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

US Coffee and Tea On Premise market report

"The coffee house market continues to experience strong growth thanks to the popularity of regular coffee, flavored coffee drinks, and the proliferation of third wave coffee. While retail coffee/tea is inexpensive and convenient, restaurants continue to deliver on innovation and quality. The on-premise coffee/tea market is highly competitive but brands can stand out by leveraging technology such as mobile ordering. "
- Caleb Bryant, Senior Foodservice Analyst

This Report discusses the following key topics:

  • RTD coffee is one of the fastest growing non-alcoholic beverages
  • Independents lose market share
  • Consumers want innovative offerings

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
        • Coffee wave definitions
        • Executive Summary

          • Coffee houses will experience steady growth
            • Figure 1: Total US sales and forecast of coffee shops, at current prices, 2011-21
          • The issues
            • RTD coffee is one of the fastest growing non-alcoholic beverages
              • Figure 2: Total US retail sales and forecast of ready-to-drink coffee, at current prices, 2012-22
            • Independents lose market share
              • Figure 3: Number of coffee house units, 2015-16
            • The opportunities
              • Coffee/tea beverages satisfy unique occasions
                • Figure 4: Correspondence analysis – Beverage occasions, May 2017
              • Consumers are extremely satisfied with mobile ordering
                • Figure 5: Mobile ordering satisfaction, May 2017
              • Consumers want innovative offerings
                • Figure 6: Coffee/tea innovation interest, any location, May 2017
              • What it means
              • The Market – What You Need to Know

                • Sales grow while new unit count slows
                  • RTD coffee and tea threaten coffee houses
                    • Young consumers are savvy social media users
                    • Market Size and Forecast

                      • Coffee house sales grow YOY
                        • Figure 7: Total US sales and forecast of coffee shops, at current prices, 2011-21
                        • Figure 8: Total US sales and forecast of coffee shops, at current prices, 2011-21
                      • Unit growth slows
                        • Figure 9: Total number of coffee houses in the US, 2011-21
                        • Figure 10: Total number of coffee houses in the US, 2011-21
                    • Market Breakdown

                      • Independents experience steepest unit decline
                        • Figure 11: Number of coffee house units, 2015-16
                        • Figure 12: Share of coffee house units, multiples vs independents, 2015-16
                    • Market Perspective

                      • RTD coffee gets nitro
                        • Figure 13: Total US retail sales and forecast of ready-to-drink coffee, at current prices, 2012-22
                      • High at-home penetration for coffee makers
                        • RTD tea gets premium
                          • Figure 14: Total US retail sales and forecast of canned/bottled RTD tea, at current prices, 2012-22
                      • Market Factors

                        • Smartphone adoption is nearly universal
                          • Figure 15: Smartphone and tablet ownership, April 2015 vs January 2017
                        • Sugar concerns grow but does it affect coffee/tea?
                          • YouTube, Facebook, and Instagram are top social media channels for young consumers
                            • Figure 16: Social media platform usage, at least daily usage, June 2016-May 2017
                            • Figure 17: Social media platform usage, at least daily usage, among 18-24-year-olds, June 2016-May 2017
                        • Key Players – What You Need to Know

                          • The Big Three players have different growth strategies
                            • Foodservice-branded coffees outperform in the retail market
                              • Food remains a pain point for coffee houses
                                • The importance of social media will continue to grow
                                • What’s Working?

                                  • A year in review: Starbucks and Dunkin’ Donuts
                                    • Starbucks: food
                                      • Starbucks: drinks
                                        • Dunkin’ Donuts: food
                                          • Dunkin’ Donuts: drinks
                                            • McDonald’s may find success with coffee promotions
                                              • Nitro goes mainstream
                                                • Figure 18: Major coffee house testing nitro coffee
                                              • C-stores see growth of coffee sales
                                                • Figure 19: US convenience store foodservice sales, at current prices, hot dispensed beverages, 2011-16
                                                • Figure 20: Convenience store coffee drinks
                                                • Figure 21: C-store coffee offering interest, December 2016
                                              • Consumers want their favorite foodservice brands at home
                                              • What’s Struggling?

