Specialty Coffee Market Set to Double to $51.4 Billion by 2030

High-scoring coffees are scoring high growth. The global market for specialty coffee is forecast to more than double from last year's level to reach $51.4 billion in 2030, for a compound annual growth rate of 11.3%, according to a report by Research and Markets. The specialty segment was valued at $21.9 billion in 2022.

Young Gen Z accounts for the largest age group among specialty coffee consumers; 18–24-year-old customers were 32.7% of the market in 2022. Ranked by region, Europe was the largest part of the market, at 30.8%. But Asia is clocking the fastest growth, estimated at a compound annual rate of 13.6% for the forecast period.

Rapid expansion in the number of coffee shops is a factor driving the specialty coffee boom, according to the report. Cafes, restaurants, and other food service venues accounted for 74.3% of the specialty market in 2022.

The Covid-19 pandemic disrupted global supply chains, affecting the availability and cost of raw materials, including coffee beans. This resulted in higher prices for specialty coffee and potential shortages in some regions.

Foodservice sales of coffee were battered by the pandemic. But the work-from-home trend drove demand for online coffee sales and delivery services. Specialty coffee roasters and retailers pivoted to e-commerce platforms to cater to this demand, which helped mitigate some of the losses from in-person sales. Online sales are expected to expand at a compound annual rate of 12.3% through 2030, according to Research and Markets.

"The growing demand for specialty coffee can be attributed to a variety of factors, including the desire for high-quality, flavorful coffee experiences, and increased awareness of ethical and sustainable sourcing practices. As coffee culture continues to thrive, consumers are seeking unique experiences, with specialty coffee shops and cafes serving as popular social destinations," the report stated.

"Health-conscious individuals are also drawn to specialty coffee, which often uses higher quality beans and more refined roasting processes. Social media has further amplified interest in specialty coffee by showcasing new products and trends," wrote Research and Markets.