The demand for global Out-of-home Coffee market is expected to be valued at USD 24.50 Billion in 2025, forecasted at a CAGR of 5.5% to have an estimated value of USD 38.50 Billion from 2025 to 2035. From 2020 to 2025 a CAGR of 4.2% was registered for the market.
The out-of-home coffee market describes the worldwide sales of coffee produced by the HRI (Hotels Restaurants and Institutions) sector. The quantity of coffee consumed at home has increased as a result of many customers placing coffee orders online. Because ready-to-drink coffee is now widely available coffee consumption outside the home has drastically declined.
Out-of-home coffee is becoming more popular among consumers as things become more commonplace. Market participants are incorporating premiumization marketing essential coffee brands new coffee pods and easily accessible coffee into their business operations in order to improve their market positions.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2025E) | USD 24.50 Billion |
| Projected Global Industry Value (2035F) | USD 38.50 Billion |
| Value-based CAGR (2025 to 2035) | 5.5% |
It is anticipated that growing consumer spending power and the popularity of branded coffee shops will open up new market opportunities. It is anticipated that the main factors accelerating the expansion of coffee chains will be the increasing penetration of well-known coffee brands western culture and worldwide exposure.
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Increase in Consumption of Coffee is Driving Market Growth
One of the main factors driving the out-of-home coffee market industry is the global trend of rising coffee consumption. Many customers find the convenience provided by coffee shops outside of their homes to be valuable as their lives become more hectic.
The trend of grabbing a coffee on the go has been expanding quickly due to hectic work schedules and the increased focus on social interactions which frequently center around coffee consumption. Coffee shops cafes and other businesses that serve customers who dont live at home have become more well-liked because they offer not only excellent coffee but also a place for people to socialize.
Expansion in Chains of Coffee Shops is Driving the Market Growth
Significantly driving the growth of the out-of-home coffee market industry is the quick spread of coffee shop chains throughout different regions. Customers are drawn to these stores more and more because of their dependable product offerings as big brands keep opening new locations and bolstering their global footprint.
Coffee consumption fosters a sense of community thanks to the creative drinks and promotions that chains frequently offer. In addition to increasing consumer convenience this expansion increases market growth by making a wide variety of coffee products more accessible.
Rise in Health Consciousness is Driving the Market Growth
The out-of-home coffee market industry is growing as a result of consumers changing coffee consumption habits brought on by growing health consciousness. Many people are looking for coffee options that fit their lifestyles and are healthier as they become more conscious of their dietary choices.
This includes specialty drinks that promote health benefits low-calorie drinks and organic coffee. Consumer satisfaction is increased by the move to healthier options and it also puts out-of-home coffee suppliers in a position to adapt and satisfy changing consumer demands.
During the period 2020 to 2024, the sales grew at a CAGR of 4.2%, and it is predicted to continue to grow at a CAGR of 5.5% during the forecast period of 2025 to 2035.
Working people are adjusting to the new options and evolving lifestyle. They have recently been going to coffee shops to work while sipping coffee. This is explained by a number of things such as the free Wi-Fi and the serene setting.
Additionally, as instant coffee consumption has increased coffee makers have been placed in public spaces like workplaces and neighbourhoods giving customers constant access to a variety of coffee flavors whenever they want.
Additionally, the fact that instant coffee can be made quickly by mixing hot water with the mix has led to an increase in sales. If regularly consumed this coffee high antioxidant content and low caffeine content can improve liver health brain function and metabolism. As a result, instant coffee is quickly overtaking other coffees as the most popular choice among working people worldwide.
Tier 1 companies includes industry leaders acquiring a 60% share in the global business market. These leaders are distinguished by their extensive product portfolio and high production capacity. These industry leaders stand out due to their broad geographic reach, in-depth knowledge of manufacturing and reconditioning across various formats and strong customer base. They offer a variety of services and manufacturing with the newest technology while adhering to legal requirements for the best quality.
Tier 2 companies comprises of mid-size players having a presence in some regions and highly influencing the local commerce and has a market share of 30%. These are distinguished by their robust global presence and solid business acumen. These industry participants may not have cutting-edge technology or a broad global reach but they do have good technology and guarantee regulatory compliance.
