Europe's Coffee Market Set to Reach $64.43 Billion by 2032 Driven by Premium Trends and Expanding Coffee Culture
Europe remains the world's largest market for green coffee, driven by several factors, including a growing demand for certified coffee products, the popularity of single-serve brewing systems, and ongoing innovation by leading industry players. However, changing weather conditions in coffee-producing regions continue to impact the supply chain for European imports.
The European Coffee Federation highlights that Europe accounted for 31% of global coffee consumption in 2022, making it a key player in the global coffee industry. The European Union, in particular, boasts the highest per capita coffee consumption globally, although this varies by country. Western Europe, with its deep-rooted coffee culture, continues to see coffee as an integral part of daily life.
The market's growth is further bolstered by the proliferation of new coffee shops, the expansion of coffee chains, and the increasing adoption of coffee machines for home brewing. According to Project Cafe Europe 2022, the European coffee chain market expanded by 3.2% last year, reaching 40,675 outlets.
Rising Demand for Premium and Specialty Coffee
European consumers are increasingly inclined to pay a premium for high-quality coffee, reflecting a broader trend towards gourmet and artisanal products. The out-of-home coffee consumption segment, in particular, has driven the sharp increase in the premium coffee market. Coffee shops across Europe are at the forefront of this trend, offering sophisticated, high-value coffee varieties that are significantly boosting market growth.
The demand for premium coffee is also tied to growing consumer interest in the origin and production methods of their coffee. Specialty coffee producers are increasingly focusing on storytelling around the coffee's origin, environmental impact, and social aspects to appeal to this discerning market.
Surge in Espresso Coffee Popularity
Espresso coffee continues to gain popularity across Europe, thanks to its affordability, nutritional benefits, long shelf life, and convenience. The market for espresso coffee is expanding, driven by new competitors and lower prices. Additionally, the trend of blending espresso with other beverages is contributing to its growth.
In Turkey, Espressolab has capitalized on this trend by launching Europe's largest coffee experience center in 2022, combining a coffee shop, roasting facility, workshop, and bakery under one roof.
Germany Leading the European Coffee Market
Germany stands out as the largest coffee market in Europe, followed by Italy and Belgium. The demand for freshly brewed coffee is rising, driven by the growing popularity of specialty coffee and freshly ground coffee pods. This trend is supported by the increasing number of specialty coffee shops, office coffee consumption, and home brewing practices.
Germany also serves as Europe's largest importer of coffee and a key trade hub for green coffee, with an annual re-exportation of 168,000 tonnes. The country's coffee market continues to innovate, with brands like Peet's Coffee introducing dairy-free and vegan coffee bars to cater to evolving consumer preferences.
