Coffee Franchise Market

Coffee Franchise Market Size and Share:

The global coffee franchise market size was valued at USD 112.25 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 213.05 Billion by 2033, exhibiting a CAGR of 7.01% during 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 32.7% in 2024. The rising consumption of coffee among the masses, the incorporation of digital technologies, and the recent development of self-service kiosks represent some of the key factors driving the expansion of the coffee franchise market share.

The rising consumption of coffee among the masses is one of the primary factors propelling the coffee franchise market demand. As such, the global coffee consumption was expected to rise to 177.0 million bags in 2023, with non-producing countries making the biggest contribution to the overall increase. Coffee franchises provide consumers access to various branded and high-quality coffee-based beverages, such as espresso, macchiato, cappuccino, drip coffee, cold brew, Americano, mocha, flavored lattes, iced coffee, and speciality drinks. In addition to this, the rising awareness among the masses regarding popular coffee brands and their high-quality products is acting as another growth-inducing factor. Furthermore, the changing consumer lifestyles and hectic schedules are prompting coffee franchise owners to provide on-the-go (OTG) options, such as drive-thru kiosks and mobile coffee units, which offer fast and efficient services, enhance customer convenience, save time, and can operate for extended hours compared to traditional coffee shops.

The United States is leading the market share in North America in 2024 with 87.80%. Coffee consumption has become a lifestyle trend in the country. More people see coffee shops as their go-to place for work, socializing, and relaxation. With an increasing number of professionals working remotely or freelancers seeking out cozy spots, coffee shops have become community hubs. In August 2024, 22.8 percent of employees in the country worked remotely at least partially, accounting for 35.13 million people. The rise of social media has also played a huge role in shaping this culture. People love posting pictures of their favourite brews, trendy cafés, and aesthetically pleasing interiors. This visibility encourages more foot traffic and solidifies coffee franchises as daily essentials rather than occasional indulgences.

Coffee Franchise Market Trends:

Rising Coffee Consumption

The growth in international coffee consumption has been fueled by the development of coffee culture and changes in lifestyle, thereby giving specialty coffee increased demand, making it an appropriate avenue for growing the coffee franchise market share. Consumers are also demanding premium, varied coffee choices, from craft brews to newfangled drinks, that coffee chains should extend their menus to meet an expanded variety of tastes. International Coffee Organization reports that global coffee production for the years 2022/23 year rose by 0.1% to 168.2 million bags, and this reflects expansion in the coffee industry globally with more availability of high-quality beans. This will also reflect production growth in light of the fact that consumer demand for specialty coffee is on an upward trend. This can provide franchises with a chance to gain from this growth by offering experiences that are different and high end. This, therefore, positions coffee franchises to meet the increasing consumer demands while tapping into new markets, further driving the sector's growth worldwide.

Franchise Model Popularity

As per the coffee franchise market outlook, this model provides a well-established business structure with the least risk of any new venture, and hence it attracts entrepreneurs. It provides brand recognition, operational support, and overall marketing strategies for the business. This ensures that investment in coffee franchises will have a smooth journey to success. As per the Project Café Europe 2022, the European coffee chain market rose by 3.2% over the last year, to 40,675 outlets. This growth is reflective of a growing interest in the coffee franchise model by more entrepreneurs seeking to create wealth from the thriving coffee market. Additionally, the popularity of the model is also sponsored by strong demand for quality consistent coffee experiences across regions and the efficiency and scalability of the franchise system. Given that the growth of coffee chains worldwide is ongoing, the franchise model will remain an effective means for businesses to leverage on that profitable market as growth continues to gain momentum in both established and emerging regions.

Innovation and Customization

One of the drivers for the coffee franchise market growth has been the growing demand for innovative coffee beverages, including specialty lattes, cold brews, and plant-based options. Coffee franchises are capitalizing on this trend by offering customization in drink choices, allowing customers to tailor their beverages to their personal tastes. Expanding product lines to include unique and health-conscious options helps meet the diverse preferences of today's coffee consumers. In the United States, consumption of coffee continues to be healthy, with individuals consuming 400 million cups a day, as per reports. A typical American coffee drinker consumes an average of three cups a day, based on the information from the United States FDA. This high rate of consumption translates to a sustained demand for coffee and, thus, the significant potential for the coffee franchise. In fact, by innovating and expanding their offerings to cater for ever-evolving consumer preferences, specialty and personalized coffee experiences are probably the next big thing for coffee franchises.

Coffee Franchise Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global coffee franchise market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on cuisine and delivery type.

Analysis by Cuisine:

• Lunch
• Brunch
• Coffee and Bar

Based on the coffee franchise market forecast, coffee and bar lead the market with 54.8% of market share in 2024. This segment combines the traditional appeal of coffee with the social and trendy atmosphere of a bar, offering a diverse range of coffee beverages alongside alcoholic options, craft beers, and cocktails. It caters to a wide demographic, particularly urban professionals, young adults, and social consumers seeking a space that blends work and relaxation. Establishments in this segment typically offer not only premium coffee drinks but also snacks, light meals, and even entertainment options, creating an all-encompassing experience that attracts a broad range of customers. This fusion of coffee culture and nightlife has driven its dominance in the market, with an increasing number of customers seeking an integrated social and beverage experience.

