Coffee consumption in the United States amounted to over ** million 60-kilogram bags in the 2024/2025 fiscal year. This is a slight increase from the total U.S. coffee consumption in the previous fiscal year. Coffee production The coffee plant has its origins in Ethiopia and is now grown all over the world. Most of the world’s coffee is cultivated in South America, followed by Asia and Oceania. In 2024, over ***million 60-kilogram bags of coffee were produced in South America. The majority of South America’s coffee production is attributed to Brazil. In the 2023/2024 fiscal year, global coffee production reached *** million 60-kilogram bags. Coffee brewing in the United States Americans love their coffee and have dozens of different methods and gadgets for brewing and preparing coffee. A 2025 survey of U.S. consumers found that the most commonly used coffee preparation methods were drip coffee makers and single-cup brewers. However, drip coffee makers have become less popular over time. In 2012, ***percent of coffee drinkers used drip coffee makers, while in 2025 this share had dropped to ***percent.

A survey from 2025 in the United States found that among half-caff coffee drinkers, most prefer Starbucks Half Caff House Blend. The brand was named by a 30 percent share. It was followed by Folgers Half Caff Ground Coffee as well as Maxwell House Half Caff with 28 percent each.

The US Coffee Market Report is Segmented by Product Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules), Type (Conventional and Specialty), Packaging Type (Flexible, Rigid, and Single-Serve), Distribution Channel (On-Trade and Off-Trade Channel) and Geography (California, Texas, Florida, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2020, Americans drank an average of **** cups of coffee per day. Between 2011 and 2020, U.S. coffee consumption per capita per day remained relatively close to *** cups, with the exception of 2016, when U.S. survey respondents drank roughly **** cups of coffee per day. Coffee drinkers in the United States In the United States, people aged seventy and older drank the most coffee per day in 2020. This particular age group drank an average of almost *** cups per capita per day that year. Americans aged eighteen and nineteen drank the least per capita, namely about *** cups a day. In terms of gender, men drank more than women per capita in the United States in the same year. Time for coffee In 2020, Americans drank about *** cups of coffee during breakfast each day, making it the most common time of day for people to drink coffee in the United States that year. The least common time for Americans to drink coffee was during other meals.

In 2025, ** percent of survey respondents in the United States stated that they drank coffee within the last day. About ** percent of U.S. respondents had drunk espresso-based beverages instead. Coffee brands in the U.S. In 2020, Folgers produced over ************* U.S. dollars’ worth of sales in the United States, making it the leading brand of regular ground coffee by a significant margin. Total sales numbers generated by private coffee labels amounted to some *** million U.S. dollars. Folgers Coffee was first introduced in 1850, and by 2020, had the largest ground coffee market share in the United States. The coffee giant was followed by other well-known brands, such as Maxwell House, Starbucks, and Dunkin’ Donuts. Arabica vs. Robusta In the commercial coffee industry, there are two main types of coffee species: Arabica and Robusta. Coffee beans of the Arabica variety are slightly larger, produce a smooth and aromatic taste, and are the most commonly produced coffee bean variety: in 2023/24, just over ** million bags (60 kilograms each) of Arabica coffee were produced worldwide. Robusta beans are generally smaller and rounder, cheaper to cultivate, and taste quite bitter. Just over ** million bags of this coffee type were produced during the same marketing year.

U.S. Coffee Market size was valued at USD 69.82 Billion in 2023 and is projected to reach USD 106.23 Billion by 2031, growing at a CAGR of 6.18% from 2024 to 2031.U.S. Coffee Market OutlookThe rising preference for premium coffee products has significantly boosted the demand for specialty coffee across the U.S. Consumers are gravitating toward high-quality coffee blends, single-origin beans, and artisanal roasts, driven by an increased awareness of diverse coffee profiles and brewing techniques. This trend has given rise to a burgeoning market for specialty coffee shops, independent roasters, and premium coffee brands that cater to these sophisticated tastes. According to the National Coffee Association’s Spring 2024 National Coffee Data Trends (NCDT) report, daily coffee consumption among American adults has reached its highest level in over 20 years, rising by 37% since 2004.

