Specialty Coffee Shops Market by Type and Geography - Forecast and Analysis 2021-2025

  • Published: Nov 2021
  • Pages: 120
  • SKU: IRTNTR40972
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The specialty coffee shops market share is expected to increase by USD 64.82 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 13.62%.

This specialty coffee shops market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by type (independent coffee shops and chain coffee shops) and geography (North America, Europe, APAC, MEA, and South America). The specialty coffee shops market report also offers information on several market vendors, including Barista Coffee Co. Ltd., Brew Berrys Hospitality Pvt Ltd., Caffe Nero Group Ltd., Coffee Day Enterprises Ltd., Costa Ltd., Inspire Brands Inc., McDonald Corp., MTY Food Group Inc., Restaurant Brands International Inc., and Starbucks Coffee Company among others.

What will the Specialty Coffee Shops Market Size be During the Forecast Period?

Download the Free Report Sample to Unlock the Specialty Coffee Shops Market Size for the Forecast Period and Other Important Statistics

 

Specialty Coffee Shops Market: Key Drivers and Trends

The increasing consumption of coffee is notably driving the specialty coffee shops market growth, although factors such as fluctuating prices of coffee beans may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the specialty coffee shops industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Specialty Coffee Shops Market Driver

One of the key factors driving growth in the specialty coffee shops market is the increasing consumption of coffee. Coffee is the second-most traded commodity in the world after oil, and the demand for coffee has been increasing at a significant rate in recent years. The cultivation of coffee is limited to 45 countries globally, with countries such as Brazil, Vietnam, Indonesia, and Colombia being the leading producers of coffee. The growing popularity and the easy availability of coffee are expected to increase its demand. For instance, the demand for coffee pods has been increasing at a significant rate in the US owing to its easy brewing and the convenience it offers to brew coffee at home. This has resulted in an increased preference of consumers for coffee. The increasing demand for coffee has resulted in an increased growth opportunity for the vendors in the market. This is also leading to the vendors focusing on product diversification, the introduction of new flavors, and brand extensions to increase earnings. The consumption of coffee in developing countries such as China, India, and Brazil has also been increasing at a significant rate. As a result, the increasing consumption of coffee worldwide is expected to drive the demand for specialty coffee shops during the forecast period.

Key Specialty Coffee Shops Market Trend

The increasing popularity of coffee among millennials is another major factor supporting the specialty coffee shops market share growth. Rising affluence and changing consumer tastes have increased the demand for high-quality and specialized coffee products such as flavored coffee, particularly among the younger generation. An improvement in economic conditions and an increase in job opportunities have made different types of coffee more affordable for young consumers. Millennials tend to spend more on premium beverage brands than the rest of the population. They are also keen to experiment with new drink types, brands, and flavors. Manufacturers, therefore, strive to understand the tastes and preferences of millennials and target many offerings in this generation.

Key Specialty Coffee Shops Market Challenge

The fluctuating prices of coffee beans will be a major challenge for the specialty coffee shops market vendors. Various factors such as disparity in demand and supply of coffee beans, decreased production of coffee beans, unfavorable weather conditions, and rising labor costs are leading to volatility in coffee prices. The increase in the price of raw materials not only increases the cost but also reduces manufacturers' profit margins. Furthermore, increasing competition in the market between the vendors is resulting in them operating on low-profit margins despite the increasing costs of raw materials. This factor, along with the need to remain competitive in the market, influences manufacturers to experiment with low-cost substitutes such a low-grade coffee beans and instant coffee powder. The fluctuating prices of coffee beans are expected to limit the growth of the global specialty coffee shops market.

This specialty coffee shops market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Dynamics

The global specialty coffee shops market is a part of the global restaurants market. The global restaurants market was valued at $2,236.55 billion in 2020. The global specialty coffee shops market was a fragmented industry that was in a phase of growth in 2020. By 2025, the market structure would continue to be fragmented. Its lifecycle stage would continue to be in the growth phase.