Analysis by Delivery Type:

• Dine-in
• Dine-out

According to the coffee franchise market trends, dine-in accounted for the largest market share with 66.6%. The dine-in segment leads the coffee franchise market as consumers continue to seek coffee shops as social hubs, workspaces, and relaxation spots. Coffee franchises have evolved beyond serving beverages to offering inviting atmospheres with comfortable seating, free Wi-Fi, and aesthetically pleasing interiors that encourage longer visits. Many urban professionals, students, and remote workers prefer the café environment over home or office settings, leading to sustained foot traffic. Additionally, coffee shop culture promotes in-person interactions, business meetings, and casual gatherings, making dine-in experiences a crucial part of consumer habits. Franchises are investing in premium interiors, sustainable design, and personalized customer experiences to enhance in-store engagement. The growing demand for artisanal coffee, handcrafted beverages, and freshly prepared snacks further reinforces dine-in sales, as customers enjoy the quality and ambiance of well-established coffee brands. Despite the rise of delivery and takeaway services, the dine-in model remains dominant due to the social, immersive, and community-driven appeal of coffee franchises.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Asia Pacific dominated the market with 32.7% in 2024. The growth is due to a growing middle-class population, changing consumer preferences, and a shift from traditional tea culture to premium coffee experiences. China, India, Japan, South Korea, and Indonesia are countries where the consumption of coffee is increasing rapidly among the young, who perceive coffee shops as symbols of modern life and social life. Global coffee chains are aggressively expanding their presence in the region, creating menus with regional flavors such as matcha lattes, red bean frappes, and milk tea-infused coffees to match the diverse preferences. Specialty coffee, along with the growing trend of aesthetic and Instagram-friendly cafe spaces, have further fueled this dine-in culture of coffee consumption. Furthermore, economic growth and increasing disposable incomes have created an appetite for spending on premium coffee and café experiences. The region's growing number of local and international franchises and the expansion of digital payment and loyalty programs will continue to propel market growth in Asia Pacific, making it the most dynamic and lucrative region for coffee franchises.

Key Regional Takeaways:

North America Coffee Franchise Market Analysis

North America remains a key player in the global coffee franchise market, driven by a well-established coffee culture, high per capita consumption, and the strong presence of major franchise brands. The U.S. and Canada account for a significant share of the market, with consumers valuing convenience, premium quality, and specialty coffee experiences. The region has seen a shift toward third-wave coffee, emphasizing ethically sourced beans, artisanal brewing methods, and personalized beverage options. Drive-thru services, mobile ordering, and loyalty programs have become standard features. Additionally, the demand for plant-based alternatives, cold brews, and functional coffee beverages has expanded franchise offerings. The rise of independent specialty cafés has intensified competition, pushing larger franchises to innovate with new flavors, digital engagement, and sustainability initiatives. With a strong economy and evolving consumer preferences, North America continues to be a mature yet competitive market for coffee franchises.

United States Coffee Franchise Market Analysis

The United States is leading the market share in North America with 87.80%. The drive behind the growth of the coffee franchise market share in the United States is mainly preference for specialty coffees. The National Coffee Association report shows that now 43% of the US coffee consumers choose specialty coffee. This number indicates a whopping increase of 20% from the levels in January 2021. Specialty coffee is all about premium and distinctive options. That has triggered demand for high-quality, customized beverages offered by a coffee franchise. This trend is being capitalized on by franchises through diversification of product lines, specialty brews, and embracing innovation such as plant-based milk options and cold brew creations. As consumers continue to seek more sophisticated coffee experiences, franchises are well-positioned to cater to these evolving preferences. The growth in specialty coffee drinkers therefore portends growth potential for a chain of coffee houses, offering a sound business opportunity and cementing the cause for continued expansion in the franchise coffee market throughout the United States.

Europe Coffee Franchise Market Analysis

This increase in consumption in Europe contributes significantly to the development of the coffee franchise market. Kaffeeverband, the German organization, reports an increase in the average consumption per person from 168 liters to 169 liters for 2021, that means an additional 500 million cups compared to the previous year 2020. This increasing consumption is reflective of the fact that more consumers across Europe embrace the culture of taking coffee every day. The rise in demand for coffee is leading to the capitalization of this shift by coffee franchises, who are expanding their offerings, including specialty beverages and focusing on quality experiences. With a growing demand for premium coffee options and coffee-centric experiences in Europe, demand for franchise models that can cater to these needs increases. With the consumption market for coffee still expanding, coffee franchises are well-positioned to serve this increasing demand, providing entrepreneurs with the right opportunities for expansion and success within the European market.

