Espresso Coffee Sales Market Outlook

The global espresso coffee market is projected to reach approximately USD 24 billion by 2035, exhibiting a robust compound annual growth rate (CAGR) of 6.8% from 2025 to 2035. This growth can be attributed to the increasing consumer preference for premium coffee beverages, the rise in coffee culture, and the growing number of specialty coffee shops. Additionally, the convenience of espresso coffee in various forms, such as pods and ready-to-drink options, is driving the demand for espresso products. Furthermore, with consumers' heightened awareness regarding the health benefits associated with moderate coffee consumption, the espresso coffee market is perfectly positioned for sustained growth in the coming years.

Growth Factor of the Market

Several factors are contributing to the growth of the espresso coffee market, with one of the primary drivers being the increasing trend of coffee consumption among millennials and Gen Z consumers. These demographics are increasingly inclined towards sophisticated and artisanal coffee experiences, leading to a surge in espresso coffee products that cater to their tastes and preferences. Moreover, the rise of the home brewing trend, propelled by the COVID-19 pandemic, has further boosted the demand for espresso machines and coffee pods, enabling consumers to replicate caf├®-quality beverages at home. Additionally, the innovation in coffee products, such as plant-based espresso beverages and flavored options, has attracted health-conscious consumers looking for alternatives to traditional coffee. The expansion of the online retail sector, combined with the growing availability of espresso coffee products, has made it easier for consumers to access various offerings, supporting market growth. Lastly, ethical sourcing practices and sustainability trends are also driving the espresso coffee market, as consumers increasingly seek out brands that prioritize environmental responsibility.

Key Highlights of the Market

• The espresso coffee market is expected to reach USD 24 billion by 2035.
• Key demographics driving espresso coffee consumption include millennials and Gen Z.
• Innovative product offerings, such as flavored and plant-based espresso, are gaining traction.
• The rise of online retail is enhancing product accessibility for consumers.
• Sustainability practices are influencing purchasing decisions among consumers.

By Product Type

Whole Bean Espresso Coffee:

Whole bean espresso coffee is a popular choice among coffee enthusiasts who prefer to grind their beans fresh for each brew. This product type allows consumers to have control over the grind size and extraction process, ultimately leading to a more personalized and flavorful espresso experience. Whole beans are typically sourced from various regions known for high-quality coffee production, such as Colombia, Ethiopia, and Brazil, which contribute unique flavor profiles. As consumers become more educated about coffee brewing methods and flavor nuances, the demand for whole bean espresso coffee is expected to rise, reflecting a growing appreciation for artisanal coffee preparation.

Ground Espresso Coffee:

Ground espresso coffee provides convenience for consumers who seek a quicker brewing option without sacrificing quality. Pre-ground espresso coffee is ideal for those who may not have access to grinders or prefer the ease of using ready-to-brew coffee. This product type is widely available and comes in various blends and roast levels, catering to diverse consumer preferences. The growing trend of home brewing has also supported the demand for ground espresso coffee, as consumers look for quick and easy ways to enjoy espresso at home, especially using espresso machines or stovetop methods. Market competition among brands is driving innovation in packaging and flavor offerings, further enhancing the appeal of ground espresso coffee.

Espresso Coffee Pods:

Espresso coffee pods have revolutionized the way consumers prepare espresso at home or in the office, thanks to their convenience and ease of use. These single-serve pods allow for quick brewing without the need for extensive equipment or cleanup, attracting busy professionals and coffee lovers alike. As the popularity of pod-based coffee machines continues to rise, manufacturers are expanding their offerings to include a wide range of flavors, intensities, and roast types. The sustainability of espresso coffee pods has also become a focal point, with many brands adopting recyclable or biodegradable materials to meet the growing consumer demand for eco-friendly options. The convenience, variety, and sustainability features are key drivers of the espresso coffee pod segment's growth.

By Application

Household:

The household application segment for espresso coffee is experiencing significant growth, primarily driven by the increasing trend of home brewing. As more consumers invest in espresso machines and coffee makers, the demand for high-quality espresso products has surged. The convenience of preparing espresso at home has allowed consumers to enjoy caf├®-quality beverages without the need to visit a coffee shop. Additionally, the rise of social media has fueled the desire for aesthetically pleasing coffee presentations at home, further encouraging consumers to experiment with various espresso recipes. As a result, the household segment is expected to contribute substantially to the overall growth of the espresso coffee market in the coming years.

