Foodservice Coffee Market Trends and Forecast
The future of the global foodservice coffee market looks promising with opportunities in the coffee house & beverage shop and bakery shop & restaurant markets. The global foodservice coffee market is expected to grow with a CAGR of 6.2% from 2025 to 2031. The major drivers for this market are the increasing demand for specialty coffee beverages, the rising popularity of coffee culture in restaurants, and the growing trend of premium coffee consumption.
• Lucintel forecasts that, within the type category, take away is expected to witness higher growth over the forecast period.
• Within the end use category, coffee house & beverage shop is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Foodservice Coffee Market
The foodservice coffee market is being reshaped by several key trends that are pushing the industry toward greater innovation and specialization. These trends are driven by a convergence of consumer consciousness, a focus on health and wellness, and technological advancements, all of which are influencing product development and consumer behavior.
• Personalization and Customization: A significant trend is the increasing demand for personalized coffee experiences. Consumers are seeking options to customize their drinks with a variety of milks, sweeteners, and flavorings. This trend is pushing coffee shops to offer a wide array of ingredients and to use technology, like mobile ordering, to facilitate a tailored customer experience.
• Sustainability and Ethical Sourcing: There is a growing trend toward sustainable and ethically sourced coffee. Consumers are increasingly concerned about the environmental impact and social responsibility of their coffee consumption. This is driving a demand for fair-trade certified, organic, and single-origin beans, with brands providing transparency about the coffee’s journey from farm to cup.
• Focus on Health and Wellness: A major trend is the integration of health and wellness into coffee offerings. This includes a rise in plant-based milks (oat, almond, etc.), sugar-free options, and functional coffees infused with ingredients like mushrooms or adaptogens for added health benefits. This trend caters to a health-conscious consumer base seeking more than just a caffeine boost.
• Ready-to-Drink and Cold Brew: The market is seeing a surge in demand for ready-to-drink (RTD) and cold brew coffee. This trend is driven by consumer desire for convenience and portability. RTD coffee provides a quick, high-quality option for on-the-go consumption, while cold brew is gaining popularity for its smooth flavor and lower acidity.
• Technological Integration: The adoption of technology is a major trend reshaping the market. This includes the use of AI for inventory management, robotics for brewing, and digital platforms for ordering and delivery. This trend is improving operational efficiency, reducing labor costs, and enhancing the overall customer experience through speed and consistency.
These emerging trends are fundamentally reshaping the foodservice coffee market by prioritizing consumer values, convenience, and quality. The focus on personalization and ethical sourcing is building brand loyalty, while the rise of health-conscious options and RTD coffee is broadening the market’s appeal. Technological integration is enabling these changes, creating a more sophisticated and consumer-centric industry.
Recent Development in the Foodservice Coffee Market
The foodservice coffee market is experiencing a period of significant development, marked by a surge in innovation and a strategic focus on specific end-user needs. These changes are influencing product offerings, management processes, and market growth, with a clear emphasis on enhancing product quality and meeting the evolving demands of consumers.
• Growth of Specialty Coffee Shops: A key recent development is the rapid growth of specialty coffee shops and independent roasters. These establishments focus on high-quality beans, unique brewing methods, and a premium customer experience. This development is driving a greater appreciation for coffee as a craft, moving consumers away from mass-produced options.
• Introduction of Innovative Products: There has been a significant development in the introduction of innovative coffee products, such as cascara (coffee cherry tea), nitro cold brew, and coffee-infused cocktails. This innovation is expanding the coffee market beyond traditional offerings and attracting a new demographic of consumers who are looking for unique beverage experiences.
• Expansion of Plant-Based Options: A recent development is the widespread expansion of plant-based milk and creamer options in foodservice. This is a direct response to a growing number of consumers who are vegan, lactose-intolerant, or simply seeking healthier alternatives. This development is making coffee shops more inclusive and catering to a wider audience.
• Rise of Subscription and Delivery Services: The market is witnessing a notable development in the popularity of coffee subscription and delivery services. These services, often powered by digital platforms, allow consumers to receive their favorite beans or ready-to-drink coffees at home. This is providing a new revenue stream and expanding the reach of coffee brands.
• Adoption of Automated Brewing Systems: A recent development is the adoption of automated and semi-automated brewing systems, particularly in corporate offices and quick-service restaurants. These machines ensure consistent quality, reduce labor costs, and offer a wide range of coffee options at the touch of a button, thereby improving efficiency and customer satisfaction.
