Drip Bag Coffee Market Size & Outlook, 2025-2033

Drip Bag Coffee Market Overview

The global drip bag coffee market size was valued at USD 2.66 billion in 2024 and is projected to grow from USD 2.83 billion in 2025 to reach USD 4.70 billion by 2033, growing at a CAGR of 6.54% during the forecast period (2025–2033). The market's expansion is attributed to the growing demand for convenient brewing methods and the increasing popularity of specialty coffee among consumers.

Key Market Indicators

• Europe dominated the drip bag coffee industry and accounted for a 38% share in 2024.
• Based on coffee bean type, the Arabica coffee beans segment leads the market with the largest revenue share of 65% in 2024.
• Based on end-user, the commercial segment continues to dominate the market.

Market Size & Forecast

• 2024 Market Size: USD 2.66 billion
• 2033 Projected Market Size: USD 4.70 billion
• CAGR (2025–2033): 6.54%
• Europe: Largest market in 2024
• North America: Fastest-growing region

Drip bag coffee has become one of the standard styles for coffee brewing. Its pour-over brewing method makes it super easy for instant coffee making without a coffee maker. The producers have come up with black, latte, and mocha segments in the market, which are expected to have immense potential, growing with a CAGR of 6.54% during the forecast period. 

• In 2019, the black coffee segment accounted for more than half the revenue share of about 51.2%, while the latte and mocha coffee segments held a revenue share of 35.4% and 13.4%, respectively. The drip bag coffee market is on the cusp of overtaking most of the instant coffee makers. Consumer awareness regarding the environment has given special impetus to sustainable packaging. Drip bag coffee producers have resorted to green packaging and plant-based plastic, a key factor in the rise in demand. Health and well-being are also significant factors, which are now the buzzwords for Millennials and Gen Z.

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Market Drivers

Changing Consumer Behavior and Improving Disposable Income

Consumer behavior is continuously changing in terms of taste and preferences. A large number of individuals are shifting from aerated drinks to coffee, and this change in consumer preference has a positive influence on the growth of the coffee industry. Additionally, rising awareness about the health benefits associated with the consumption of these drinks, especially black coffee, is further boosting its consumption among health-conscious consumers.

Economic growth also plays a crucial role in coffee consumption patterns. The rising consumer income has a significant impact on the coffee consumption patterns, especially across the Asia-Pacific and Eastern Europe, where coffee is often considered less important than tea and deemed as a non-essential product by consumers. Whereas product premiumization is of utmost importance in economies with high per-capita disposable income, where volumes are harder to grow, particularly in Western Europe and North America.

Rise in Coffee Consumption among the Working Class

Coffee consumption plays an integral role in the day-to-day life of a working individual. The purpose of coffee consumption varies from individual to individual, some of which include feeling more alert, feeling less tired, and socializing with colleagues in the workplace. In light of this, the consumption of coffee is further associated with improving productivity. Thus, today's working class has turned dependent on coffee in order to perform at their best in multiple facets of their hectic lives. On the other hand, as the female workforce and the number of dual nuclear families are increasing, the demand for coffee across the commercial sector is further anticipated to increase

Changing Climatic Conditions Hamper the Yield and Result in Volatile Raw Material Prices

Changing weather conditions and worsening droughts on account of rising temperatures, minimum rainfall, and the lack of adequate irrigation systems have affected the coffee plantations across various regions, particularly Brazil, which is also one of the largest producers of coffee. This has led to the predicted degradation of the coffee plants, as the plants are yellow and damaged, and the beans are ruined.

Thus, a large number of farmers engaged in the coffee plantation business have lost the majority of their crops and suffered losses. Due to this, they are now willing to shift their crop focus from coffee to other crops as coffee plantation requires a significant amount of water. Prominent exporters of coffee are witnessing a fall in production capacity, thereby resulting in the disruption of the demand and the supply chain across the global market. Hence, leading to volatile raw material prices.

