Market Size of Out-of-Home Coffee Industry
| 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 |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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 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).
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| Regular Coffee | |
| Gourmet/Specialty Coffee |
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Out-of-Home Coffee Market Size Summary
The out-of-home coffee market is experiencing a steady expansion, driven by the increasing global consumption of coffee as a preferred beverage, particularly in social and workplace settings. The market's growth is fueled by the popularity of coffee shops and cafes, which serve as social hubs offering a variety of coffee products, including traditional and specialty options like lattes, espressos, and cappuccinos. The demand for flavored coffee is also on the rise, prompting manufacturers to expand their outlet networks to capture a broader consumer base. The market's recovery from the pandemic-induced decline is evident as consumers return to these establishments, drawn by the ambiance and social experience they offer. The penetration of established coffee brands and the influence of Western culture, especially in the Asia-Pacific region, are key factors contributing to the market's growth.
Europe leads in out-of-home coffee consumption, with countries like Germany, Italy, and France at the forefront, driven by a growing preference for high-quality coffee. The region has seen a surge in specialty coffee shops, offering innovative and customized blends, which has strengthened the market's value sales and transactions. The competitive landscape is dominated by major players such as Nestlé, JM Smucker Company, JAB Holding Company, Kraft Heinz Company, and Starbucks, who are expanding their presence and product offerings to meet the rising demand for gourmet coffee. Private-label brands are also increasing their market share through strategic innovations and expansions. Recent developments include significant geographical expansions by companies like Dunkin' and Starbucks, highlighting the ongoing growth and competitive dynamics within the market.
Out-of-Home Coffee Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Category
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2.1.1 Regular Coffee
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2.1.2 Gourmet/Specialty Coffee
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.1.3 Mexico
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2.2.1.4 Rest of North America
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2.2.2 Europe
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2.2.2.1 United Kingdom
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2.2.2.2 Germany
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2.2.2.3 Spain
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2.2.2.4 France
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2.2.2.5 Italy
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2.2.2.6 Russia
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2.2.2.7 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 Japan
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2.2.3.3 India
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2.2.3.4 Australia
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2.2.3.5 Rest of Asia-Pacific
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2.2.4 South America
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2.2.4.1 Brazil
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2.2.4.2 Argentina
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2.2.4.3 Rest of South America
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2.2.5 Middle-East and Africa
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2.2.5.1 United Arab Emirates
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2.2.5.2 South Africa
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2.2.5.3 Rest of Middle-East and Africa
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Out-of-Home Coffee Market Size 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.
