2021
9
US Coffee and RTD Coffee Market Report 2021
2021-08-17T04:10:01+01:00
OX1045603
3695
141528
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Report
en_GB
“The pandemic brought strong growth for the coffee market as consumers tried new coffee products, created their own specialty coffee drinks and upgraded their home coffee bars. This increase in…

US Coffee and RTD Coffee Market Report 2021

£ 3,695 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the US Coffee and RTD Coffee Consumer market including the behaviors, preferences, and habits of the consumer.

The pandemic not only led to an increase in general home coffee consumption but also brought about a period of experimentation and exploration among coffee consumers. 27% of coffee consumers tried a new coffee brand during the pandemic; 22% made specialty coffee drinks at home, and 13% purchased an entirely new coffee appliance.

In addition to short-term gains, the pandemic created long-term growth opportunities for the coffee market. The rise of remote work established a new class of coffee drinking consumers interested in coffee shop experiences enjoyed within the home, creating opportunities for premium coffee blends. The pandemic also caused consumers to reevaluate their health and wellness goals, paving the way for functional coffee drinks; 30% of coffee drinkers are interested in purchasing coffee with additional functional benefits.

Coffee brands will need to adapt to shifting consumer preferences and unstable market conditions. Gen Z’s preference for cold over hot coffee drinks will force coffee brands (particularly roasted coffee brands) to update their product development and marketing strategies. Rising coffee prices will lead to trade-down behaviors among price-sensitive consumers, suggesting a need for mid-tier coffee brands to focus on providing budget-conscious consumers value.

The increased interest in premium coffee experiences suggests coffee and creamer brands should be bold with their product development. It’s also time for brands to rethink coffee marketing, create marketing messages and develop CSR programs that reinforce consumers’ own sense of identity.

Read on to discover more about the US Coffee and RTD Coffee consumer market, read our The Future of Coffee: 2021 Market Report, or take a look at our other Drinks Market research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and the coffee and creamer markets.
  • How Gen Z’s coffee preferences will reshape the coffee market.
  • Opportunities for functional coffees.
  • Coffee industry market research and RTD coffee trends.
  • How the rise of remote work will strengthen the home barista trend.

Covered in this report

Brands include: Café Bustelo, Maxwell House, Seattle’s Best, Dunkin Donuts, Folger’s, Starbucks, Gevalia, Peet’s Coffee, Caribou Coffee, Kraft Heinz, Starbuck’s Corporation, The J M Smucker Company, Keurig Dr. Pepper, STōK, International Delight, Bizzy, North American Coffee Partnership, Danone North America, Monster Beverage Corporation, Java Monster, Nestlé, International Delight, Silk, Black Rifle Coffee Company (BRCC), Blk & Bold, Coffee or Die, Lavazza Group, Tchibo, Illycaffe SpA, Nespresso, Costa Coffee, Briggo, Coffee mate, H-E-B, Nut Pods, New Barn, Oatly, Califia Farms, Oreo, Barissimo, Boyer’s Coffee, Community Coffee, Meijer, Good and Gather, McCafe, The Original Donut Shop, Java House, Groundwork, Trader Joe’s, Chamberlain Coffee, Death Wish Coffee, Perrier Energize, BODY ARMOR EDGE, Brew Dr. Uplift, Bang, Reign, C4.

Excluded from this report are: coffee substitutes, flavorings and syrups, including those used to make specialty coffee drinks and frozen coffee beverages at home. Bulk-bin coffee beans (not packaged) are also excluded regardless of where sold. Also excluded are coffee sold through foodservice, such as coffee shops and restaurants, as well as vending machines. For information on the foodservice coffee market please see Mintel’s Foodservice Coffee and Tea – US, 2021 Report.

Expert analysis from a specialist in the field

This report, written by Caleb Bryant, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The pandemic brought strong growth for the coffee market as consumers tried new coffee products, created their own specialty coffee drinks and upgraded their home coffee bars. This increase in home coffee experimentation and exploration will benefit the coffee and creamer markets for years to come, and the rise of remote work will drive an overall increase in home coffee consumption. Product innovation and marketing differentiation is necessary to stand out in the crowded coffee market; create flavorful brews, enhance coffee with functional benefits, promote multi-serve pack sizes to make RTD coffee an everyday drink, and update marketing messages to align with Gen Z’s coffee preferences.
Caleb Bryant, Associate Director of Food and Drink Reports
Caleb Bryant
Associate Director of Food and Drink Reports

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • Market context
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US sales and fan chart forecast of coffee, at current prices, 2016-26
    • Impact of COVID-19 on coffee
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on coffee
    • Opportunities and challenges
    • Rising prices will result in trading behaviors among low-income consumers
      • Figure 3: At-home coffee pandemic behaviors, by HHI, 2021
    • Consumers upgraded their home coffee bars during the pandemic
      • Figure 4: At-home coffee pandemic behaviors, by generation, 2021
    • Gen Z’s preference for cold drinks will reshape the coffee market
      • Figure 5: Coffee consumption, any consumption, by generation, 2021
    • COVID-19 accelerated the functional coffee trend
      • Figure 6: Coffee and creamer functional ingredient interest, by creamer and coffee format users, 2021
    • Creamer should provide consumers fun, unique flavor experiences
      • Figure 7: Creamer product interest, by creamer amount usage, 2021
    • Sustainability claims garner high appeal, but claims must be unique and specific
      • Figure 8: Coffee and tea ethical and sustainable claim interest, among coffee drinkers, 2021
  3. The Market – Key Takeaways

