About the Report
Coffee has become essential to start a day. Everyone has their own preference when it comes to drink coffee, and from traditional espresso to filter coffee to mocha, automatic coffee machine serves every coffee variant and excel in different flavors. Manufacturers are offering a varied range of coffee making equipment and solutions owing to increasing consumer’s demand for personalized products based on its usage in different locations around the world.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights into factors enabling growth in the automatic coffee machine market. The report tracks the global sales of these machines across 20+ high-growth markets. It also examines the impact COVID-19 has had on the economic and industrial growth, and the automatic coffee machine market in particular.
How Did Automatic Coffee Machine Perform Historically in Comparison to Future Projections?
Between 2016 and 2020, the demand for automatic coffee machine recorded 5.5%. Increasing penetration of automatic coffee machine in rising cafe chains, restaurants and hang out places has led to foresee outstanding market growth avenues throughout the forecast period. In addition to this, despite of simplicity in coffee making process, gradual shift of consumer’s choice from manual coffee making machine to automatic ones has been sighted in the recent past. This is attributed to time saving and consistency in coffee flavor. Thereby, automatic coffee machine gained immense popularity at commercial as well as domestic application.
The opportunities are expected to get more lucrative with an increasing number of companies investing in research and development (R&D) to launch coffee machines with advanced functionalities. For instance, Nestle Nespresso S.A. invested US$ 43.03 Mn in 2018 in the creation of a new line of product called, Verturo. The expansion of commercial infrastructure and mushrooming offices will guarantee growth despite temporary lull experienced during COVID-19 outbreak. FMI has forecast the market to exhibit 5.1% CAGR between 2021 and 2031.
How is a Semi-Automatic Coffee Machine Driving Demand?
A semi-automatic is a good alternative between a manual coffee machine and a fully automatic coffee machine. Kmart, Sunbeam, and Gaggia all have reliable and affordable semi-automatic coffee machines. For example, The Sunbeam Mini Barista only costs $299 and features a simple operation designed with two shot sizes and an in-built milk frothing steam wand. Though a semi-automatic coffee machine is quicker than a manual coffee machine as it’s partly automated, it’s not as quick as a fully automatic machine, coffee pod machine, or drip coffee machine.
One of the chief benefits of investing in a semi-automatic coffee machine is that it doesn’t come with pre-set time for shots. Because these machines are semi-automatic, they let barista take the decision on the process of brewing and texture. This offers customers to create a brew as per their preference, which is a key factor besides cost-effectiveness fuelling the demand for semi-automatic coffee machines.
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Is Smart Coffee Maker Trending Globally?
The market is witnessing a swift uptake of super and fully automatic coffee machine which is highly quality consistent and efficient in operation. Coffee maker producers are leaving no stone unturned to keep pace with evolving technologies and dynamic consumer preferences. With smart living and home technologies making inroads into the market, smart and Wi-Fi connected coffee machines have debuted.
With the sole intent of making morning routines more tech savvy, products such as Smarter Coffee forayed into the U.S. market. The unique technology allows user to control the appliance using voice commands such as “OK Google, make some coffee”. It can be connected to Amazon Alexa, Siri-enabled devices, and Google Home-enabled devices. These developments are likely to prove crucial for growth in the coming years.
What Role Does Technological Advancement Have to Play?
Rising integration of smart technology in domestic electronic appliances is expected to remain as a prevailing trait during the forecast period. Automatic coffee machines are identified as one of the key equipment of today’s modern kitchen. This is attributed to the features like convenient accessibility from distant place. Technologies like Bluetooth and Wi-Fi connectivity is gaining popularity as users can operate automatic coffee machines through smartphones and provide instruction from anywhere within connectivity range inside the house.
Users may get notification and reminder via mobile apps for refilling of water, replacement of water filter disk, and volume of milk, water or coffee beans in the machine. In addition to this, new additional feature of multiple brewing i.e., to make two cups of coffee at a time is highly likely to attract large customer base. Thus, increased flexibility in operating automatic coffee machine through ease in communication through smartphones is highly likely to propel the market during the forecast period.
Keurig is one of the companies to have launched smart coffee machine recently. Its new Wi-Fi enabled coffee brewer launched in later part of 2020 is intended to court coffee geeks with the latest technology. Meanwhile, Nescafe’s Smart Personal Coffee Maker has been launched in India in July 2020. It also is designed for Wi-Fi connectivity.
How Big a Restraint is the High Cost of Automatic Coffee Machine?
