Italy’s Coffee Market in 2025: Navigating Rising Prices and Evolving Consumer Preferences

The Italian coffee market in early 2025 is confronting a multifaceted landscape shaped by rising global coffee prices, shifting consumer tastes, and sustainability initiatives. Despite challenges, the sector demonstrates resilience, underpinned by Italy’s deeply ingrained coffee culture and strategic industry responses.

Market Growth and Economic Overview

Forecasts project Italy’s coffee market to grow from USD 3.07 billion in 2024 to USD 4.81 billion by 2033, at a compound annual growth rate (CAGR) of 5.1% (Renub Research, 2025). Similarly, other analyses estimate a CAGR of 4.4% from 2025 to 2030, with revenues expected to rise from USD 5.13 billion in 2024 to USD 6.63 billion by 2030 (Grand View Research, 2022). This growth is driven by strong domestic demand for both traditional espresso and premium specialty coffee blends.

Impact of Rising Coffee Prices

Global coffee prices have surged by approximately 25% due to adverse weather and logistical challenges, pressuring Italian producers and retailers. This increase has compressed profit margins, requiring adjustments in consumer pricing strategies (ReportLinker, 2025). Italian consumers are responding by diversifying their purchases, balancing between more affordable options and premium products.

Shifts in Consumer Preferences

Health consciousness is driving a noticeable rise in decaffeinated coffee consumption, alongside sustained demand for specialty and premium blends with unique flavor profiles (ReportLinker, 2025). Coffee remains a social ritual in Italy, with espresso, cappuccino, macchiato, and ristretto being staples. Younger Italians, particularly millennials and Generation Z, display a preference for convenience, healthier options, and digital connectivity in coffee consumption settings (Mordor Intelligence, 2025).

Out-of-Home Consumption and Coffee Chains

Italy leads Europe in out-of-home coffee servings, with local independent coffee shops dominating consumer preference. However, branded coffee chains like Starbucks are expanding, increasing product variety and accessibility (Mordor Intelligence, 2025). The out-of-home food and beverage sector, including coffee, generated approximately USD 65.23 billion in sales in 2021 (Mordor Intelligence, 2025), reflecting the importance of coffee in social and dining experiences.

Sustainability and Ethical Sourcing

Leading Italian coffee companies such as Lavazza and Illycaffè are intensifying efforts in sustainable and ethical sourcing. These initiatives not only enhance corporate reputation but also meet growing consumer demand for environmentally responsible products, influencing market competitiveness (ReportLinker, 2025).

Technological and Product Innovation

Personalization in coffee products, from beans to pods, is increasing. Innovations in preparation systems and the integration of internet connectivity in coffee shops reflect industry adaptation to modern consumer expectations (Mordor Intelligence, 2025; Stellar Market Research, 2020). The preference for Robusta beans, which provide a strong and bitter flavor with high caffeine content, remains robust, accounting for 56% market share in 2023 (Stellar Market Research, 2020).

Broader Trends in Coffee Consumption

Globally, coffee consumption is expanding, with the market projected to reach USD 96.45 billion for at-home consumption and USD 376.70 billion for out-of-home in 2025 (GourmetPro, 2025). Younger generations are embracing coffee earlier, contributing to evolving taste profiles and increased demand for variety. Emerging markets, particularly in Asia and parts of Europe and the Middle East, are developing strong coffee cultures, further fueling global market growth (GourmetPro, 2025).