Commercial:

The commercial application segment encompasses espresso coffee products used in coffee shops, restaurants, and other foodservice establishments. With the growing coffee culture and increasing consumer demand for specialty coffee beverages, coffee shops are continually seeking to enhance their offerings. This has led to an increased demand for high-quality espresso beans and innovative brewing techniques. Additionally, the rise of third-wave coffee movements, emphasizing artisanal and premium coffee experiences, is further reinforcing the growth of espresso in commercial settings. As establishments prioritize providing unique and high-quality coffee experiences to attract patrons, the commercial segment of the espresso coffee market is poised for continued expansion.

By Distribution Channel

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets play a crucial role in the distribution of espresso coffee products, providing consumers with easy access to a variety of brands and offerings. These retail outlets often feature dedicated coffee aisles where consumers can find a wide selection of whole bean, ground, and pod espresso options. The convenience of purchasing coffee while shopping for groceries has made supermarkets a preferred choice for many consumers. Additionally, promotional activities, discounts, and loyalty programs offered by these retailers can influence purchasing decisions, further driving sales of espresso coffee products through this channel. As coffee consumption continues to rise, supermarkets and hypermarkets are expected to maintain a significant share of the distribution landscape.

Specialty Coffee Shops:

Specialty coffee shops have gained popularity as consumers seek unique coffee experiences that highlight premium quality and craftsmanship. These establishments often offer a curated selection of espresso coffee drinks, showcasing the nuances of different beans and brewing techniques. They play a vital role in educating consumers about coffee, offering tastings, and providing information about the origins of various coffee products. The intimate and personalized atmosphere of specialty coffee shops attracts a dedicated customer base, contributing to the growth of espresso coffee sales within this channel. As the specialty coffee trend continues to thrive, these shops are expected to remain popular destinations for espresso enthusiasts.

Online Retail:

The online retail channel for espresso coffee is rapidly expanding, driven by the convenience of e-commerce and the increasing trend of online shopping. With consumers seeking a wider variety of products than what may be available in brick-and-mortar stores, online retailers can cater to diverse preferences and offer unique selections of espresso coffee brands. Additionally, the ability to compare prices, read reviews, and explore specialty offerings has made online shopping an appealing option for many consumers. The COVID-19 pandemic further accelerated this trend as people turned to online shopping for safety and convenience. This channel is poised for continued growth as more consumers become comfortable purchasing coffee online, leading to an enhanced online presence for espresso coffee brands.

By Roast Type

Light Roast:

Light roast espresso coffee is characterized by its bright acidity and pronounced flavor profiles, making it a preferred choice for those who enjoy a more delicate and nuanced coffee experience. Light roasts preserve the original characteristics of the coffee beans, allowing consumers to appreciate the regional flavors and aromatic qualities. As consumers become more interested in specialty coffee and the distinct flavors associated with various origins, the demand for light roast espresso is expected to grow. Furthermore, as people seek to explore different coffee experiences, light roast espresso beverages are becoming increasingly popular, contributing to their market growth.

Medium Roast:

The medium roast espresso coffee segment strikes a balance between flavor and body, appealing to a wide range of consumers. This roast level offers a harmonious combination of sweetness, acidity, and richness, making it versatile for various coffee beverages. Medium roasts are often favored by those who appreciate a balanced cup of espresso that is neither too intense nor too subtle. As espresso coffee becomes a staple in households and coffee shops, the medium roast segment is expected to attract a diverse consumer base. Additionally, the trend of blending different beans to create unique medium roast profiles is likely to further enhance its popularity.

Dark Roast:

Dark roast espresso coffee is renowned for its bold, rich flavors and low acidity, making it a favorite choice for individuals who prefer a robust coffee experience. This roast level often features chocolatey and smoky notes, which can create a satisfying and indulgent espresso. The popularity of dark roast espresso is driven by consumer preferences for strong coffee flavors, particularly in commercial settings where espresso-based beverages are a staple. As more consumers seek out intense coffee experiences, the dark roast segment is expected to maintain a significant presence in the espresso coffee market, with many brands focusing on creating high-quality dark roast offerings that cater to this demand.

By Region

North America is one of the leading regions in the espresso coffee market, with the United States being a significant contributor to its growth. The increasing popularity of specialty coffee beverages and the rise of coffee culture in urban areas have led to a surge in espresso consumption. According to estimates, North America accounts for approximately 30% of the global espresso coffee market, with a projected CAGR of 5.5% during the forecast period. The growing number of coffee shops, cafes, and home brewing enthusiasts is expected to further boost sales in this region, cementing its position as a key player in the espresso coffee landscape.

Europe is another vital region for the espresso coffee market, with countries like Italy, Germany, and France leading the way in espresso consumption. The rich coffee culture in these countries, along with the tradition of espresso preparation, contributes to the high demand for quality espresso products. Europe is estimated to hold around 28% of the global market share, and the region is expected to witness steady growth over the next decade as consumers increasingly seek premium coffee experiences. The rising trend of caf├® culture, coupled with a growing appreciation for artisanal coffee, is likely to drive the growth of the espresso coffee market in European countries.