The Report Covers North America Specialty Coffee Market Growth and it is segmented by Product Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods, and Capsules); by Distribution Channel (On-Trade and Off-Trade), and by Geography (United States, Canada, Mexico, and the Rest of North America). The Market Size and Values Are Provided in Terms of (USD Million) During the Forecasted Years for the Above Segments.

South America Coffee Market is segmented By Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules), By Distribution Channel ( Supermarkets/Hypermarkets, Convenience Stores, Specialist Stores, Online Retail, and Other Distribution Channels), and By Country (Brazil, Argentina, and Rest of South America). The report offers market size and forecasts in value (USD million) for the above segments.

Coffee Shops and Cafes Market Outlook

The global coffee shops and cafes market size was valued at USD 237.6 billion in 2023 and is projected to reach USD 345.9 billion by 2032, growing at a CAGR of 4.2% during the forecast period. The growth in this market is driven by the increasing number of coffee drinkers, the rising trend of out-of-home coffee consumption, and the expansion of specialty coffee shops. Furthermore, the evolving consumer preference for premium coffee and unique cafe experiences is significantly contributing to this market’s growth.

The rapid urbanization and changing consumer lifestyles are among the primary growth factors for the coffee shops and cafes market. As urban populations swell, the demand for convenient and high-quality coffee products has surged. Urban dwellers, particularly millennials and Generation Z, are more inclined to frequent coffee shops for their ambiance and the social experience they offer. Additionally, the increased disposable income in many developing nations has empowered consumers to spend more on premium coffee and cafe experiences. This trend is particularly evident in Asia Pacific and Latin America, where economic growth has bolstered consumer spending capacities.

Another significant growth driver is the innovation in coffee products and services. Coffee shops and cafes have increasingly diversified their offerings, introducing a variety of coffee blends, flavors, brewing methods, and complementary food items. This diversification not only attracts a wider customer base but also encourages repeat visits. The rise of specialty coffee movements, which emphasize high-quality beans, ethical sourcing, and artisanal brewing techniques, has further fueled market expansion. Furthermore, the integration of technology, such as mobile ordering and loyalty programs, enhances the customer experience and streamlines operations, driving growth in the sector.

Health and wellness trends also play a crucial role in the market's growth. As consumers become more health-conscious, there is a growing demand for healthier beverage options and nutritional transparency. Coffee shops and cafes have responded by offering organic, gluten-free, and plant-based options. Tea, which is often perceived as a healthier alternative to coffee, is also gaining popularity in cafes. The inclusion of nutritionally beneficial add-ons like almond milk, soy milk, and natural sweeteners is becoming commonplace, appealing to health-conscious consumers and expanding the customer base.

Regionally, the market shows significant variation in growth trajectories. North America remains a dominant player, with an established cafe culture and a high number of coffee shops per capita. However, Asia Pacific is expected to exhibit the highest growth rate during the forecast period, driven by the rising middle-class population, urbanization, and increasing Western influence. Europe, with its deep-rooted coffee culture, continues to be a significant market, particularly in countries like Italy and France. Meanwhile, Latin America and the Middle East & Africa are emerging markets with substantial growth potential, owing to their increasing urban populations and growing disposable incomes.

Product Type Analysis

The coffee shops and cafes market can be segmented by product type into coffee, tea, pastries, sandwiches, and others. Coffee remains the most significant segment, accounting for the largest share of the market. This dominance is attributed to the global popularity of coffee as a daily stimulant and the advent of specialty coffee that emphasizes quality and unique flavors. The proliferation of single-origin coffees and cold brew options has also contributed to the robust performance of this segment. Furthermore, innovations such as nitro coffee and various brewing methods like pour-over and French press have kept consumer interest piqued.

