The future is brewing: coffee trends redefining 2026
Introduction
Coffee is the world’s most popular drink. But what are the trends in coffee sales and consumption? And how can retailers and brands get ahead of the curve?
The insights in this article are based on an analysis of multiple markets and shopper segments, leveraging behavioural data from over 50 million shoppers across dunnhumby’s global retail partners and manufacturing clients (for example, Nestlé, JDE Peet’s and more). The dataset includes leading brands such as Nescafé, Jacobs, L’OR, Lavazza and Tchibo.
Important themes we’ll look at in this report include:
- Regional coffee trends, how they compare, and where the opportunities are for CPGs.
- Premiumisation: third-wave coffee and the trend towards trading up - despite price pressures.
- The growth of ready-to-drink (RTD) coffee formats.
- Sustainability and ethical sourcing as category expectations.
- Emerging health and functional coffee propositions and innovation across formats, flavours, and brewing methods.
Global coffee consumption hit nearly 170 million 60-kg bags a year
2.25b cups of coffee are drunk globally every day
70% of global coffee consumption happens in people’s homes
The US alone consumes 26.1 million 60kg bags annually
The global coffee sector: an overview
Coffee remains the most popular drink globally, with upwards of 2 billion cups consumed every day. Global coffee consumption continues to expand, driven by rising middle classes, evolving lifestyles, and a shift toward speciality coffee (third-wave) and convenient formats. Increasingly, coffee is seen not just as a functional beverage for energy or wakefulness but as a lifestyle, social, and experiential drink.
The value of the coffee market is tracking ahead of consumption: the consumption of coffee has increased by approximately 2.5% annually, while the coffee market as a whole is growing at 5%+ CAGR. This is driven by increased sales of more expensive formats and rising prices.
In value terms, the global at-home coffee market – also known as off-trade (coffee prepared at home and purchased through supermarkets, convenience stores, and other retail channels) – is forecast to reach approximately US$106 billion (GBP£79 billion) in 2025. The out-of-home market, also known as on-trade, including cafés, restaurants, and bars, is even larger, with global revenues estimated at around US$380 billion (GBP£285 billion).
Despite rising commodity prices and inflationary pressures, coffee remains an affordable form of caffeine and everyday indulgence. This affordability has helped sustain demand even as consumers reassess spending across other discretionary categories.
Inflation has also driven notable behavioural shifts. In markets such as the United States and the United Kingdom, more consumers are brewing coffee at home, investing in better equipment, developing new skills, and experimenting with formats and flavours. These behaviours, which first began to accelerate during the pandemic, are now becoming embedded routines.
At the same time, the perceived role of coffee is changing. It is increasingly viewed not just as a functional energy boost, but as a lifestyle product associated with ritual, enjoyment, and self-expression. This shift underpins many of the trends explored later in this report, including premiumisation and innovation.
Key at-home coffee segments include:
- Instant coffee
- Roast and ground
- Whole beans
- Pods and capsules
- Ready-to-drink (RTD) coffee
How coffee consumption differs across the world
North America
Blends grab‑and‑go convenience with at home, investment in gourmet beans and brewing gear is creating a new generation of everyday baristas
Latin America
Local pride and rising prices fuel a premium coffee wave, with shoppers trading up across key segments
North America
At-home coffee consumption remains very strong in North America, particularly in the United States, where approximately nine in ten consumers engage with the category across multiple formats.
Younger generations are driving increased fluidity in coffee habits. Rather than following fixed routines, they are more likely to experiment with different formats, flavours, and preparation methods. This has helped to drive innovation forwards, with flavoured creamers, cold and hot coffee mixing, and expanded at-home coffee setups all gaining in popularity.
Coffee in North America is a primarily functional pursuit, often consumed for its caffeine benefits rather than as a social ritual. A strong to-go culture persists, with large, portable cups suited to commuting and working.
While at-home coffee is likely to remain more resilient than foodservice coffee, consumers may increasingly trade up and down between brands and formats to manage budgets.
Latin America
In Latin America, coffee is deeply embedded in daily life and cultural identity. Consumption often takes place at home or in small local cafés, with short, strong, and sometimes sweetened cups common.
Many countries in the region are major coffee producers, which supports strong local pride in coffee quality and origin. This has translated into growing interest in locally sourced beans and higher-quality products.
From a sales perspective, growth in the region is largely driven by rising average prices due to inflation, combined with gradual premiumisation and the introduction of new, higher-value products.
