The Coffee Franchise Market, a new report published by Allied Market Research, estimates the global market will top US$200.3 billion by 3031, growing at a CAGR of 8.3 per cent since the market’s 2021 value of US$90.7 billion.
Geographically the market is split into the following regions: Asia-Pacific (China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific); North America (US, Canada, and Mexico); Europe (Germany, France, UK, Italy, Spain, Switzerland, and the rest of Europe); and LAMEA (Brazil, South Africa, UAE, Argentina, Saudi Arabia, and the rest of LAMEA).
Asia-Pacific leads the way, with the largest market share. The 2021 value of the market at US$29,491.2 million is expected to increase to US$70,898 million by 2031.
Aussie brands make the top list
Twenty eight chains are listed as global brand leaders, including Starbucks, Nescafe Coffee Shop, Tim Hortons, Aroma Joe’s Coffee and Costa Coffee.
The list also includes a few familiar Australian brands: Xpresso Delight, Cafe2U, Esquires Coffee, Gloria Jean’s Coffees and Michel’s Patisserie.
Also cited are the Indian chain Frespresso, German-born mobile business Coffee-Bike, the UK’s Ritazza, China’s FishEye Cafe, and roaster and cafe business Greybox Coffee also from China.
The report also segments the coffee franchise market into delivery type and cuisine. For delivery type, the market is marshalled into dine-in and dine-out options. Dine-in coffee franchises enjoyed the largest coffee franchise market share in 2021. This is driven by food and beverage quality and the standard of customer service.
The coffee franchise market’s cuisine segment comprises lunch, brunch, and coffee and bar, with the latter proving dominant. The market was worth US$42,601.2 million in 2021, and could achieve US$96,826.7 million by 2031.
Specialist coffees, premium roasting methods and the comfort and relaxation the venues provide are key contributors to the sector’s growth, the report indicates.
Source: Franchise Executives