Who are the Major Specialty Coffee Shops Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • Barista Coffee Co. Ltd.
  • Brew Berrys Hospitality Pvt Ltd.
  • Caffe Nero Group Ltd.
  • Coffee Day Enterprises Ltd.
  • Costa Ltd.
  • Inspire Brands Inc.
  • McDonald Corp.
  • MTY Food Group Inc.
  • Restaurant Brands International Inc.
  • Starbucks Coffee Company

 

This statistical study of the specialty coffee shops market encompasses successful business strategies deployed by the key vendors. The specialty coffee shops market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

  • Barista Coffee Co. Ltd-The company distributes coffee and related products. The company operates coffee cafes and serves customers throughout India.
  • Brew Berrys Hospitality Pvt Ltd-The company offers coffee bars and teas in their outlets.
  • Caffe Nero Group Ltd-The company offers food products such as skimmed milk, vanilla syrup, coffee, cakes, muffins, sandwiches, and snacks. The company also offers a chain of coffee shops.
  • Coffee Day Enterprises Ltd-The company offers coffees and tea in their franchise outlets.
  • Costa Ltd-The company operates a chain of coffee shops and offers products such as coffee, paninis, bread and butter, wraps, toasties, cakes, pastries, snacks, fruit, and yogurt.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market in focus during the forecast period.

Stock Images Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the specialty coffee shops market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Services
  • Support activities
  • Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Specialty Coffee Shops Market?

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41% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for specialty coffee shops in North America. Market growth in this region will be faster than the growth of the market in the European and South American regions.

Customization is a key element that numerous customers in North America, especially millennials, look for. Specialty coffee shops offer the option to customize coffee or other beverages as per customers' preferences. This will facilitate the specialty coffee shops market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The rising number of deaths from COVID-19 has led to a lockdown in several countries, including the US, Canada, and Mexico. As a result, manufacturing units have been closed. However, the growing popularity of pickup stores and app-based technologies has caused a significant rise in coffee consumption in North America. Vendors such as Starbucks are planning to roll out their new pickup store concept, powered by mobile ordering, in response to the coronavirus pandemic. This will expand access to curbside pickup, drive-thru, and walk-up counters in less dense suburban markets. Factors such as these will lead to an increase in the number of specialty coffee shops.

What are the Revenue-generating Type Segments in the Specialty Coffee Shops Market?

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The specialty coffee shops market share growth by the independent coffee shops segment will be significant during the forecast period. The growth of the segment is expected to result primarily from a growth in the number of gourmet coffee shops globally. The growing popularity of gourmet coffee shops among the urban population is resulting in the vendors expanding their business to cater to the population in developed countries.

This report provides an accurate prediction of the contribution of all the segments to the growth of the specialty coffee shops market size and actionable market insights on post COVID-19 impact on each segment.

 

Specialty Coffee Shops Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 13.62%

Market growth 2021-2025

$ 64.82 billion

Market structure

Fragmented

YoY growth (%)

12.08

Regional analysis

North America, Europe, APAC, MEA, and South America

Performing market contribution

North America at 41%

Key consumer countries

US, UK, China, Canada, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Barista Coffee Co. Ltd., Brew Berrys Hospitality Pvt Ltd., Caffe Nero Group Ltd., Coffee Day Enterprises Ltd., Costa Ltd., Inspire Brands Inc., McDonald Corp., MTY Food Group Inc., Restaurant Brands International Inc., and Starbucks Coffee Company

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 the forecast period

Customization purview

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What are the Key Data Covered in this Specialty Coffee Shops Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive specialty coffee shops market growth during the next five years
  • Precise estimation of the specialty coffee shops market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the specialty coffee shops industry across North America, Europe, APAC, MEA, and South America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of specialty coffee shops market vendors

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1. Executive Summary                           

2. Market Landscape                             

                2.1 Market ecosystem             

                                Exhibit 01:  Parent market

                2.2 Market Characteristics      

                                Exhibit 02:  Market Characteristics

                2.3 Value chain analysis           

                                Exhibit 03:  Value Chain Analysis: Restaurant market

                                2.3.1 Inputs 

                                2.3.2 Inbound logistics

                                2.3.3 Operations

                                2.3.4 Outbound logistics

                                2.3.5 Marketing and sales 

                                2.3.6 Service 

                                2.2.7    Support activities

                                2.2.8    Innovation

3. Market Sizing                       

                3.1 Market definition

                                Exhibit 04:  Offerings of vendors included in the market definition

                3.2 Market segment analysis 

                                Exhibit 05:  Market segments

                3.3 Market size 2020 

                3.4 Market outlook: Forecast for 2020 - 2025 

                                Exhibit 06:  Global - Market size and forecast 2020 - 2025 ($ billion)

                                Exhibit 07:  Global market: Year-over-year growth 2020 - 2025 (%)

4. Five Forces Analysis                          

                4.1 Five Forces Summary        

                                Exhibit 08: Five forces analysis 2020 & 2025

                4.2 Bargaining power of buyers           

                4.3 Bargaining power of suppliers       

                4.4 Threat of new entrants    

                4.5 Threat of substitutes         

                4.6 Threat of rivalry   

                4.7 Market condition

                                Market condition - Five forces 2020

5. Market Segmentation by Type                     

                The segments covered in this chapter are:

  • Independent coffee shops
  • Chain coffee shops

The segments have been ranked based on their market size in 2020. The Independent coffee shops segment constituted the largest segment in 2020, while the smallest segment was Chain coffee shops.