EMEA
EMEA shows the greatest variation in coffee consumption. Nordic countries such as Finland and Sweden record some of the highest per-capita consumption globally. Meanwhile, Mediterranean markets, such as Italy who are famous worldwide for the Espresso, tend to consume smaller volumes but maintain strong café cultures. Instant coffee retains a significant share in several Eastern European markets and filter or brewed coffee is more common in Northern regions.
Across EMEA, the social dimension of coffee remains important. Coffee is often consumed as part of a social interaction rather than purely for functional reasons.
APAC
Asia-Pacific currently has the lowest per-capita off-trade coffee expenditure globally, but it is also one of the fastest-evolving regions. Coffee is gaining ground in traditionally tea-drinking cultures, particularly among urban Gen Z and Millennial consumers. Instant coffee mixes remain dominant due to their affordability and convenience, but RTD formats are also expanding rapidly.
Markets such as Japan, South Korea, and Thailand lead in on-the-go consumption, while tropical markets favour iced and sweetened coffee styles.
Coffee sales drivers by region
Chart information:
Contribution shows the extent of the change in a particular measure to the total sales change for a particular product group. For example, contribution for Average Price per Unit tells us how much the change in price has contributed to the overall change in sales of the product group between the two time periods of analysis.
Coffee segments sales drivers
North America
Latin America
EMEA
APAC
Chart information:
The coffee types covered in the chart above include instant coffee, roast and ground, coffee beans, pods and capsules and ready-to-drink coffee options.
Across all regions and segments, price is the primary driver of growth, reflecting widespread inflationary pressures. While rising prices have reduced unit volumes in EMEA and North America, this effect has not been seen in APAC. In Latin America, price inflation is the single biggest contributor to sales growth.
Sales of fresh coffee beans are up in every region, driven by premiumisation and growing interest in at-home/off-trade brewing. By contrast, instant coffee remains the most important segment globally, with purchasing skewed toward less affluent and mainstream consumers.
- In the United States, total coffee sales growth is driven mainly by whole bean and gourmet ground coffee. In APAC, growth is concentrated in premium formats, particularly premium roast and ground, as well as freeze-dried coffee.
- In Latin America, growth reflects a combination of inflation-led price increases and a gradual shift toward higher-value segments supported by new product launches.
- In EMEA and particularly the UK, instant coffee and pods are the largest contributors to total sales in absolute terms, while beans and ready-to-drink coffee are delivering the strongest year-on-year growth. RTD coffee is growing most strongly in EMEA, supported by rising popularity and an expanding range of new products.
Innovation drives growth in every market, though it manifests differently by region:
- In Latin America, innovation is concentrated in roast and ground and premium instant coffee, which together account for around 70% of new product sales.
- In the UK, growth is driven by mainstream instant, new pod formats, and RTD.
- In the US, innovation in RTD and roast and ground coffee accounts for roughly 70% of new product growth.
Coffee beans consistently appeal to more upmarket consumers, while RTD coffee also skews upmarket in most regions. An exception is EMEA, where newer RTD ranges resonate more strongly with mid-market consumers. Pods are positioned as particularly upmarket in Latin America, whereas in the US they have broader appeal and skew more toward mid-market shoppers.
Drivers of sales change by region
EMEA
APAC
Latin America
North America
Chart information:
The charts show year-on-year change (Oct 2024-Oct 2025) in each category, by region.
Coffee shopper profile by segment
EMEA
APAC
Latin America
North America
Chart information:
110 < indicate over-indexed values, and >90 under-indexed values. For example, an upmarket index of 120 tells you that upmarket customers tend to spend more on the segment compared to the average shopper. An upmarket Index of 70 tells you that upmarket customers tend to spend less on the segment compared to the average shopper.
Key trends and learnings
Trend 1: Premiumisation
Across all regions, coffee consumers continue to trade up to premium products despite rising prices, underscoring a strong willingness to pay for perceived quality, distinctive taste, and origin transparency.
Shoppers are increasingly choosing gourmet, ground, and ready-to-drink coffee, while pod coffee shows a slight shift toward lower-priced options within that segment.
This trend is supported by greater consumer choice and accessibility. High-quality coffee is now available at a range of price points, while increasingly sophisticated home coffee machines enable café-style experiences at home.
Accelerated by the pandemic, this shift toward home consumption has reinforced premiumisation, as consumers invest in better products and equipment to replicate barista-quality coffee and enhance everyday rituals.
