Coffee is a part of consumers’ daily lives: in fact, 66% of Americans drink the brew on a daily basis. And demand continues to grow: already worth around $269.27bn, the global coffee market is forecast to see CAGR of 5.3% from 2025-2030.
But innovation is pushing the category beyond just an average cup of joe.
Functional benefits, trendy RTD options, coffee concentrates, premium serves and at-home barista tech are all resonating with today’s consumers.
NPD continues to elevate the daily cup of coffee: adding a functional punch or premium twist into everyday routines. But other innovations are looking to expand coffee beyond this morning occasion and into other parts of the day.
So what coffee trends are set to shape the market in 2026 and beyond?
Functional coffee
Coffee is nature’s original energy drink: with the caffeine boost providing that much needed pick-me-up for millions of consumers.
But coffee innovators are turning the daily brew into a coffee powerhouse. The functional coffee market is currently worth around $4.5bn globally, according to data from Mordor Intelligence, and that’s set to rocket up to $7.78bn by 2030, representing a CAGR of 11.84%.
“Today’s wellness-focused coffee drinks want clean energy, exceptional taste and functional benefits that fit seamlessly into daily routines” says Andy van Ark, CCO of functional coffee pioneer Bulletproof.
And functionality is taking many different directions. Brands boast functional ingredients for brain health, raising from adaptogens for stress relief to nootropics to improve focus and support memory. Then there’s those that focus on gut health with prebiotics and probiotics; or others that pack a protein punch.
RTD coffee
Gen Z is far more likely to drink an RTD coffee than a traditional hot variety: showing the direction of travel for the category.
Currently at around $29.44bn, the global RTD coffee market is expected to grow at a CAGR of 6.2% from 2025 to 2030.
With RTD coffee largely about indulgence, it’s a great platform for innovation. Fancy flavors are one way to draw new consumers in and generate excitement in the category. Chocolate, peanut butter, cookies and cream and salted maple are all flavors that offer classic, irresistible combos.
With high levels of fat and sugar, some RTD coffees may be a little too indulgent (a backlash could be imminent with the UK set to tax sugary drinks under its soda tax) so innovators who can create healthier versions will be ready to push ahead of the pack.
Coffee concentrates
Emerging from Asia Pacific is the rise of coffee concentrates: concentrated coffee liquid made from an espresso that can be mixed with water or milk without the need for extensive preparation or barista skills.
The category offers busy consumers a convenience and time-saving way to enjoy coffee at home; while the compact format offers a clear advantage in the coffee market compared to the distribution of heavy RTD liquid beverages.
While still a tiny percentage of the global coffee market (around $2.9bn), coffee concentrates are expected to grow fast with a CAGR of 6.8% from 2025 to 2030.
Coffee market shake-up
Keurig Dr Pepper is set to take over JDE Peet's this year, in an $18bn coffee deal that will shake up the global coffee market. The combined company will become the world's largest pure-play coffee company, with around $16bn in annual sales.
Nestle, however, still boasts $29.5bn in annual sales in its coffee division, with heavyweights Nespresso, Nescafe and Starbucks.
Tech transforms the at-home experience
Nespresso and K-cups revolutionized coffee consumption in the home: what’s next?
As consumers look to elevate their daily morning coffee experience, having high quality, barista-style coffee in their homes is a must.
How could AI transform this area? Smart tech can already recommend brewing parameters based on bean type and roast; while AI-assisted systems are creating personalized café level experiences. Coffee robots are on their way. All this makes high-quality, customized coffee more accessible to everyday home brewers.
Responsible and ethical coffee
Once a commodity far removed from consumers, coffee lovers are now increasingly interested in where their beans come from and how they were produced.
Climate change may reshape where coffee is grown; creating a crisis in some traditional coffee regions but also opening up new opportunities in others. Meanwhile, growers are increasingly looking at practices that reduce water use, improve soil health and protect biodiversity.
Certification looks at fair wages for workers, alongside assessing environmentally responsible methods.
Rising global standards and legislation, such as European sustainability regulations, will push the industry further towards accountable, low impact farming and clearer supply chain reporting.
Specialty coffee
Across the beverage category, consumers are embracing premium beverages. In coffee, this represents an affordable luxury, even in a tough economic climate.
As well as offering premium beans and brews, specialty coffee sets out to shape a more sustainable and equitable global coffee industry. Single origin and rediscovered coffee species are growing in popularity as consumers delve deeper into the category.
A specialty coffee (as determined by the Specialty Coffee Association’s Coffee Value Assessment) considers the bean and roasting; the sensory analysis of aroma, flavor, body and acidity; and the origin and variety of the coffee.
Instant coffee is back
Could instant coffee be on the cusp of a revival? Not all consumers can afford luxury options: and it’s a category ripe for innovation. In fact, the $1.5bn US instant coffee market experienced a 15% jump in sales last year, according to NIQ data.
Coffee prices are rising across the board, while instant coffee naturally delivers on ease and convenience: leaving the category in a ‘position of strength’, says Chris Costagli, NIQ vice president, thought leadership, food and beverage insights lead.
“With favorable pricing and younger generations already leaning in, this storm could be the spark that pushes instant coffee into a whole new era,” he said.
While overshadowed by other categories such as RTD, instant coffee, in fact, remains a strong fundamental coffee category around the world.
Decaffeinated coffee set for a revival
Decaffeinated coffee is still plagued by perceptions of inferiority: associated with low quality, chemically-processed beans.
But there are signs the category is emerging from the doldrums: and the market is predicted to grow at a CAGR of 4.5% from 2026-2033.
Why? Consumers love coffee: but there’s a limit to how much caffeine we should drink per day and there’s increasing signs that consumers are getting concerned about caffeine consumption.
And, intriguingly, coffee may be as much about the ritual and routine as it is the caffeine (in fact, a recent study found little difference in reaction times between those drinking caffeinated and decaffeinated coffee).
With little competition in this category, that means there’s a huge white space for innovation. UK cold brew start-up Nolo, for example, has been looking at what formats decaf can shine in.
“We tested multiple decaf formats... whole beans, ground beans, pods and ready-to-drink...and RTD consistently generated the strongest response, particularly among younger consumers,” said co-founder Pierre Darnton.
Coffee creamers bring flavor and fun
Taking the US by storm are coffee creamers: which transform ordinary coffee into a new experience based on flavor and texture.
“Consumers crave food and beverage experiences that surprise, delight and create a restaurant-like experience at home,” explains Rebecca Elkinson, director of client insights at Circana. “Coffee creamers deliver on this with formats like cold foam, as well as limited-edition flavors and licensing partnerships that excite consumers and motivate trial.”
Growing at a 8.8% CAGR over the last few years, momentum in the category shows no signs of slowing.
Major players like Nestle (Coffee Mate) and Danone (International Delight) have traditionally dominated the space: but now the area is being shaken up through format and ingredient innovation with a flurry of new products.
Beyond the bean
Coffee prices are soaring: and the supply chain is under pressure. Consumers are increasingly conscious that beans are shipped around the world; and are prepared to explore new alternatives. Others want an alternative to caffeine.
Singapore’s Prefer uses fermentation technology similar to beer brewing to create a bean-free coffee with spent barley grains. Embracing cascara is another area of upcycling innovation.
Belgian start-up Koppie, meanwhile, creates its alternative using fermented chickpeas and peas to reduce carbon impact. Chicory, already a long-standing caffeine-free brew, can manoeuvre into this space. And mushroom coffee promises smoother caffeine delivery alongside a functional punch.