These recent developments are profoundly impacting the foodservice coffee market by elevating the standards of product quality and expanding its application base. The shift toward specialty coffee, innovative products, and plant-based options is enhancing consumer appeal, while the growth of subscription services and automation is strengthening the market’s reach and operational efficiency.
Strategic Growth Opportunities in the Foodservice Coffee Market
The foodservice coffee market presents numerous strategic growth opportunities across various key applications. These opportunities are driven by the need for enhanced product quality, health, and efficacy in a wide range of products. Companies can leverage these trends to innovate and expand their market presence.
• Corporate and Workplace Coffee: The corporate sector presents a prime growth opportunity. As companies focus on employee wellness and productivity, there is a growing demand for high-quality, on-site coffee solutions. Providing automated, bean-to-cup systems and premium coffee blends for corporate offices is a key area for market expansion.
• Specialty Coffee Retail: The specialty coffee retail segment offers a significant growth opportunity. By creating a unique brand identity and offering a curated selection of ethically sourced, single-origin beans and artisanal drinks, companies can attract a loyal customer base and command premium prices, thereby building a reputation for quality.
• Ready-to-Drink and Cold Brew: The ready-to-drink (RTD) and cold brew markets are major growth areas. Companies can capitalize on the demand for convenience by developing and marketing high-quality, pre-packaged coffee beverages. This is a fast-growing segment that can be sold through various channels, including retail, vending machines, and online.
• Hospitality and Travel: The hospitality and travel markets, including hotels, airports, and airlines, are high-growth segments. Providing high-quality, consistent, and convenient coffee solutions for these applications is crucial. Strategic opportunities lie in offering both self-service and full-service coffee bars that enhance the guest experience.
• Health and Wellness Cafes: The health and wellness segment offers a lucrative opportunity. Companies can create a niche by offering coffee shops that specialize in healthy, functional coffee beverages and plant-based food options. This is a strategic way to attract a new and growing consumer base interested in both taste and health.
Strategic growth opportunities in the foodservice coffee market are concentrated in high-value, consumer-centric segments. By focusing on corporate settings, specialty retail, ready-to-drink options, hospitality, and health and wellness, companies can align their strategies with the most dynamic parts of the market. This targeted approach will drive product innovation and market leadership, ensuring sustained growth and profitability.
Foodservice Coffee Market Driver and Challenges
The foodservice coffee market is influenced by a dynamic interplay of technological, economic, and regulatory factors. The major drivers are creating a strong demand for high-quality and efficient solutions, pushing the industry forward. However, several challenges related to costs, regulations, and market competition must be addressed for sustained growth.
The factors responsible for driving the foodservice coffee market include:
1. Changing Consumer Lifestyle: A major driver is the fast-paced, urban lifestyle of modern consumers. The demand for convenient, on-the-go coffee has led to the proliferation of coffee shops, quick-service restaurants, and delivery services. This trend is making coffee a daily ritual rather than an occasional treat.
2. Premiumization and Specialization: The growing desire for premium and specialty coffee is a fundamental market driver. Consumers are increasingly educated about coffee beans, origins, and brewing methods, leading to a willingness to pay more for high-quality, artisanal, and ethically sourced coffee products.
3. Influence of Social Media: The influence of social media is a key driver. Platforms like Instagram and TikTok have made coffee and coffee shops a social and aesthetic experience, driving new customers to cafes and creating trends like viral coffee drinks, which are boosting sales and brand recognition.
4. Technological Innovation: Technological innovation, including mobile ordering apps, automated brewing systems, and sophisticated payment technologies, is a major driver. These technologies are streamlining the customer experience, reducing wait times, and improving operational efficiency for coffee shops.
5. Growth of Work-from-Office Culture: The return to the office is a significant driver. Companies are increasingly investing in high-quality, on-site coffee solutions to attract and retain employees. This is creating a new and growing application segment for foodservice coffee providers in corporate settings.
Challenges in the foodservice coffee market are:
1. Volatile Coffee Bean Prices: A significant challenge is the volatility of green coffee bean prices. Factors like climate change, political instability in producing countries, and supply chain disruptions can lead to unpredictable price fluctuations, which impact profit margins and make it difficult for businesses to maintain stable pricing.
2. Intense Competition: The market is facing a major challenge with intense competition. The low barrier to entry for small coffee shops, coupled with the aggressive expansion of major chains, is creating a highly saturated market where businesses must constantly innovate and differentiate to survive.
3. Labor Shortages and High Turnover: The foodservice coffee market is a labor-intensive sector and is facing a significant challenge with labor shortages and high employee turnover. This can impact the consistency of service and quality, and it increases operational costs as businesses must invest more in training and retention.
