Europe Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe Coffee Market is Segmented by Product Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules​), Distribution Channel (On-trade and Off-trade), and Geography (France, Germany, United Kingdom, Spain, Italy, Russia, and Rest of Europe). The report offers market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

 Europe coffee market Overview
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 3.96 %
 Europe coffee market Key Players

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Market Overview

The Europe coffee market was valued at USD 42.62 billion in 2020 and it is projected to register a CAGR of 3.96% during the forecast period, 2021-2026.

As a consequence of the COVID-19 pandemic, European governments have put measures like social distancing and lockdowns in place. These have had a huge effect on cafés, micro-roasters, restaurants, and other out-of-home outlets. Owing to this factor, the demand for coffee products such as instant coffee and ground coffee has moved to off-trade, which has resulted in enhanced coffee sales in the retail sector. Moreover, since consumers have restored to in-house coffee consumption, there has been an increase in demand for different types of coffee in the region studied.

The European coffee market is driven by multiple factors like the increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by consumers, and constant innovation led by the top players in the coffee market. However, the changing weather conditions play a crucial role in coffee production in countries where production takes place, thus affecting the supply chain for coffee being imported into the European countries.​

The premiumization of whole bean coffee products is driving the coffee market. Major players of the market are trying their best to introduce premium products by utilizing artisanal techniques or using the handpick method to get a premium product, which is increasing the demand. ​

Germany and Spain are the largest coffee-consuming nations of organic and conventional coffee in Europe. Germany is also a major importer of organic coffee in Europe.

Scope of the Report

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain coffee species. By product type, the market is segmented into whole bean, ground coffee, instant coffee, and coffee pods and capsules.​ By distribution channel, the market is segmented into on-trade and off-trade distribution channels​. The off-trade channel is further segmented into convenience stores, specialist retailers, supermarkets/hypermarkets, and other distribution channels. By geography, the market studied is segmented into France, Germany, United Kingdom, Spain, Italy, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Product Type
Whole Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
By Distribution Channel
Convenience Stores
Specialist Retailers
Other Off-trade Channels
United Kingdom
Rest of Europe

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Key Market Trends

Consumer Preference for Premium Coffee Fuels Growth in Specialty Coffee Shops Market

The sharp growth in the premium coffees market has been partly driven by the continuous growth of out-of-home consumption. The coffee shops in European countries are leading the way by introducing sophisticated, high-value varieties to consumers, thereby boosting market growth significantly.

The growing demand for premium coffee is in line with growing consumer interest in how the coffee is brewed, as well as how the crop is grown. It has, therefore, become essential for speciality coffee producers to tell the story behind their coffee, its origin, and its other environmental and social aspects.

In recent years, coffee in the United Kingdom became reliant on coffee shop-driven premiumization. Consumers who had been witnessing rising incomes over the last decade, learned about value-added approaches to coffee at coffee shops. Thus, there was increased appreciation for premium coffee in other foodservice and retail occasions.

The increasing interest in premium coffee is reflected in the growing number of coffee bars and chains, small roasters, small local brands, and baristas across the European region. As per the Centerfor the Promotion of Imports (Europe), the European branded coffee shop market grew by 3.4% in 2019, reaching a total of nearly 38,000 outlets. In 2019, the leading branded coffee shops in Europe were Costa Coffee, Starbucks, and McCafé, with market shares of 8.4%, 7.4%, and 6.8%, respectively. While these large-scale companies do not always offer speciality coffee products, they set a consumer trend for coffee shops and other out-of-home purchases. This consumer trend spills over to smaller and more specialized coffee shops offering high-quality/speciality coffees, thus, indicating potential market growth of the category during the forecast period.

 Europe coffee market Key Trends

Germany Holding a Significant Share in the Coffee Market

Europe has minimal coffee production, and Germany is one of the coffee-producing countries in the region. As per the data published by the CBI Ministry of Foreign Affairs, as an increasing number of Germans are consuming coffee at their homes, coffee shops, and cafes, the on-trade market segment is growing in Germany, thereby increasing the application of various types of coffee products in the country.

Coffee consumption at work is of great prominence in Germany. According to the data published by Beverage Business World in 2019, Germany was the groundbreaker in coffee consumption in office spaces, with a value of EUR 725 million and an average growth of 3% in 2018. Owing to the increasing demand for whole roasted coffee and the ban on coffee pods in government offices in 2016, the key players prefer serving freshly brewed coffee made from whole roasted beans in workplaces. The increasing demand for freshly brewed coffee is pushing the companies to opt for roasted whole beans, thereby reducing the sales of roasted ground coffee in the country. ​

 Europe coffee market Growth by Region

Competitive Landscape

Some of the most active companies operating in the market studied are Starbucks Corporation, Tchibo GmbH, Strauss Group Ltd, Nestle SA, Luigi Lavazza SPA, and JAB Holdings. Companies such as Nestle SA have expanded their production capacity by creating new manufacturing units to capture market share and introduce new varieties of coffee for buyers. ​For instance, in November 2018, Nestle’s Nespresso announced a CHF 43 million investment in the creation of two new production lines in its factory in Romont, Switzerland, to fulfill the increasing demand for the versatile coffee system, Vertuo. This investment was taken to develop new Nespresso machines and Grand Cru coffees, including unique coffees from rare origins.​ Furthermore, the companies are actively investing in online distribution channels, targeting consumers who seek convenience.

Recent Developments

  • In 2019, Nestle launched a new range of coffee products under the Starbucks brand. The new range includes 24 products, including whole bean, roast, and ground, as well as Starbucks capsules developed using Nespresso and Nescafe Dolce Gusto proprietary coffee and system technologies​.
  • in 2020, Nestlé Nespresso SA announced a CHF-160-million investment to expand its Romont production center in Switzerland, to meet the increasing consumer demand for its premium coffees and to support international development in the coming years.
  • In 2020, Maxwell House launched New Zero Waste Single-Serve Coffee Pods. It is made entirely from plant-based materials. All pod components and its inner bag are 100% compostable, plus the outer carton is 100% recyclable, which leaves zero waste for the consumer.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Product Type

      1. 5.1.1 Whole Bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

      4. 5.1.4 Coffee Pods and Capsules

    2. 5.2 By Distribution Channel

      1. 5.2.1 On-trade

      2. 5.2.2 Off-trade

        1. Supermarkets/Hypermarkets

        2. Convenience Stores

        3. Specialist Retailers

        4. Other Off-trade Channels

    3. 5.3 Geography

      1. 5.3.1 United Kingdom

      2. 5.3.2 Germany

      3. 5.3.3 France

      4. 5.3.4 Russia

      5. 5.3.5 Italy

      6. 5.3.6 Spain

      7. 5.3.7 Rest of Europe


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 JAB Holding Company

      2. 6.3.2 Nestle SA

      3. 6.3.3 The Kraft Heinz Company

      4. 6.3.4 J.J. Darboven GmbH & Co. KG

      5. 6.3.5 Strauss Group Ltd

      6. 6.3.6 Melitta Group ​

      7. 6.3.7 Starbucks Corporation

      8. 6.3.8 KRÜGER Gmbh & Co. K

      9. 6.3.9 Luigi Lavazza SpA​

    4. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Europe Coffee Market market is studied from 2016 - 2026.

The Europe Coffee Market is growing at a CAGR of 3.96% over the next 5 years.

Nestlé S.A, Starbucks Corporation, JAB Holding Company, Tchibo, Strauss Group Ltd. are the major companies operating in Europe Coffee Market.

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