee, such as lattes, espresso, and cappuccino, were commonly preferred by consumers. In recent times, flavored coffee is also gaining importance for its taste. Owing to the out-of-home coffee demand, manufacturers are expanding their geographical presence by increasing their outlet network to reach the maximum number of consumers in the market. For instance, according to the company's annual report, Starbucks corporation expanded its retail establishment network from 32,660 outlets in 2020 to 33,833 outlets by the end of 2021.
The coronavirus outbreak affected hundreds of thousands of people worldwide. The lockdown in March 2020 led to the closure of all pubs, cafes, and restaurants almost everywhere. During this time, the entire industry more or less came to a complete halt. Some restaurants remained open for delivery and takeaway. Therefore, most coffee consumers purchased their coffee via online delivery channels. Many consumers ordered their coffee online, increasing the consumption of at-home coffee, or are increasingly purchased ready-to-drink coffee, which created a sharp decline in out-of-home coffee consumption. However, with situations returning to normalcy, there is a rise in consumer adoption of out-of-home coffee.
Out-of-Home Coffee Market Trends
This section covers the major market trends shaping the Out-of-home Coffee Market according to our research experts:
Increasing Number of Working Age Population Uplifting the Presences of Coffee Houses
Increasing global exposure, western culture, and penetration of established coffee brands are anticipated to be the key factors driving the growth of coffee chain expansion, especially in the Asia-Pacific region. In the recent past, coffee shops witnessed tremendous growth, as outlets were gaining popularity as hangout zones for friends, family, colleagues, and business associates. The increased acceptance of coffee is attributed to the emergence of premium stores from companies such as Coffee Day Enterprises Ltd, Starbucks Corporation, and Barista Coffee Co. Ltd, among others, fuelling the market growth. Moreover, these outlets have ushered in an experiential element to coffee drinking by creating an attractive and relaxing ambiance. Changing work patterns of business executives are also driving the demand for such coffee shops/cafés, as these outlets offer services such as free Wi-Fi, entertainment zones, etc. The European region sees significant popularity of the coffee-drinking culture, especially among urban residents, which is, in turn, strengthening the average growth rate of cafés/bars in terms of value sales and transactions.
Europe Holds a Significant Share in the Global Market
Europe represents the largest area in terms of coffee consumption away from home, followed by North America and Asia. France is the third-largest coffee-consuming country in Europe, after Germany and Italy. According to a survey conducted by the Institute for Scientific Information on Coffee (ISIC) in 2021, most respondents said they often consumed coffee while working. This trend is leading to a massive demand for coffee in European countries, like Germany, Italy, Spain, and the United Kingdom, as consumers are becoming increasingly conscious of their coffee quality. Single-origin coffee and specialty coffees like flavored, lattes, and cappuccino were among the commonly referred types among the consumers in the region. The region encountered a rapid rise in specialty coffee shops in recent years, like Ten Belles, Hollybelly, and Teléscope, offering different flavors and types of coffees to consumers, paving the way for fresher innovative/customized blends in the market.
Out-of-Home Coffee Industry Overview
The out-of-home coffee market is highly competitive. Players like Nestle, JM Smucker Company, JAB Holding Company, Kraft Heinz Company, and Starbucks dominate the market. There is a significant increase in the demand for gourmet coffee, primarily due to the growth of specialty coffee chains in the country. There is a massive shift toward gourmet coffee in countries like the United States. Major coffee companies are tapping into the gourmet coffee segment to expand their product offerings in the market. Private-label brands like Tchibo GmbH focus on increasing their share in the coffee market through global and domestic sales. Moreover, the company mentioned above engages the consumers with its innovation and expansion strategies, thereby maintaining its competitive position among the top players.
Out-of-Home Coffee Market Leaders
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The Kraft Heinz Company
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Nestlé S.A.
