Global Specialty Coffee Market By Grade (90-100, 85-89.99, 80-84.99) By Application (Home, Commercial) - Growth , Future Prospects & Competitive Analysis, 2016 – 2028

What is the Global Consumption of Speciality Coffee?

The global consumption of Speciality Coffee increased to more than 984 thousand tons in 2021 and is projected to witness substantial growth in the near future. Because the coffee industry has such a large global impact, prominent companies are beginning to take more steps toward sustainability, including more efficient packaging. In addition, people want variety, so there's a good possibility they'll sign up for a subscription service to receive different and fascinating coffees every month. Although cold brew coffee has been popular for several years and it is expected that its popularity will continue to grow and it will become more ubiquitous in households and coffee shops for specialty coffee. People can buy coffee such as cold brew concentrate and even cold brew cans online or from local retailers; therefore canned and bottled coffee will become demand drive over the forecast period. 

What is the Market Size of Speciality Coffee in term of value?

The global Speciality Coffee Market is projected to increase at a significant CAGR of 11.9% in the coming years. In 2021, the global specialty coffee market was valued at USD 52.1 Billion and is projected to reach at value of USD 102.3 Billion by 2028. The demand for specialty coffee is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players worth USD 50.2 Billion during the forecast period between 2022 and 2028.

How is Subscription Model Becoming Trend for Speciality Coffee?

The coffee subscription model, in which vendors deliver coffee directly to customers' doors, is one emerging industry. While this concept has been around for a while, the Covid-19 lockdowns brought it to the forefront as people sought to satisfy their caffeine fix while locked at home.

In 2020, coffee roasters were able to deliver subscription coffee services and direct-to-consumer sales at scale on the back of access to coffee software and easy integrations with e-Commerce platforms. Ready-to-drink coffee is seen as a healthier alternative to sodas, and iced coffee's rise as a popular beverage is helping to maintain this market's premium status. According to the study, 73% of specialty coffee users miss their regular coffee shops, demonstrating how vital local coffee shops are to everyday individuals in many regions.

Interesting Facts about Speciality Coffee Industry

• The top 5 countries for the specialty coffee market are the U.S., Brazil, U.K, Germany and China.
• The top 5 importers of specialty coffee are U.S., Germany, France, Italy, and Belgium.
• Top specialty coffee firms are constantly concentrating on the creation of sophisticated items that will fuel market expansion over the next ten years.
• For both consumers and industry actors, sustainability is becoming increasingly crucial in the global specialty coffee market. This opens up new possibilities for specialty coffee, as this specialized market offer ample opportunities for sustainable coffee value chains.
• An increasing number of artisan roasters and specialty independent coffee shops are reinvigorating the coffee market and leading the way into the fourth wave of coffee culture, bringing with them an intriguing choice of single origin and micro-lot coffees that are batch roasted for maximum flavor.
•  

Who are the Top 10 players/companies in speciality coffee market in term of value and volume?

The key players in the global specialty coffee market in terms of value and volume include Dunkin' Brands Group, Starbucks, Coffee Beane Peet's Coffee, Whitbread, Barista, Restaurant Brands International, Tea, and Global Baristas US, McDonald's, Caribou Coffee, Caffe Nero, Keurig Green Mountain, Coffee Day Enterprises, Eight O'Clock Coffee, Blue Bottle, M. Smucker, Jammin Java Group, Don Fransisco's Coffee, Costa, Bulletproof, Strauss, Stumptown and Geveli. 

These key players are concentrating on new product developments as well as technological innovation to enhance their production of specialty coffee to gain competitive market share at a global level. Moreover, some regional and country-level players are investing heavily to expand their product portfolio and enhance their sales. Moreover, manufacturers are establishing a coffee center on the plantation site to share knowledge and innovation media with the farmers and enhancing human resource competency in the plantation, post-harvest, and promotion areas. Adopting mentioned strategies will increase the sales of leading market players and provide a competitive stage in the specialty coffee market.

Who are the Top 10 Countries in the Speciality Coffee Market?

