Wednesday 07 December 2022

Global cafés and bars market is expected to grow at a CAGR of almost 8%

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LONDON, UK – According to the latest market study released by Technavio, the global cafés and bars market is expected to grow at a CAGR of almost 8% during the forecast period.

This research report titled ‘Global Cafés and Bars Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends.

This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.

There are many drivers contributing to the growth of the global cafés and bars market. The primary reason for the growth of the market is the increasing consumption of coffee and increasing number of coffee shops and cafés.

The growth in the influx of people to urban areas and a substantially large white-collared demographic have brought out an increase in the number of foodservice outlets.

Varied tastes and preferences for different types of premium coffee have further led to the emergence of specialty coffee shops.

Leading café chains such as Starbucks, Costa Coffee, and Dunkin Brands are opening their outlets in many developing economies of Asia and South America.

Technavio’s food and beverage research analysts categorize the global cafés and bars market into the following segments by shop type. They are:

  • Bars and pubs
  • Cafés
  • Specialty coffee shops

Global bars and pubs market

The global bars and pubs market is expected to witness a steady growth rate during the forecast period. The market is affected by the increasing demand for premium drinks, prominence of craft alcohol segment, large-scale mergers and acquisitions, and proper marketing strategies. The market players actively take part in social and digital media platforms to promote and advertise their product offerings.

According to Manjunath Reddy, a lead food service research analyst from Technavio, “The increasing demand for craft alcohol, for example, craft beer is likely to impact the market positively. The volume of alcohol beverages has increased steadily due to the emergence of new wineries, breweries, and distilleries with vast production capacity and the increasing number of newer product varieties.”

Global cafés market

The major growth in the segment comes from the APAC, where many cafés are increasingly being set up across many urban areas, especially in shopping malls. However, these coffee chains find it difficult to compete with the major multinational brands whose expansion plans could affect the growth of the segment during the forecast period.

“A café is an establishment that primarily serves hot coffee, tea, coffee-related beverages, and other non-alcoholic beverages. They also serve cold beverages such as iced coffee and iced tea. The global cafés market is expected to witness a steady growth rate in the coming years. The number of gourmet cafés has seen an exponential rise during the recent times,” adds Manjunath.

Global specialty coffee shops market

There are many drivers contributing to the growth of the global specialty coffee shops market. The primary reason for the growth of the market is the growing consumption of coffee and increasing number of new coffee shops. Also, the rising urbanization and changing consumer lifestyles are driving the market.

Despite the considerable number of growth drivers, the market faces challenges that could impede the growth during the coming years. One of the main reasons is the fluctuating coffee bean prices and disturbances in coffee production due to adverse environmental conditions. Other major challenges are the increasing demand for RTD drinks and the easy availability of specialty coffee through other retail channels.

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