Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Coffee - US - July 2017

"After experiencing strong gains from 2012-15, the coffee market slowed from 2016-17 (est) as market penetration of single-cup coffee makers is saturated and fewer new owners has resulted in slower single-cup coffee gains. Still, cold brew sales are thriving and new cold brew innovations such as nitro cold brew and alcoholic cold brew could reinvigorate sales. Additionally, unique benefits such as coffee with health-and-wellness-oriented claims can appeal to the highly engaged iGen and Millennial consumers, who are more likely to seek premium coffee."
- Mimi Bonnett, Director - Food and Drink, Foodservice

This Report discusses the following key topics:

  • Roasted, instant coffee sales struggle as consumers turn to RTD, single-cup
  • Market penetration is strong as most adults drink some type of coffee
  • The average consumer is not highly engaged with cold coffee, cold brew

While the market overall experienced moderate growth in 2017 (est), the roasted coffee and instant coffee segments struggled in light of consumers turning to RTD and single-cup. RTD and single-cup offer added convenience and are newer formats, helping to drive additional interest in these segments. Additionally, growth of the market as a whole has slowed since 2015, as the single-cup coffee market has become more mature and stable.

Most adults drink some type of coffee at home, highlighting strong market penetration. Strong market penetration suggests that category growth may hinge on encouraging consumers to drink a broader variety of formats, or by encouraging current coffee drinkers to trade up for higher-priced offerings

The average consumer is not a highly engaged cold coffee drinker. Further, consumers are generally turning to foodservice to purchase cold coffee, perhaps intimidated by the process of making it at home.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Roasted, instant coffee sales struggle as consumers turn to RTD, single-cup
            • Figure 1: Percentage change of sales growth, by segment, 2013-17 (est)
          • Market penetration is strong as most adults drink some type of coffee
            • Figure 2: Coffee consumption – Any consumption (net)*, by nets, May 2017
          • The average consumer is not highly engaged with cold coffee, cold brew
            • Figure 3: Attitudes toward cold coffee, May 2017
          • The opportunities
            • Younger generations increasing coffee consumption
              • Figure 4: Select attitudes toward coffee, by generation, May 2017
            • Innovations could increase penetration of cold coffee, cold brew
              • Figure 5: Interest in cold coffee innovations, May 2017
            • Increased focus on health and wellness differentiates offerings, expands usage occasions
              • What it means
              • The Market – What You Need to Know

                • Coffee experiences moderate growth, slower than previous gains
                  • Most spend goes toward roasted coffee, which is struggling
                    • Hot coffee seen as functional, cold coffee is a treat
                      • Creamer market sees stable growth
                        • Engaged key populations benefit market
                        • Market Size and Forecast

                          • Historic and projected sales performance
                            • Figure 6: Total US sales and fan chart forecast of coffee, at current prices, 2012-22
                            • Figure 7: Total US sales and forecast of coffee, at current prices, 2012-22
                        • Market Breakdown

                          • Most spend goes to roasted coffee, stronger performance from RTD, single-cup
                            • Figure 8: Sales of coffee, by segment, 2017(est)
                            • Figure 9: Percentage change of sales growth, by segment, 2013-17 (est)
                          • Cold brew sales are thriving
                            • Figure 10: Total US retail sales of refrigerated cold-brew/concentrate coffee, at current prices, 2012-22
                          • Supermarkets losing share to other retailers
                            • Figure 11: US sales of coffee through other retail channels, at current prices, 2012-17
                        • Market Perspective – Coffee

                          • Hot coffee turned to for function, cold coffee a treat
                            • Figure 12: Beverage occasions, May 2017
                          • Consumers more likely to rely on foodservice for iced, specialty drinks
                            • Figure 13: Coffee consumption, at home and away from home, January 2017
                          • Coffee launches increasingly fall under RTD
                            • Figure 14: Share of coffee products, by subcategory, 2012-17*
                          • Coffee consumption outpaces tea
                            • Figure 15: Coffee and tea consumption, January 2017
                          • Hybrid, energy drinks offer opportunity, plus competition and potential confusion
                          • Market Perspective – Creamer Sales

                            • Creamer market experiences stable growth
                              • Figure 16: Total US sales and fan chart forecast of cream and creamers, at current prices, 2012-22
                              • Figure 17: Total US sales and forecast of cream and creamers, at current prices, 2012-22
                            • Coffee and creamer markets both see sales begin to slow
                              • Figure 18: Percentage change of coffee and creamer sales growth, by segment, 2013-17 (est)
                          • Market Factors

