US Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Th USA Coffee Market is Segmented by Product Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules) and Distribution Channel (Supermarkets/Hypermarkets, Convenience/Grocery Stores, Online Retail, and Other Off-Trade Channels). The Report Offers Market Size and Values (in USD Million) for the Above Segments.

US Coffee Market Size

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United States Coffee Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 28.06 Billion
Market Size (2029) USD 33.64 Billion
CAGR (2024 - 2029) 3.69 %
Market Concentration Low

Major Players

US Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Coffee Market Analysis

The US Coffee Market size is estimated at USD 28.06 billion in 2024, and is expected to reach USD 33.64 billion by 2029, growing at a CAGR of 3.69% during the forecast period (2024-2029).

The United States coffee market is experiencing exponential growth due to changing consumer lifestyles. With increasingly busy schedules and long working hours, coffee chains gained popularity as they cater to on-the-go coffee enthusiasts. American consumers prioritize premium products, especially when it comes to their daily coffee fixes, leading them to favor high-quality coffeehouses. Consistency in coffee quality becomes a pivotal factor for repeat visits. Additionally, the adoption of machine-based food processing units is expected to enhance the production of coffee in the country.

Instant coffee products such as ready-to-drink and ready-to-mix are being retailed across the market. As coffee is frequently consumed across the country, consumers prefer instant coffee products over others as they require less and minimum preparation time. According to the National Coffee Association Report 2022, about 66% of consumers destroyed coffee daily, higher than tap water in 2021.

With increasing exposure to novel products, consumers in the country are exposed to artisanal single-origin coffee products that are retailed across the market. Owing to its popularity and exclusivity, consumers prefer single-origin coffee products. Moreover, with the increasing purchasing power of consumers, consumers are willing to spend more on specialty coffee products to experience the taste. Due to its demand, manufacturers focus on introducing more products with single-origin claims to attract consumers. For instance, in July 2023, Starbucks Corporation opened reserve roasteries in Chicago, Seattle, and New York, where consumers can try various types of single-origin coffee and their mixology.

These factors are expected to propel the market growth in the country over the forecast period.

US Coffee Market Trends

Working Youth Population Boosting the Market Growth

Over the recent past, coffee shops have witnessed tremendous growth due to their increasing popularity as social outlets for friends, family, colleagues, and business associates, among others. As a result, coffee chains such as Starbucks and Dunkin’ Donuts focus on enhancing their ambiance by creating a relaxing and attractive atmosphere to add an experiential element to coffee drinking.

In the United States, coffee shops have become icons of urban neighborhoods. They create vibrant streetscapes and produce massive pedestrian activity as they include high customer footfall. They are highly profitable as well. These factors strengthened the average growth rate of cafes/bars regarding value sales and transactions.

The increasing working youth population in the country is aiding the market growth. As per data published by the National Coffee Association in 2022, about 50% of people who buy coffee outside the home prefer a takeaway. Thus, such data depict an increase in the country's out-of-home coffee consumption culture, which indicates potential market growth during the forecast period.

United States Coffee Market: U.S. employment rate, 2022, by age (in %)

Coffee Pods and Capsules Demand Augmenting the Market Growth

The consumption of healthy and convenient food and beverages in the United States became integral to most consumers’ lifestyles. Until recent years, the market for coffee pods and capsules in the United States was minimal, owing to the heavy centralization of this segment in Western Europe, primarily Switzerland. However, the quality, efficiency, and diversity offered in a single serving of coffee are responsible for the rapid increase in demand for coffee pods and capsules in the United States over the review period. A growing consumer base demonstrates an increased willingness to purchase coffee machines to recreate a café-style experience at home. It increased the demand for coffee pods and capsules. Key players utilize evolving packaging technologies to improve sustainability and enhance their reputation among environment-conscious consumers. For instance, in September 2022, Cafe Royal invented a coffee pod in the shape of a ball. This ball is coated in a thin shell made of a vegetable layer, which is 100% compostable. It is an actual zero waste for capsules. Such innovations will likely drive the market in the coming years.

