In this article we will take a look at the 15 largest coffee companies in the world in 2021. You can skip our detailed analysis of these companies’ outlook for 2021 and some of the major growth catalysts for coffee stocks and go directly to the 5 Largest Coffee Companies in the World in 2021.
Coffee is undoubtedly one of the most popular beverages in the world today. Produced from two main types of beans, Arabica and Robusta, coffee is becoming more of a lifestyle rather than an average drink. Whether it’s an early morning work call, inviting guests over, or conducting a small meeting, coffee has always been a go-to drink for every situation. Not only that, but coffee is also responsible for the livelihoods of over 125 million people. According to Fairtrade Foundation, coffee is one of the most widely traded tropical agricultural products, and 80% of the coffee is produced by 25 million smallholders. The largest coffee companies in the world also cater to the needs of their customers by constantly evolving their menus. The U.S. is the world’s leading consumer of coffee with the consumption of 400 million cups per day.
The onset of the novel Covid-19 has affected the coffee market as well. From daily consumption to exports, the pandemic has created a significant difference in numbers compared to the previous years. The report by World Coffee Portal showed that the U.S. branded café segment suffered a $11.5 billion sales decline in the past 12 months and is valued at $36 billion. Even though the production of coffee is estimated to rise by 0.5% to 169.6 million bags, world consumption is projected to remain 2% below the total production in the coffee year 2020/21. Moreover, coffee exports also fell by 5.3% in 2020.
To overcome this loss, coffee shops are already planning to bounce back with drive-thrus, digital integration, and new trading formats. Some of the largest coffee companies in the world like Starbucks Corporation (NASDAQ: SBUX) and Dunkin Brands Group, Inc. (NASDAQ: DNKN) are focusing more on the drive-thru or ‘pickup’ facilities, shifting from the usual sit-in restaurants. Coffee was already a leading ecommerce grocery product even before 2020 and the closure of restaurants around the world also boosted online sales at various restaurants. Starbucks Corporation (NASDAQ: SBUX) is encouraging the customers to order through the app and reported that its mobile orders reached a record 22% of transactions in 2020. These trends have certainly increased coffee sales at some of the largest coffee companies in the world.
The trend of making coffee at home also increased during this time. Various social media platforms offered tutorials of making ‘Dalgona Coffee’ at home without having to visit the coffee shop. Various stores like Amazon.com, Inc. (NASDAQ: AMZN) and Walmart Inc. (NYSE: WMT) are selling coffee pods of the biggest coffee companies in the world like Keurig Dr Pepper Inc. (NASDAQ: KDP). The coffee pod maker Nespresso announced to expand the production due to this rising trend of at-home coffee. According to the World Coffee Portal, the swiss company announced a $170.5 million expansion of the production facility in Switzerland.
The Global Coffee Market was valued at $465.9 billion in 2020 and is growing in 2021 as well. According to Coffee Market Report by International Coffee Organization ICO, world consumption for coffee is projected at 166.3 million bags in 2021, an increase of 1.3% compared to 164.2 million bags in 2020. Brazil, being the largest producer of coffee, had the best year on record with an output of 67.9 million bags of coffee. Also, in Italy, coffee grocery sales increased by 23% in 2020.
Due to this increased coffee consumption around the world, we have made the list of the 15 biggest coffee companies in the world. The list is based on the number of locations and revenues generated by the companies.
With this context and industry outlook in mind, let’s start our list of the 15 largest coffee companies in the world in 2021.
Largest Coffee Companies in the World in 2021
15. Tully’s Coffee; Owned by Keurig Dr Pepper Inc. (NASDAQ: KDP)
Tully’s Coffee is an American specialty coffee manufacturing brand, founded in 1992. The main focus of this company was to serve hand-crafted coffee in its local Seattle area retail coffee shops. Along with specialty coffee, Keurig Dr Pepper Inc. (NASDAQ: KDP)'s Tully's also serves baked goods, pastries, and coffee-related supplies. It is one of the largest coffee companies in the world with franchises and grocery stores in the U.S. and Asia.
14. The Coffee Bean & Tea Leaf
The Coffee Bean & Tea Leaf is an American coffee chain founded in 1963 and owned by Jollibee Foods Corporation. It is one of the largest coffee companies in the world with 1,200 stores located in Malaysia, Singapore, Arizona, and California. The coffee served at the stores is made from the top 1% of Arabica beans from the world’s best growing regions in East Africa, Latin America, and the Pacific.
The company also has a roasting facility in Camarillo, CA. Just like its coffee, the company's tea is also sourced by cultivating the best tea leaves from Sri Lanka, China, Thailand, Japan, and India, which is later on hand-blended locally for maximum taste and freshness.
13. Caffe Ritazza, Owned by SSP Group
Caffe Ritazza is a British multinational coffee chain located in over 21 countries which makes it one of the largest coffee companies in the world. The company was mainly established to cater to the travel market as the outlets are found in airports, railways, etc. It is famous for its four blends; Sorrento, Napoli, Capri, and Firenze. It also serves Buonissimo, the bespoke blend from Segafredo which is Italy’s favorite coffee. Caffe Ritazza suffered the adverse effects of the pandemic as the chain had to cut 5,000 jobs across its chain as a part of restructuring the company. But it, along with other companies like Starbucks Corporation (NASDAQ: SBUX), Keurig Dr Pepper Inc. (NASDAQ: KDP), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT) and Dunkin Brands Group, Inc. (NASDAQ: DNKN), is expected to see a huge recovery in the coming months.
