Coffee Subscription Market

Coffee Subscription Market Outlook (2022-2032)

The global coffee subscription market is currently valued at US$ 685 million and is forecasted to expand at a high-value CAGR of 10.9% to reach US$ 1.98 billion by the end of 2032.

As of 2021, sales of coffee through subscription models accounted for close to 2% share of global spending on coffee. However, it is estimated that by the end of 2032, this share will rise to 5%-7%.

Report Attributes	Details
Coffee Subscription Market Size (2021A)	US$ 628.5 Million
Estimated Market Value (2022E)	US$ 685.7 Million
Forecasted Market Value (2032F)	US$ 1.98 Billion
Global Market Growth Rate (2022-2032)	10.9% CAGR
North America Market Share (2021)	~29.2%
North America Market Growth Rate (2022-2032)	~10.7% CAGR
United States Market Growth Rate (2022-2032)	~10.3% CAGR
Market Share of Top 5 Companies	~4.7%
Key Companies Profiled	ATLAS Coffee club Bean Box Yesplz Seedleaf MISTOBOX Panera Bread La Colombe Coffee Roasters Bean & Bean Coffee Driftaway Coffee Blue Bottle

Revenue Analysis of Coffee Subscriptions (2017-2021) Vs. Market Forecasts (2022-2032)

Increased consumption of coffee over the decades has encouraged new entrants in the market all around the globe. The consequent rise in competition has pushed established manufacturers to focus on brand loyalty, which has led to the introduction of coffee subscriptions.

Offering massive discounts with varying subscription tenures and plan flexibility were the key drivers for the coffee subscription market between 2017 and 2021. Additionally, COVID-19 and ensuing mobility restrictions pushed the online coffee subscription market to a higher level.

The desire to imitate the café-level experience at home during the pandemic promoted rapid adoption of coffee subscription plans among consumers. As such, the market for coffee subscriptions expanded at a compound annual growth rate of 11.5% during the historical years (2017 to 2021).

Coffee subscriptions come with several benefits for both, roasters and consumers. Coffee subscription plans not only deliver a personalized and convenient experience for consumers but also offer roasters flexibility to sell straight to their consumers.

Several coffee subscription providers also offer add-on services and discounts on their subscription plans, which is gaining increased consumer attention. Moreover, the growing demand for single-cup brewing machines in developed economies such as the United States is directly accelerating the coffee subscription market.

Fact.MR predicts that the global coffee subscription market will be valued at US$ 1.98 billion by 2032, expanding at a CAGR of 10.9% over the next ten years.

• Short Term (2022 Q2 to 2025): Escalating coffee consumption and number of coffee enthusiasts in North America and Europe will propel the growth of the coffee subscription market.
• Medium Term (2025-2028): Increasing adoption of single cup brewing machines owing to the rising trend of home-based coffee consumption will lead to an absolute $ opportunity of US$ 447.6 million from 2025 to 2028.
• Long Term (2028-2032): Rising consumption of coffee in developing and underdeveloped economies will drive the long-term growth of the coffee subscription market.

Over the 2017-2021 historical years, the global market for coffee subscriptions evolved at a CAGR of 11.5%, and according to this report by Fact.MR, a market research and competitive intelligence provider, worldwide revenue from coffee subscriptions is projected to increase at 10.9% CAGR between 2022 and 2032.

What is the Popularity of Coffee Subscriptions Expected to Surge?

“Escalating Number of Coffee Enthusiasts across the World”

Increasing number of coffee enthusiasts and their desire to explore new coffee flavors and blends has been a key factor in increasing the popularity of coffee subscriptions. Manufacturers, in alignment with this, are offering a variety of coffee types, from varied origins as well as offer blends of coffee with various fruit flavors.

Consequently, the curiosity of enthusiasts to try more new flavors is aiding the growth of the market. This significant shift in coffee drinkers' preferences and expectations has contributed to the increased demand for coffee subscriptions.

“Custom Coffee Subscriptions Gaining Consumer Attention”

Major U.S. coffee subscription companies offer a variety of coffees from both single and diverse origins. The personalized coffee subscription model is the greatest choice for both regular coffee consumers and coffee connoisseurs who wish to experiment with various types of coffee at home.

Manufacturers are further promoting this with samples or tasting kits that come as a coffee subscription box and let consumers explore all options before deciding on their subscription plan. Several manufacturers also offer replacement or refund for the first order in case a consumer does not find the product fascinating enough.

All these factors are encouraging consumers to switch to online coffee subscriptions rather than offline procurement.

What Hurdle Can the Coffee Subscription Market Face?