United States Coffee Market: Method of preparation among coffee drinkers, the United States, 2022 (in %)

US Coffee Industry Overview

The US coffee market is competitive, with many domestic and multinational players competing for a market share. Leading companies emphasize mergers, expansions, acquisitions, partnerships, and product developments as strategic approaches to boost brand presence among consumers. With the rising demand for fresh ground coffee pods that provide customers with a premium coffee experience in AFH channels, the market is expected to witness a high scope for the entrance of private-label companies. Some of the major players in the market are Eight O'Clock Coffee, J. M. Smucker, Douwe Egberts, Keurig Green Mountain, and Starbucks Corporation.

US Coffee Market Leaders

  1. Eight O'Clock Coffee Company

  2. Starbucks Corporation

  3. The J.M. Smucker Company

  4. Keurig Green Mountain Inc.

  5. Douwe Egberts

*Disclaimer: Major Players sorted in no particular order

US Coffee Market Concentration
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US Coffee Market News

  • November 2022: The Nestlé brand Nespresso launched plant-based home compostable coffee capsules. It offers premium quality coffee without compromising the taste. The capsules are made compatible with Nespresso Original machines.
  • June 2022: Keurig Dr. Pepper Inc. and Intelligentsia Coffee launched Intelligentsia K-Cup Pods for the Keurig brewing system. The super-premium coffee brand will be offered to consumers in this format for the first time.
  • August 2022: Tim Hortons unveiled four new varieties of espresso capsules compatible with Nespresso machines. These four varieties include classic, bright, bold, and decaf.

US Coffee Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Demand for Specialty Coffee

      2. 4.1.2 Popularity of Clean Labeled Products

    2. 4.2 Market Restraints

      1. 4.2.1 Emergence of Tea as a Healthier Alternative

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Whole Bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

      4. 5.1.4 Coffee Pods and Capsules

    2. 5.2 Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience/Grocery Stores

      3. 5.2.3 Online Retail

      4. 5.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Nestlé S.A.

      2. 6.3.2 Eight O' Clock Coffee Company

      3. 6.3.3 Kraft Heinz Co.

      4. 6.3.4 The J.M. Smucker Co.

      5. 6.3.5 Fresh Roasted Coffee LLC

      6. 6.3.6 Keurig Dr Pepper Inc.

      7. 6.3.7 White Wave Food Co.

      8. 6.3.8 Monster Beverage Corporation

      9. 6.3.9 Califia Farms LLC

      10. 6.3.10 Starbucks Corporation

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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US Coffee Industry Segmentation

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain flowering plants in the Coffea genus.

The United States coffee market is segmented by product type and distribution channel. By product type, it is segmented into whole bean, ground coffee, instant coffee, and coffee pods and capsules. The distribution channel is segmented into supermarkets/hypermarkets, convenience/grocery stores, online retail, and other distribution channels.

The market sizing is done in value terms in USD for all the abovementioned segments.

Product Type
Whole Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
Distribution Channel
Supermarkets/Hypermarkets
Convenience/Grocery Stores
Online Retail
Other Distribution Channels
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US Coffee Market Research Faqs

The US Coffee Market size is expected to reach USD 28.06 billion in 2024 and grow at a CAGR of 3.69% to reach USD 33.64 billion by 2029.

In 2024, the US Coffee Market size is expected to reach USD 28.06 billion.

Eight O'Clock Coffee Company, Starbucks Corporation, The J.M. Smucker Company, Keurig Green Mountain Inc. and Douwe Egberts are the major companies operating in the US Coffee Market.

In 2023, the US Coffee Market size was estimated at USD 27.02 billion. The report covers the US Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The ethical sourcing and sustainability concerns in the US Coffee Market are a) Fair trade practices b) Ethical sourcing c) Minimizing environmental impact

US Coffee Industry Report

The US coffee market is on a trajectory for notable growth, driven by an increase in coffee consumption with consumers indulging in an average of three cups daily. This surge is supported by the diverse coffee culture flourishing in various dynamic environments such as stations and offices, coupled with the influx of coffee farmers boosting production domestically. Millennials, with their preference for high-quality coffee, have significantly contributed to making coffee a staple social beverage. Strategic collaborations between green coffee importers and global producers are set to expand the market further. The market showcases a variety of sources like Arabica and Robusta, and types such as instant and ground coffee, reflecting a wide range of consumer preferences. With the rise of online sales and innovative marketing strategies, the US coffee market size is anticipated to witness substantial expansion, as detailed in Mordor Intelligence™ Industry Reports, offering insights into the market's forthcoming growth. Get a sample of this industry analysis as a free report PDF download.

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US Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)