Consumption & Trends

For the past decade, the Gulf Cooperation Council (GCC) has seen an unprecedented boom in coffee consumption. Dubai is fast becoming the launchpad for coffee brands eyeing the GCC’s booming $6.84 billion market. With a 50% rise in exhibitors at World of Coffee Dubai 2025, the city is cementing its role as the region’s coffee hub. Coffee brands are using the UAE to crack – and scale – the GCC coffee code.

Into the late 2010s, coffee industry acquisitions frequently featured in daily news briefings – think Coke and Costa, Nestle and Blue Bottle, or JAB and Peets, Intelligentsia, and Stumptown. But as things changed in the coffee industry and interest rates rose in the early 2020s, M&A appetite cooled. However, with inflation stabilising and rates lowering once more -- can we expect more acquisitions in the near future?

Influencers are turning online clout into offline coffee spaces – and Gen Z is showing up. With 74% of Gen Z valuing real-world experiences over digital ones, influencer cafés are emerging as the new social hubs. Chamberlain Coffee expects to hit $33 million in 2025 – proof that going offline is the next big move for digital-first brands. Gen Z is flocking to these curated and reimagined “third places” that are part coffee shop, part content studio.

For decades, coffee has been at the centre of debates surrounding its health implications. But in a landmark decision, the U.S. Food and Drug Administration (FDA) approved coffee as a healthy beverage in December 2024, marking a transformative moment for the industry. The $4.5 trillion wellness economy is driving demand for functional coffees with probiotics, antioxidants, and adaptogens. Meanwhile, health scares like Snapchill’s recall highlight the need for stricter quality control as coffee brands embrace wellness trends.

For years, independent coffee roasters thrived on craftsmanship, direct trade relationships, and the growing demand for premium coffee. Today, specialty coffee roasters are scrambling for cash, selling stakes or entire businesses at record rates. With Arabica prices soaring past $4 per pound, roasters face a brutal choice. Raise prices, cut quality, or find investors – fast.

For years, China’s coffee market was hailed as a rising force, with annual consumption growing by 15%, vastly outpacing the global average of 2.2%. China’s coffee boom continues, but CoE demand is shifting. Luckin and Cotti’s rapid expansion is fuelling mass-market coffee, leaving ultra-premium lots for a niche few. Japan, South Korea, and Taiwan are snapping up CoE coffees as China’s specialty scene pivots to trendy, hybrid drinks.

Coffee prices have reached record highs, pushing roasters and consumers alike to ask: How much further will they go, and will buying coffee remain sustainable? Some brands are still offering bargain brews – Pret a Manger has announced it’s maintaining its too-good-to-be-true £5 a month subscription, including half price coffee perks. Big chains are keeping prices low with clever pricing tricks, but how long can it last?

The days of a simple "black coffee, no sugar" being the hallmark of sophistication are giving way to a bolder, sweeter, and more colourful wave of caffeinated preferences. 75% of 18-34-year-olds customise their out of home coffee orders with syrups. Gen Z has turned “basic” drinks into proud indulgence, making caramel swirl & matcha lattes the new cool. Big chains are dropping non-dairy surcharges as customisation takes over.

Capsule coffee machines have become a fixture in modern kitchens, synonymous with convenience, style, and, often, the appearance of sophistication. Nespresso pioneered the capsule system – convenience replicating the sophisticated design of espresso machines. Studies show that most consumers trust products more when designs mimic traditional forms. Electric cars have grilles, and capsule machines levers – not for function, but to evoke familiarity and build trust.

Dupe culture – short for “duplicate” – is disrupting retail, driven by cost-conscious Gen Z consumers, the thrill of discovery, and the joy of sharing affordable imitations. 71% of Gen Z and 67% of Millennials regularly purchase imitation products. From Starbucks to Luckin, coffee "wars" are intensifying with lawsuits over brand imitation.

Italy, the birthplace of espresso and a global leader in manual espresso machines, is expanding its brewing repertoire. Simonelli Group’s investment in 3TEMP highlights Italian brands expanding beyond traditional espresso machines. Meanwhile, global coffee consumption is projected to grow 4.3% annually through 2028 with rising demand for specialty brewing systems. Italian brands are balancing heritage with innovation, preparing for new consumer demand.

From high-end espresso machines to automated milk frothers, technology has streamlined coffee preparation, offering faster, more consistent results. Barista roles are shifting from artistry to customer engagement. With coffee roasters cutting barista promotions and costs up by 29%, how will the industry balance efficiency and craft?

For many owners of specialty coffee brands that have scaled, success hasn’t been all fun and games. Big brands are craving the creativity of their early days. Side projects like Blue Bottle Studio and Starbucks Reserve help reignite passion while big brands juggle profits. With food costs up 29% and labour up 31%, small, focused coffee shops are proving size isn’t everything.

For decades, the label “Made in China” carried a stigma, particularly in industries that prided themselves on craftsmanship, precision, and performance. Now, building on decades of experience in manufacturing, processing, supply chain management, and quality control, China’s manufacturing capabilities have made leaps – including coffee equipment.

There is no shortage of coffee shops that label themselves as "specialty" – but the number of coffee shops that serve a cup of coffee that would meet James Hoffmann’s expectations are few and far between.  91% of consumers prefer authentic brands, but misuse of the term "specialty" is eroding trust. Rising YOY sector growth is fuelling subpar cafes prioritising profits over quality. Clear standards are crucial to protect quality cafes and preserve value chains.

As tough economic times hit, the core values of specialty coffee – commitment to quality, sustainability, and fair practices – seem to be getting diluted. Two-thirds of young consumers prioritise ethics, but rapid growth often sacrifices transparency and producer welfare. Mayorga Coffee’s 5x facility expansion shows scaling can align with fair prices and socio-economic impact.

In the fast-paced world of specialty coffee, baristas and shop owners obsess over sourcing the finest beans, perfecting brewing methods, and crafting the perfect pour. Cynical memes about cleaning coffee gear flood the internet – but the reality isn’t so funny. Neglecting coffee equipment can lead to harmful bacteria and mould, studies warn. Clean equipment isn’t optional – it protects your business from wear, tear, and unhappy customers.

Colombia’s coffee industry, long celebrated for its exceptional green coffee exports, is witnessing a strategic shift as traders venture into specialty coffee retail. Rising costs and shrinking margins are driving a shift from green coffee exports to domestic retail. Specialty cafés showcase Colombian coffee culture and foster innovation and sustainability.

Children consuming coffee is a concept that would be met with either outrage, pride, or a shrug – depending on where you are in the world. Some western influencers are increasingly warning against coffee for kids and adults, but sugar-loaded energy drinks with high caffeine levels are less scrutinised. In markets like Brazil, children drinking coffee is a longstanding tradition. "Demonising" coffee can also disrupt & reshape global markets – giving high-sugar soft drinks the upper hand.