                                                • Rocky start to Starbucks mobile ordering
                                                  • Coffee shops struggle with food
                                                    • Starbucks to close all Teavana stores
                                                    • What’s Next?

                                                      • Blending brands
                                                        • Social media becomes the birthplace of trends
                                                          • Cold brew coffee becomes more accessible
                                                            • Figure 22: Flavored cold brew coffee drinks, LTOs and permanent menu items
                                                          • Cooking with coffee
                                                            • Figure 23: Coffee as an ingredient in meat dishes
                                                          • Kombucha continues to trend
                                                          • MMI Analysis

                                                            • Coffee trends
                                                              • Coffee types and preparation methods
                                                                • Figure 24: Top 10 coffee types offered at restaurants, incidence and penetration change, Q1 2015-Q1 2017
                                                                • Figure 25: Top 10 coffee preparation methods at restaurants, incidence and penetration change, Q1 2015-Q1 2017
                                                              • Coffee flavors
                                                                  • Figure 26: Flavor matrix, top 10 menued coffee flavors, Q1 2015-Q1 2017
                                                                  • Figure 27: Flavor matrix, top 10 growing coffee flavors, Q1 2015-Q1 2017
                                                                • Tea trends
                                                                  • Tea types
                                                                      • Figure 28: Top 10 tea types offered at restaurants, incidence and penetration change, Q1 2015-Q1 2017
                                                                    • Tea flavors
                                                                      • Figure 29: Flavor matrix, top 10 menued tea flavors, Q1 2015-Q1 2017
                                                                      • Figure 30: Flavor matrix, top 10 growing menued tea flavors, Q1 2015-Q1 2017
                                                                  • The Consumer – What You Need to Know

                                                                    • Focus on the iGens
                                                                      • Identify what needs a drink satisfies
                                                                        • Consumers enjoy the ease and convenience of mobile ordering
                                                                          • Consumers most interested in flavored roasts but other areas of opportunity exist
                                                                          • Chain/Segment Visitation – Trended

                                                                            • Starbucks is the only chain to experience visitation growth
                                                                              • Figure 31: Chain/segment visitation for coffee/tea, trended, May 2017
                                                                            • iGens are now the sought-after consumer group
                                                                                • Figure 32: Chain/segment visitation for coffee/tea, May 2017
                                                                              • Chain/segment visitation trended: a focus on 18-24-year-olds
                                                                                • Figure 33: Chain/segment visitation for coffee/tea, trended among 18-24-year-olds, May 2017
                                                                              • Millennials are visiting fewer locations for coffee/tea
                                                                                • Figure 34: Repertoire analysis, locations visited by millennials, 2016 vs 2017
                                                                              • Chain/segment cross-utilization
                                                                                • Figure 35: Chain/segment cross-utilization, May 2017
                                                                                • Figure 36: Chain/segment cross-utilization, continued, May 2017
                                                                              • Chain/segment visitor profiles
                                                                                  • Figure 37: Select visitor profiles index against all AFH coffee/tea drinkers
                                                                              • Coffee/Tea Flavor Interest

                                                                                • Indulgent, fruity flavors most popular
                                                                                  • Figure 38: Coffee/tea flavor interest, May 2017
                                                                                  • Figure 39: Coffee/tea LTOs
                                                                                • iGens/Millennials drive interest in coffee/tea flavors
                                                                                  • Figure 40: Coffee/tea flavor interest, by generation, May 2017
                                                                                • Flavor interest lowest in Midwest
                                                                                  • Figure 41: Coffee/tea flavor interest, by census region, May 2017
                                                                                • Certain flavors appeal to Hispanic audience
                                                                                  • Figure 42: Coffee/tea flavor interest, by Hispanic origin, May 2017
                                                                                • Flavor offerings may drive independent coffee house visitation
                                                                                  • Figure 43: Coffee/tea flavor interest, by segment/chain visitation, May 2017
                                                                              • Coffee/Tea Flavor Interest – TURF Analysis

