PUBLISHER: The Business Research Company | PRODUCT CODE: 1539653
PUBLISHER: The Business Research Company | PRODUCT CODE: 1539653
A coffee franchise involves an agreement where a franchisee gains permission from a larger company (the franchisor) to operate coffee shops using the franchisor's brand name, established business methods, trademarks, and systems. This setup allows the franchisee to leverage the franchisor's brand recognition, marketing strategies, operational support, and proven business model. Simultaneously, the franchisor expands its market presence and brand influence without directly managing additional locations.
Coffee franchises typically offer various types of cuisine, including lunch, brunch, coffee, and bar options. Lunch, defined as a midday meal, is included in coffee franchise menus to attract daytime customers and boost sales during lunch hours. Service options range from dine-in to takeout, and these franchises encompass cafe and espresso establishments.
The coffee franchise market research report is one of a series of new reports from the business research company that provides coffee franchise market statistics, including coffee franchise industry global market size, regional shares, competitors with an coffee franchise market share, detailed coffee franchise market segments, market trends and opportunities, and any further data you may need to thrive in the coffee franchise industry. This coffee franchise market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The coffee franchise market size has grown strongly in recent years. It will grow from $96.6 billion in 2023 to $105.83 billion in 2024 at a compound annual growth rate (CAGR) of 9.5%. Growth during the historic period was driven by the increasing prevalence of coffee culture, rising disposable incomes, urbanization, globalization, the popularity of specialty coffee, expanding retail spaces, and growth in tourism and travel.
The coffee franchise market size is expected to see strong growth in the next few years. It will grow to $152.97 billion in 2028 at a compound annual growth rate (CAGR) of 9.7%. Anticipated growth in the forecast period is expected from emerging markets, trends in health and wellness, sustainability and ethical sourcing practices, digital marketing strategies, loyalty programs, collaborative branding initiatives, convenience-oriented consumption patterns, and on-the-go lifestyles. Key trends in this period include the integration of automation and robotics in cafes, adoption of mobile ordering and payment applications, personalized customer experiences enabled by AI, emphasis on sustainable and eco-friendly practices, utilization of blockchain for supply chain transparency, innovative brewing methods, and the incorporation of augmented reality (AR) and virtual reality (VR) experiences in retail environments.
The growth of the coffee franchise market is expected to be driven by the increasing proliferation of coffee culture. Coffee culture encompasses the social and cultural practices surrounding the enjoyment and appreciation of coffee. This rise is fueled by the expansion of specialty coffee shops, the global reach of coffeehouse chains, growing interest in gourmet and artisanal coffee, the influence of social media, and the cultural significance of coffee as a communal beverage. Coffee franchises play a crucial role in promoting and perpetuating coffee culture by offering consistent and convenient coffee experiences, enabling brands to expand their footprint, maintain quality standards, and meet the rising demand for specialty coffee across different locations. For example, a December 2023 report from the International Coffee Organization noted a 0.1% increase in world coffee production to 168.2 million bags during the coffee year 2022-2023, with expectations of a 5.8% growth to 178.0 million bags in the coffee year 2023-24, driven by higher Arabica and Robusta output. Thus, the growing prevalence of coffee culture is a significant driver of the coffee franchise market's expansion.
Leading companies in the coffee franchise sector are innovating with services such as drive-thru stores to enhance customer convenience and meet the demand for quick service. These drive-thru outlets enable customers to purchase coffee efficiently from their vehicles, saving time and offering a seamless transaction experience. For instance, in December 2023, Arabica Ltd., a Japanese coffee chain, launched its inaugural drive-thru store in Asia at Golf Island PIK in Jakarta, Indonesia. Located at the PIK Icon roundabout, this new store is designed for easy, frictionless ordering through its innovative drive-thru concept. The store also introduces a decaffeinated coffee option to cater to patrons with caffeine sensitivities, further reinforcing its presence in Indonesia's dynamic coffee culture landscape.
In November 2023, Quench USA Inc., a US company known for designing and manufacturing filtered water coolers and ice dispensers, acquired Neighbors Coffee Co. for an undisclosed sum. This acquisition was undertaken by Quench to enrich its service portfolio, particularly in coffee solutions, thereby offering commercial customers a wider range of premium point-of-use products. This strategic initiative aligns with Quench's objective of becoming a comprehensive provider of breakroom essentials, encompassing filtered drinking water, ice, and coffee solutions. Neighbors Coffee Co., based in the US, specializes in supplying and servicing coffee solutions tailored for office environments.
Major companies operating in the coffee franchise market are Starbucks Corporation, McDonald's Corporation, Luigi Lavazza S.p.A., Tim Hortons Inc., Philz Coffee Inc., Costa Limited, Dunkin' Brands Group Inc., Scooter's Coffee LLC, Dutch Bros Coffee LLC, The Second Cup Ltd., Peet's Coffee Inc., Black Rock Coffee Bar LLC, Caribou Coffee Company Inc., Gloria Jean's Coffees International Pty. Ltd., Ballard Brands LLC, Nescafe Coffee Shop, Caffe Nero Group Ltd., Coffee Republic Ltd., Tully's Coffee Corporation, Ziggi's Coffee LLC, Ellianos Coffee Company, Frespresso Hospitality Pvt Ltd, International Coffee And Tea LLC, The Human Bean, Xpresso Delight LLC
Asia-Pacific was the largest region in the coffee franchise market in 2023. The regions covered in the coffee franchise market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the coffee franchise market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The coffee franchise market includes revenues earned by entities through services such as beverage sales, food sales, whole-bean and ground coffee sales, merchandise sales, in-store dining, takeaway, and drive-thru services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Coffee Franchise Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on coffee franchise market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for coffee franchise ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The coffee franchise market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.