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The Global Cafes and Bars Market size is estimated to grow by USD 52.54 billion, accelerating at a CAGR of 3.8% between 2023 and 2027.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Age Group (adults, adolescents, and geriatric), Service (facial treatment, body shaping, tattoo removal, etc.), and Geography (Europe, APAC, North America, South America, Middle East, and Africa). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2021.
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The increasing number of cafes is a key factor driving the cafes and bars market growth. The growing trend of urban youth socializing in cafes is set to drive the market. With over 56% of the global population in urban areas, a 1.2 million km2 increase in urban built-up areas is projected by 2030. This urbanization, coupled with a significant white-collar demographic, has led to a surge in specialty coffee shops. Major cafe chains like Starbucks Corp. and Dunkin Brands Group Inc. are expanding in developing economies, with Starbucks reporting an 8% increase in global store count to 18,416 in October 2022.
The market is also influenced by the rise of coffee chains offering products like iced coffee, particularly appealing to the youth demographic. Infrastructure growth in countries like India, Indonesia, Iran, and Iraq provides opportunities for coffee chains. Increased travel has contributed to higher coffee intake, fueling the global cafes and bars market growth.
The demand for innovation and customization in food menus is a key major cafes and bars market trend. Consumers, particularly millennials, are seeking unique and bold flavor combinations in food, driving demand for innovative and exotic options. The desire for customizable meals, catering to daily calorie intake, is evident, with examples like Shake Shack's customizable Chick'n Shack chicken sandwich. This trend, fueled by factors like medical needs, food allergies, and weight reduction plans, emphasizes the importance of aligning food choices with individual tastes. Achieving the right flavor profile not only satisfies consumers but also encourages repeat visits, contributing to the expected growth of the global cafes and bars market.
The threat from the rising popularity of home-cooked meals is a key challenge hindering the market growth. Some individuals favor homemade meals over restaurant dining due to concerns about the perceived unhealthiness of restaurant food, which often contains high levels of carbs, added sugar, salt, unhealthy fats, and artificial additives. This increases the risk of diseases like heart problems, diabetes, and obesity. Additionally, homemade meals are more cost-effective than dining out, and they offer greater nutritional value with fresh, hygienic ingredients. This shift towards healthier home cooking poses a potential threat to the growth of the global cafes and bars market, especially among health-conscious consumers like millennials and baby boomers.
The cafes and bars market share growth by the beverages segment will be significant during the forecast period. The beverage segment includes the sales of hot and cold beverages like coffee, tea, and alcoholic beverages such as tequila, whiskey, and cognac. The major driving factor is the increasing demand for speciality and premium hot beverages like coffee.
Cafes and Bars Market
By Product
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The beverages segment was valued at USD 171.77 billion in 2017 and continued to grow until 2021. Rapid growth for naturally sweetened beverages is also driving the demand. Carbonated drinks sweetened with cane sugar (for example, Coca-Cola Life) are becoming more popular in the US and UK markets. Consumers are becoming interested in carbonated soft drinks flavored with tropical flavors such as passion fruit, pineapple, and mango. As a result, suppliers are developing new items, such as tropical flavors. Such factors are expected to drive the growth of the beverage segment of the global cafes and bars market during the forecast period.
Europe is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Cafes and Bars Market
By Europe
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In Europe, snacks and mini-meals commonly consist of light options like tacos, sandwiches, donuts, and milkshakes, allowing for convenient on-the-go consumption. In the UK and Germany, consumers show a preference for stuffed and topped light food products, such as apple pie with vegan cream and cookies. For example, vendors in European cafe and bar markets offer donuts filled with custard and topped with toffee or filled with apple pie and caramel sauce. These innovative product offerings are anticipated to drive food sales in European cafes and bars.
In 2020-2021, the COVID-19 outbreak significantly impacted European countries, leading to widespread restrictions and closures of cafes and bars. Extended lockdowns in major markets, including the UK, France, and Germany, resulted in a decline in the cafes and bars market. Governments implemented measures like reducing VAT to support the hospitality sector. With widespread vaccinations in 2021, many pubs and bars resumed operations, driving demand for beverages and food. As safety measures were implemented and disposable income stabilized, the European cafes and bars market is expected to grow during the forecast period.
In 2022, the Russia-Ukraine war negatively impacted the regional cafes and bars market. Ongoing conflicts led to supply chain disruptions, higher raw material prices, and shortages of coffee, dairy, and other essentials. Sanctions and Russia's exclusion from the SWIFT system affected market vendors. The global increase in oil and fuel prices due to the war further escalated production and transportation costs. These factors are expected to hinder the growth of the global cafes and bars market, including Europe, in the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The cafes and bars market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Cafes And Bars Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2018 - 2022 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.8% |
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Market growth 2023-2027 |
USD 52.54 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.85 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 46% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Berkshire Hathaway Inc., BJs Restaurants Inc., Brinker International Inc., Caffe Nero Group Ltd., Caribou Coffee Operating Co. Inc., Coffee Day Enterprises Ltd., Doutor Coffee Co. Ltd., Ediya Co. Ltd., JAB Holding Co. Sarl, Jollibee Foods Corp., Luigi Lavazza SpA, McDonald Corp., Red Robin Gourmet Burgers Inc., Restaurant Brands International Inc., Starbucks Corp., Stonegate Pub Co. Ltd., The Coca Cola Co., Whitbread Plc, YUM Brands Inc., and Inspire Brands Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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