Tea is emerging as a critical segment due to its growing acceptance as a healthy alternative to coffee. The increasing awareness about the health benefits of different types of tea, such as green tea and herbal tea, has led to a surge in demand. Cafes are incorporating a variety of tea offerings, including bubble tea, matcha, and chai, to attract a broader audience. The shift towards wellness and health consciousness among consumers has resulted in a greater appreciation for tea, contributing to its rising market share.

Pastries and sandwiches hold a significant portion of the market as complementary products to coffee and tea. The trend toward all-day breakfast and the growing dem

North America Ready-to-Drink (RTD) Coffee Beverage Market growth is driven by increasing consumer demand for convenience, innovation in functional beverages, and the rising trend of specialty coffee consumption.

The size of the US Coffee Market was valued at USD 28.06 Million in 2023 and is projected to reach USD 36.16 Million by 2032, with an expected CAGR of 3.69% during the forecast period. Coffee is one of the most popular beverages globally, celebrated for its rich flavors, aromatic qualities, and stimulating effects. It is derived from the roasted seeds of the Coffea plant, commonly known as coffee beans. The two most widely cultivated species are Coffea arabica and Coffea canephora (robusta). Coffee's history dates back centuries, with its origins traced to Ethiopia, where legend says a goat herder named Kaldi discovered the energizing effects of coffee beans after noticing his goats becoming lively after eating them. The coffee-making process begins with harvesting the coffee cherries, which contain the beans. After harvesting, the cherries undergo processing, where they are fermented, dried, and roasted to develop their unique flavors and aromas. The roasting process significantly influences the taste profile of the coffee, with varying degrees of roast (light, medium, or dark) producing different flavor notes. Recent developments include: November 2022: The Nestlé brand Nespresso launched plant-based home compostable coffee capsules. It offers premium quality coffee without compromising the taste. The capsules are made compatible with Nespresso Original machines., June 2022: Keurig Dr. Pepper Inc. and Intelligentsia Coffee launched Intelligentsia K-Cup Pods for the Keurig brewing system. The super-premium coffee brand will be offered to consumers in this format for the first time., August 2022: Tim Hortons unveiled four new varieties of espresso capsules compatible with Nespresso machines. These four varieties include classic, bright, bold, and decaf.. Key drivers for this market are: Demand for Specialty Coffee, Popularity of Clean Labeled Products. Potential restraints include: Emergence of Tea as a Healthier Alternative. Notable trends are: Working Youth Population Boosting the Market Growth.

North America Specialty Coffee Market size was valued at USD 22.6 Billion in 2024 and is expected to reach USD 58.3 Billion by 2031, growing at a CAGR of 12.5% from 2024 to 2031.

North America Specialty Coffee Market Drivers

Growing Consumer Preference for High-Quality Coffee: Consumers in North America are increasingly seeking out high-quality, ethically sourced coffee that offers unique flavors and aromas. This preference for specialty coffee has driven market growth.

Rising Disposable Incomes: As disposable incomes rise, consumers are willing to spend more on premium coffee products and experiences. This has fueled the growth of specialty coffee shops and the demand for high-end coffee beans.

Health and Wellness Trends: The growing focus on health and wellness has led to a shift towards coffee as a healthier beverage alternative to sugary drinks. Specialty coffee, often served black or with low-calorie milk alternatives, aligns with these health-conscious trends.

Coffee Culture and Social Experiences: Coffee has become a significant part of social culture in North America. Specialty coffee shops provide a comfortable and inviting environment for people to gather, work, and socialize.

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Instant Coffee Market Size 2025-2029

The instant coffee market size is forecast to increase by USD 16.3 billion at a CAGR of 6.9% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing popularity of instant coffee among millennials and the rising trend of preparing instant espresso coffee at homes. This demographic shift, coupled with the convenience and affordability of instant coffee, is fueling market expansion. However, the market faces challenges from substitute products, including traditional coffee and tea, which continue to compete for consumer preferences. To capitalize on market opportunities, companies must focus on product innovation, such as improving taste and texture, and expanding their reach through strategic partnerships and distribution channels.
Additionally, addressing consumer concerns regarding sustainability and ethical sourcing will be crucial for long-term success. Overall, the market presents a compelling opportunity for companies to meet the evolving needs of modern consumers while navigating the competitive landscape.

