The coffee franchise market has surged significantly, growing from $96.6 billion in 2023 to $105.83 billion in 2024, reflecting a robust compound annual growth rate (CAGR) of 9.5%. This growth is largely driven by the expansion of coffee culture, increasing disposable incomes, urbanization, globalization, the rise of specialty coffee, expansion of retail spaces, and growth in tourism and travel. The market is projected to continue its upward trajectory, reaching $152.97 billion by 2028 at a CAGR of 9.7%. This anticipated growth is fueled by emerging markets, health and wellness trends, sustainability and ethical sourcing, digital marketing, loyalty programs, co-branding partnerships, and the convenience-driven demand for on-the-go consumption. Key trends include the adoption of automation and robotics in cafes, mobile ordering and payment apps, AI-driven personalized experiences, sustainable practices, blockchain for supply chain transparency, innovative brewing techniques, and augmented and virtual reality experiences.
Major Driver In The Coffee Franchise Market
The coffee franchise market is poised for significant growth driven by the expanding coffee culture. With an increasing number of specialty coffee shops and global coffeehouse chains, coupled with a rising appreciation for gourmet coffee influenced by social media, coffee franchises play a pivotal role. As reported by the International Coffee Organization in December 2023, world coffee production rose by 0.1% to 168.2 million bags for the 2022–2023 coffee year, with expectations for a 5.8% increase to 178.0 million bags in 2023–24. This vibrant coffee culture is undoubtedly propelling the coffee franchise market forward.
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Coffee Franchise Market Competitive Landscape
Starbucks Corporation, McDonald's Corporation, Luigi Lavazza S.p.A., Tim Hortons Inc., Philz Coffee Inc., Costa Limited, Dunkin' Brands Group Inc., Scooter's Coffee LLC, Dutch Bros Coffee LLC, The Second Cup Ltd., Peet's Coffee Inc., Black Rock Coffee Bar LLC, Caribou Coffee Company Inc., Gloria Jean's Coffees International Pty. Ltd., Ballard Brands LLC, Nescafe Coffee Shop, Caffè Nero Group Ltd., Coffee Republic Ltd., Tully's Coffee Corporation, Ziggi’s Coffee LLC, Ellianos Coffee Company, Frespresso Hospitality Pvt Ltd, International Coffee And Tea LLC, The Human Bean, Xpresso Delight LLC
Key Coffee Franchise Market Trend
Major players in the coffee franchise market are enhancing customer convenience and accessibility by incorporating innovative services, such as drive-thru stores, to cater to the increasing demand for quick and efficient service. Drive-thru outlets enable customers to purchase coffee without leaving their vehicles, providing a seamless and time-saving experience. For instance, in December 2023, Arabica Ltd., a Japan-based coffee chain, inaugurated its first drive-thru store in Asia at Golf Island PIK in Jakarta, Indonesia. This new store, located at the PIK Icon roundabout, features a decaffeinated coffee variant to serve customers sensitive to caffeine and offers an effortless ordering process through its innovative drive-thru concept, aligning with Indonesia’s vibrant coffee culture.
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Coffee Franchise Market Segmentation
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
By Geography:The regions covered in the coffee franchise market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the coffee franchise market in 2023.
The Coffee Franchise Global Market Report 2024 furnishes information about the global coffee franchise market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
