The global coffee market in 2024 is worth USD 501 billion and is projected to grow to USD 690 billion by 2029, with a 5.7% CAGR.
Our figures are based on our analysis of five different market research reports. Our confidence in these figures is reasonably strong due to the converging nature of the estimates. A detailed description of our analysis methods is provided below.
Market Size and Growth Metrics
Current Size and Growth Projections
As of 2024, the global coffee market is valued at about USD 501 billion. Looking ahead, the market is expected to grow at a CAGR of 5.7%, reaching USD 690 billion by 2029.
This growth is driven by increasing demographic shifts, technological advancements, and the increasing importance of sustainability and ethical sourcing
Major Market Segmentation
By Product Type
- Roasted Coffee: Valued at USD 246.32 billion in 2022, roasted coffee is expected to grow at a CAGR of 4.8% from 2023 to 2030. The globalization of coffee culture, driven by the expansion of international coffee shop chains like Starbucks, has led to increased consumption of roasted coffee.
- Instant Coffee: Continues to lead the market due to its convenience, contributing significantly to the market’s growth. The global instant coffee market size was valued at USD 33.18 billion in 2024 and is expected to reach USD 43.54 billion by 2029, growing at a CAGR of 5.58% during the forecast period (2024-2029).
By Region
- North America: Includes the U.S., Canada, and Mexico. The North American coffee market was valued at USD 48.2 billion in 2024 and is projected to reach USD 60.3 billion by 2029, growing at a CAGR of 4.5%.
- Europe: Includes major countries like Germany, the UK, France, Italy, and Spain. The European coffee market was valued at USD 52.1 billion in 2024 and is expected to reach USD 65.2 billion by 2029, growing at a CAGR of 4.7%.
- Asia-Pacific: Includes China, Japan, India, South Korea, and Indonesia. The Asia-Pacific coffee market was valued at USD 25.3 billion in 2024 and is projected to reach USD 35.4 billion by 2029, growing at a CAGR of 6.9%.
- Central & South America: Includes Brazil, Colombia, and others. The Central & South American coffee market was valued at USD 15.2 billion in 2024 and is expected to reach USD 20.1 billion by 2029, growing at a CAGR of 5.8%.
- Middle East & Africa: Includes Ethiopia and others. The Middle East & African coffee market was valued at USD 6.8 billion in 2024 and is projected to reach USD 9.2 billion by 2029, growing at a CAGR of 6.2%.
Industry Trends and Dynamics
Globalization of Coffee Culture
International coffee shop chains, particularly Starbucks, have played a pivotal role in shaping global coffee culture. In 2024, Starbucks launched a spring menu that included two new lavender-infused beverages, highlighting the trend towards unique flavors and premium offerings. The consumers increasingly seek out coffee shops as social spaces and destinations for specialty beverages. This growth reflects a broader interest in artisanal and high-quality coffee experiences.
Sustainability and Ethical Sourcing
Consumer awareness regarding the environmental and social impacts of coffee production is on the rise, with 62% of Americans reporting daily coffee consumption and many preferring sustainably sourced options.
The European Green Deal aims for climate neutrality by 2050, introducing regulations that will require deforestation-free products in the EU market, pushing coffee producers towards more sustainable practices.
Certifications like Rainforest Alliance and Fairtrade are gaining traction, as consumers actively seek brands that prioritize ethical sourcing and sustainable packaging solutions. Additionally, direct trade relationships between coffee shops and farmers are becoming more common, fostering transparency and ensuring fair compensation for growers.
Industry Drivers and Challenges
Specialty Coffee Growth
Growing popularity of specialty coffee, driven by younger generations and their preferences for unique flavors and sustainable sourcing. Specialty coffee now accounts for 40% of the global coffee market revenue, up from 10-20% of total volume. By 2032, specialty coffee is expected to reach a revenue share of nearly 70%.
Fortification of Coffee with Antioxidants
Coffee companies are increasingly fortifying their products with health benefits, such as antioxidants, to appeal to health-conscious consumers. This trend is part of a broader movement towards functional beverages that offer additional health benefits beyond traditional consumption.
Price Volatility
Coffee prices are subject to significant fluctuations, with Arabica coffee futures prices ranging from $1.20 to $1.60 per pound in 2024. This volatility is influenced by supply and demand dynamics, environmental factors, and economic conditions, making it challenging for producers to maintain stable pricing.