High cost of automatic coffee machine is expected to remain as a restraining factor in market. It has been noted that rise in number of daily take-away coffee consumers which has become a popular element of working population all around the world. The changing lifestyle of consumer demands rapid service in coffee serving which requires upgradation of latest configuration in automatic coffee machine.
On account of such rapid adoption of technology, manufacturers are spending heavily to offer state-of-the-art products to buyers. However, highly automated coffee machine is anticipated to encounter with its high cost. This results to affect consumer’s decision making process in the near future. Thereby, manufacturers are focusing to offer automatic coffee machines with advanced technology at an affordable price range.
Why is the U.S. Considered a Leading Automatic Coffee Machine Market?
US is identified as the predominant coffee lover country in global coffee industry. Demand for nearly 50% of the automatic coffee machines out of total production comes from North America, of which an approximate 70% is originated by the United States. According to the National Coffee Drinking Trend (NCDT) 2016 report by National Coffee Association, consumption of espresso based beverage has been reported to increase by three folds between 2008 and 2016. Also, market share for gourmet coffee beverages (GCB) is expected to continuously increase among youth population. Due to this, automatic coffee machine is expected to witness substantial rise in demand during the forecast period.
A key trend observed in the US automatic coffee machine sales is the growing preference towards super automatic small kitchen appliances.
How Lucrative is Germany for Automatic Coffee Machine Sales?
In the German automatic coffee machine market, manufacturers are highly focusing to offer product that are energy efficient. The European regulations drafted for household appliances are focusing to reduce greenhouse gas (GHG) emission and electricity consumption. In addition to this, increasing preference of consumer on premiumisation of automatic coffee machine is expected to proliferate the market during the forecast period. Thereby, consumer’s preference over taste and quality rather than brand loyalty is highly likely to account potential value share for locally brewed coffee in the near future.
According to a study published by Beverage Business World in 2019, Germany was identified as the groundbreaker, in terms of coffee consumption across office spaces. Besides this, CBI Ministry of Foreign Affairs, Germany is the largest importer of green coffee beans in Europe. With coffee consumption projected to rise consistently, the country will remain highly lucrative for automatic coffee machine sales.
What Supports Automatic Coffee Machine Sales in India?
Increasing urbanization and establishment of IT parks at rapid pace in emerging economies of India are expected to boost consumption of coffee beverages. Several international coffee chains such asx Starbucks are focusing over strategic expansion of big brand chains owing to growing coffee consumption as a western beverage. Thus, increasing popularity of international cafe brands, is expected to fuel demand for automatic coffee machine in the near future. In addition to this, convenience in workability of automatic coffee machine coupled with the consistent brewing has driven middle class population towards pod coffee machine.
According to the International Coffee Organization (ICO), 25 million farmers, including over 0.3 million in India, produce coffee across 60 countries. According to the Coffee Board of India, the coffee consumption within the country reached 115,000 MT in 2011 (provisional estimates), registering rise at 6.09% CAGR between 1998 and 2011. While coffee in India was traditionally an export-oriented commodity, coffee planters are finding increasing traction in the domestic market as well, a key factor supporting expansion of automatic coffee machine sales in the country.
How big is Opportunity for U.K. Automatic Coffee Machine Market?
According to the British Coffee Association (BCA), in the U.K. approximately 95 million cups of coffee are drank in a day. The coffee industry also creates more than 210,000 jobs in the country. The organization also highlighted on the fact that café culture has continued to thrive on the high street and a dominant 80% of people visiting coffee shops do so at least once in a week. These figures are indicative of a booming café culture, presenting a highly conducive environment for automatic coffee machine sales.
With the British Coffee Association supporting the need for minimizing environmental impact of coffee cultivation and consumption, sustainable growing is undertaken. Such initiatives are expected to bode well for the market in the U.K.
How Has China’s Coffee Industry Evolved to Support Automatic Coffee Machine Sales?
Coffee culture in China has evolved significantly with Beijing and Shanghai showcasing hand in glove fit with the fast pace cosmopolitan lifestyle. The rising number of coffee shops across populous streets of China offers lucrative opportunities for automatic coffee machine sales. As per the official website of Starbucks China, it now has over 4700 stores across 190 cities in mainland China.
Despite threats posed by the economic implications of the COVID-19 outbreak at the start of 2020, the food service sector is gradually recovering presenting positive outlook for coffee industry. Likewise, the expansion of corporate infrastructure besides increasing outlets of cafes is presenting attractive opportunities for growth in China.
Is super automatic coffee maker gaining popularity?