Tier 3 companies includes mostly of small-scale businesses serving niche economies and operating at the local presence having a market share of 10%. Due to their notable focus on meeting local needs these businesses are categorized as belonging to the tier 3 share segment, they are minor players with a constrained geographic scope. As an unorganized ecosystem Tier 3 in this context refers to a sector that in contrast to its organized competitors, lacks extensive structure and formalization.
The following table shows the forecasted growth rates of the significant three geographies revenues. USA, Germany and India come under the exhibit of high consumption, recording CAGRs of 4.6%, 5.5% and 6.2%, respectively, through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| United States | 4.6% |
| Germany | 5.5% |
| India | 6.2% |
With a market share of about 80% for coffee sold outside the home the nation is well-positioned to offer the most opportunities in the coming ten years. This is explained by consumers in the North American region drinking more coffee with their breakfasts. During the assessment period (2025 to 2035) this is anticipated to increase out-of-home coffee sales.
Over time India’s working population has been persuaded to alter their preferences due to their changing lifestyles and increasingly hectic schedules. As a result, consumers have been consuming more instant coffee in recent years. In the upcoming years this is expected to raise demand for coffee consumed outside the home. Furthermore, by the end of 2035 India is anticipated to hold the largest market share in South Asia.
Given that Germany produces about 36% of all green coffee bean imports into Europe it is anticipated that Germany will be the nation with the highest coffee consumption. Europe has the biggest coffee market in the world which is explained by the enormous amount of coffee consumed there per person. It is anticipated that this will raise demand in the local market for coffee purchased outside the home.
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| Segment | Value Share (2025) |
|---|---|
| Indirect Channel (Distribution Channel) | 37% |
Given the high consumption of coffee beans from hypermarkets and supermarkets the indirect channel is anticipated to exhibit a larger market value share than the direct channel in the out-of-home coffee market. It is anticipated to maintain its strong growth trajectory from 2025 to 2035.
| Segment | Value Share (2025) |
|---|---|
| Instant Coffee (Product Type) | 45% |
In the upcoming years there will probably be a sharp increase in demand for coffee consumed outside the home due to the recent coffee culture trend in developing nations like China and India which is caused by shifting lifestyles and hectic schedules. A greater number of consumers have been drawn to different out-of-home coffee flavors like cappuccino latte and green coffee. Additionally, it is anticipated that by the end of 2035 instant coffee will have a larger market share than any other product type.
Due to a shift in consumer preferences toward convenience and quality the out-of-home coffee market is expanding significantly. More people are looking for high-end coffee experiences outside of their homes which is driving numerous brands to develop and engage in intense competition for consumers attention. Traditional coffee companies newcomers and specialty brands all aim to satisfy the changing preferences of contemporary coffee consumers defining the competitive landscape.
Further complicating the market dynamics are elements like the growth of café culture advancements in brewing technology and an increasing focus on sustainability. Speciality blends ethical sourcing and creative packaging are just a few of the unique selling points that brands are emphasizing in order to influence consumer loyalty and choices. With its focus on brand recognition and product quality Mondelez International has established a significant presence in the out-of-home coffee market.
By packaging industry has been categorized into Bags, Tetra Packs, Cans, Pods and Bottles
By product type industry has been categorized into Ground Coffee, Coffee Beans, Instant Coffee, Ready-to-Drink Coffee and Coffee Pods
By distribution channel industry has been categorized into Indirect Channel, Supermarkets, Convenience Stores, Food Service Outlets and Specialty Coffee Shops
Industry analysis has been carried out in key countries of North America; Europe, Middle East, Africa, ASEAN, South Asia, Asia, New Zealand and Australia
The market is expected to grow at a CAGR of 5.5% throughout the forecast period.
By 2035, the sales value is expected to be worth USD 38.50 Billion.
Growing demand for coffee is increasing demand for Out-of-home Coffee.
North America is expected to dominate the global consumption.
Some of the key players in manufacturing include Illy, Lavazza, Nestle, Pellini and more.
| Estimated Industry Size (2025E) | USD 741.2 million |
|---|---|
| Projected Industry Value (2035F) | USD 1,272.4 million |
| Value-based CAGR (2025 to 2035) | 5.6% |
| Expected Market Value (2023) | USD 281.2 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 417.0 million |
| Projected Growth Rate (2023 to 2033) | 4.0% CAGR |
| Market Value (2022) | USD 90.28 Billion |
|---|---|
| Market Value (2032) | USD 137.81 Billion |
| Market CAGR (2022 to 2032) | 4.32% |
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