United States Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The US 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 Industry Overview

United States Coffee Market Summary
Study Period: 2018 - 2028
CAGR: 4.1 %

Major Players

United States Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Coffee Market Analysis

The US coffee market is valued at USD 25,024.7 million in the current year, and it is projected to register a CAGR of 4.1% over the next five years.

During the COVID-19 pandemic, there were social isolation directives, limitations on business opening hours, and travel restrictions to contain the virus. Thus, more coffee consumers began purchasing coffee via online retail and delivery channels. This factor resulted in a rapid increase in at-home coffee consumption and an increased demand for various types of coffee, such as ready-to-drink coffee, due to its convenience and efficiency. Government-mandated lockdowns and measures such as social distancing also significantly impacted cafés, micro-roasters, restaurants, and other out-of-home outlets.

The factors majorly driving the market's growth are the increasingly busy lifestyles and long working hours, leading to US coffee chains becoming more popular among customers who enjoy their coffee on the go. Consumers in the United States demand premium products that emphasize quality. Therefore, they are attracted to top-notch coffee houses that offer the best coffee quality, which is a major factor for repeated visits. Factors such as digital technology, safety measures, and machine-based food processing units are projected to play a significant role in the production of coffee over the coming years. This factor is further expected to propel the market's growth in the country over the forecast period.

US Coffee Industry Segments

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain flowering plants in the Coffea genus. The US 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. By distribution channel, it is segmented into supermarkets/hypermarkets, convenience/grocery stores, online retail, and other distribution channels. For each segment, the market sizing and forecast have been done in value terms of USD million.

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 Trends

This section covers the major market trends shaping the US Coffee Market according to our research experts:

Growing Working Age Population Boosting the Presence of Coffee Houses

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 have been focusing on enhancing their ambiance by creating relaxing and attractive atmospheres to add an experiential element to coffee drinking.

The United States has also been witnessing significant growth in the popularity of coffee-drinking culture among urban residents. Coffee shops have become icons of urban neighborhoods. They create vibrant streetscapes and produce huge pedestrian activity as they have high customer footfall. They are highly profitable as well. These factors have strengthened the average growth rate of cafes/bars in terms of value sales and transactions.

The increasing working youth population in the country has been aiding the market's 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 out-of-home coffee consumption culture in the country, which is indicative of potential market growth during the forecast period.

Coffee Market: American Coffee Consumption Preferences 2021 in %

Coffee Pods and Capsules Demand Augmenting the Market Growth

The consumption of healthy and convenient food and beverages in the United States has become an integral part of most consumers’ lifestyles. Until the end of 2008, 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 have been responsible for the rapid increase in demand for coffee pods and capsules in the United States over the review period. A growing consumer base has been demonstrating an increased willingness to purchase coffee machines to recreate a café-style experience at home, which increased the demand for coffee pods and capsules. Key players have been utilizing evolving packaging technologies to improve their 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 a true zero waste for capsules. Such innovations are likely to drive the market's growth in the coming years.

Coffee Market: Beverage Preference in United States 2021 (in %)

US Coffee Market Competitor Analysis

The US coffee market is competitive in nature, with many domestic and multinational players competing for a market share. Leading companies are emphasizing mergers, expansions, acquisitions, and partnerships, along with new product developments, as strategic approaches to boost their 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 Top Players

  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

United States Coffee Market Concentration

US Coffee Market Recent Developments

  • In November 2022, the Nestlé brand Nespresso launched plant-based home compostable coffee capsules, which offer premium quality coffee without compromising the taste. The capsules are made compatible with Nespresso Original machines.
  • In 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.
  • In 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

    2. 4.2 Market Restraints

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

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      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 Market Research FAQs

The United States Coffee Market market is studied from 2016 - 2027.

The United States Coffee Market is growing at a CAGR of 4.1% over the next 5 years.

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

United States Coffee Industry Reports

In-depth industry statistics and market share insights of the United States Coffee sector for 2020, 2021, and 2022. The United States Coffee research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the United States Coffee report PDF.

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