                5.1 Market segments

                                Exhibit 15:  Type - Market share 2020-2025 (%)

                5.2 Comparison by type           

                                Exhibit 16:  Comparison by Type

                5.3     Independent coffee shops - Market size and forecast 2020-2025 

                                Exhibit 17:  Independent coffee shops - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 18:  Independent coffee shops - Year-over-year growth 2020-2025 (%)

                5.4     Chain coffee shops - Market size and forecast 2020-2025               

                                Exhibit 19:  Chain coffee shops - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 20:  Chain coffee shops - Year-over-year growth 2020-2025 (%)

                5.5     Market opportunity by Type       

                                Exhibit 21:  Market opportunity by Type

6. Customer landscape                         

Technavio’s customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria

                                Exhibit 22:  Customer landscape

7. Geographic Landscape                     

                The regions covered in the report are:

  • North America
  • Europe
  • APAC
  • MEA
  • South America

North America was the largest region of the market in 2020 and would continue to be the largest segment of the market in 2025. It would grow at a compounded annual growth rate of 12.84% between 2020 and 2025, which is slower than the overall market. North America would be the third-fastest growing region within the overall market and would grow from $32 billion in 2020 to $58.55 billion in 2025. North America would contribute 40.96% of the incremental growth in the overall market between 2020 and 2025.

                7.1 Geographic segmentation

                                Exhibit 23:  Market share by geography 2020-2025 (%)

                7.2 Geographic comparison   

                                Exhibit 24: Geographic comparison

                7.3 North America - Market size and forecast 2020-2025​          

                                Exhibit 25: ​North America - Market size and forecast 2020-2025 ($ billion)​

                                Exhibit 26: ​North America - Year-over-year growth 2020-2025 (%)

                7.4 Europe - Market size and forecast 2020-2025          

                                Exhibit 27: ​Europe - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 28: ​Europe - Year-over-year growth 2020-2025 (%)

                7.5 ​APAC - Market size and forecast 2020-2025             

                                Exhibit 29: ​APAC - Market size and forecast 2020-2025 ($ billion)​

                                Exhibit 30: APAC - Year-over-year growth 2020-2025 (%)

                7.6 MEA - Market size and forecast 2020-2025               

                                Exhibit 31: MEA - Market size and forecast 2020-2025 ($ billion)​

                                Exhibit 32: MEA - Year-over-year growth 2020-2025 (%)

                7.7 South America - Market size and forecast 2020-2025          

                                Exhibit 33: South America - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 34: South America - Year-over-year growth 2020-2025 (%)

                7.8 Key leading countries        

                                Exhibit 35: Key leading countries

                7.9     Market opportunity by geography           

                                Exhibit 36:  Market opportunity by geography ($ billion)

8. Drivers, Challenges, and Trends                   

                8.1 ​Market drivers     

                                8.1.1    Increasing consumption of coffee

                                8.1.2    Growing number of specialty coffee shops globally

                                8.1.3    Rapid urbanization and changing consumer lifestyles

                8.2 Market challenges              

                                8.2.1    Fluctuating prices of coffee beans

                                8.2.2    Impact of weather on coffee production

                                8.2.3    Growing popularity of RTD beverages

                                Exhibit 37: Impact of drivers and challenges

                8.3 Market trends      

                                8.3.1    Increasing popularity of coffee among millennials

                                8.3.2    Growing demand for premium and specialty coffee

                                8.3.3    Promotion strategies by vendors to increase coffee consumption

9. Vendor Landscape                             

                9.2 Vendor landscape               

                                Exhibit 38: Vendor landscape

                9.3 Landscape disruption        

The potential for the disruption of the market landscape was moderate in 2020, and its threat is expected to remain unchanged by 2025. 

