NEWARK, DE, USA – The global out-of-home coffee market is expected to witness significant growth, with an estimated valuation of USD 24.50 billion in 2025 and a projected value of USD 38.50 billion by 2035. This expansion is driven by a compound annual growth rate (CAGR) of 5.5% during the forecast period from 2025 to 2035. The market had previously grown at a CAGR of 4.2% from 2020 to 2025, highlighting the increasing consumer inclination toward premium coffee experiences outside the home.
Out-of-home coffee refers to coffee consumption in settings such as cafes, restaurants, offices, and institutions rather than homemade preparations. While online coffee orders have surged, leading to a temporary dip in out-of-home consumption, the availability of ready-to-drink coffee in commercial establishments is reviving demand.
The market is witnessing innovations in product offerings, with key players leveraging premiumization strategies, the introduction of new coffee pods, and diversified branding to enhance consumer engagement.
The rise in disposable income and urbanization is fueling the expansion of coffee chains across key regions. Western culture’s influence, coupled with a growing preference for specialty coffee and customized experiences, is further strengthening the market landscape.
Major coffee brands are focusing on expanding their footprint through strategic partnerships and the development of convenience-driven formats such as drive-thrus, self-serve kiosks, and digital ordering systems to attract modern consumers.
Key Takeaways from Market Study:
- The global out-of-home coffee market is forecasted to reach USD 38.50 billion by 2035, growing at a CAGR of 5.5% from 2025 to 2035.
- The demand is fueled by the increasing penetration of global coffee brands, premium coffee experiences, and branded coffee chains.
- Western culture, rising consumer spending, and the adoption of ready-to-drink coffee and specialty blends are driving market expansion.
- The hospitality, restaurant, and institutional (HRI) sector continues to dominate, with increased coffee consumption in workplaces, travel hubs, and quick-service restaurants (QSRs).
- Coffee brands are investing in sustainable sourcing, ethical production, and digital-driven retail experiences to enhance consumer engagement.
“The out-of-home coffee market is undergoing a transformative shift driven by consumer demand for premium, specialty, and ethically sourced coffee. The rapid expansion of global coffee chains and independent specialty coffee houses is significantly reshaping market dynamics.
The rise in urban café culture and corporate coffee consumption will be pivotal in sustaining long-term market growth. Additionally, innovations in brewing technology, self-serve kiosks, and AI-driven coffee ordering solutions will redefine the future of coffee retailing.
Brands that focus on quality, convenience, and sustainability will be at the forefront of market expansion in the coming decade,” says Nandini Roy Choudhury, Client Partner at Future Market Insights.”