The major countries in the global specialty coffee market are China, India, the U.S., Canada, the U.K., Germany, France, Russia, Japan and Brazil. Coffee is only grown in 45 nations worldwide, with Brazil, Vietnam, Indonesia, and Colombia being the top producers. Coffee's growing popularity and widespread availability are likely to drive up demand. For example, demand for coffee pods has been steadily rising in the United States, owing to their ease of use and convenience in preparing coffee at home. As a result, customers' preferences for coffee have shifted. The increased demand for coffee has resulted in more opportunities for market vendors to flourish.

Coffee businesses are changing how they finish their products with cold brew, Nitro, and at-the-table coffee presses. While cold brew was formerly considered a curiosity, it has grown into roughly USD 29 million markets in the United States in 2020. In addition, cold brew is extremely popular in Japanese and Chinese markets. Brazil will continue to be the key driver of global coffee consumption for the projected period. Value growth will become increasingly reliant on demand from away from home coffee, particularly in tea-drinking economies like China.

Which is the Key Application Area in the Speciality Coffee Market?

The key applications of specialty coffee include home and commercial. The commercial application category dominated the market in 2021, with a 56 percent market share and total revenue of USD 28.6 Billion. The commercial application segment is driven by high levels of innovation and rapid technological advancements. Furthermore, the significant growth of the commercial sector has benefited coffee machine businesses, particularly in emerging countries.

 In addition, the expansion of the foodservice industry as a major end-user and the growing number of workplaces in kitchenettes may boost sales of progressive coffee machines in the coming years. In addition, competitors are focusing on introducing various technical features into coffee machines, which is helping to boost market expansion.

What are the Major Driving Factors for Specialty Coffee Market?

The increased potential for agri-tourism, ready-to-drink coffee that is ready to grow, and specialty coffees that are becoming increasingly distinctive are driving growth in the specialty coffee sector. Furthermore, in line with recent headlines about socially conscious customers seeking an authentic experience, buyers would pay for coffee if it came with a decent story about its social and environmental aspects. Additionally, coffee brewers and other connected businesses interested in tapping this market are focusing on labels based on high-scoring drinks with eco-conscious strong roots. 

What are the Major Restraints for Specialty Coffee Market?

For speciality coffee shop market vendors, the shifting pricing of coffee beans will be a huge obstacle. Coffee prices are volatile due to a variety of factors including disparities in demand and supply, decreased production of coffee beans, bad weather conditions, and rising labour costs. Increases in raw material prices not only raise costs, but also diminish profit margins for firms. 

Furthermore, despite rising raw material costs, increasing market competition among vendors has resulted in them operating on poor profit margins. This reason, combined with the necessity to stay competitive in the market, drives manufacturers to experiment with low-cost alternatives like low-grade coffee beans and instant coffee powder. The global specialty coffee shops market is projected to be limited by the shifting prices of coffee beans.

Which Region Dominated the World Speciality Coffee Market?

During the projection period, North America will account for 41% of the market's revenue share. The United States and Canada are the most important markets for specialty coffee shops in North America. The market expansion in this region will be faster than that of the European and Latin American regions.

Significant portion of the consumer in North America, particularly millennials, are looking for customization. Therefore, customers can personalize coffee or other beverages at specialty coffee shops based on their preferences. Over the forecast period, this will aid the expansion of the specialty coffee shops market in North America.

 For example, more than half of all adults in the United States consume coffee on a daily basis. That's almost 150 million people per day. Every day, 30 million adults in the United States consume specialized coffee beverages such as mocha, espresso, latte, cappuccino, mocha café, coffee beverages, and so on. The United States imports more than $4 billion worth of coffee each year. The United States consumes 400 million cups of coffee every day, making it the world's largest coffee consumer.

Segmentation of Global Speciality Coffee Market-

 Global Speciality Coffee Market – By Grade

• 90-100
• 85-89.99
• 80-84.99
•  

Global Speciality Coffee Market – By Application

• Home
• Commercial