Sunday 21 July 2024
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Global specialty coffee shops market to grow at a CAGR of more than 10%

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LONDON, UK – Technavio analysts forecast the global specialty coffee shops market to grow at a CAGR of more than 10% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global specialty coffee shops market for 2017-2021.

The market is segmented based on shop type (independent and chain) and geography (the Americas, EMEA, and APAC).

The primary reasons for the growth of the market are the growing consumption of coffee and increasing number of coffee shops.

The rising urbanization and changing consumer lifestyles also drive the market. One of the trends being witnessed in the market is the growing demand for premium coffee. The increase in promotions will be another major trend in the market during the forecast period.

Technavio food and beverages research analysts highlight the following three factors that are contributing to the growth of the global specialty coffee shops market:

  • Rising consumption of coffee
  • Growing number of specialty coffee shops globally
  • Rising urbanization and changing consumer lifestyles

Rising consumption of coffee

The growing demand for coffee globally will drive the market for specialty coffee shops during the forecast period.

Coffee is the second-most traded commodity in the world after oil. It is cultivated in nearly 45 countries.

Brazil, Vietnam, Indonesia, and Colombia are the leading producers of coffee globally. Coffee is the second-largest beverage segment in the US after soft drinks.

Manjunath Reddy, a lead food service research analyst at Technavio, says, “The coffeehouse industry includes coffee shops that serve hot coffee as their main offering in addition to the cold variants and light snacks.

Coffee variants such as cold-brewed coffee and frozen coffee are expected to witness a high growth rate.”

Growing number of specialty coffee shops globally

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

Varied tastes and preferences for different types of fresh coffee have further led to the emergence of coffee shops, specialty coffee shops, and quick service restaurants.

“Leading coffee shop chains such as Starbucks, Costa, and Dunkin’ Brands Group are opening their outlets in the emerging economies.

The growing popularity of malls and shopping centers has also led to many new players investing substantially in the distribution of coffee through these channels,” adds Manjunath.

Rising urbanization and changing consumer lifestyles

Some of the primary factors driving the global specialty coffee shops market are the expanding global urban population, increasing demand for on-the-go coffee products, and increasing purchasing power parity of the population in emerging countries.

Growing urbanization and consumerism is leading to a rapid rise in the consumption of premium products like specialty coffee.

People are becoming increasingly concerned about the safety of the food and beverages that they consume.

The growing concerns about leading a healthy lifestyle are propelling the demand for organic foods, beverages, and supplements.

This will push companies to use healthy, premium products like specialty coffee and organic coffee, which does not contain harmful ingredients.

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