Trend 2: Ready-to-drink (RTD)
Ready-to-drink (RTD) coffee is one of the fastest-growing segments globally, driven by strong demand for convenience, portability, and variety. Growth is particularly pronounced in chilled and flavoured formats, which appeal to consumers looking for accessible, on-the-go coffee options that fit into busy lifestyles.
Gen Z is playing a central role in shaping this category, favouring cold, innovative, and ready-to-consume beverages over traditional hot coffee formats. In response, retailers and brands such as Tesco and Oatly are expanding their RTD coffee ranges, launching products specifically designed to meet younger consumers’ expectations for grab-and-go, chilled, and contemporary coffee experiences.
Trend 3:
Coffee innovation Innovation is accelerating across multiple streams within the coffee category. New brands, such as Grind in the UK, are emerging with vibrant, contemporary packaging designed to appeal to younger consumers. At the same time, instant coffee is being upgraded and repositioned to compete more directly with roast and ground offerings, while brands are also expanding into new regions. This includes Matiz, who have looked to grow the flavoured coffee category in The Americas, and Nescafé Black, an instant coffee targeting espresso consumers.
Trend 4:
Convenience through pods
Pods and capsules continue to be popular due to their convenience and consistency, with growth increasingly concentrated in premium and speciality ranges.
Consumers are trading up to higher-end options such as flavoured, organic, and single-origin pods, alongside innovations in more sustainable packaging. Emphasising country of origin and quality credentials has become a key way for brands to premiumise the segment and appeal to consumers willing to pay more.
North America and Europe currently lead in market share and revenue, reflecting the high penetration of single-serve systems in these regions. Meanwhile, Asia-Pacific and Latin America are emerging as fast-growing markets, driven by expanding coffee cultures and rising adoption of pod-based formats.
Despite this growth, the environmental impact of single-use pods remains a significant concern, shaping both consumer expectations and future innovation within the category.
Trend 5:
Sustainability and ethical sourcing
Sustainability has shifted from a point of differentiation to a baseline expectation, particularly within premium coffee segments.
In response to growing environmental concerns, many pod brands are introducing more eco-friendly solutions, such as compostable or recyclable pods. There is increasing emphasis across the supply chain on traceability, ethical sourcing, and reducing environmental impact. Demand remains strong for certifications and claims such as Fairtrade, Rainforest Alliance, organic, and carbon-neutral, while locally produced coffee and local roasteries - particularly in Latin America - are gaining momentum as consumers seek more transparent and community-focused options.
Trend 6:
Health and functional coffee
Functional coffee propositions are emerging, particularly in the US and UK, as brands respond to growing interest in health and wellness. These products, which often feature added protein, adaptogens, or reduced sugar, remain niche but align closely with broader consumer trends around self-care, nutrition, and performance. Key functional benefits being explored include gut health and digestive comfort, brain health linked to mental wellbeing, sleep, and focus, and hydration to support daily fluid intake. Protein enrichment has become a major nutritional priority, while weight management is gaining relevance, influenced by increased awareness of GLP-1s alongside diet and exercise trends.
What does this mean for brands and retailers?
Brands that want to unlock sustainable growth should prioritise four actions:
1. Anchor innovation in real consumption habits
RTD, functional claims, and premium formats only drive growth when they solve a clear shopper need. Truly successful innovation is rooted in how, when, and why people consume coffee locally, not just in replicating global trends.
2. Make premium line differentiators tangible and easy to understand
Premiumisation works best when shoppers can quickly grasp the value on offer. Origin, roast profile, flavour, format, and sustainability credentials need to be clear and meaningful, both at the shelf and online. Ambiguous premium claims run the risk of being overlooked or traded down.
3. Build a portfolio that can flex across price sensitivity
Customers are increasingly moving between value and premium depending on their mission and budget. Brands that offer clear tiering, a variety of different pack sizes, and accessible entry points are better placed to win as spending patterns shift.
4. Collaborate with retailers through data, not just listings
For brands, growth opportunities in the coffee category are increasingly about optimisation rather than expansion: a deeper understanding of how the range is structured, which products justify their space, and who they’re aimed at, for instance. That’s why collaboration will be key. Brands that use shopper and behavioural data to cocreate solutions with retailers won’t just be able to answer those questions more confidently – they’ll be better placed to win space, loyalty and long-term growth.
Coffee may be one of the world’s oldest categories - but its future has rarely looked more dynamic. For brands, this is a moment to lead: those who invest in meaningful innovation, understand emerging behaviours, and act with agility will not only stay relevant, but help shape the next era of global coffee culture.
