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EXECUTIVE SUMMARY
- What you need to know
- The outlook for coffee and tea in foodservice
- Opportunities
- Respond to the home café trend by delivering a unique on-site experience…
- …and with retail products that offer an exclusive experience at home
- Harness the budget segment’s potential
- Prepare for the evolution of the matcha trend
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THE MARKET
- Consumer confidence is recovering, but remains fragile
- Rising operating costs are fuelling price rises for OOH drinks…
- …but margins remain tight
- As usage grows, instant and RTD coffee will challenge out-of-home coffee sales
- Graph 1: at-home instant and RTD coffee consumption in the last month, 2022-25
- Food & drink as medicine trend will evolve from added functionality to nutritional diversity
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THE CONSUMER
- Purchase of freshly prepared drinks out of home
- Out-of-home freshly made drinks are a hit with Germans
- The home-café trend continues to evolve…
- …driving polarised OOH behaviours
- Target urban parents with interactive drink experiences…
- …and allow them to connect with others and operators
- Preferred out-of-home locations for buying drinks
- The out-of-home drinks market is fragmented…
- …with bakeries in the lead
- Graph 2: out-of-home locations where freshly prepared drinks were bought in the last 12 months, 2025
- Fast food chains as challengers in the OOH drink segment
- Most popular out-of-home drinks
- Hot caffeinated coffee tops OOH drinks preference by far…
- …but interest significantly declines among 16-24s
- Graph 3: purchase of freshly prepared hot caffeinated coffee from out-of-home locations in the last 12 months, by age, 2025
- Millennials and Gen Zs fuel matcha’s rise…
- …driven by its health and visual appeal
- Bridge the gap between usage and interest in tea-based drinks
- The health dilemma
- Health benefits are not a primary motivator for consumers to change their drink-buying habits
- Health benefits have more sway with younger consumers, but so does indulgence
- Graph 4: selected features encouraging consumers who always order the same OOH drink to switch from their usual order, by age, 2025
- Can co-fermented coffees be the next frontier to align health and flavour innovation?
- Evolving value perceptions
- OOH drinks offer an affordable way to boost mood…
- …but as price rises challenge affordability, operators need to respond proactively
- Transparency is key in retaining consumer trust in an inflationary environment
- Transparency as value
- Spending attitudes drive distinct preferences for adaptation strategies…
- Graph 5: willingness to continue to buy freshly prepared coffee/tea/hot chocolate even if price exceeds €5 per drink, by preferred changes for favourite out-of-home drink locations to make due to rising costs, 2025
- …with learnings from both premium and budget OOH brands
- Embrace selective diversification
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PRODUCT, INNOVATION AND MARKETING
- Matcha is now, alongside espresso, a staple in OOH drink innovation
- OOH brands are betting on functionality
- Freshly made and RTD caffeinated soft drinks are gaining traction in foodservice
- US fast food chains increasingly bet on drinks to boost growth in their home market
- Smoothies experience functionality-led revival
- The ‘coffee rave’ phenomenon has reached German cities
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APPENDIX
- Report scope
- The consumer
- Consumer research questions
- Consumer research methodology
- Generations
- CHAID analysis methodology
- Repertoire analysis methodology
- Abbreviations
- A note on language
Only 22% of Germans who buy drinks out-of-home most often choose tea-based drinks, yet 51% would be interested in trying a variety of different freshly made tea drinks – even non-tea buyers express strong interest. This gap between usage and interest suggests that current OOH tea offerings may be falling short, with a chance to explore rarer tea alternatives (eg hojicha, butterfly pea) that can thrive alongside matcha as supply is stretched.
Higher raw coffee costs, alongside energy and labour pressures, are squeezing operator margins, while growth of the at-home coffee occasion – powered by social media trends and broader access to professional-grade equipment – further intensifies competition. These factors polarise consumer behaviour, as they either seek affordable drinks, or want to indulge in unique, premium experiences that can’t be replicated at home.
Responding to the ‘home-as-café’ movement offers opportunities for operators. Although hot caffeinated coffee remains the most popular choice, most OOH drink buyers like to switch things up, at least occasionally. To capture their interest and meet demand for added value, businesses can offer exclusive on-premise experiences (eg signature seasonal drinks), and unique retail products (eg cross-category collaboration).
This report looks at the following areas:
- Consumer confidence recovery has been sluggish amid persistent cost-of-living pressures and high input costs for foodservice operators
- Competition from instant and RTD coffee is intensifying as home consumption grows, threatening the out-of-home market
- Polarisation is ongoing between affordable/budget and premium OOH drink options, with value and transparency critical drivers
- The home café trend continues to evolve, spurred by rising quality expectations, consumer desire for personalisation, and social media influence
- Demand for menu innovation among 16-34s – particularly in functional, diverse and visually appealing drinks
- The importance of experience-driven, community-building activations to foster loyalty despite reduced OOH frequency
- The growing need for balance between health, indulgence and value in drink innovation, with an opportunity for better-for-you seasonal offerings
The home-café trend is evolving. To stand out,  deliver a unique on-site experience with seasonal signature drinks, and help customers elevate their coffee/tea game with original retail products (eg co-fermented beans, cross-category collaboration).
Eliana Riera-McInnes, Foodservice Research Analyst
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