Description
This report covers the US coffee and RTD coffee market, providing a comprehensive market and consumer review. Learn how and why consumers drink coffee, and what they want to see from coffee brands. Read on to see the key topics analyzed in this report, including a five year market forecast to plan your future success.
Key Topics Analyzed
- How Gen Z is shaping coffee culture.
- Impact of increased economic uncertainty on consumers’ coffee purchasing behaviors.
- Popularity of cold coffee beverages among teens.
- Coffee marketing trends.
- Whitener usage and consumer interest in flavored coffee beverages.
- Coffee beverage innovation trends.
US Coffee Market Quick Overview
- While falling coffee prices and an increasing tendency to craft specialty coffee at home indicate fresh potential in the market, there are challenges to be faced.
- Coffee production is highly susceptible to climate change, while El Nino may disrupt global coffee prices.
- Iced is in. As RTD takes the market by storm as the fastest-growing segment, single-cup pods designed specifically for iced beverages are also becoming popular. Teens especially are entering the marketplace for cold/iced coffee; this report covers opportunities to capitalize on this trend.
Coffee Consumer Fast Facts – Generational Trends
- Gen Z are drinking a wider variety of beverages, with cold coffee drinks acting as a gateway into the wider coffee market (despite seeing hot coffee as “comforting” – see our Future of Coffee Report). 57% of Gen Z consumers first regularly drink cold coffee beverages vs a lower number for hot coffee on first consumption.
- 60% of Gen Z consumers agree that TikTok is a great source for learning about coffee, indicating that TikTok is a key source of information for Gen Z consumers.
- Millennial and Gen X consumers want functional benefits, with over a quarter saying they would try a new coffee beverage if it offered functional benefits.
What’s Next for the Coffee Market in the US?
The next big trend in the coffee market may be contrarian branding, according to Mintel’s expert (see Expert Analysis below). Espresso drinkers show high engagement in the coffee market and are the early adopters of coffee industry trends. With coffee’s fourth wave movement’s focus on home-sourced drinks and products and strong brand identities, this suggests that counter culture is already taking off. Liquid Death’s contrarian branding is one example.
For a complete analysis of opportunities in the US coffee market, buy the full report. Alternatively, browse our drinks market research to find exactly what you’re looking for.
Report Definitions
For the purposes of this Report, Mintel has used the following definitions:
- Roasted coffee – ground and whole bean; regular and decaffeinated; unflavored and flavored.
- Single-cup coffee – cups and pods containing premeasured coffee for use in automatic single-cup coffee makers.
- Instant coffee – regular and decaffeinated; includes both powdered instant and liquid coffee concentrates.
- RTD (ready-to-drink) coffee – shelf-stable or refrigerated bottled/canned single-serve or multiserve (eg 48oz) prepared iced coffees and coffee drinks.
This Report also includes cream/creamer sales and product trends.
Additional Features Included in Your Report
Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as an Infographic and an Excel Databook.
Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.
Expert Analysis
This report, written by Caleb Bryant, a leading beverage analyst, delivers in-depth commentary and analysis to highlight current trends in the coffee market.
Economic uncertainty currently impacting the coffee category is expected to be short-lived, yet to remain relevant brands will need to keep up with evolving tastes, occasions and needs, especially of young coffee lovers.
