Market Size of north america cafes & bars Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 119.68 Billion |
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Market Size (2029) | USD 203.59 Billion |
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Largest Share by Cuisine | Cafes |
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CAGR (2024 - 2029) | 11.21 % |
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Largest Share by Country | United States |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Cafes & Bars Market Analysis
The North America Cafes & Bars Market size is estimated at 119.68 billion USD in 2024, and is expected to reach 203.59 billion USD by 2029, growing at a CAGR of 11.21% during the forecast period (2024-2029).
119.68 Billion
Market Size in 2024 (USD)
203.59 Billion
Market Size in 2029 (USD)
6.90 %
CAGR (2017-2023)
11.21 %
CAGR (2024-2029)
Largest Country
70.78 %
value share, United States, 2023
Offerings in alcoholic beverages, such as craft beers and wine, and non-alcoholic beverages, like vegan beverages, are boosting the growth of cafes and bars.
Fastest-growing Country
17.64 %
Projected CAGR, Canada, 2024-2029
Canada's rapidly growing population and demand for specality tea and coffees in urban areas have boosted the demand for social places such as cafes and bars.
Largest Segment by Cuisine Type
50.37 %
value share, Cafes, 2023
The rise in the consumption of beverages, such as coffee and tea, and the variants that the cafes offer in each type of beverage are boosting the growth of cafes.
Fastest-growing segment by Cuisine Type
14.38 %
Projected CAGR, Specialist Coffee & Tea Shops, 2024-2029
Specialty coffee and alcoholic beverages have a high penetration rate and have become increasingly popular with consumers seeking high-quality, unique, and innovative drinks.
Leading Market Player
17.33 %
market share, Starbucks Corporation, 2022
The company is a well-established brand in the region with a strong reputation for serving high-quality coffee and offering a unique and consistent customer experience.
Increasing consumption of coffee and the rise of speciality stores favor the market growth
- The cafes sub-segment is the most popular in the North American foodservice market. It witnessed a growth of 13.53% in sales value from 2019 to 2022 due to the increasing consumption of coffee in the region. The most popular drinks in the region are cappuccino, Americano, and latte. For instance, 64% of American adults currently consume coffee every day, and more than 150 million Americans had about 400 million cups of coffee per day or more than 140 billion cups per year in 2021.
- However, by country, the United States held the largest market share of 71.62% by value in 2022. There are over 50,000 coffee shops in the United States, among which independent outlets accounted for the major share of 62.58% in value terms compared to the chained outlets (37.42%). However, the consumption of cordials and liqueurs amounted to about 27.6 million per nine-liter cases in the United States in 2021, which increased the sales for bars and pubs in the country.
- In 2020, the sub-segment observed a sudden dip of around 29% in value terms from 2019. Due to COVID-19 regulations, cafes and bars were closed, and people were avoiding dine-out options as they were working from home, which reduced coffee consumption. Overall, the sales value of cafes and bars observed the second-largest dip of 29.04% from 2019 to 2020.
- The specialist coffee & tea shops sub-segment is projected to be the fastest-growing, with a CAGR of 14.75% by value during the forecast period. Owing to the rising consumption of specialty coffee, the consumption of traditional coffee declined by 10-12% in 2021, especially among consumers aged 18-30 years. Bubble tea is becoming popular among consumers. For instance, in the United States, in 2021, 95% of women tried bubble tea versus 81% of males.
Understand The Key Trends Shaping This Market
Bars and pubs are the highest grosser owing to consumer affinity towards beer and related innovative beverages - craft beer
- The North American cafes & bars market was dominated by the United States, with an estimated CAGR of 5.34% by sales value during the study period. The US market was primarily driven by the increasing sales at bars & pubs (2021-2022: 22.71% by value), attributed to the rising footfall in these outlets after the pandemic. Beer consumption at pubs also increased due to the popularity of craft beer. In 2021, beer sales in the United States increased by 1%. Volume sales of craft brewers increased by 8%, bringing the volume share of the small and independent brewers in the US beer market to 13.1%.
- Cafes held the largest share of the market, i.e., 50.89%, in 2022, followed by bars & pubs, with 29.65%. The primary driver of the cafes sub-segment in the region is the high consumption of coffee, especially at retail outlets. Coffee is consumed daily by 66% of Americans, more than any other beverage, including tap water, increasing by about 14% since January 2021.
- Independent outlets held a 60.49% share of the market by value in 2022, with chained outlets holding the rest. Canada held the region's highest share of independent outlets. The segment recorded a 67.72% value share in 2022, with chained outlets accounting for a low share compared to the regional share. This growth was mainly due to companies that operate chained outlets in the region finding it viable to expand only in densely populated provinces like Ontario and Quebec. In the other provinces on the East Coast, like Nova Scotia and Newfoundland & Labrador, chained restaurant companies may find it difficult to expand their networks due to the population being spread too thin.