What will be the Size of the Market during the forecast period?

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The market experiences continuous growth, driven by evolving consumer preferences and busy lifestyles. This market encompasses various segments, including single-serve formats, home consumption, and specialty offerings. Freeze-drying technology plays a crucial role in enhancing the taste and quality of instant coffee, making it a viable alternative to traditional brewed coffee. Packaging innovations, such as stand-up pouches and single-serve sachets, cater to the convenience-oriented consumers. Multinational players and local craft brands alike capitalize on the market's potential, offering unique flavors and functional properties.
Single-origin coffee and premium blends cater to the increasing demand for high-quality instant coffee. Consumer preferences for coffee consumption patterns continue to shift, with online retailing gaining popularity. The working population's reliance on instant coffee as a quick and convenient solution fuels the market's expansion. Overall, the market is poised for significant growth, with various trends shaping its future.

How is this Instant Coffee Industry segmented?

The instant coffee industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Spray-dried
  Freeze-dried


Distribution Channel

  Offline
  Online


Flavor

  Flavored
  Non-flavored


Packaging

  Jars
  Pouches
  Sachets
  Bulk packaging


Geography

  APAC

    China
    India
    Japan
    South Korea


  Europe

    France
    Germany
    UK


  North America

    US
    Canada


  South America

    Brazil


  Middle East and Africa

By Product Insights

The spray-dried segment is estimated to witness significant growth during the forecast period. The market is driven by the increasing preference for convenience among busy consumers and the growing popularity of single-serve formats. Spray drying is the dominant method used in instant coffee production, accounting for a significant market share. This process involves spraying coffee extract into hot air, which transforms it into fine powder that is later agglomerated into granules. The affordability and time-saving benefits of spray-dried instant coffee make it a preferred choice for many consumers. Additionally, packaging innovations, such as single-serve packets and coffee pods, have contributed to the market's growth. Consumer preferences for unique flavors, functional properties, and premium blends have also influenced the market.

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The spray-dried segment was valued at USD 22.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific (APAC) region, including China, Japan, South Korea, Australia, Malaysia, the Philippines, Vietnam, India, Taiwan, Thailand, Singapore, and Indonesia, presents significant growth opportunities for instant coffee companies. Major players in the APAC market in 2024 included Nestle, Unilever, Starbucks, Tata Global Beverages, and LUIGI LAVAZZA. Single-serve packets, such as those offered by Nestle, have gained popularity due to their affordability and convenience. Consumers appreciate the ability to sample new flavors without c

The Latin America Coffee Market report segments the industry into Product Type (Whole Bean Coffee, Ground Coffee, Instant Coffee, Coffee Pods and Capsules, Ready-to-drink Coffee), Distribution Channel (On-trade, Off-trade), and Geography (Brazil, Argentina, Rest of Latin America). Get five years of historical data alongside five-year market forecasts.

North America ready to drink coffee market size was valued at USD 12.5 Billion in 2024 and is projected to reach USD 24.8 Billion by 2031, growing at a CAGR of 8.9% from 2024 to 2031.

North America Ready To Drink Coffee Market Drivers

Busy Lifestyles: The increasing pace of life and busy schedules have made convenience a major factor in consumer choices. RTD coffee offers a quick and convenient caffeine fix for busy individuals on the go.

Growing Demand for Convenience: Consumers are increasingly seeking convenient and on-the-go food and beverage options. RTD coffee aligns perfectly with this trend, offering a portable and readily available caffeine source.

Health and Wellness Trends: While coffee is often associated with caffeine, consumers are also seeking healthier options. The market is witnessing a rise in demand for RTD coffees with added health benefits, such as low-sugar, organic, and plant-based options.