                                                                                • Methodology
                                                                                  • Various flavors can bring in unduplicated consumers
                                                                                    • Figure 44: TURF analysis – Coffee/tea flavor interest, May 2017
                                                                                • Coffee/Tea Beverage Occasions – Correspondence Analysis

                                                                                  • Methodology
                                                                                    • Certain beverages satisfy unique needs
                                                                                      • Figure 45: Correspondence analysis – Beverage occasions, May 2017
                                                                                  • Coffee/Tea Beverage Occasions – Generational Deep Dive

                                                                                      • Hot coffee
                                                                                        • Figure 46: Beverage occasions, hot coffee, by generation, May 2017
                                                                                      • Qualitative analysis: how consumers develop coffee drinking habits
                                                                                        • Iced coffee
                                                                                          • Figure 47: Beverage occasions, iced coffee, by generation, May 2017
                                                                                        • Specialty coffee
                                                                                          • Figure 48: Beverage occasions, specialty coffee, by generation, May 2017
                                                                                        • Frozen blended coffee
                                                                                          • Figure 49: Beverage occasions, specialty coffee, by generation, May 2017
                                                                                        • Hot tea
                                                                                          • Figure 50: Beverage occasions, hot tea, by generation, May 2017
                                                                                        • Iced tea
                                                                                          • Figure 51: Beverage occasions, iced tea, by generation, May 2017
                                                                                      • Mobile Order Usage

                                                                                          • Figure 52: Mobile order usage, May 2017
                                                                                        • Usage highest among men, Millennials, Hispanics, and urbanites
                                                                                          • Figure 53: Mobile order usage, have used, by select demographics, May 2017
                                                                                      • Mobile Order Satisfaction

                                                                                        • Consumers are overwhelmingly satisfied with mobile ordering
                                                                                          • Figure 54: Mobile ordering satisfaction, May 2017
                                                                                      • Mobile Order Satisfaction – Qualitative Analysis

                                                                                        • Convenience drives mobile ordering satisfaction
                                                                                          • Figure 55: Mobile order satisfaction reasons, top 10 coded free text responses, May 2017
                                                                                      • Non-mobile Order Users

                                                                                        • Many don’t see value in mobile ordering
                                                                                          • Figure 56: Reasons for not using mobile ordering, May 2017
                                                                                          • Figure 57: Reasons for not using mobile ordering, by age, May 2017
                                                                                      • Mobile Order Motivators – Qualitative Analysis

                                                                                        • Most non-users aren’t interested in mobile ordering
                                                                                          • Figure 58: Mobile order motivators, top 10 coded free text responses, May 2017
                                                                                      • Coffee/Tea Innovation Interest

                                                                                        • Consumers want a variety of coffee/tea innovations
                                                                                          • Figure 59: Coffee/tea innovation interest, any location, May 2017
                                                                                        • Appeal to iGens/Millennials with new options
                                                                                          • Figure 60: Coffee/tea innovation interest, any location, by generation, May 2017
                                                                                          • Figure 61: Coffee/tea innovation interest, any location, by age and income, May 2017
                                                                                        • Hispanics are interested in new coffee/tea options
                                                                                          • Figure 62: Coffee/tea innovation interest, any location, by Hispanic origin, May 2017
                                                                                        • Urbanites most open to new offerings
                                                                                          • Figure 63: Coffee/tea innovation interest, any location, by area, May 2017
                                                                                        • Consumers are interested in innovations regardless of segment
                                                                                          • Figure 64: Coffee/tea innovation interest, by segment, May 2017
                                                                                          • Figure 65: Coffee/tea innovation interest, by segment, May 2017
                                                                                      • Appendix – Data Sources and Abbreviations

                                                                                        • Data sources
                                                                                          • Sales data: Mintel Market Sizes
                                                                                            • Consumer survey data
                                                                                              • Consumer qualitative research
                                                                                                • Mintel Menu Insights
                                                                                                  • Social media methodology
                                                                                                    • Abbreviations and terms
                                                                                                      • Abbreviations
                                                                                                        • Terms

                                                                                                        Companies Covered

                                                                                                        To learn more about the companies covered in this report please contact us.