“Side Effects of High Caffeine Consumption Can Hamper Market Progress”

As infectious threats are emerging day by day, the population is growing even more health-conscious. While coffee has numerous advantages, such as its high antioxidant content, it also comes with many side effects such as disrupted sleep, intense sense of anxiety, and digestive problems.

As such, many people are quitting caffeinated drinks. This might limit the consumption of coffee, which would ultimately have an adverse effect on the market for coffee subscriptions as a whole.

Country-wise Insights

Will Increased Coffee Consumption in Europe Drive Demand for Coffee Subscriptions?

The Europe coffee subscription market is estimated to hold the largest market share in 2022. This dominance is further expected to continue over the forecast period as well with the market predicted to expand at a CAGR of 10.9% from 2022 to 2032.

Approximately one-third of the world's coffee consumption happens in Europe, which presents a sizable market opportunity for coffee subscription services. In 2020-2021, Europe consumed an estimated 3.2 million tons of coffee.

This eye-catching coffee market and consumption in Europe presents significant opportunities for coffee subscription providers. Growing health consciousness among Europeans will guide an accelerated adoption of decaf subscriptions as well as healthy blends of coffee in the region.

Why is the U.S. Expected to Be Highly Lucrative for Coffee Subscription Providers?

The U.S. is the second-leading coffee-consuming nation. Consequently, the country's expanding coffee consumption creates an opportunity for the development of the coffee subscription market. For this, U.S. coffee subscription providers are offering customized coffee by importing it from well-known coffee-producing countries around the world and delivering the same at the right time and in the right place all across the country.

The main driver for market growth over the past few years has been the COVID-19 pandemic. Restricted outdoor movement pushed the population’s dependency on online platforms for sourcing home essentials, including refreshment drinks and coffee.

• For instance, an American coffee chain Peet’s Coffee observed around 70% hike in subscription orders in 2020.

Overall, the U.S. market for coffee subscriptions is expected to surge at a CAGR of 10.3% between 2022 and 2032.

Category-wise Insights

Which Type of Coffee is Most Widely Consumed through Subscription Models?

The coffee subscription market, under coffee type, is segmented into single origin, blend, espresso, decaf, and others. Amongst them, espresso held the largest market share of 31.2% in 2021 and is projected to exhibit a CAGR of 9.6% during the forecast years of 2022-2032.

The market for coffee subscriptions is seeing tremendous growth as a result of growing per capita income and changing lifestyles & eating habits of people across the globe. The introduction of new coffee appliances such as single-cup brewing machines, espresso machines, etc., as advancements in the coffee industry, is supporting the growth of coffee subscriptions as more consumers now prefer to make coffee at home.

Additionally, leading market players have adopted strategies for cutting the prices of espresso to increase the sale of their products.

Why is Whole Beans Coffee Widely Preferred?

Top coffee subscription companies offer a variety of coffee from both single and diverse origins and grind types. To ensure maximum freshness and flavor of the coffee, grinding matters a lot. Grinding whole bean coffee is the best way to get the freshest cup and flavor. Whole beans also appeal to regular coffee drinkers who like to brew coffee at home using at-home brewing devices. As a result, providers are working to offer whole beans from different origins to knock on every door of coffee drinkers while keeping the varied needs of consumers in mind.

Whole bean grind type coffee is anticipated to create an absolute $ opportunity of US$ 804.6 million over the next ten years.

Competitive Landscape

Prominent coffee manufacturers offering subscriptions are ATLAS Coffee club, Bean Box, Yesplz, Seedleaf, MISTOBOX, Panera Bread, La Colombe Coffee Roasters, Bean & Bean Coffee, Driftaway Coffee, and Blue Bottle.

Market players have adopted quality improvements while putting a strong emphasis on efficiency and sustainability in farming to keep up with market trends. To expand their geographic reach, industry players are also targeting expansions, partnerships, and collaborations.

Additionally, coffee suppliers and roasters have tackled the issue of women's empowerment by obtaining beans from female farmers and fulfilling their CSR.

• In Aug 2022, Steeped Coffee announced a partnership with Ayesha Curry's Sweet July Subscription Box. This will assist the company in making high-quality coffee more affordable and sustainable.
• In Jun 2021, PT’s Coffee Roasting Co. joined Mistobox, which will help the company expand its product portfolio and gain wider customer attention.

Fact.MR has provided detailed information about the price points of key coffee subscription providers positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Coffee Subscription Industry Research

• By Coffee Type :

  • Single Origin
  • Blend
  • Espresso
  • Decaf
  • Others

• By Roast Type :

  • Dark
  • Medium
  • Light

• By Grind Type :

  • Whole Beans
  • Ground

• By Frequency :

  • Weekly
  • Biweekly
  • Monthly
  • Annually

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & ASEAN
  • Oceania
  • MEA