U.S. Coffee Market Size By Source Type (Arabica, Liberica, Robusta), By Product Type (Ground Coffee, Instant Coffee, Whole-Bean), By Process (Caffeinated, De-Caffeinated), And Forecast

U.S. Coffee Market Size And Forecast

U.S. Coffee Market size was valued at USD 98.9 Billion in 2023 and is anticipated to reach USD 145.21 Billion by 2031, growing at a CAGR of 6.74% from 2024 to 2031.

• Coffee is a dark-colored, bitter, and slightly acidic beverage or chocolaty flavored prepared from roasted coffee beans, which are cultivated in tropical and subtropical regions around the world. The two most commonly cultivated coffee species are Arabica and Robusta as they offer distinct flavors compared to the others.
• It is a beverage enjoyed for its stimulating effect Coffee is enjoyed worldwide for its stimulating effect, which is offered by caffeine content present in coffee. Along with this, the flavor of coffee changes depending on its origin, roasting level, and brewing method.

• The United States (U.S.) 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.
• 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.

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U.S. Coffee Market Dynamics

The key market dynamics that are shaping the U.S. Coffee Market include

Key Market Drivers

• Growing Demand for Specialty CoffeeThe demand for distinct flavored coffee with high quality and sustainable sourcing practices among the consumers is projected to increase among coffee-lovers across the globe. This trend is fueling the expansion of specialty coffee shops, artisan roasters, and premium coffee brands, leading to higher overall consumption.
• Move to Home Coffee ConsumptionThe COVID-19 pandemic has accelerated the use of coffee at home. Coffee consumption, as consumers limit visits to cafes and restaurants. This resulted in sales of packaged coffee products, including ground coffee, whole beans, and single-serve beans, as well as home espresso machines and coffee makers.
• Health and Wellness TrendsGrowing consumer awareness of health and wellness is shifting the focus of consumers toward functional and healthier coffee options. This includes organic, fair trade and sustainably produced coffee varieties, as well as products that contain additional health benefits such as antioxidants, vitamins and natural flavors.
• Emphasis on Ease-of-UseIn today’s era, the fast-paced lifestyles is increasing the practice of on-the-go consumption habits, thereby increasing the demand for convenient coffee solutions. This includes disposable coffee pods, instant coffee pouches and RTD coffee drinks that offer quick and easy coffee preparation options for consumers who want convenience without compromising on quality.

Key Challenges

• Competition and SaturationThe U.S. Coffee Market is highly competitive and filled with many players, including multinational companies, coffee chains, independent coffee shops and artisan roasters. Such saturation makes it a challenge for new entrants to increase their market share and for existing players to stand out and maintain profitability.
• Coffee Bean Price FluctuationCoffee is a commodity and its prices are subject to major fluctuations owing to the changing weather conditions, supply chain disruptions and geopolitical events in coffee producing countries. Such price volatility can create challenges for coffee sellers and roasters in managing costs and maintaining profit margins.
• Health and Sustainability IssuesGrowing consumer awareness regarding health and sustainability concerns has led to a growing demand for organic, fair trade and environmentally friendly products. Thus, coffee companies are facing challenges in sourcing ethically produced coffee beans while meeting affordability and consumer taste and quality preferences.
• Changing Consumer PreferencesThe consumer preferences are shifting toward premium and specialty coffee beverages, including espresso-based coffee beverages, cold brews, and others, from the traditional coffee drinks. Hence, the coffee companies have to adapt to these changing preferences and innovate to meet the demand for unique and premium coffee offerings.
• Rising Costs and Operating CostsCoffee companies have increasing operating costs related to labor, rent, utilities and raw materials. The pressure to maintain a competitive price while covering these costs can reduce profit margins and hinder business growth.
• Regulatory and Compliance IssuesCoffee companies must comply with various stringent food and beverage regulations and industry standards focusing on food safety, labeling, advertising and environmental sustainability. The need to comply with these rules and dealing with changes or innovations can be a challenge for companies operating in the U.S. Coffee Market.