                            • Growing population of consumers 25-34 benefits market
                              • Figure 19: Population by age, 2012-22
                            • Rise in Hispanic population suggests category growth
                              • Figure 20: Population by race and Hispanic origin, percent change, 2017-22
                          • Key Players – What You Need to Know

                            • Most sales fall under J.M. Smucker, but Starbucks, smaller players gain share
                              • Small roaster, foodservice brands, RTD appeal to consumers
                                • Leading brands, decaf fail to resonate
                                  • Broader variety of claims and formats help differentiate offerings
                                  • Company and Brand Sales of Coffee

                                    • J.M Smucker dominates market, but losing share to Starbucks
                                      • Sales of coffee by company
                                        • Figure 21: MULO sales of coffee, by leading companies, rolling 52 weeks 2016 and 2017
                                    • What’s Working?

                                      • Small roasters see gains in roasted coffee
                                        • Figure 22: MULO sales of select small roasters ready to brew offerings, 52-week review period ending March 19, 2017
                                      • Foodservice single-cup brands continue to build off positive momentum
                                        • Figure 23: MULO sales of select single-cup offerings from foodservice brands, 52-week review period ending March 19, 2017
                                      • RTD segment thrives, driven by gains in RTD cold brew
                                        • Figure 24: MULO sales of select RTD cold brews, 52-week review period ending March 19, 2017
                                    • What’s Struggling?

                                      • Decaf posts declines as consumers turn to hot coffee for function
                                        • Figure 25: MULO sales of decaffeinated coffee, 2014-16
                                      • Leading retailer brands struggle as consumers seek premium offerings
                                        • Figure 26: MULO sales of select products from struggling leading brands, 2014-16
                                    • What’s Next?

                                      • Environmental, natural claims appeal to Millennials
                                          • Figure 27: Share of coffee products making select claims, 2012-17*
                                        • Health and wellness benefits help RTD brands differentiate
                                          • Coffee hybrid drinks change the coffee drinking experience
                                          • The Consumer – What You Need to Know

                                            • Roasted coffee is a coffee staple, single-cup reaches half of adults
                                              • RTD, cold brew thrive, instant is losing appeal
                                                • Convenience, variety, price drive retailer choice
                                                  • Taste top-of-mind, ethical and environmental claims stand out
                                                    • Additives an important part of coffee drinking experience
                                                      • Cold coffee slow to take off for at-home consumption
                                                        • Consumption frequency rises for some, perceptions drive opportunity, challenges
                                                        • Roasted and Single-cup Coffee Consumption

                                                          • Roasted coffee a staple, most frequently consumed
                                                            • Single-cup continues to gain traction
                                                              • Figure 28: Consumption of ready-to-brew and single-cup coffee, May 2017
                                                            • Millennials are core, heavy drinkers of coffee
                                                              • Figure 29: Consumption of ready-to-brew and single-cup coffee – Heavy and moderate drinkers, by generation, May 2017
                                                            • Hispanics heavy drinkers of a variety of coffee formats
                                                              • Figure 30: Consumption of ready-to-brew and single-cup coffee – Heavy and moderate drinkers, by race/Hispanic origin, May 2017
                                                          • Ready-to-drink and Instant Coffee Consumption

                                                            • Ready-to-drink and instant coffees used less than daily
                                                              • Cold brew gaining traction
                                                                • Figure 31: Consumption of ready-to-drink and instant coffee, May 2017
                                                              • iGen and Millennials core users of instant, RTD, cold brew
                                                                • Figure 32: Consumption of ready-to-drink and instant coffee – Any consumption (net)*, by generation, May 2017
                                                              • Hispanics drink instant, RTD, cold brew, liquid enhancers more frequently
                                                                • Figure 33: Consumption of ready-to-drink and instant coffee – Heavy and moderate drinkers, by race/Hispanic origin, May 2017
                                                            • Retailers Shopped

                                                              • Convenience, variety, and price points influence retailer choice
                                                                • Niche set of shoppers trade up for specialty stores
                                                                  • Online, delivery services increase competition
                                                                    • Figure 34: Retailers shopped, May 2017
                                                                  • Younger adults buying at specialty retailers, older adults stick with grocery
                                                                    • Figure 35: Select retailers shopped, by age, May 2017
                                                                  • Income a barrier for natural food stores, coffee houses, online
                                                                    • Figure 36: Select retailers shopped, by household income, May 2017
                                                                  • Hispanics prefer buying coffee at mass merchandisers
                                                                    • Figure 37: Retailers shopped, by race/Hispanic origin, May 2017
                                                                • Important Coffee Attributes