Regional Analysis

In 2024, Europe led the drip bag coffee market, holding a 38% share. Europe is the largest importer of coffee in the world due to the minimal coffee production and significantly high consumption in the regional market. This demand for coffee in the regional market has been partly driven by the continuous growth of out-of-home consumption. The increased variety of new products in the coffee market, such as ready-to-drink and instant coffee, is attracting the younger generation to coffee as a beverage. Additionally, the region has one of the highest per capita coffee consumption, which is attributed to the presence of inhabitants marked by higher income levels and consumer awareness, along with a more developed coffee culture than the rest of the world.

North America Market Trend

North America's drip bag coffee market is projected to reach a value of USD 604.9 million by 2025, with a CAGR of 6.7%. In light of the rising concern regarding health and fitness and hectic work lifestyles, shifting consumer preference toward convenience and nutrition-enabled products has been witnessed. The populace is switching from aerated drinks to the consumption of coffee. This trend is primarily observed across working-class individuals who are consuming these beverages regularly in an effort to boost their metabolism, enhance brain function, and improve liver health.

The regional market is led by the U.S., which is also the second-largest importer of coffee, following the European Union. Although the conventional coffee market in the country is mostly stagnant, some progress in the U.S. coffee consumption patterns is predominantly driven by the growth of differentiated coffees, which are attracting new consumers. Additionally, the high consumer spending in the region further allows individuals to spend more on premium coffee products, which is another factor that is expected to influence the growth of the drip bag coffee market. For instance, as per the National Coffee Association, around 51% of past-day coffee drinkers in the U.S. consumed gourmet coffee.

Coffee Bean Type Insight

The Arabica coffee segment held the largest revenue share of 65% in 2024, leading the market. In the drip bag coffee market, Arabica coffee beans are the dominant choice due to their superior flavor profile. Findings from Straits Research indicate that blends incorporating Arabica beans from key coffee-growing regions such as Brazil, Colombia, Guatemala, and select African countries prevail, driven by their balance of smoothness, mild acidity, and nuanced tasting notes.  These notes include chocolate, caramel, and citrus. Medium to medium-dark roast profiles are especially preferred as they enhance the convenience and flavor consistency crucial to the drip bag format. Brands featuring signature blends like Counter Culture’s "Big Trouble" and Stumptown’s "Holler Mountain" exemplify market trends, emphasizing premium quality and a broad appeal to drip coffee consumers.  

End User Insight

In 2024, the commercial segment continues to dominate the drip bag coffee market by end-user, holding the largest market share compared to retail/household segments. This is due to the high demand from businesses such as cafes, restaurants, hotels, and offices that require consistent, high-volume coffee brewing solutions. The commercial segment accounted for about 54% of the market share in 2025, reflecting strong institutional consumption.  

Meanwhile, the retail/household segment, which includes individual consumers and home users, represents a slightly smaller but rapidly growing portion of the market as consumers increasingly invest in specialty coffee and convenient brewing methods like drip bag coffee. The retail segment is expected to grow at a faster CAGR, fueled by rising interest in gourmet coffee experiences at home. 

List of key players in Drip Bag Coffee Market

1. illycaffè S.p.A.
2. Starbucks Coffee Company
3. UCC UESHIMA COFFEE CO., LTD
4. Ajinomoto Co., Inc.
5. KEY COFFEE INC
6. Yamanaka Industry Co., Ltd
7. Korea McNulty Co., Ltd.
8. Gu Viet Co., LTD
9. Hawaii Coffee Company
10. Blue Tokai Coffee Roasters
11. Nick of Time
12. Cowpresso Coffee Roasters Singapore
13. The Laughing Pug Coffee Company

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Recent Development

• August 2024- UCC’s Asia-Pacific branch (UCCAP) has a “UCC Drip Coffee” video campaign to educate consumers, focusing on the aroma, taste, and richness of drip coffee. They rolled out a 15-second vertical video adapted for local markets/social platforms.
• August 2025- Key Coffee has a product called Key Coffee Drip On Variety Pack Drip Coffee Bags, which contains 12 Japanese drip coffee bags with 6 different blends. 
• In June 2025, illy participated as the headline sponsor of Taste of London. Their stand featured the ‘Quality Loves Details’ ATL campaign, which emphasizes attention to detail from bean selection to design of the cup.