12. Coffee Beanery
Coffee Beanery was first opened in the U.S. in 1976 and now has over 100 locations across the country and 20 locations internationally. The company is recognized as an industry leader for its unique family business approach and commitment to quality. The coffee chain is known for its flavorful coffee, tea, and smoothies, and offers high-quality coffee beans roasted at the right temperature. This Michigan-based coffee company has coffee shops operating in the U.S., Europe, and Asia, which makes it one of the largest coffee companies in the world.
11. Caffe Nero
Caffe Nero is next on our list of the most famous coffee companies in the world. The company has over 700 outlets located in the U.S., Ireland, Poland, Cyprus, Sweden, the UK, etc. with headquarters in London, England. The company was founded in 1997 with the original idea of selling Italian-styled British coffee to its customers.
It opened its own coffee roastery in 2009, which supplies the coffee to all its coffeehouses worldwide. Though Caffe Nero is Italian for black coffee, the company also serves various drinks such as tea, espresso, frappe, etc. The chain generated over $518 million in revenues in 2020.
As coffee consumption increases, Nero is expected to see a growth in sales, just like Starbucks Corporation (NASDAQ: SBUX), Keurig Dr Pepper Inc. (NASDAQ: KDP), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT) and Dunkin Brands Group, Inc. (NASDAQ: DNKN).
10. Caribou Coffee
Caribou Coffee was founded in 1992 in Edina, Minnesota. The coffee company is one of the fastest-growing companies in the world, with over 600 outlets located worldwide. The brand specializes in offering lightly roasted coffees and fruity flavors to its customers.
Caribou Coffee is owned by JAB Holding Company at the moment, which is one of the biggest German companies. The company generated over $480 million in revenue in 2020 which saves its spot as one of the largest coffee companies in the world among the likes of Starbucks Corporation (NASDAQ: SBUX), Keurig Dr Pepper Inc. (NASDAQ: KDP), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT) and Dunkin Brands Group, Inc. (NASDAQ: DNKN).
9. Dutch Bros. Coffee
Dutch Bros. Coffee is one of the largest drive-thru coffee chains, mainly located in the U.S. The company was founded in 1992 and has over 421 locations across the country. The coffee chain serves a variety of coffees, tea, energy drinks, hot cocoa, etc. Dutch Bros. Coffee is widely expanding on the western side of the country, especially California, Arizona, and Washington. Even during the pandemic, the company managed to open over 85 new outlets in 2021.
Though the chain has some sit-down coffee houses, its quick expansion was due to the strong reliance on drive-thru sales, which are 97% of its business. From the very beginning, the company has not targeted metropolitan areas, but the suburban locations where people tend to move towards drive-thru coffee. It generated over $567 million in revenues in 2020.
8. Peet’s Coffee
Peet’s Coffee was founded in 1966 which makes it one of the oldest coffee companies in the world. For the first time in the United States, the company introduced its Arabica coffee in blends and offers freshly roasted beans, brewed coffee, and espresso to its customers.
The coffee chain has over 240 outlets and is sold in around 14,000 stores across the U.S. In 2020, a Dutch company called Jacobs Douwe Egberts (JDE) raised $2.5 billion and explored an initial public offering IPO. This deal valued the company at $17.3 billion, making it the largest IPO in Europe in the first five months of 2020. Its revenue was $933 million in 2020. The company is growing amid a strong recovery which is also expected to boost the stock prices of food and retail companies like Starbucks Corporation (NASDAQ: SBUX), Keurig Dr Pepper Inc. (NASDAQ: KDP), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT) and Dunkin Brands Group, Inc. (NASDAQ: DNKN) in the coming months.
Lavazza is a family-owned Italian manufacturer of coffee products. It is one of the major coffee companies in the world with offices and outlets in over 140 countries. Moreover, its industrial system is divided into six manufacturing plants based in Italy, France, India, and Brazil.
The company was founded in 1895 and used to operate from a small grocery store initially. Due to the pandemic, its sales dropped by 13% at $2.5 billion, compared to $2.68 billion in 2019. However, the Lavazza family expects the revenue to rebound this year, reaching the previous levels. The company has also allocated the amount of 50 million euros to reduce the carbon footprint and achieve carbon neutrality by 2050. It generated over $2.54 billion in revenues in 2020.
6. Gloria Jean’s Coffees
Founded in 1979 in Australia, Gloria Jean’s Coffees is one of the biggest coffee companies in the world. It was purchased by Retail Food Group Limited (RFG) in 2014 for AU$163.5 million. The company has over 1,000 stores located worldwide with some 460 operating in Australia. The quality cup of coffee at Gloria Jean’s started with the purchase of the hand-picked Arabica beans, which are then hand-roasted at the company’s own roasting facility.
According to the annual report of RFG, the coffee company generated $31.5 million in the U.S. only, with 21.8 million cups sold annually in 2020. In Europe, it opened over 137 new outlets and generated $38.8 million in net sales. The company is set to thrive amid an economic recovery that is also helping major companies like Starbucks Corporation (NASDAQ: SBUX), Keurig Dr Pepper Inc. (NASDAQ: KDP), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Inc. (NYSE: WMT) and Dunkin Brands Group, Inc. (NASDAQ: DNKN).
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Disclosure: None. 15 Largest Coffee Companies in the World in 2021 is originally published on Insider Monkey.