                                Exhibit 39: ​Landscape disruption​

                9.4 Industry risks        

                                Exhibit 40: Industry risks

10. Vendor Analysis               

                10.1 Vendors covered              

                                Exhibit 41: Vendors covered

                10.2 Market positioning of vendors    

                                Exhibit 42: ​Market positioning of vendors​

                10.3  Barista Coffee Co. Ltd.  

                                Exhibit 43:  Barista Coffee Co. Ltd. - Overview

                                Exhibit 44:  Barista Coffee Co. Ltd. - Product and service

                                Exhibit 45:  Barista Coffee Co. Ltd. - Key offerings

                10.4  Brew Berrys Hospitality Pvt Ltd.

                                Exhibit 46:  Brew Berrys Hospitality Pvt Ltd. - Overview

                                Exhibit 47:  Brew Berrys Hospitality Pvt Ltd. - Product and service

                                Exhibit 48:  Brew Berrys Hospitality Pvt Ltd. - Key offerings

                10.5  Caffe Nero Group Ltd.   

                                Exhibit 49:  Caffe Nero Group Ltd. - Overview

                                Exhibit 50:  Caffe Nero Group Ltd. - Product and service

                                Exhibit 51:  Caffe Nero Group Ltd. - Key offerings

                10.6  Coffee Day Enterprises Ltd.         

                                Exhibit 52:  Coffee Day Enterprises Ltd. - Overview

                                Exhibit 53:  Coffee Day Enterprises Ltd. - Business segments

                                Exhibit 54:  Coffee Day Enterprises Ltd. - Key offerings

                                Exhibit 55:  Coffee Day Enterprises Ltd. - Segment focus

                10.7  Costa Ltd            

                                Exhibit 56:  Costa Ltd. - Overview

                                Exhibit 57:  Costa Ltd. - Product and service

                                Exhibit 58:  Costa Ltd. - Key offerings

                10.8  Inspire Brands Inc.          

                                Exhibit 59:  Inspire Brands Inc. - Overview

                                Exhibit 60:  Inspire Brands Inc. - Product and service

                                Exhibit 61:  Inspire Brands Inc. - Key offerings

                10.9  McDonald Corp

                                Exhibit 62:  McDonald Corp. - Overview

                                Exhibit 63:  McDonald Corp. - Product and service

                                Exhibit 64:  McDonald Corp. - Key offerings

                10.10 MTY Food Group Inc.    

                                Exhibit 65:  MTY Food Group Inc. - Overview

                                Exhibit 66:  MTY Food Group Inc. - Business segments

                                Exhibit 67:  MTY Food Group Inc. - Key offerings

                                Exhibit 68:  MTY Food Group Inc. - Segment focus

                10.11 Restaurant Brands International Inc.      

                                Exhibit 69:  Restaurant Brands International Inc. - Overview

                                Exhibit 70:  Restaurant Brands International Inc. - Business segments

                                Exhibit 71:  Restaurant Brands International Inc. - Key offerings

                                Exhibit 72:  Restaurant Brands International Inc. - Segment focus

                10.12 Starbucks Coffee Company       

                                Exhibit 73:  Starbucks Coffee Company - Overview

                                Exhibit 74:  Starbucks Coffee Company - Business segments

                                Exhibit 75:  Starbucks Coffee Company - Key offerings

                                Exhibit 76:  Starbucks Coffee Company - Segment focus

11. Appendix                            

                11.1 Scope of the report         

                                11.1.1 ​​​​Market definition

                                11.1.2 ​​​​Objectives

                                11.1.3 ​​​​Notes and caveats

                11.2 Currency conversion rates for US$            

                                Exhibit 77: ​Currency conversion rates for US$​

                11.3 Research Methodology 

                                Exhibit 78: ​Research Methodology

                                Exhibit 79: ​​Validation techniques employed for market sizing​

                                Exhibit 80: ​​Information sources

                11.4 List of abbreviations        

                                Exhibit 81: List of abbreviations

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.

TechnavioINFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases
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TechnavioDATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts
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TechnavioREPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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The specialty coffee shops market growth will increase by $64.82 billion during 2020-2025.
The specialty coffee shops market is expected to grow at a CAGR of 13.62% during 2020-2025.
Technavio has segmented the specialty coffee shops market by type (Independent coffee shops and Chain coffee shops) ,other1 volume (Independent coffee shops and Chain coffee shops) , and geographic (North America, Europe, APAC, MEA, and South America).
Barista Coffee Co. Ltd., Brew Berrys Hospitality Pvt Ltd., Caffe Nero Group Ltd., Coffee Day Enterprises Ltd., Costa Ltd., Inspire Brands Inc., McDonald Corp., MTY Food Group Inc., Restaurant Brands International Inc., Starbucks Coffee Company are a few of the key vendors in the specialty coffee shops market.
North America will register the highest growth rate of 40.96% among the other regions. Therefore, the specialty coffee shops market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the specialty coffee shops market growth are:
  • Increasing consumption of coffee
The specialty coffee shops market vendors should focus on grabbing business opportunities from the independent coffee shops segment as it accounted for the largest market share in the base year.
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