Coffee Franchise Market set to expand at 8.3% CAGR, reaching $200.3B by 2031

The global coffee franchise market is set to witness robust growth, with a projected CAGR of 8.3% from 2022 to 2031, according to a recent report by Allied Market Research. The market, valued at $90.7 billion in 2021, is expected to reach a staggering $200.3 billion by 2031.

The success of established business models and the appeal of well-known brands contribute to the increasing trend of coffee franchises. A recent study indicates that franchise businesses, especially in the coffee sector, have an 80% probability of survival compared to a 20–30% chance for independent businesses. Recognizable brand names and trademarks attract a devoted customer base, with franchisors investing in marketing, providing a significant boost to the coffee franchise market globally.

Well-established business models, brand recognition, and robust support systems make coffee franchises popular. The market is witnessing a shift toward metropolitan areas, with franchisees capitalizing on the untapped potential in rural locations.

The market segmentation includes the delivery type (dine-in and dine-out), cuisine (lunch, brunch, and coffee & bar), and region (North America, Europe, Asia-Pacific, and LAMEA). Dine-in dominates the market, with a CAGR of 8.2% in 2021, emphasizing the importance of customer service and quality cuisine in attracting patrons.

Coffee & bar franchises lead the market by cuisine, generating $42,601.2 million in 2021, and projected to reach $96,826.7 million by 2031 at a CAGR of 8.6%. These franchises offer specialty drinks and a relaxing atmosphere, contributing to the industry’s growth.

Asia-Pacific holds the largest market share in 2021, with $29,491.2 million, projected to reach $70,898.0 million by 2031 at a CAGR of 9.2%. The region’s increasing demand for cozy social environments and the popularity of coffee franchises contribute to this substantial market share.

Major players in the coffee franchise market include Nescafe Coffee Shop, Café Coffee Day, Starbucks, Barista, Frespresso, and others. The competition is intense, with companies focusing on innovation and customer satisfaction to maintain their positions in this lucrative market.

As coffee culture continues to flourish, the global coffee franchise market is poised for substantial growth, driven by the appeal of recognized brands, diverse cuisine offerings, and expanding market presence in both urban and rural settings.

Source: Newswires

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