Opportunities

The espresso coffee market presents numerous opportunities for stakeholders to capitalize on the growing demand for specialty and premium coffee products. One significant opportunity lies in the introduction of innovative coffee offerings, such as flavored espresso and plant-based alternatives, which cater to expanding consumer preferences for unique and health-conscious options. As consumers become more adventurous in their coffee choices, brands that explore creative flavor profiles and product variations can effectively capture market share. Furthermore, the increasing interest in sustainability and ethically sourced coffee provides an avenue for brands to differentiate themselves and resonate with environmentally conscious consumers. By prioritizing sustainable practices in sourcing and packaging, companies can build brand loyalty and attract a dedicated customer base.

Another promising opportunity is the expansion of distribution channels, particularly in the online retail space. As e-commerce continues to gain traction, companies can enhance their online presence and reach a wider audience by offering convenient purchasing options and providing detailed product information. Collaborating with e-commerce platforms and leveraging social media marketing can help brands effectively engage with consumers and drive sales. Additionally, the growth of subscription-based coffee services presents a unique opportunity for brands to foster long-term customer relationships while generating consistent revenue streams. As more consumers seek out quality espresso products, tapping into these opportunities can enable businesses to thrive in the competitive espresso coffee market.

Threats

While the espresso coffee market is poised for growth, it also faces several threats that could hinder its expansion. One significant threat is the increasing competition within the coffee industry, as brands vie for consumer attention and market share. The proliferation of coffee brands, particularly in the specialty coffee segment, can lead to market saturation, making it challenging for companies to differentiate themselves and maintain customer loyalty. Additionally, the rapid shift in consumer preferences can pose a risk, as brands must continually adapt to changing tastes and expectations. Companies that fail to innovate or keep pace with evolving trends may find themselves struggling to compete in this dynamic market environment.

Another critical threat is the potential impact of climate change on coffee production. Coffee crops are sensitive to changing weather patterns, pests, and diseases, which can affect yields and quality. As climate change continues to pose challenges to coffee cultivation, the availability and pricing of coffee beans may fluctuate, impacting the cost of espresso coffee products. Companies relying on specific coffee origins or varieties may face supply chain disruptions, leading to increased costs and potential market volatility. Addressing these threats will require proactive strategies that account for environmental factors and evolving consumer demands.

Competitor Outlook

• Starbucks Corporation
• Peet's Coffee
• Lavazza S.p.A.
• Dunkin' Brands, Inc.
• Illycaff├¿ S.p.A.
• Kraft Heinz Company (Gevalia)
• J.M. Smucker Company (Folgers)
• Blue Bottle Coffee, Inc.
• Caribou Coffee Company, Inc.
• Death Wish Coffee Company
• Nespresso (Nestl├® S.A.)
• Tim Hortons Inc.
• Caffe Nero
• Peet's Coffee & Tea
• Stumptown Coffee Roasters

The competitive landscape of the espresso coffee market is characterized by a diverse range of players, including established coffee giants and emerging specialty brands. Major companies like Starbucks and DunkinÔÇÖ dominate the market, leveraging their extensive distribution networks and brand recognition to attract consumers. These companies continuously innovate their product offerings, incorporating seasonal flavors and specialty beverages to meet consumer demand. Additionally, they invest significantly in marketing and promotional activities, enhancing their visibility and solidifying their positions in the market. The competition extends to smaller specialty roasters, which focus on quality and unique flavor profiles to cater to discerning coffee enthusiasts.

Lavazza, known for its rich heritage and commitment to quality, has successfully positioned itself as a leading brand in the espresso coffee segment. The company emphasizes its expertise in sourcing and roasting high-quality beans, promoting its traditional Italian coffee culture. LavazzaÔÇÖs extensive product range, including whole bean, ground, and pod options, allows it to cater to diverse consumer preferences. Similarly, Illycaff├¿ has established itself as a premium espresso brand, focusing on sustainability and ethical sourcing practices. By highlighting its commitment to quality and environmental responsibility, Illycaff├¿ resonates with consumers who prioritize ethical consumption in their coffee choices.

Online retailers and specialty brands like Blue Bottle Coffee and Death Wish Coffee are also gaining traction in the espresso coffee market. These brands capitalize on the growing trend of e-commerce, offering subscriptions and unique blends that appeal to modern consumers. As the market continues to evolve, companies that successfully blend innovation with a commitment to quality and sustainability will likely thrive amidst the competitive landscape. The espresso coffee market is expected to witness ongoing consolidation, with established brands looking to acquire smaller players to enhance their product portfolios and market reach, ultimately reshaping the dynamics of the industry.