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Coffee Market Expected to Keep Percolating

Growth seen, despite proliferation of alternative beverages

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Coca-Cola’s Costa Coffee chain is one of numerous competitors selling java in café settings. Photo: Courtesy of Costa Coffee

The global coffee market is expected to reach $186.37 billion by 2033, up from $121.69 billion in 2024, thanks to such factors as developing coffee cultures among consumers worldwide and rising disposable incomes. Those conclusions are contained in a new report from ResearchAndMarkets.com, with the growth figures cited translating into an annual growth rate of 4.85% from 2025 to 2033.

“The world’s coffee market is dynamic and changing quickly due to rising consumption, shifting consumer tastes and new product developments,” the report notes. “Particularly among younger consumers, specialty coffee, premium blends and convenience-driven forms like ready-to-drink beverages are becoming more and more popular. increased awareness of social and environmental issues is also reflected in the increased demand for coffee that is grown sustainably, organically, and ethically.”

That’s good news for Starbucks, Peet’s, Coca-Cola’s Costa Coffee and other brands that sell most of their product from cafes. Nonetheless, the global coffee market also faces some headwinds, including supply chain disruptions, price volatility and climate change. “Coffee supply and prices can be impacted by a number of factors, including weather, natural disasters, illnesses that harm coffee plants (such coffee rust), and geopolitical difficulties,” the report notes. “Among the top producers of coffee are Brazil, Vietnam, and Colombia; the volume of their output affects market dynamics.”

Another threat to the market is the growing impact of so-called alternative beverages. “Energy drinks, plant-based beverages and other caffeinated substitutes are becoming a bigger threat to the coffee market, especially among younger, health-conscious consumers. Alternatives like oat milk lattes, almond milk cappuccinos, and vegan-friendly coffee options are becoming more and more popular as plant-based diets gain traction because they provide a range of options that appeal to people who eschew dairy or animal products.”

The report also looks at several of the major players in the field, including coffee producers and chains specializing in cafe chains selling java:

  • Starbucks
  • Nescafe
  • The Kraft Heinz Co.
  • Lunchin Coffee
  • JM Smucker
  • Coca-Cola
  • Dutch Bros.
  • Keurig Dr Pepper
  • JDE Peet’s N.V.

Click here for more from the study.

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