For a beverage that takes time to brew, the pace of innovation in the coffee industry moves like lighting. So does the market surrounding it. From climate change and supply vulnerability to a new generation of coffee drinkers and their unique consumption rituals, coffee market trends are changing fast.
It’s an exciting and innovative space to play in, but it’s easy to lose track of the market.
That’s why we asked two leading coffee industry experts to share their perspectives on the trends shaping the coffee market. Together, Raphaëlle O’Connor, Founder and CEO of inewtrition, and Felipe Cabrera, Founder and CEO of Ad Astra Coffee Consulting, have 40+ years experience consulting in the Coffee and Beverage space. Read on to discover everything you need to know to drive your coffee product’s innovation.
Looking for a richer take? Check out the video recording of our discussion for extra expert takes on coffee market trends and where they’re heading next.
Introducing the Experts
Raphaëlle O’Connor
Dr. Raphaëlle O’Connor is the Founder & CEO of inewtrition. Her significant experience lies in the ideation, development, and commercialization of food chemistry, food science, and food technology using strategic partnership, collaboration and systematic governance processes. She is an expert in product development, dealing specifically with functional nutrition and consumer health and wellness within food and beverage categories, including creating functional beverages, in numerous international markets. She has supported the implementation of product development projects with Wyeth Nutrition, Nestlé, Pfizer, and Amgen.
Felipe Cabrera
Felipe Cabrera is the Founder and CEO of Ad Astra Consulting, which provides consultancy services for a wide range of topics related to the Chinese coffee market and F&B industry. He comes with a rich background in the coffee industry, with significant experience in building coffee businesses. He has also developed and delivered “right-for-market” products, best-in-class product mix of coffees (blend and single origins), equipment, consulting, training, and after-sales services. Felipe’s prior experience includes Director of Wholesale Coffee at Ocean Grounds Coffee Roasters and at V Coffee, both in Shanghai.
The Coffee Market Is Growing Rapidly
The global coffee market is experiencing significant growth, driven by several key factors.
The coffee market is expected to reach US$96.45 billion in 2025 in terms of at-home consumption (revenue generated in supermarkets and convenience stores). Out-of-home revenue – generated in restaurants and bars – will touch US$376.70 billion in 2025. Combined revenue in 2025 is expected to hit US$473.10 billion. The revenue, at home is expected to grow annually by 2.96% (CAGR 2025-2029).
This significant market size reflects high global demand for coffee, stemming from both established markets in North America and Europe and emerging markets where coffee consumption is growing rapidly.
Several factors contribute to this robust expansion:
Demographic Shifts
- Younger Coffee Drinkers: Consumers are starting to drink coffee at a younger age, with Gen Z beginning around 15 years old, compared to Millennials who started at 18-20 years old.
- Lifestyle Choice: Coffee has become a trendy and versatile beverage, compatible with various flavors and non-dairy milks, making it popular across different age groups and cultures.
Café Culture and Lifestyle
- Emerging Markets: Café culture is growing rapidly, especially in non-drinking emerging markets where coffee is becoming a lifestyle choice.
- Regional Expansion: Countries in Eastern Europe and the Middle East, such as Romania, Lithuania, Slovakia, and Saudi Arabia, are developing strong coffee cultures.
Geographic Growth
- Asia: With 60% of the world’s population and a median age of 31 years, Asia presents significant growth opportunities. Countries like Indonesia, India, the Philippines, Thailand, and Vietnam are notable as both consumers and producers of coffee.
- Check out our deep dive into coffee market trends in Asia here.
Who’s Drinking Coffee?
The demographic landscape of coffee consumers has shifted dramatically. While most adults drink coffee, Millennials and Gen Z drive innovation within the coffee market. These two generations, accounting for 52% of the global population, are crucial consumer bases.
Millennials and Gen Z are the most connected generations, with much of Gen Z never knowing a time without the internet. They are racially and ethnically diverse, exposed to various cultures and tastes, and show a strong preference for sustainable and ethically produced goods.