Overview
Global Specialty Coffee Market reached US$ 22 billion in 2022 and is expected to reach US$ 46.6 billion by 2030, growing with a CAGR of 9.8% during the forecast period 2023-2030.
The specialty coffee market revolves around the relentless pursuit of perfection. Coffee aficionados and specialty coffee roasters share a common dedication to crafting the quintessential cup of coffee. This involves a meticulous selection of premium coffee beans and the application of precise brewing methods that unlock the full spectrum of flavors inherent in these beans.
Additionally, the specialty coffee market thrives on its vibrant and passionate community. Coffee enthusiasts, ranging from homebrewing experts to dedicated patrons of coffee shops, engage in a continual exploration of flavors, origins, and brewing methods, which is driving the market growth. Coffee competitions, industry gatherings, and educational initiatives contribute to a profound sense of camaraderie and shared knowledge within this global coffee culture.
Arabica segment holds over 60% of the global share. In September 2023, the Saudi Coffee Company, a completely owned subsidiary of the Public Investment Fund, debuted its custom coffee brand, Jaezen, with the goal of promoting Saudi Arabia’s coffee bean as a global export. The quality Coffea Arabica used to make the specialty coffee is sourced from the southern region of Saudi Arabia.
Dynamics
Artisanal and Craft Coffee Trends
An obsession with novel flavor combinations lies at the core of the artisanal and craft coffee trends. Consumers are displaying a growing fascination with the wide array of flavors and aromas that can be discovered in different coffee beans, regions, and processing techniques. This curiosity has breathed life into the specialty coffee market, where each cup becomes a voyage of taste exploration. Small-batch roasters and specialty coffee shops play a pivotal role in this trend.
Coffee addicts are willing to pay a premium for these bespoke and expertly crafted coffee experiences, thereby bolstering profitability and the overall growth of the specialty coffee sector. The artisanal and craft coffee movement places a strong emphasis on transparency and the forging of direct connections between coffee producers and consumers. This shift aligns harmoniously with the broader consumer demand for ethical and sustainable products.
Various coffee shops are attracting consumers with their innovative flavors of artisanal coffee products. In July 2023, The Shed Coffee introduced Koolbrew cold brew, a new product with an agenda. On Prince Edward Island, gourmet coffee called Koolbrew is roasted and brewed. Koolbrew is the best single-origin specialty coffee because it is rooted in culture and inspired by women.
Growing Coffee Culture and Consumer Preference
The specialty coffee market is currently experiencing substantial growth, with a prominent driving force being the burgeoning coffee culture and the evolving preferences of consumers. This trend signifies a profound shift in how individuals perceive and engage with their daily coffee rituals, emphasizing aspects like quality, origin, and the overall coffee experience.
Coffee addicts are now enthusiastic about exploring a rich tapestry of flavors and aromas, showcasing an elevated appreciation for the intrinsic qualities of coffee beans. This renewed passion for coffee’s nuances has given rise to a flourishing landscape of specialty coffee establishments and artisanal roasters, all catering to the demand for extraordinary coffee experiences.
Consumer preferences in the specialty coffee market are increasingly shaped by a deep awareness of coffee’s origin and the quality of the beans. The "farm-to-cup" movement has gained considerable traction, with consumers seeking transparency in the coffee sourcing process. They yearn to understand the precise origins of their coffee, the conditions under which it is cultivated, and the ethical and sustainable practices employed throughout its production journey.
Specialty coffee perfectly aligns with these expectations, often spotlighting the specific sources of its beans and fostering direct trade relationships with coffee producers. This transparency resonates with socially conscious consumers who value knowing the narrative behind their coffee. As consumers prioritize these values, the specialty coffee sector continues to flourish.
Price Sensitivity
Price sensitivity presents a significant impediment to the expansion of the specialty coffee market. Specialty coffee distinguishes itself with exceptional quality, distinctive flavors, and ethical sourcing practices, attributes that naturally result in a higher price point compared to ordinary coffee. While these qualities resonate with a discerning consumer segment, the prevalence of price sensitivity remains a pivotal obstacle that constrains the market’s broader growth.
One of the fundamental challenges linked to price sensitivity in the specialty coffee realm is the perception of cost. Consumers accustomed to more budget-friendly coffee choices may exhibit reluctance when contemplating a switch to specialty coffee, often due to concerns about the elevated price tag. This reluctance can be especially pronounced in regions or demographic groups where financial prudence holds sway.
Moreover, the constraint of price sensitivity is amplified by the ready availability of lower-cost alternatives. Conventional coffee, frequently priced more competitively, continues to stand as a formidable rival. For those vigilant about their budget, the specialty coffee’s value proposition must be sufficiently compelling to rationalize the heightened expenditure.
Limited Supply
The constraint of limited supply presents a formidable challenge to the expansion and sustainability of the specialty coffee market. Specialty coffee celebrated for its distinctive flavors, premium bean quality, and often stringent sourcing standards, grapples with a supply chain that is inherently delicate and restricted. This challenge manifests in various ways, affecting multiple facets of the industry.
A critical facet of the limited supply constraint revolves around the reliance on specific coffee bean varieties and geographic regions. Specialty coffee is intricately linked to single-origin beans or particular varietals that flourish under precise climatic and geographical conditions. Any disturbances in these regions, whether due to climate fluctuations, pest outbreaks, or natural calamities, can significantly disrupt the availability of these prized beans.
Furthermore, limited supply is compounded by the seasonal nature of coffee cultivation. Coffee is a crop subject to seasonal harvests, which vary depending on the region. Specialty coffee, known for its preference for freshly harvested beans, encounters specific periods of the year when particular varieties are accessible. This seasonality introduces supply fluctuations and price uncertainties, impacting both producers and consumers alike.