The foodservice coffee market is experiencing robust growth driven by the powerful trends of consumer lifestyle changes, premiumization, and technological integration. However, this growth is tempered by significant challenges, including the volatility of coffee prices, intense market competition, and labor shortages. The ability of industry players to adapt to these challenges and deliver a consistently high-quality experience will be crucial for sustained market growth.
List of Foodservice Coffee Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies foodservice coffee companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the foodservice coffee companies profiled in this report include-
• Starbucks Corporation
• Costa Limited
• J. M. Smucker
• Kraft Heinz Company
• JDE Peet’s
• Eight O’clock Coffee Company
• Bewley’s Tea and Coffee
• Keurig Dr Pepper
• Coffee Republic
• Coffee Beanery
Foodservice Coffee Market by Segment
The study includes a forecast for the global foodservice coffee market by type, end use, and region.
Foodservice Coffee Market by Type [Value from 2019 to 2031]:
• Take Away/ Delivery
• Dine-In
Foodservice Coffee Market by End Use [Value from 2019 to 2031]:
• Coffee House & Beverage Shops
• Bakery Shops & Restaurants
• Others
Foodservice Coffee Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Foodservice Coffee Market
The global foodservice coffee market is in a period of dynamic growth, driven by shifting consumer preferences toward premium, specialty, and ethically sourced coffee. Recent developments in major markets are defined by technological integration, a focus on unique customer experiences, and a strong response to the growing demand for sustainable and diverse product offerings.
• United States: The U.S. market is a leader in technology adoption, with a strong emphasis on mobile ordering and contactless payments. Recent developments include a surge in demand for plant-based milks and sustainable coffee, with consumers prioritizing ethically sourced products. The market is also seeing a rise in "third-wave" coffee culture, leading to a focus on single-origin and artisanal blends.
• China: China’s foodservice coffee market is experiencing explosive growth, fueled by a burgeoning middle class and an expanding café culture. Recent developments are marked by aggressive price competition and rapid expansion of domestic chains into lower-tier cities. There is also a growing interest in innovative, localized coffee products that blend traditional flavors with Western coffee culture.
• Germany: Germany’s market is characterized by a strong focus on quality and sustainability. Recent developments are centered on the demand for certified, ethically sourced beans and eco-friendly packaging. The market is also seeing an increase in specialty coffee and local roasters, with consumers showing a greater appreciation for artisanal brewing methods and unique flavor profiles.
• India: India’s foodservice coffee market is in a rapid growth phase, driven by a young, urban population and a rising café culture. Recent developments include the emergence of homegrown specialty coffee brands and a growing demand for diverse coffee experiences. The market is also witnessing a surge in cold coffee and ready-to-drink options to cater to a more health-conscious and convenience-oriented consumer base.
• Japan: Japan’s foodservice coffee market is highly sophisticated, focusing on precision and quality. Recent developments include a growing demand for premium, single-origin coffee and a continued appreciation for traditional coffee houses. The market is also seeing a strategic shift toward more automated brewing systems and high-quality instant coffee products that cater to convenience without compromising taste.
Features of the Global Foodservice Coffee Market
Market Size Estimates: Foodservice coffee market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Foodservice coffee market size by type, end use, and region in terms of value ($B).
Regional Analysis: Foodservice coffee market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, end uses, and regions for the foodservice coffee market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the foodservice coffee market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for foodservice coffee market?
Answer: The global foodservice coffee market is expected to grow with a CAGR of 6.2% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the foodservice coffee market?
Answer: The major drivers for this market are the increasing demand for specialty coffee beverages, the rising popularity of coffee culture in restaurants, and the growing trend of premium coffee consumption.
Q3. What are the major segments for foodservice coffee market?
Answer: The future of the foodservice coffee market looks promising with opportunities in the coffee house & beverage shop and bakery shop & restaurant markets.
Q4. Who are the key foodservice coffee market companies?
Answer: Some of the key foodservice coffee companies are as follows:
• Starbucks Corporation
• Costa Limited
• J. M. Smucker
• Kraft Heinz Company
• JDE Peet’s
• Eight O’clock Coffee Company
• Bewley’s Tea and Coffee
• Keurig Dr Pepper
• Coffee Republic
• Coffee Beanery
Q5. Which foodservice coffee market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, take away is expected to witness higher growth over the forecast period.
Q6. In foodservice coffee market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the foodservice coffee market by type (take away/ delivery and dine-in), end use (coffee house & beverage shops, bakery shops & restaurants, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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