Asia Pacific Coffee Franchise Market Analysis

Overall coffee consumption in the region is experiencing increased growth that is favorably propelling the Asia Pacific coffee franchise market. According to Coffee Board of India, the consumption of coffee reached 91,000 tonnes during 2023. This compared to 84,000 tonnes in 2012. A large part of this growth could be attributed to at-home consumption of coffee which is increasing fast with higher penetration of instant coffee, and higher growth in off-premise, particularly in-café consumption. As more consumers include coffee in their daily routine, there is a growing demand for diverse coffee options, which fuels the expansion of coffee franchises. The rising café culture, along with the increasing popularity of specialty coffee drinks, creates an opportunity for coffee franchises to cater to evolving consumer preferences. The trend of home brewing and growing café culture creates a strong base for the coffee franchise market to flourish across the Asia Pacific region.

Latin America Coffee Franchise Market Analysis

The rising coffee consumption and strong coffee exports of this region from Latin America are driving the market for coffee franchises in the region. According to the U.S. Department of Agriculture, Argentina's green coffee consumption rose to 990 thousand 60-kilogram bags in 2022-23, up from 906 thousand bags in 2021-22. This growth in consumption portrays a rising coffee culture as more consumers are adopting coffee into their lifestyles. Additionally, Brazil remains the world's largest coffee producer, exporting coffee worth USD 7,350.81 million in FY 2022-23, according to UN Comtrade. Further, being the world's largest coffee exporter, Brazil ranks at the top of the global market, which makes the region a notable player in the coffee industry. High domestic consumption and a strong Latin American coffee export position add up to favorable factors for the growth of coffee franchises. With increasing demand for specialty coffee drinks and convenience café experiences, coffee franchises are well-placed to flourish and occupy an increasing market share throughout the region.

Middle East and Africa Coffee Franchise Market Analysis

The Middle East and Africa coffee franchise market is being driven by increasing coffee consumption and a rapidly expanding culture around cafés. According to an industry report, in the UAE, per capita coffee consumption reached 1.36 kg in 2023, representing an affinity for coffee across the region. Industry reports further indicate that sales of coffee markets in the UAE exceeded AED 1 billion (USD 0.27 Billion), reflecting a growing demand for premium coffee products. This growth is further fuelled by the increasing preference for specialty coffee drinks, which has led to a surge in demand for diverse coffee options, from traditional espresso-based beverages to innovative cold brews and plant-based alternatives. The region's expanding café culture, coupled with a youthful, dynamic population eager for social experiences, creates a thriving environment for coffee franchises. As coffee becomes an increasingly integral part of daily life and out-of-home consumption continues to grow, the franchise model is well-positioned to take advantage of these trends, which will drive continued market expansion in the Middle East and Africa.

Competitive Landscape:

Key players in the market are constantly innovating so as to maintain competitiveness in this rapidly growing industry. The companies have expanded their range of products over and above conventional coffee in response to the changing tastes of consumers by adding plant-based beverages and drinks that are only available for a limited time in certain seasons. They have also embraced sustainability through eco-friendly practices that include giving recyclable cups and reducing their carbon footprint. Some are concentrating on enhancing the drive-thru experience and mobile ordering for the customers who are on the go. Also, they have expanded their menu with breakfast items to complement their coffee products with a greater variety of food items. Furthermore, other market players are focused on expanding their international presence in emerging markets while enhancing their digital offers with a strong loyalty program and mobile application. These players invest heavily in technology, enhance consumer experience, and adapt to changing consumer tastes to build maintain dominance in the market.

The report provides a comprehensive analysis of the competitive landscape in the coffee franchise market with detailed profiles of all major companies, including:

• Barista Coffee Company Limited
• Brew Berrys Hospitality Pvt. Ltd.
• Cafe Barbera
• Caribou Coffee Operating Company Inc. (JAB Holding Company)
• Casey Hawkins Inc.
• Coffee Beanery Ltd. (The Shaw Coffee Company)
• Dunn Bros Coffee Franchising Inc.
• Ellianos Coffee Company
• Frespresso Hospitality Pvt Ltd
• Tim Hortons Inc (Restaurant Brands International Inc.)
• Xpresso Delight
• Ziggi's Coffee

Latest News and Developments:

• February 2025: SPC Group is rebranding its Caffè Pascucci franchise in South Korea to focus more on the Italian origin of the brand and its premium market positioning.
• January 2025: Greece's biggest coffee chain will open 20 stores across South Asia by March 2026, aiming to reach 250 by 2029, with the help of increasing demand for high-quality coffee and premium customer experiences.
• November 2023: Quench USA Inc., a U.S.-based provider of filtered water coolers and ice dispensers, acquired Neighbors Coffee Co. to broaden its coffee portfolio and offer commercial clients a wider selection of premium point-of-use products.

Coffee Franchise Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the coffee franchise market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global coffee franchise market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the coffee franchise industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.