Segment Analysis
The global specialty coffee market is segmented based on type, category, product, distribution channel and region.
Arabica Fuel Surge in Specialty Coffee Market
The arabica segment held 64.1% in the global market share. Arabica beans contain lower levels of caffeine compared to Robusta, appealing to consumers who prefer a milder coffee experience. The reduced caffeine content provides a gentle boost without the intensity or bitterness often associated with higher caffeine concentrations, aligning perfectly with the preference for a balanced and harmonious coffee flavor in the specialty coffee sphere.
For coffee futures contracts that trade on the InterContinental Exchange (ICE), Arabica coffee serves as the global standard. 70% of the world’s produce is arabica beans, that is mostly grown in Brazil (where 40% of the world’s supply comes from) and Columbia. Peru, India, Uganda, Ethiopia, Mexico, and Cote Ivoire are additional important exporters. While Arabica beans are more popular in the U.S., Europe and espresso coffees choose robusta beans.
Arabica coffee cultivation frequently embraces sustainable and ethical practices. Many specialty coffee producers prioritize environmentally responsible and fair trade sourcing methods. This ethical dimension resonates with consumers who value conscientious and equitable consumption. Consequently, the demand for Arabica is amplified among those committed to supporting sustainable agriculture and ethical supply chains.
Arabica coffee’s distinct flavors are intricately linked to the specific terroir in which it is grown, encompassing factors like soil, altitude, and climate. Specialty coffee aficionados are captivated by the concept of single-origin Arabica beans, enabling them to explore and appreciate the unique flavors associated with diverse coffee-growing regions. The desire for terroir-driven coffee experiences propels the demand for Arabica.
Geographical Penetration
Growing Specialty Coffee Consumption Among Europeans
The Europe specialty coffee market held the largest market share of 41.3% in 2022 in the specialty coffee market analysis. The specialty coffee market in Europe is currently witnessing a robust and sustained surge in demand, reflecting a profound shift in how Europeans engage with and appreciate coffee. This transformative trend can be attributed to a constellation of influential factors that have reshaped the coffee culture across the continent.
According to the International Coffee Organisation, Europe was the world’s largest consumer market in 2021, purchasing 54,065 60kg bags of coffee. One of the nations in the region that makes coffee is Germany. According to data released by the CBI Ministry of Foreign Affairs, more Germans are drinking coffee at home and in cafes and coffee shops. This growth in the on-trade market sector in Germany is leading to a rise in the use of various types of coffee products there.
Foremost among these factors is a significant cultural transition in Europe’s coffee consumption habits. While the continent has historically embraced coffee, the conventional view of coffee as a utilitarian morning routine has evolved into a more sophisticated appreciation for the beverage. Coffee is increasingly regarded as an artisanal creation to be savored, akin to the meticulous tasting of fine wines or craft beers.
The cultural metamorphosis has fueled the appetite for specialty coffee, with consumers actively seeking distinctive and elevated coffee experiences. In countries like Sweden and Norway, this shift is vividly evident, where specialty coffee culture has reached remarkable heights, featuring national coffee championships and a burgeoning array of specialty coffee shops that curate an eclectic selection of beans sourced globally.