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Starbucks Corporation
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The JM Smucker Company
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JAB Holding Company Sàrl
*Disclaimer: Major Players sorted in no particular order
Out-of-Home Coffee Market News
- October 2022: J.M. Smuker's subsidiary Dunkin' expanded its geographical presence across the Kingdom of Saudi Arabia by opening about 30 stores in a single day to reach the target of 600 stores across the country. These coffee stores combine retail and drive-thru formats, set up with local partnerships with Shahia Food Limited Company.
- October 2022: Starbucks Corporation opened about 40 Ready to drink Coffee outlets across Malaysia by partnering with Berjaya Food. The company aims to open about 400 outlets by the end of the financial year 2022-2023. The company claimed that the outlets had digitalized ordering and payment methods, enhancing the customer's experience.
- March 2021: The J.M. Smucker Co. and JDE Peet's announced a partnership that may allow JDE Peet's to support Smucker Away From Home liquid coffee business with product development, production, and food service equipment innovation.
Out-of-Home Coffee Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Category
- 5.1.1 Regular Coffee
- 5.1.2 Gourmet/Specialty Coffee
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.1.3 Mexico
- 5.2.1.4 Rest of North America
- 5.2.2 Europe
- 5.2.2.1 United Kingdom
- 5.2.2.2 Germany
- 5.2.2.3 Spain
- 5.2.2.4 France
- 5.2.2.5 Italy
- 5.2.2.6 Russia
- 5.2.2.7 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 Japan
- 5.2.3.3 India
- 5.2.3.4 Australia
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 South America
- 5.2.4.1 Brazil
- 5.2.4.2 Argentina
- 5.2.4.3 Rest of South America
- 5.2.5 Middle-East and Africa
- 5.2.5.1 United Arab Emirates
- 5.2.5.2 South Africa
- 5.2.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies adopted by the leading players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 The Kraft Heinz Company
- 6.3.2 Nestlé S.A.
- 6.3.3 Starbucks Corporation
- 6.3.4 The J.M. Smucker Company
- 6.3.5 JAB Holding Company
- 6.3.6 Luigi Lavazza S.p.A.
- 6.3.7 Tchibo GmbH
- 6.3.8 Baronet Coffee Inc
- 6.3.9 Gruppo illy Spa
- 6.3.10 Blue Tokai Coffee Roasters
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Out-of-Home Coffee Industry Segmentation
The out-of-home coffee market refers to sales of coffee through HRI (hotels, restaurants, and institutions) industry worldwide. The out-of-home coffee market studied is segmented by category and geography. By category, the market is segmented into regular coffee and gourmet/specialty coffee. The study also covers the global analysis of the major regions, such as North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD billion).
| Category | Regular Coffee | |
| Gourmet/Specialty Coffee | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| Spain | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | United Arab Emirates |
| South Africa | ||
| Rest of Middle-East and Africa |
Out-of-Home Coffee Market Research FAQs
How big is the Out-of-Home Coffee Market?
The Out-of-Home Coffee Market size is expected to reach USD 39.26 billion in 2024 and grow at a CAGR of 3.70% to reach USD 47.08 billion by 2029.
What is the current Out-of-Home Coffee Market size?
In 2024, the Out-of-Home Coffee Market size is expected to reach USD 39.26 billion.
Who are the key players in Out-of-Home Coffee Market?
The Kraft Heinz Company, Nestlé S.A., Starbucks Corporation, The JM Smucker Company and JAB Holding Company Sàrl are the major companies operating in the Out-of-Home Coffee Market.
Which is the fastest growing region in Out-of-Home Coffee Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Out-of-Home Coffee Market?
In 2024, the Europe accounts for the largest market share in Out-of-Home Coffee Market.
What years does this Out-of-Home Coffee Market cover, and what was the market size in 2023?
In 2023, the Out-of-Home Coffee Market size was estimated at USD 37.86 billion. The report covers the Out-of-Home Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Out-of-Home Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Out of Home Coffee Industry Report
Statistics for the 2024 Out of Home Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Out of Home Coffee analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