Innovation and Product Development: Continuous innovation in flavors, formats, and packaging is driving market growth. New and exciting RTD coffee options, including cold brew, nitro coffee, and flavored lattes, are constantly being introduced to attract consumers.

According to a survey from 2025 in the United States, most respondents consumed two hot drinks on an average day. In fact, this was stated by a share of almost 38 percent. By comparison, only about eight percent drank five or more hot drinks daily.

Flavoured Instant Coffee Market Outlook

As of 2023, the global market size for flavored instant coffee is valued at approximately USD 11.2 billion, with a forecasted growth reaching USD 16.8 billion by 2032, reflecting an impressive Compound Annual Growth Rate (CAGR) of 4.7%. This growth is driven by increasing consumer demand for convenient yet high-quality coffee experiences, product innovations, and expanding distribution channels.

The flavored instant coffee market is experiencing robust growth due to the rising trend of premiumization in the coffee industry. Consumers are increasingly favoring high-quality, artisanal flavors over traditional coffee blends. The innovations in product offerings, ranging from exotic mocha to decadent caramel, cater to evolving taste preferences, thereby driving market expansion. Furthermore, the shift in consumer behavior towards more convenient and time-efficient food and beverage options has significantly boosted the demand for instant coffee, making it a staple in many households globally.

Another key growth factor is the increasing consumption of coffee among millennials and Gen Z, who are more adventurous in trying out new flavors and brands. These demographic groups are not only looking for convenience but also unique and personalized flavor experiences. Consequently, manufacturers are launching various flavored instant coffee products to cater to this demand. Moreover, the rising disposable incomes and urbanization in developing regions are contributing to market growth, as more consumers in these areas are adopting Western coffee-drinking habits.

The expansion of e-commerce and online retail channels has further propelled the market. The growing penetration of smartphones and internet connectivity has made it easier for consumers to explore and purchase a wide variety of flavored instant coffee products online. This has also enabled small and niche brands to reach a broader audience without the need for extensive physical distribution networks. Additionally, the increasing focus on sustainability and ethical sourcing is influencing consumer preferences, with many opting for brands that offer sustainably sourced and organic coffee options.

Regionally, North America and Europe dominate the flavored instant coffee market, driven by high coffee consumption levels and a strong preference for innovative flavors. However, the Asia Pacific region is expected to witness the fastest growth over the forecast period due to increasing urbanization, rising disposable incomes, and the growing popularity of Western food and beverage culture. Latin America and the Middle East & Africa are also emerging as potential markets, with increasing awareness and acceptance of instant coffee products in these regions.

Product Type Analysis

The flavored instant coffee market is segmented by product type into Classic, Mocha, Caramel, Vanilla, Hazelnut, and Others. Classic flavored instant coffee continues to hold a significant share of the market due to its widespread acceptance and long-standing consumer base. The classic flavor serves as a staple for many, providing a familiar and reliable taste experience that appeals to a broad audience. Despite the influx of new and exotic flavors, classic flavored instant coffee remains a favorite among traditional coffee drinkers and those who prefer a more straightforward coffee taste.

Mocha flavored instant coffee is gaining popularity, especially among younger consumers and those looking for a richer, more indulgent coffee experience. The combination of coffee and chocolate flavors offers a unique taste that appeals to consumers' desire for variety and luxury in their coffee choices. This segment is also benefiting from the trends in premiumization and the increased availability of high-quality mocha flavored instant coffee options in both physical and online stores.

Caramel flavored instant coffee is another rapidly growing segment, driven by its sweet and creamy profile that appeals to a broad range of consumers. The caramel flavor adds a touch of indulgence to the coffee experience, making it a popular choice for those who enjoy a sweeter beverage. Additionally, the versatility of caramel flavored instant coffee, which can be used in various recipes and drinks, further boosts its appeal and market share.