Competitive Landscape
The major global players in the market include Starbucks Corporation, Nestl? Nespresso S.A., Keurig Dr Pepper Inc., Blue Bottle Coffee Company, Stumptown Coffee Roasters, Peet’s Coffee, Dunkin’ Brands Group (Dunkin’), Lavazza Group, illycaff? S.p.A. and Intelligentsia Coffee.

COVID-19 Impact Analysis
The specialty coffee market faced significant challenges as a result of the COVID-19 pandemic. Initially, the enforced closure of cafes and restaurants, along with restrictions on in-person dining, caused a sharp decline in the consumption of specialty coffee outside the home. This had a particularly harsh impact on specialty coffee shops, which heavily rely on in-store sales and customer foot traffic.
Furthermore, the specialty coffee market experienced disruptions in its supply chain due to logistical challenges and transportation difficulties, leading to fluctuations in coffee bean prices and affecting roasters and retailers. However, as individuals adapted to remote work and sought comfort in daily routines, there was a noticeable increase in the consumption of specialty coffee at home.
The remote shift benefited companies that offered specialty coffee beans for home brewing, coffee-related equipment, and subscription services. Despite the initial setbacks, the specialty coffee market displayed resilience and adaptability throughout the pandemic, with emerging opportunities for growth, particularly in the realms of e-commerce and home coffee preparation.
Russia-Ukraine War Impact Analysis
The specialty coffee market itself has not witnessed a direct impact from the Russia-Ukraine conflict since coffee production is not a significant agricultural commodity in these nations. However, it is crucial to consider the broader implications of geopolitical conflicts like this, as they can indirectly influence global markets, including the specialty coffee sector.
Indirectly, one area where the conflict had repercussions is in global commodity prices and supply chain disruptions. Heightened geopolitical tensions created market uncertainties, leading to fluctuations in currency values and commodity prices. These fluctuations affected the costs associated with raw materials like coffee beans, as well as transportation and logistical processes.
Specialty coffee roasters and retailers, who frequently source beans from diverse global regions, encountered cost pressures or delays in their supply chains due to these fluctuations. Furthermore, the imposition of economic sanctions or trade restrictions on Russia, Ukraine, or their trade partners triggered broader repercussions in global trade.
By Type


    • Arabica
    • Robusta


By Category


  • • Single-Origin Coffee
    • Specialty Brews
    • Sustainable and Ethical Coffee


By Product


  • • Instant Coffee
    • Ground Coffee
    • Whole Beans
    • Single-Serve
    • Blends
    • Others


By Distribution Channel


  • • Supermarkets/Hypermarkets
    • Cafes and Coffee Shops
    • Restaurants and Food Service
    • E-Commerce
    • Others


By Region


  • • North America


o U.S.
o Canada
o Mexico


  • • Europe


o Germany
o UK
o France
o Italy
o Russia
o Rest of Europe


  • • South America


o Brazil
o Argentina
o Rest of South America


  • • Asia-Pacific


o China
o India
o Japan
o Australia
o Rest of Asia-Pacific


  • • Middle East and Africa


Key Developments


  • • In March 2023, the specialty coffee retailer Reborn Coffee, Inc., based in California, announced the introduction of a new line of Super-Premium Reborn Cold Brew Ice Creams that will be advertised and sold in all of the Company’s retail locations.
    • In February 2023, the Nestl?-owned brand Blue Bottle Coffee released its newest small batch with the intention of delivering an ultra-special coffee in a market where premiumization is steadily gaining ground. A location in Yemen noted for its stunning 7,500-foot altitudes and dry climate is the source of the newest specialty coffee. The product is a part of Blue Bottle’s Exceedingly Rare line of single-origin coffees, which are frequently only made in extremely small amounts.
    • In October 2022, in an effort to increase consumer convenience and accessibility of its specialty coffee, Blue Bottle Coffee has introduced a new instant coffee product in the US. The California-based specialty coffee shop chain claimed that their Craft Instant Espresso eliminates the need for pricey coffee makers and labor-intensive brewing techniques.


Why Purchase the Report?


  • • To visualize the global specialty coffee market segmentation based on type, category. product, distribution channel and region, as well as understand key commercial assets and players.
    • Identify commercial opportunities by analyzing trends and co-development.
    • Excel data sheet with numerous data points of specialty coffee market-level with all segments.
    • The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
    • Product mapping available as Excel consisting of key products of all the major players.


The global specialty coffee market report would provide approximately 77 tables, 82 figures and 218 Pages.
Target Audience 2023


  • • Manufacturers/ Buyers
    • Industry Investors/Investment Bankers
    • Research Professionals
    • Emerging Companies