Report Overview

Rising disposable income driving cafe culture, rapid urbanization, and perceived health benefits of drinking coffee are expected to boost the growth of United States Coffee Market during the forecast period between 2024 and 2030.

United States Coffee Market – Industry Trends & Forecast Report, 2030

United States Coffee Market size was estimated at USD 88.9 billion in 2023. During the forecast period between 2024 and 2030, United States Coffee Market size is projected to grow at a CAGR of 3.7% reaching a value of USD 114.3 billion by 2030. Prominent drivers of the market include evolving consumer lifestyles, with busier schedules leading to a rise in on-the-go coffee consumption. High-quality coffeehouses are gaining favor among American consumers who prioritize premium and consistent coffee experiences. Increased adoption of machine-based processing is expected to streamline coffee production further. The market also witnessed robust demand for convenient, instant coffee products, such as ready-to-drink and ready-to-mix options, which cater to the preference for minimal preparation time. As per the 2022 National Coffee Association report, about 66% of Americans consumed coffee daily, surpassing even tap water intake. Growing interest in artisanal single-origin coffee products is also notable, with consumers willing to invest in specialty offerings for unique taste experience. To meet this demand, manufacturers are expanding product lines to include more single-origin claims. For example, in July 2023, Starbucks opened reserve roasteries in major cities like Chicago, Seattle, and New York, offering an array of single-origin and mixology options. These factors are anticipated to fuel continued growth in the United States Coffee Market over the forecast period.

Coffee – Overview

Coffee is a popular brewed beverage made from roasted coffee beans, the seeds of berries from the Coffea plant. Originating in tropical Africa, coffee has become a staple drink worldwide, enjoyed for its rich flavor, invigorating aroma, and stimulating caffeine content. The drink is prepared by grinding roasted coffee beans and brewing them with hot water, producing a range of beverages from espresso and cappuccino to cold brew and iced coffee. Coffee is often consumed as a morning energizer, social beverage, or even an after-dinner treat, appreciated for both its taste and cultural significance across the globe.

United States Coffee Market

Growth Drivers

Growing Cafe Culture

The growth of cafe culture in the United States has significantly contributed to the expansion of the Coffee Market. Coffee shops have evolved into dynamic social hubs, fostering community and driving consumer demand for high-quality coffee experiences. Millennials, in particular, have played a pivotal role in shaping this trend. Their preference for artisanal coffee and convenient consumption options has led to the increased popularity of ready-to-drink (RTD) coffee beverages. As consumers prioritize quality and convenience, coffee companies are responding by innovating their offerings, introducing unique flavors and sustainable practices. Government data indicates a notable rise in the number of coffee companies committed to ethical sourcing and environmentally friendly packaging solutions. This dedication to transparency and corporate social responsibility aligns with consumer expectations and enhances the overall coffee experience. Urbanization has further shaped coffee consumption patterns, with the demand for coffee surging in various settings, such as stations, airports, and offices. The integration of coffee into daily routines has solidified the cafe culture as a key driver for United States Coffee Market.

Challenges

Price Volatility

Price volatility poses a significant challenge to United States Coffee Market, impacting both consumers and producers. Fluctuations in coffee bean prices, driven by factors such as climate change, geopolitical tensions, and supply chain disruptions, create uncertainty in retail pricing and profitability for coffee businesses. Consumers may face higher prices, leading to reduced demand or shifts toward lower-cost alternatives. Additionally, producers struggle to maintain stable incomes, which can affect their investment in quality and sustainability practices. Overall, price volatility undermines market stability and growth, making it essential for stakeholders to implement strategies that mitigate these fluctuations.

Impact of Escalating Geopolitical Tensions on United States Coffee Market

Escalating geopolitical tensions among countries and spreading across regions could have a significant impact on the growth of United States Coffee Market. Disruptions in major coffee-producing countries due to conflicts or political instability can lead to reduced coffee availability, pushing prices higher. Additionally, sanctions and trade restrictions may hinder imports, further straining supply. As consumers become more aware of these global issues, there is a growing preference for ethically sourced and domestically produced coffee. This shift could drive demand for local roasters and specialty brands. Furthermore, inflationary pressures stemming from geopolitical uncertainties may lead to increased prices for coffee products, ultimately influencing purchasing decisions and consumption patterns in the United States market.

United States Coffee Market

Segmental Coverage

United States Coffee Market – By Type

Based on type, United States Coffee Market is divided into Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods & Capsules segments. The coffee pods and capsules segment holds the highest share in United States Coffee Market by type. United States has witnessed a significant shift towards healthy and convenient food and beverage options, making coffee pods and capsules increasingly popular. Previously, this segment was largely dominated by Western Europe, particularly Switzerland, but demand has surged in the U.S. due to the quality, efficiency, and variety offered in single-serve coffee. More consumers are investing in coffee machines to replicate café experiences at home, further driving the demand for these products. Additionally, major brands are adopting innovative packaging technologies to enhance sustainability and appeal to environmentally conscious consumers. For example, Cafe Royal introduced a compostable coffee pod designed to minimize waste. Such advancements are expected to propel market growth during the forecast period.

United States Coffee Market – By Distribution Channel

By distribution channel, United States Coffee Market is bifurcated into Online and Offline segments. The offline segment holds a higher share in United States Coffee Market by distribution channel. United States Coffee Market is significantly shaped by various offline distribution channels that cater to consumer needs and shopping behaviors. Supermarkets and hypermarkets are crucial, offering a diverse range of coffee products that appeal to both regular shoppers and bulk buyers. Their convenience and competitive pricing attract a broad customer base interested in both mainstream and specialty coffee brands. Additionally, convenience and grocery stores provide easy access and quick purchase options, ideal for consumers seeking immediate solutions. Other offline channels, such as specialty coffee shops and cafes, enhance the market by delivering unique coffee experiences tailored to consumer preferences. Overall, these offline distribution channels play a vital role in driving the growth of the United States Coffee Market.

Competitive Landscape

Major players operating in the intensely competitive and highly fragmented United States Coffee Market include Starbucks, Folgers, Maxwell House, Dunkin' Donuts, Peet's Coffee, J.M. Smucker Company, Keurig Dr Pepper, Kraft Heinz, Nespresso, and Nestlé. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Whole Bean

• Ground Coffee

• Instant Coffee

• Coffee Pods & Capsules

By Distribution Channel

• Online

• Offline