Vanilla and Hazelnut flavored instant coffee segments are also witnessing significant growth, thanks to their unique and aromatic profiles. Vanilla flavored instant coffee offers a smooth and subtle taste that i

The North America coffee market was valued at USD 25.19 Billion in 2024. The industry is expected to grow at a CAGR of 4.70% during the forecast period of 2025-2034 to attain a valuation of USD 39.87 Billion by 2034.

According to Cognitive Market Research, the global Coffee Market was valued at approximately USD XX billion in 2025 and is expected to grow to USD XX billion by 2031, expanding at a CAGR of XX% during the forecast period.

North America held largest share of XX% in the year 2025. Europe held share of XX% in the year 2025. Asia-Pacific held significant share of XX% in the year 2025. South America held significant share of XX% in the year 2025. Middle East and Africa held significant share of XX% in the year 2025.

Market Dynamics of Coffee Market

Key Drivers for Coffee Market

Ready-To-Drink (RTD) Coffee to Boost Market Growth

The RTD coffee segment is expanding rapidly due to shifting consumer lifestyles and preferences. As urbanization and busy routines increase, so does the demand for convenient, on-the-go beverage options. RTD coffee meets this need by offering ready-to-consume products with a balance of quality, flavor, and accessibility. Health-conscious trends are also reshaping the market, with consumers seeking low-sugar, functional, and plant-based options. Manufacturers are responding with innovative offerings that align with modern dietary preferences while maintaining the ease and appeal that define RTD coffee. Generational preferences play a key role in driving this growth, particularly among younger consumers who prioritize both energy and convenience. Flavor diversity—from classic black to indulgent variants like caramel and mocha caters to a broad range of tastes. Pricing and packaging also influence consumer decisions, with factors such as bean quality and production costs impacting market dynamics. RTD coffee is set to become an even more prominent part of everyday consumption.

Innovation in Flavours to Propel Market Growth 

The coffee market is expanding rapidly due to innovation in flavors, formats, and brewing techniques. Consumers today seek personalized, high-quality experiences, which has led to the rise of specialty coffees like cold brews, single-origin blends, and flavored lattes. The growing popularity of plant-based alternatives such as almond and oat milk has made coffee more appealing to health-conscious and vegan consumers. These evolving preferences, along with broader nutrition trends, are making coffee more inclusive and appealing to a wider audience. Millennials and Gen Z are key drivers of this growth, with a strong focus on convenience, sustainability, and digital integration. Their preferences for ethically sourced products, diverse flavor profiles, and tech-enabled services like app-based ordering are reshaping how coffee is consumed and marketed. As these generations continue to influence trends, the coffee industry is expected to keep innovating, offering more customized, sustainable, and accessible options for a broader consumer base.

Key Restraint for Coffee Market

Fluctuating prices of raw materials

The fluctuating costs of raw materials such as coffee beans poses a major challenge to the coffee beverage market. Coffee production is highly sensitive to weather conditions and supply-chain disruptions. Extreme weather conditions like unpredictable rainfall leading to floods or droughts result in a significant decline in coffee bean yields, which in-turn leads to supply chain disruptions and price volatility. For instance, Vietnam and Brazil have experienced a fear of global shortage of coffee due to soaring high prices as a result of extreme weather conditions. Such instances may hamper the growth of the coffee industry in the long run.

Rising costs of transportation and labor along with economic uncertainties further add to this challenge. A shortage of raw materials may potentially lead to the rise in price of finished goods, driving consumers away and impacting the overall growth of the market. Small-scale farmers in particular are affected by such fluctuations because of the lack of financial to deal with such restraints. The instability can further lead to poor quality of crops, decline in supply and exit of the farmers from the market entirely, impacting the overall growth of the market.

Source: https://www.thegrocer.co.uk/kvi-price-tracker/coffee-prices-hit-new-highs-over-fears-of-global-shortages/690428.article

Key Trends for Coffee Market

Sustainability, Ethical Sourcing & Traceability

Consumers today place great ...