Automatic coffee machine is categorized into fully, super and semi-automatic; super automatic coffee machine category accounting for a lion’s share in the global market. Consistency in quality matters to the customers, as a result of which, the demand for super automatic coffee machines has not come down even a notch. According to FMI, more than four out of every ten units of automatic coffee machines sold through 2031 will belong to the “super” category. Besides this, fully automatic coffee machines are gaining popularity across the world, since an automatic coffee machine gives the specialty drinks at the touch of a button.
Does hotel dominate the market sales for automatic coffee machine?
Hotels and cafes account for the major share in the global automatic coffee machine market space. Out-of-home coffee consumption has taken an uptick over the past few years, and continues to do so. As per Coffee Business Intelligence, coffee sales away from home has surged by 3.8% between 2016 and 2018. On the hindsight, the demand for automatic coffee machine has risen owing to the demand from corporate places, which as a matter of fact are mushrooming globally.
How is the price range defining automatic coffee machine demand?
The automatic coffee machine industry is categorized on the basis of price range, and companies market a range of automatic coffee machines to fit the customers perfect. The selection of semi-automatic coffee machines is quite large. Depending on the brewing unit, a machine can prepare beverages at a different power. These type of coffee machines for home use are quite cheap, and are experiencing increasing demand. As per FMI, automatic coffee machines of low price range will be in higher demand. Nearly half of coffee machines sold through 2031 will be from the low price range.
The global automatic coffee machine market witnesses a fairly consolidated competitive landscape, where majority of prominent players maintain their strategic focus on product quality, product variety, eco-friendly product launches, and market expansion.
Competition within the automatic coffee machines market has been increasing with time. Market players are therefore focusing on product launches with advanced features besides adopting expansion strategies.
- Swiss brand - Ergo has recently launched a fully automatic coffee machine, called Next Touch Coffee. It can be configured with IoT innovations and add-on options, besides a wide range of payment systems. It also features self-adjusting grinder
- La Cimbali has unveiled its fully automatic S60 professional coffee machine in 2020. The company has revealed the latest model is designed to support services in places receiving high footfall
- Beanque also had launched 3-In-1 On-the-go automatic coffee maker in 2020
The report highlights some prominent players in the global automatic coffee machine market, which include:
- Koninklijke Philips N.V
- Keurig Green Mountain, Inc.
- De'Longhi Appliances s.r.l
- Nestlé Nespresso S.A
- Melitta Group
- JURA Elektroapparate AG
- BUNN-O-Matic Corporation
- BSH Hausgeräte GmbH
- Bravilor Bonamat B.V
- Animo B.V
Historical Data Available for
USD Million for value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Northern Africa, South Africa
Key Segments Covered
Product Type, End Use, Price Range, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered by the Report
- What is the Automatic Coffee Machine Market size?
The automatic coffee machine market is expected to rise at 6.5% CAGR to reach US$ 99,665 Mn by the end of 2031.
- Which is the largest market for Automatic Coffee Machine?
Europe is the leading market accounting for 33.5% of the market space, with demand seeping from a high-income country like Germany.
- Which are the top companies in Automatic Coffee Machine market?
Koninklijke Philips N.V, Keurig Green Mountain, Inc., De'Longhi Appliances s.r.l, Nestlé Nespresso S.A, Melitta Group, JURA Elektroapparate AG, BUNN-O-Matic Corporation, BSH Hausgeräte GmbH, Bravilor Bonamat B.V, and Animo B.V, among others, among others.
- Which is the most lucrative category of Automatic Coffee Machine?
The super automatic coffee machine accounts for the highest share in the global automatic coffee machine market. Super and fully automatic coffee machine segment is likely to witness steady demand during the course of the forecast period.
- Who are the various end users of Automatic Coffee Machines?
Hotel, restaurant, cafe, institutional and residential are the various end uses of automatic coffee machine considered in the market space, cafe followed by hotel are the dominant segments in the industry.
- What is the outlook on Automatic Coffee Machine market?
The demand for automatic coffee machine products is forecast to rise considerably in the coming years. The increasing focus on out-of-home has resulted in the drive of sales of automatic coffee machine. The category sales will spike the growth despite a temporary period of sluggish return due to COVID-19 outbreak.
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Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.
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FMI follows a methodology that encompasses demand side assessment of te market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology.
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- What are the sources of secondary research?
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- Fully Automatic
- Super Automatic
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Rest of LATAM)
- Europe (Germany, U.K., France, Italy, Spain, Rest of Europe)
- Middle East and Africa (GCC Countries, Northern Africa, South Africa, Rest of MEA)
- East Asia (China, Japan, South Korea)
- South Asia (India, Malaysia, Vietnam, Indonesia)
- Oceania (Australia, New Zealand)