Consumer Insights
Per Capita Consumption
In 2024, the top countries by per capita coffee consumption were Finland at 12 kg, Norway at 9.9 kg, and Iceland at 9 kg. The United States consumed approximately 3.8 lbs (1.7 kg) of coffee per person, while Canada had a per capita consumption of 6.5 lbs (2.9 kg). This data highlights the strong coffee culture in Nordic countries, where coffee is a staple beverage, contrasting with lower consumption rates in North America.
Shifts in Consumer Preferences
Baby Boomers are increasingly seeking premium coffee experiences, often opting for specialty blends and artisanal products that emphasize quality and flavor.
Millennials are driving the demand for sustainability, favoring brands that prioritize ethical sourcing and environmental responsibility. In 2024, about 62% of millennials reported a preference for sustainably sourced coffee.
Generation Z is emerging as a significant consumer group, with a strong inclination towards innovative coffee products, including functional coffees infused with health benefits like adaptogens and CBD. This generation is also more likely to engage with brands through digital platforms and social media, influencing their purchasing decisions.
Conclusion
In 2024, the global coffee market is valued at USD 501 billion and is projected to reach USD 690 billion by 2029, with a 5.7% CAGR. Key takeaways include:
- Product Trends: Roasted coffee remains dominant, while specialty coffee is rising rapidly, projected to make up 70% of the market by 2032. Instant coffee continues growing due to its convenience.
- Regional Growth: Asia-Pacific leads with a 6.9% growth rate, while North America and Europe remain key players, growing steadily.
- Sustainability: Ethical sourcing is increasingly important, especially for millennials, with certifications like Fairtrade and Rainforest Alliance gaining traction.
- Opportunities and Challenges: While price volatility challenges producers, innovations like health-focused coffee products offer new growth opportunities.
The future of the coffee market appears vibrant, but addressing market volatility and sustainability concerns will be essential for maintaining momentum.
References and Data Sources
How did we analyze our Sources?
To gain a complete understanding of the global coffee market, we’ve analyzed data from five different market research reports. Using our own weighted criteria, we selected the top three reports with the highest scores and based our estimate on their findings.
| COFFEE Analysis | Statista | Wiki | Mordor Intelligence | Research and Markets | The Business ResearchCo | SUMMARY |
| Published Date | Jul 1, 2024 | 3 August 2024 | – | February 2024 | January 2024 | |
| Market Captured | Combined | – | – | Combined | At-home | |
| Current 2024 market size | $458B | $522B* | $132B | $523B | US$ 70B | US$ 501B |
| Future market size | – | – | $166B by 2029 | $690 billion by 2029 | $89B by 2028 |
$690B by 2029
|
| CAGR | – | 5.3% (2022-2025) | 4.7% (2024 – 2029) | 5.7% (2024-2029) | 6.4% (2024 – 2028) | 5.7% (2024-2029) |
Please note: Data marked with * is estimated based on original sources.
How did we grade our Sources?
| Score | COFFEE Analysis | Statista | Wiki | Mordor Intelligence | Research and Markets | The Business ResearchCo | SUMMARY |
| 3 | – Criteria 1: Clear Source | 0 | 1 | 0 | 0 | 0 | |
| 2 | – Criteria 2: Recency | 1 | 1 | 0 | 0 | 0 | |
| 4 | – Criteria 3: Authority | 0 | 0 | 0 | 0 | 0 | |
| 1 | – Criteria 4: Objective & Clear | 1 | 0 | 1 | 1 | 1 | |
| SOURCE GRADE | 3 | 5 | 1 | 1 | 1 | 3.00 |
- 4 = Highly useful, clear, and resistant to manipulation
- 0 = Provides no indication of reliability
| 3 | – Criteria 1: Clear Source Citation | +1 IF: Clearly states where they got the data from. |
| 2 | – Criteria 2: Recency | +1 IF: published or updated the last 3mo. |
| 4 | – Criteria 3: Authority | +1 IF: Govt Agency, Academic Institution, Academic Paper
+1 IF anything else.
|
| 1 | – Criteria 4: Objective & Clear |
+1 IF: The information presented without emotional wording or bias, states the facts cleanly and clearly.
+0.5 IF one of the above.
|
How did we determine our Market Size?
Understanding the market’s direction can be challenging based on these estimates.
However, we are confident in our projections. One of the three sources is highly respected, and another supports the findings of the first. Their estimates are also closely aligned.
We encourage you to critically assess the data and consider various perspectives to form your own insights into the future of the coffee market.
Nathan has always been captivated by numbers and patterns. With a Master’s degree in Statistics, he’s honed his skills to decipher complex data sets and discern market trends.
Over the past decade, Nathan has worked with various firms compiling and analyzing industry spending figures to forecast market movements.