Caleb Bryant
Associate Director of Food and Drink Reports
Table of Contents
-
Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
-
Executive Summary
- Top Takeaways
- Consumer trends
- Gen Zs expect more than just coffee
- Figure 1: coffee attitudes, any agree, by generation, 2023
- Teens chill out with cold coffees
- Figure 2: Coffee consumption among consumers aged 12-17 as reported by their parents, 2023
- Coffee shops lose trend setter status to social media
- Figure 3: New coffee brand trial motivators, by consumers who agree that TikTok is a great source for learning about coffee, 2023
- Competitive strategies
- Flavored roasts go indulgent
- Figure 4: Novel and Emerging flavors in flavored roast launches
- Coffee brands embrace fun and appeal to consumers’ sense of identity
- Figure 5: Coffee brand examples
- Home drink experimentation defines the fourth wave movement
- Figure 6: Coffee machine and product examples
- Market predictions
- Coffee market retains pandemic gains but faces conflicting future indicators
- Figure 7: Total US sales and fan chart forecast of coffee and RTD coffee, at current prices, 2018-28
- Figure 8: Category outlook, 2023-28
- Opportunities
- Empower younger adults to be at home baristas
- Figure 9: Coffee behavior changes, by generation, 2023
- Flavor your way to Gen Z audiences
- Figure 10: Coffee flavor preference, by generation, 2023
-
Market Size and Forecast
- Coffee market normalizes after pandemic-induced growth
-
- Figure 11: Total US sales and fan chart forecast of coffee and RTD coffee, at current prices, 2018-28
- Figure 12: Total US retail sales and forecast of coffee and RTD coffee, at current prices, 2018-28
- Figure 13: Total US sales and fan chart forecast of cream and creamer, at current prices, 2018-28
-
- Figure 14: Total US sales and fan chart forecast of cream and creamer, at current prices, 2018-28
-
Segment Performance
- RTDs poised to leap to the top of the coffee market
- Figure 15: Sales of coffee, by segment, 2018-28
- Figure 16: Sales of coffee, by segment, 2018-28
- Creamer retains pandemic gains
- Figure 17: Total US retail sales and forecast of cream and creamer, by segment, at current prices, 2018-28
- Figure 18: Total US retail sales and forecast of cream and creamer, by segment, at current prices, 2018-28
- RTDs poised to leap to the top of the coffee market
-
Market Drivers
- Increased economic uncertainty reshapes consumers’ coffee behaviors
- Figure 19: Coffee behavior changes, by financial health situation, 2023
- El Nino may disrupt global coffee prices
- Increased economic uncertainty reshapes consumers’ coffee behaviors
-
Key Players
- Economic environment benefits private label and legacy coffee brands
- Figure 20: Multi-outlet sales of coffee and RTD coffee, by leading companies, rolling 52 weeks 2022 and 2023
- Flavor forward consumers and NPD lifts most creamer brands
- Figure 21: Multi-outlet sales of creamer, by leading companies and brands, rolling 52 weeks 2022 and 2023
- Economic environment benefits private label and legacy coffee brands
-
Competitive Strategies and Market Opportunities
- Flavored coffee goes indulgent and boozy
- Figure 22: Novel and Emerging flavors in flavored roast launches
-
- Figure 23: “Novel” coffee flavor examples
- Figure 24: “Emerging” coffee flavor examples
- Instant coffee slowly sheds its image
- Figure 25: Trended instant coffee purchases in the past three months, 2022-23
-
- Figure 26: Instant coffee product launches. 2016-23
- Figure 27: instant coffee examples
-
- Figure 28: Functional instant coffee products
- Coffee industry plans for new climate realities
-
- Figure 29: Coffee products with unique environmental claims
- Brain boosting brews
- Figure 30: Consumption occasions, energy drinks vs RTD coffee, among category consumers, 2023
-
- Figure 31: Beverage perceptions, energy drinks vs RTD coffee, among category consumers, 2023
- Power to the home barista
- Figure 32: CoffeeTok video examples
-
- Figure 33: Coffee machine and product examples
- New coffee industry voices tap personal identity to make connections
- Figure 34: celebrity and identity coffee brands
-
- Figure 35: Folgers commercial, “All Us to Reintroduce Ourselves”
- 4th wave fun
- Figure 36: Coffee products with unique packaging and flavors
- Flavored coffee goes indulgent and boozy
-
The Consumer – Fast Facts
-
Trended Coffee Consumption
- Gen Z explores new coffee formats
- Figure 37: Trended coffee consumption, among Gen Z consumers, 2022-23
- Gen Z explores new coffee formats
-
Creamer Usage
- Espresso drinkers pair their coffees with plant-based creamers
- Figure 38: Coffee whitener usage, select whitener types, by coffee types consumed, 2023
- Espresso drinkers pair their coffees with plant-based creamers
-
