Foodservice Coffee Market

According to Stratistics MRC, the Global Foodservice Coffee Market is accounted for $431.08 billion in 2022 and is expected to reach $611.50 billion by 2028 growing at a CAGR of 6.0% during the forecast period. Coffee is a plantation crop that grows best in tropical highlands (C. Arabica) and lowlands (C. canephora). They require a well-distributed yearly rainfall, a dry season of no more than five months, and an annual temperature of 15 to 30 degrees Celsius. They tolerate shade and have growth needs that are very much like those of forest trees, making them perfect for agroforestry environments. An increasing shift of consumers toward cold brew coffee is predicted to boost the demand for the product. Increasing coffee consumption in emerging economies and stronger interest in specialty coffee.

According to the National Coffee Association, 2018, 44%of the global inhabitants who reported buying coffee within the past day at cafes, quick-service restaurants, donut shops, or convenience stores stated procuring coffee at a drive-through.

Market Dynamics:

Driver:

Increasing coffee consumption in emerging economies and stronger interest for specialty coffee

Specialty coffee is the fastest-growing market globally due to rising interest in premium coffee and rising demand for ethically and sustainably produced coffee. An increasing number of coffee-focused shops and micro-roasteries are located in Europe. Also, the quick development of diverse-format food service establishments is becoming more and more popular in rising markets all over the world. One of the most common expansion models is franchising. A franchise offers a chance to gain from the popularity and recognized brand of an established business.

Restraint:

Fluctuation in coffee prices

Growing concerns about food security and the volatility of coffee bean prices are a result of important causes such as the increasing population of the world, high food prices, and rising unemployment. The price of the final products has increased due to a number of additional elements, including transportation, storage, labor, political environments, and several other features. Coffee plants need a certain combination of humidity, light, and temperature to grow. The livelihoods of millions of coffee growers and their families have recently been challenged by climate change, pests, and declining coffee prices.

Opportunity:

Increasing number of coffee shops and food courts

The success of coffee shops and cafes is influenced by customer preferences, income levels, location, and atmosphere. Vendors are being encouraged to expand their businesses in order to cater to the urban population as it becomes more well-known and prominent among urban residents. The coffee industry must embrace technology to compete in the market. Companies are consistently increasing productivity, identifying vital aspects for R&D, and launching new products into the market, all of which will contribute to the market's growth over the forecast period.

Threat:

Buffer stockpiles threatens the market growth

Pandemics and significant logistical challenges have had an impact on the global coffee market, raising prices to multi-year highs. To try to maintain stability in the price of commodities like coffee, governments have implemented systems like buffer stocks. Supply quotas are established, and surplus supply is bought in order to prevent prices from decreasing. On the other hand, buffer stockpiles are challenging to implement because so many nations produce coffee. This is because smaller producers are able to increase their output by utilising the supply shortage.

Covid-19 Impact:

Coffee bean supply and market expansion have been hampered by climatic changes and other environmental concerns. Due to supply chain breakdowns caused by the COVID-19 epidemic, which raised transportation costs and delayed supplies, the price of beans soared. During the epidemic, transportation expenses were rather high, which raised the price of foodservice coffee on the market. Moreover, COVID-19 caused a sharp change in customer demand from cafes, caterers, and retail coffee shops, substantially altering the way food supply chains function. Sales of coffee consumed outside the home, such as in hotels, restaurants, cafes, and catering, decreased as the outbreak spread.

The take away/delivery segment is expected to be the largest during the forecast period

Over the forecast period, the takeaway/delivery segment accounted for the largest market share and is one of the most well-liked product categories globally. Whenever food is ordered and prepared in a restaurant, it is then taken away to be consumed at home or in another location. Breakfast, lunch, and dinner are all available on the menu, which offers multiple selections. In the market, takeout orders have grown in popularity. The COVID-19 pandemic forced eateries around the world to stop serving dine-in customers and instead focus on takeaway and delivery, starting in early 2020.

The coffee shops/chains segment is expected to have the highest CAGR during the forecast period

Due to consumers' growing taste for specialty coffees offered by coffee chains, such as iced coffee, coffee with ice cream, and others, the demand for foodservice coffee shops and chains is anticipated to expand in the coming years. Over the past few years, a growing percentage of working households have visited cafés and coffee shops increasingly regularly. In emerging nations where a significant portion of the population falls into the young age group, which is the primary consumer of foodservice coffee chains, an increasing number of coffee chains that offer international flavors are the major attraction.

Region with largest share:

Over the projected period, Europe is expected to dominate the global market due to changes in consumer consumption patterns, such as rising demand for speciality coffee drinks and modern retail outlets. Moreover, consumers in Europe are growing increasingly engaged in foodservice coffee that has a great flavour and a lot of nutritional value. International businesses have also embraced the idea of brew coffee.

Region with highest CAGR:

North America's foodservice coffee industry is expected to grow significantly throughout the projection period. The main market for coffee in North America is the United States. Due to the popularity of coffee and the millennial generation's preference for it over other beverages, there is a significant demand for coffee in nations like the U.S. and Canada. Also, a number of significant firms, including Starbucks Corporation and Nestle S.A., are focusing on releasing new versions of their products through various coffee chains and bakeries, which is also anticipated to have a favorable impact on the foodservice coffee market in the near future.



Key players in the market

Some of the key players in Foodservice Coffee market include Starbucks , J.M. Smucker, The Coffee Bean & Tea Leaf, Costa Coffee, Peet's Coffee, Inc., Kraft Heinz Company, Tim Hortons, Soho Coffee, Ediya Coffee and Jaun Valdez .

Key Developments:

In January 2022, Starbucks expanded its presence in six new regions in India as a part of its most significant expansion strategy. The company opened new stores in Siliguri, Nashik, Guwahati, Thiruvananthapuram, Goa, and Bhubaneswar.

In August 2021, SOHO Coffee Co. expanded digital channels to diversify sales. The U.K.-based coffee and food-to-go chain is expanding its product offering to meet new consumers and diversify sales.

In July 2021, Starbucks Corporation and Nestle S.A. will bring a ready-to-drink coffee beverage to Southeast Asia and Latin America. With this expansion plan into RTD coffee, the company continued building on its global coffee presence. It benefited from new growth opportunities in a rapidly developing segment and attracting new and younger consumers.

Types Covered:
• Dine In
• Take Away/Delivery

End Users Covered:
• Bakery Shops
• Coffee Shops/Chains
• Beverage Shops
• Restaurant

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances