How Big Is the Coffee Shop Industry in 2026? Market Size & Key Stats
Despite the number of cafes and coffee shop businesses decreasing globally, the market size for coffee shops has been growing steadily for the last 10 years. Why does this happen? To explain these trends, we have to look at the global industry from the ground up. Then, at the smaller sections, or segments, within the coffee shop sector.
In this blog, we look at the value of the coffee market by country, by coffee shop type, and by consumer demand. We also look at the costs and profits of opening your own coffee shop.
How much is the global coffee trade worth?
To put the coffee market share into perspective, it's important to know that coffee is the highest traded commodity after oil across the world. Coffee is also the most exported agricultural commodity globally.
The 2026 market size for coffee in Ireland is estimated at around $431.9 million dollars (€388.1bn EUR), growing steadily at 4.3% for the next 5 years. By 2031, the market is forecasted to reach $511.1 million dollars (€459.1bn EUR) [1].
What is the coffee shop market size worldwide?
Here's a breakdown of the coffee market size across the globe:
- The Canadian coffee and snack shops market value is around $5 billion USD. ($6.4 bn CAD)
- The Australian market value is $10.5bn USD. (15.0bn AUD)
- In New Zealand, it's at $6.0bn USD. ($9.2bn NZD)
- The UK coffee market value is $5.4bn USD. (£4.0bn)
- In Ireland, the coffee shop market is worth $1.2bn USD. (€1bn)
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In Ireland, the coffee market is worth an estimated $431.9 million USD (€388.7m) as of 2026 [1].
While it's important to recognise the size and value of the market in each country, coffee shop owners can learn more about their industry when we look at a more detailed breakdown of market segments and their value.
What is the most popular type of coffee shop?
Lower-priced coffee has the largest consumer base. This includes large coffee chains like Starbucks and Tim Hortons. Affordable coffee has become more popular and available due to the dominance of large coffee chains embracing a 'fast-food' style model to produce instant, less expensive coffee.
This includes offering coffee via a drive-through, online ordering for quick pickup, and creating an assembly-line format of baristas in each store. At the same time, these companies are also expanding their food menus to offer breakfast, lunch, appetisers, and desserts, which typically offer a higher profit margin than coffee alone. Because of this, customers can buy coffee for around €1-€4.
How popular is artisanal coffee?
The artisan and specialty coffee shops segment has experienced significant growth over the past decade. A surge in demand for ethically sourced coffee beans promoted the success of speciality coffee. Ryan de Oliveria, the co-founder of The Attendant, a coffee shop in London, says there is "a large demand" for ethical sourcing that goes beyond just buying traditional labels such as Fairtrade [3].
Sustainably sourced coffee means farmers can be up to three-and-a-half times better off simply by selling their beans in the right way. The Attendant source their coffee from small farming communities in Uganda.
"People want to know that they are doing good and they don't want to buy something from a supply chain that is corrupt," says Mr de Oliveria. "For example, there was a lot of warfare in Uganda, and we talk them through the impact we are trying to make with those farmers to stabilise their communities".
Coffee market segmentation by location
Location has a large part to play in the success of coffee shops. Large chain stores are very common in cities and metropolitan areas, as are independent cafes and coffee houses. In fact, certain coffee companies, such as Starbucks and Dunkin’ Donuts, set population density requirements before opening a new location. This tactic is being adopted by many of the key players in the coffee shop industry, including McCafe (McDonald's), CCD, and Nescafe [4].
How much does it cost to open a coffee shop?
A sit-down coffee shop can cost between €141k and €265k to open brand new due to the pricing of rent and commercial-grade equipment. Portable coffee vans typically cost around €20k. Coffee doesn’t require a large kitchen or storage space since most of the ingredients for the drinks are the same, as is the equipment used to make them.
Turning to the product itself, coffee is a relatively low-cost item. You have to sell a lot of it to generate a substantial income. However, the profit margins are incredibly high, typically 90% or upwards.
- A wholesale bag of Arabica beans generally costs around €15-€23 per kilo. There are roughly 120-140 servings per kilo bag, therefore, one cup will cost around 10p. Add milk for around 10c.
- The average cup of coffee costs around €2.45.
- Profits sit at €2.29 per cup, 93.5% gross profit (not including the takeaway cup, VAT or other prime costs).
This, of course, depends on the type of coffee beans being sold. As mentioned, Fairtrade and ethically sourced coffee come with a higher cost price for coffee shop owners — a trend seen across the wider coffee shop industry. Again, consumers are willing to pay more for a sustainably sourced brew.
Finding a sustainable coffee supplier
Coffee shop owners should consider the following factors when choosing a supplier:
- Quality: cost and high quality often go hand in hand. Loyal coffee drinkers will not return if they think your coffee is subpar.
- Reputation: ethical sourcing is a key concern for many people - again, this will reflect in the price you pay for your coffee products.
- Delivery: How frequently will your suppliers deliver your beans? You never want to run out of stock on a busy day!
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Frequently Asked Questions
- How big is the coffee industry in Ireland?
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Ireland's coffee shop market size varies by scope. One estimate puts revenue in the Irish coffee market at €147.12 million in 2023, while broader coffee product market forecasts estimate the total Ireland coffee market at around $431.9 million (approximately €388.7 million) in 2026, projected to reach $511.1 million by 2031 at a 4.3% CAGR.
- How much does it cost to open a coffee shop in Ireland?
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Costs vary widely depending on size, location, and concept. A small kiosk or takeaway setup can start from around €20,000–€23,000. A full sit-down café with seating and fit-out can range from €100,000 up to €165,000–€306,000 for a larger city-centre location. Ongoing costs like utilities also add up — small cafés typically spend €2,367–€3,660 a year on electricity and €820–€1,458 on gas.
- What is the average revenue of a coffee shop in Ireland?
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This varies enormously between independents and larger chains. For context, Insomnia Coffee Company, one of Ireland's largest coffee chains, reported revenue of roughly €36.77 million. Independent single-location cafés earn far less — often in the tens of thousands to low hundreds of thousands of euros annually, depending on footfall and location. Profit margins in the sector tend to be thin once rent, wages, and rising costs (like VAT) are factored in.
- Which country drinks the most coffee per capita?
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Finland consistently ranks first globally, with residents consuming just over 12 kg of coffee per year per person — largely attributed to its cold climate and strong café culture. Ireland doesn't rank among the top per-capita consumers globally, but coffee culture is strong domestically — around one in three Irish people buy a cup of coffee daily, and 79% of coffee drinkers in Ireland have at least one cup a day.