North America Cafes & Bars Industry Segmentation
Bars & Pubs, Cafes, Juice/Smoothie/Desserts Bars, Specialist Coffee & Tea Shops are covered as segments by Cuisine. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location. Canada, Mexico, United States are covered as segments by Country.
- The cafes sub-segment is the most popular in the North American foodservice market. It witnessed a growth of 13.53% in sales value from 2019 to 2022 due to the increasing consumption of coffee in the region. The most popular drinks in the region are cappuccino, Americano, and latte. For instance, 64% of American adults currently consume coffee every day, and more than 150 million Americans had about 400 million cups of coffee per day or more than 140 billion cups per year in 2021.
- However, by country, the United States held the largest market share of 71.62% by value in 2022. There are over 50,000 coffee shops in the United States, among which independent outlets accounted for the major share of 62.58% in value terms compared to the chained outlets (37.42%). However, the consumption of cordials and liqueurs amounted to about 27.6 million per nine-liter cases in the United States in 2021, which increased the sales for bars and pubs in the country.
- In 2020, the sub-segment observed a sudden dip of around 29% in value terms from 2019. Due to COVID-19 regulations, cafes and bars were closed, and people were avoiding dine-out options as they were working from home, which reduced coffee consumption. Overall, the sales value of cafes and bars observed the second-largest dip of 29.04% from 2019 to 2020.
- The specialist coffee & tea shops sub-segment is projected to be the fastest-growing, with a CAGR of 14.75% by value during the forecast period. Owing to the rising consumption of specialty coffee, the consumption of traditional coffee declined by 10-12% in 2021, especially among consumers aged 18-30 years. Bubble tea is becoming popular among consumers. For instance, in the United States, in 2021, 95% of women tried bubble tea versus 81% of males.
| Cuisine | |
| Bars & Pubs | |
| Cafes | |
| Juice/Smoothie/Desserts Bars | |
| Specialist Coffee & Tea Shops |
| Outlet | |
| Chained Outlets | |
| Independent Outlets |
| Location | |
| Leisure | |
| Lodging | |
| Retail | |
| Standalone | |
| Travel |
| Country | |
| Canada | |
| Mexico | |
| United States | |
| Rest of North America |
Need A Different Region Or Segment?
North America Cafes & Bars Market Size Summary
The North America Cafes & Bars Market is experiencing significant growth, driven by the increasing popularity of coffee consumption and the expansion of specialty coffee shops. The cafes sub-segment is particularly dominant, with a notable rise in sales value attributed to the high demand for coffee beverages such as cappuccinos, Americanos, and lattes. The market is characterized by a strong presence of independent coffee shops, especially in the United States, which holds the largest market share. The bars and pubs segment is also witnessing growth, fueled by the rising consumption of craft beer and the resurgence of social dining experiences post-pandemic. The market landscape is fragmented, with major players like Starbucks and Dutch Bros Inc. leading the charge, while new franchise agreements and product launches continue to shape the competitive environment.
The market's expansion is further supported by the increasing number of cafes and bars, with a steady rise in franchise outlets across the region. The United States remains a key player, with a significant portion of the market share, while Canada shows a strong preference for independent outlets. The consumption of specialty drinks and premium coffee has contributed to higher average order values, reflecting a shift towards more artisanal and high-quality offerings. Despite challenges posed by the COVID-19 pandemic, the market has rebounded, with bars and pubs seeing increased footfall and alcohol sales. The trend towards local and premium-crafted beverages is expected to sustain the market's growth trajectory, with ongoing innovations and expansions in both the cafes and bars segments.
North America Cafes & Bars Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Cuisine
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1.1.1 Bars & Pubs
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1.1.2 Cafes
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1.1.3 Juice/Smoothie/Desserts Bars
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1.1.4 Specialist Coffee & Tea Shops
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1.2 Outlet
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1.2.1 Chained Outlets
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1.2.2 Independent Outlets
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1.3 Location
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1.3.1 Leisure
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1.3.2 Lodging
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1.3.3 Retail
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1.3.4 Standalone
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1.3.5 Travel
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1.4 Country
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1.4.1 Canada
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1.4.2 Mexico
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1.4.3 United States
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1.4.4 Rest of North America
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North America Cafes & Bars Market Size FAQs
How big is the North America Cafes & Bars Market?
The North America Cafes & Bars Market size is expected to reach USD 119.68 billion in 2024 and grow at a CAGR of 11.21% to reach USD 203.59 billion by 2029.
What is the current North America Cafes & Bars Market size?
In 2024, the North America Cafes & Bars Market size is expected to reach USD 119.68 billion.