Key Opportunities

• High Production of Specialty CoffeeUS consumer demand for specialty coffee is increasing due to increased awareness of coffee origins, flavor profiles and brewing methods, among others. Specialty coffee offers better quality, unique flavors and focuses on sustainability. This provides opportunities for coffee roasters, retailers and coffee shops to serve discerning consumers and get quality prices.
• Health and Wellness TrendsAs the health and wellness awareness is on the rise, the focus on consuming healthier coffee options is likely to create immense opportunities of growth for the U.S. Coffee Market. This includes organic and fair trade coffee varieties and functional beverages with added ingredients such as antioxidants, vitamins and adaptogens. Brands that can offer healthy coffee products are likely to attract health-conscious consumers looking for functional beverages as part of their daily routine.
• Sustainable and Ethical SourcingGrowing consumers regarding the impact on environment and social status is increasing the consumers interest on sustainable food sources. This is likely to influence the purchasing and coffee consumption rate. Thus, there is a growing demand for sustainably produced and ethically produced coffee seeds, such as those certified by organizations such as Fair Trade USA or the Rainforest Alliance. Coffee companies that prioritize sustainable sourcing practices and transparent supply chains have an opportunity to differentiate themselves in the market and attract socially conscious consumers.
• Innovation in Ready-To-Read (RTD) CoffeeThe RTD coffee segment continues to see significant growth as the consumers are constantly seeking for convenience and on-the-go consumption to deal with their busy lifestyle. Brands have the opportunity to innovate with new flavors, formulations and package formats to gain market share in this fast-growing category.

U.S. Coffee Market Regional Analysis

Here is a more detailed regional analysis of the U.S. Coffee Market

• In the United States, the consumption of healthful and convenient food and drinks has become a vital part of most people’s daily lives to stay energetic throughout the day.
• Until recently, the market for coffee pods and capsules in the United States was small, owing to the segment’s major concentration in Western Europe, particularly Switzerland. However, the quality, efficiency, and diversity provided by a single serving of coffee are responsible for the significant growth in demand for coffee pods and capsules in the United States over the study period.
• An expanding customer base shows a greater propensity to buy coffee equipment in order to reproduce a café-style experience at home. Thus, it drove up the demand for coffee pods and capsules.
• In addition to this, key firms are using emerging packaging technologies to offer sustainable and longer shelf-life products, thereby offering high quality and flavored coffee in this stringent directive following economy.

U.S. Coffee MarketSegmentation Analysis

The U.S. Coffee Market is segmented on the basis of Source Type, Product Type, and Process.

U.S. Coffee Market, By Source Type

• Arabica
• Liberica
• Robusta

Based on Source Type, the market is segmented into Arabica, Liberica, and Robusta. Arabica is projected to hold major share in the U.S. Coffee Market. This is primarily due to its lower caffeine level and sweeter flavor, which is increasing its consumption. An increase in the number of cafes in emerging nations, along with a boom in the usage of arabica beans in chocolates, nuts, and caramels, is predicted to boost market growth. Robusta is predicted to be the fastest-growing market, with a substantial CAGR during the projection period. These beans have a powerful and bold flavor with a chocolatey aftertaste that stays nicely in the tongue.

U.S. Coffee Market, By Product Type

• Ground Coffee
• Ready-To-Drink (RTD) Coffee
• Instant Coffee
• Coffee Pods and Capsules
• Whole-Bean
• Others

Based on Product Type, the market is segmented into Ground Coffee, Ready-To-Drink (RTD) Coffee, Instant Coffee, Whole Beans, Coffee Pods and Capsules, and Others. Ground coffee or coffee grounds are prepared from entire fresh coffee beans. The freshness offered by this type of coffee is increasing its consumption across the globe. The growing demand for stronger or highly caffeinated drink to stay energetic during the day or work hours is enhancing the use of beautifully roasted and acidic flavored black coffee. Thus, the high demand for ground coffee is enabling the segment retain its top position in the market over the forecast period.

U.S. Coffee Market, By Process

• Caffeinated
• De-Caffeinated

Based on Process, the market is segmented into Caffeinated and Decaffeinated. Caffeinated beverages are predicted to be the fastest-growing market, with a substantial CAGR over the projection period. Arabica and robusta beans are commonly utilized due to their caffeine levels. Robusta contains 2.7% caffeine, about twice the 1.5% found in Arabica. People prefer Arabica to robusta because it has a nice taste, contains over 60% fat, and has almost twice the sugar content. Arabica accounts for more than 60% of coffee farming, with Brazil ranking among the world’s leading producers. Arabica has greater acidity than robusta, giving the beans a fruity, chocolatey, and nutty flavor. This is projected to boost demand for caffeine.

Key Players

The “U.S. Coffee Market” study report will provide valuable insight with an emphasis on the global market. Dunkin’ Donuts, Eight O’clock Coffee, Folgers, J. M. Smucker, Jacobs Douwe Egberts, Keurig Green Mountain, Kraft Heinz, Maxwell House, Nestle, and Starbucks.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

U.S. Coffee Market Recent Developments

• In December 2023, Chobani acquired La Colombe Coffee Roasters for USD 900 Million. This acquisition will help La Colombe benefit from its extensive retail networks, marketing and cold chain distribution capabilities.
• In July 2023, Dutch coffee giant JDE Peet acquired JAV Group, a Brazilian company. The transaction at the time of acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in 2024.
• In 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.
• 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.

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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