Coffee Drinkers’ Early Experiences
- Cold coffee acts as a gateway into the wider coffee market
- Figure 39: Age when consumers first started drinking coffee, mean age, by generation, 2023
- Figure 40: First coffee beverage consumed, by generation, 2023
- Cold coffee acts as a gateway into the wider coffee market
-
Teen Coffee Consumption
- Keep the coffee cool for teens
- Figure 41: Coffee consumption among consumers aged 12-17 as reported by their parents, 2023
-
- Figure 42: Indulgent and co-branded coffee examples
- Keep the coffee cool for teens
-
Coffee Flavor Preferences
- Connect with Gen Z through flavor
- Figure 43: Coffee flavor preference, by generation, 2023
-
- Figure 44: Preferred coffee flavor format, by generation, 2023
- Figure 45: Interest in trial for flavors in coffee/RTD coffee, among Gen Z consumers, 2023
- Provide Black consumers unique creamer flavor experiences
- Figure 46: Coffee flavor preference, by generation, 2023
- Figure 47: Preferred coffee flavor format, by generation, 2023
- Connect with Gen Z through flavor
-
New Coffee Brand Trial Motivators
- Functional coffees fuel Millennials and Gen X consumers
- Figure 48: New coffee brand trial motivators, by generation, 2023
- New brand discovery occurs on social
- Figure 49: New coffee brand trial motivators, by consumers who agree that TikTok is a great source for learning about coffee, 2023
- Functional coffees fuel Millennials and Gen X consumers
-
Ideal Coffee Brand
- Value is paramount but keep it lighthearted and sustainable
- Figure 50: Ideal coffee brand descriptors, by coffee enthusiasts, 2023
- Target generational nuances through a strong brand identity
- Figure 51: Ideal coffee brand descriptors, top five descriptors, indexed against total, by generation, 2023
- Figure 52: Coffee brand examples
- Contrarian coffee may be the next big branding trend
- Figure 53: Ideal coffee brand descriptors, top five descriptors, indexed against total, by coffee types consumed, 2023
- Value is paramount but keep it lighthearted and sustainable
-
Coffee Behavior Changes
- At home experimentation grows as the 4th wave movement expands
- Figure 54: Coffee behavior changes, by generation, 2023
- Changed work paradigms signals continued opportunities for the coffee accessory market
- Figure 55: Coffee behavior changes, by remote work status, 2023
- At home experimentation grows as the 4th wave movement expands
-
Coffee Attitudes
- Lifestyle and identity marketing elevates coffee
- Figure 56: coffee attitudes, value attitudes, 2023
- Gen Z drives coffee culture
- Figure 57: coffee attitudes, any agree, by generation, 2023
-
- Figure 58: Asian-inspired coffee beverages
- Target remote workers with emerging coffee concepts
- Figure 59: coffee attitudes, any agree, by remote work status, 2023
- Promote coffee’s natural health properties and enhance with additional functional benefits
- Figure 60: coffee attitudes, any agree, by coffee enthusiasts, 2023
- Lifestyle and identity marketing elevates coffee
-
Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
-
Appendix – The Market
-
- Figure 61: Total US retail sales and forecast of coffee and RTD coffee, at inflation-adjusted prices, 2018-28
- Figure 62: Total US retail sales and forecast of roasted coffee, at inflation-adjusted prices, 2018-28
- Figure 63: Total US retail sales and forecast of single-cup coffee, at inflation-adjusted prices, 2018-28
- Figure 64: Total US retail sales and forecast of instant coffee, at inflation-adjusted prices, 2018-28
-
- Figure 65: Total US retail sales and forecast of ready-to-drink coffee, at inflation-adjusted prices, 2018-28
- Figure 66: Total US retail sales and forecast of cream and creamer, at inflation-adjusted prices, 2018-28
- Figure 67: Total US retail sales and forecast of cream, at inflation-adjusted prices, 2018-28
- Figure 68: Total US retail sales and forecast of creamer, at inflation-adjusted prices, 2018-28
-
-
Appendix – Companies and Brands
-
- Figure 69: Multi-outlet sales of roasted coffee, by leading companies and brands, rolling 52 weeks 2022 and 2023
- Figure 70: Multi-outlet sales of single-cup coffee, by leading companies and brands, rolling 52 weeks 2022 and 2023
-
- Figure 71: Multi-outlet sales of instant coffee, by leading companies and brands, rolling 52 weeks 2022 and 2023
- Figure 72: Multi-outlet sales of ready-to-drink coffee, by leading companies and brands, rolling 52 weeks 2022 and 2023
-
- Figure 73: Multi-outlet sales of cream and creamer, by leading companies, rolling 52 weeks 2022 and 2023
- Figure 74: Multi-outlet sales of cream, by leading companies and brands, rolling 52 weeks 2022 and 2023
-
-
Appendix – Flavorscape AI Methodology
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Trusted by companies. Big and small.