                                                                  • Roast type, flavor top-of-mind for consumers
                                                                    • Coffee chain brands, major CPG brands equally sought
                                                                      • Organic, fair trade claims can set offerings apart
                                                                        • Figure 38: Important coffee attributes, May 2017
                                                                      • Older adults and younger adults rely on different flavor indicators
                                                                        • Figure 39: Select important coffee attributes, by generation, May 2017
                                                                      • Major brands stand out to multicultural adults
                                                                        • Figure 40: Select important coffee attributes, by race/Hispanic origin, May 2017
                                                                    • Coffee Additives

                                                                      • Most people add something to their coffee; sugar, flavored cream most common
                                                                        • Figure 41: Coffee additives – Any coffee(net)*, May 2017
                                                                      • Additives typically being added to hot coffee rather than cold coffee
                                                                        • Figure 42: Coffee additives, by type, May 2017
                                                                      • Younger adults customize their coffee at home
                                                                        • Figure 43: Select coffee additives – Any coffee (net)*, by age, May 2017
                                                                      • Multicultural consumers engaged with additives
                                                                        • Figure 44: Select coffee additives – Any coffee (net)*, by race/Hispanics origin, May 2017
                                                                    • Attitudes and Behaviors toward Cold Coffee and Cold Brew

                                                                      • Few consumers are making their own cold coffee at home
                                                                        • Figure 45: Consumers who have made cold coffee at home, May 2017
                                                                      • Cold coffee innovations appeal to niche set of consumers
                                                                        • Figure 46: Interest in cold coffee innovations, May 2017
                                                                      • The average consumer is not highly engaged with cold coffee, cold brew
                                                                        • Figure 47: Attitudes toward cold coffee, May 2017
                                                                      • Younger generations more enthusiastic about cold coffee
                                                                        • Figure 48: Select attitudes toward cold coffee and cold brew, by generation, May 2017
                                                                      • Hispanics increasingly turn to cold coffee, Black consumers lag behind
                                                                        • Figure 49: Select attitudes toward cold coffee and cold brew, by all, Hispanic, Black, and Asian consumers, May 2017
                                                                    • Attitudes and Behaviors toward Coffee

                                                                      • Coffee consumption on the rise for niche set of adults
                                                                        • Figure 50: Select attitudes toward coffee, by generation, May 2017
                                                                      • Perceptions that single-cup and RTD are pricey challenge sales
                                                                        • Figure 51: Price-related attitudes toward coffee, May 2017
                                                                      • Hot coffee seen as relaxing, some choose coffee due to health perceptions
                                                                        • Figure 52: Attitudes toward coffee, May 2017
                                                                      • Multicultural adults drinking more coffee, willing to splurge for added value
                                                                        • Figure 53: Select attitudes toward coffee, by race/Hispanic origin, May 2017
                                                                    • Appendix – Data Sources and Abbreviations

                                                                      • Data sources
                                                                        • Sales data
                                                                          • Fan chart forecast
                                                                            • Consumer survey data
                                                                              • Abbreviations and terms
                                                                                • Abbreviations
                                                                                • Appendix – The Market

                                                                                    • Figure 54: Total US sales and forecast of coffee, at inflation-adjusted prices, 2011-21
                                                                                    • Figure 55: Total US retail sales and forecast of coffee, by segment, at current prices, 2012-22
                                                                                    • Figure 56: Total US retail sales and forecast of cream and creamers, at inflation-adjusted prices, 2012-22
                                                                                    • Figure 57: Total US retail sales and forecast of cream and creamers, by segment, at current prices, 2012-22
                                                                                    • Figure 58: Total US retail sales of cream and creamers, by channel, at current prices, 2015 and 2017
                                                                                • Appendix – Key Players

                                                                                    • Figure 59: MULO sales of roasted coffee, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 60: MULO sales of single-cup coffee, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 61: MULO sales of instant coffee, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 62: MULO sales of ready to drink coffee, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 63: MULO sales of cream and creamers, by leading companies, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 64: MULO sales of cream, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                    • Figure 65: MULO sales of creamers, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                                                • Appendix – The Consumer

                                                                                    • Figure 66: Coffee and tea additions, percent change of usage between Oct. 2016 and Jan. 2017

                                                                                Coffee - US - July 2017

                                                                                US $3,995.00 (Excl.Tax)