What Is The Definition Of The Global Coffee Franchise Market?
A coffee franchise refers to a business model where an individual or group (the franchisee) is granted the rights by a larger company (the franchisor) to operate a coffee shop or chain of coffee shops under the franchisor's brand name, using its established business practices, trademarks, and systems. This arrangement allows the franchisee to benefit from the brand recognition, marketing strategies, operational support, and proven business model of the franchisor while the franchisor expands its market presence and brand reach without directly managing additional locations.
Coffee Franchise Global Market Report 2024 provides data on the global coffee franchise market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The coffee franchise market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Coffee Franchise Size Expected To Change, And What Are The Growth Rate Projections?
The coffee franchise market has seen strong growth, increasing from $96.6 billion in 2023 to $105.83 billion in 2024 at a CAGR of 9.5%. Historical growth has been driven by the rise of coffee culture, increased disposable incomes, urbanization, globalization, specialty coffee trends, expanded retail spaces, and tourism. The market is expected to grow to $152.97 billion by 2028 at a CAGR of 9.7%. Future growth drivers include emerging markets, health and wellness trends, sustainability initiatives, digital marketing strategies, loyalty programs, co-branding partnerships, and demand for convenience. Key trends include automation and robotics in cafes, mobile ordering, personalized customer experiences through AI, sustainable practices, blockchain integration for supply chain transparency, innovative brewing techniques, and augmented and virtual reality experiences.
Which Drivers Are Accelerating Growth In The Coffee Franchise Market?
The proliferation of coffee culture is expected to boost the coffee franchise market. Coffee culture encompasses the social and cultural practices surrounding coffee consumption, driven by the rise of specialty coffee shops, the expansion of global coffeehouse chains, and the growing appreciation for gourmet coffee. Coffee franchises play a vital role in meeting this demand by offering consistent and high-quality coffee experiences. The International Coffee Organization reported in December 2023 that global coffee production for the 2023–2024 coffee year is expected to grow by 5.8% to 178 million bags. This growth underscores the expanding demand for coffee and the role of franchises in shaping coffee culture.
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What Are The Core Segments Of The Global Coffee Franchise Market?
The coffee franchise market covered in this report is segmented –
1) By Cuisine: Lunch, Brunch, Coffee And Bar
2) By Delivery Type: Dine-In, Dine-Out
3) By Application: Café Franchises, Espresso Franchises
Which Emerging Trends Are Reshaping The Coffee Franchise Market?
Key players in the coffee franchise market are focusing on customer convenience with innovations like drive-thru stores, which make purchasing coffee faster and easier. These stores allow customers to order without leaving their vehicles, streamlining the process. For instance, in December 2023, Arabica Ltd., a Japan-based coffee chain, opened its first drive-thru store in Asia at Golf Island PIK in Jakarta, Indonesia. The store features a seamless drive-thru concept and offers a decaffeinated coffee variant to cater to caffeine-sensitive customers, enhancing accessibility within Indonesia's vibrant coffee culture.
What Is The Largest Region In The Coffee Franchise Market?
Asia-Pacific was the largest region in the coffee franchise market in 2023. The regions covered in the coffee franchise market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
