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

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

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 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.

Key Market TrendsGrowing 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.

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 Pods and Capsules Demand Augmenting the Market Growth

The consumption of healthy and convenient food and beverages in United States has become an integral part of most consumers’ lifestyles. Until the end of 2008, the market for coffee pods and capsules in 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 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.

Competitive Landscape

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.