    • Pandemic benefits coffee and creamer in the short, medium and long term
    • Change in work paradigms will boost home coffee consumption
    • Drought and supply chain issues will leave coffee brands with a caffeine headache
  4. Market Size and Forecast

    • Pandemic propels the coffee market
      • Figure 9: Total US sales and fan chart forecast of coffee, at current prices, 2016-26
      • Figure 10: Total US sales and fan chart forecast of coffee, at current prices, 2016-26
    • Creamer market rises alongside coffee
      • Figure 11: Total US sales and fan chart forecast of cream and creamer, at current prices, 2016-26
      • Figure 12: Total US sales and forecast of cream and creamer, at current prices, 2016-26
  5. Segment Performance

    • Young consumers drive the RTD coffee market
      • Figure 13: Total sales and forecast of coffee, by segment, 2016-26
      • Figure 14: Total sales and forecast of coffee, by segment, 2016-26
    • Creamer market poised for strong growth
      • Figure 15: Total sales and forecast of cream and creamer, 2016-26
      • Figure 16: Total sales and forecast of cream and creamer, 2016-26
  6. Market Factors

    • Remote work is here to stay
      • Figure 17: Anticipated work situation for the remainder of 2021, 2021
      • Figure 18: Anticipated AFH coffee/tea purchases post-pandemic, 2021
    • Recovering economy suggests consumers will trade up to premium coffee
      • Figure 19: Financial health tracker, 2020-21
    • Drought and pandemic results in costly coffee
    • Energy drinks represent a growing competitive threat
      • Figure 20: Total US retail sales and forecast of energy drinks, at current prices, 2015-25
      • Figure 21: Beverage consumption, by age and generation, 2021
  7. Companies and Brands – Key Takeaways

    • Consumers trade up to premium and foodservice roasted coffee
    • Coffee can be an identity signifier
    • Opportunity for creamer innovation as home coffee consumption rises
    • Gen Z prefers flavorful cold coffee drinks
    • Coffee brands must save coffee
    • The time is now for functional coffee
  8. Market Share

    • Foodservice brewed coffee brands continue to outperform the market
      • Figure 22: Multi-outlet sales of roasted coffee, by leading companies and brands, rolling 52 weeks 2020 and 2021
      • Figure 23: Multi-outlet sales of single-cup coffee, by leading companies and brands, rolling 52 weeks 2020 and 2021
    • Multiple opportunities for multi-serve formats
      • Figure 24: Multi-outlet sales of RTD coffee, by leading companies and brands, rolling 52 weeks 2020 and 2021
    • Small creamer brands attempt to step out of the market leaders’ shadows
      • Figure 25: Multi-outlet sales of creamer, by leading companies and brands, rolling 52 weeks 2020 and 2021
  9. Competitive Strategies

    • Coffee signals consumers’ values and identities
    • Europe sets its sights on the American coffee market
    • Creamer goes plant-based, caters to home baristas and focuses on functionality
      • Figure 26: Creamer product launches with dairy-free claims, % of annual launches, 2017-20
      • Figure 27: Creamer product launches with sugar-related claims, % of annual launches, 2017-20
    • Coffee brands differentiate with flavors
    • Cold brew remains a hot opportunity even for ground coffee brands
      • Figure 28: Foodservice coffee and tea attitudes, attitudes toward cold brew, any agree, 2021
  10. Market Opportunities

    • How to get Gen Z to drink hot brewed coffee
      • Figure 29: Coffee consumption, any consumption, by generation, 2021
    • Rebrand decaf to lite-caf
    • High-caf coffee satisfies consumers’ elevated energy needs
      • Figure 30: Coffee product interest, “coffee that provides a big energy boost,” by coffee types consumed, 2021
    • Highlight coffee’s fragile future
      • Figure 31: Coffee product launches with select ethical claims, % of annual launches, 2017-20
      • Figure 32: Creamer product launches with select ethical claims, % of annual launches, 2017-20
    • Unique ethical claims will stand out in the coffee market
    • Build upon consumers’ newfound barista skills
    • Functional coffee is a whitespace opportunity
      • Figure 33: Coffee product launches, share of products launched by claim category, 2017-20
    • Enhance coffee’s inherit functionally with jitterless ingredients
  11. The Consumer – Key Takeaways

    • Gen Z take their coffees cold with extra creamer
    • Consumers will retain coffee behaviors developed during the pandemic
    • Market a luxurious coffee experience to Gen X consumers
    • Functional ingredients make their way into RTD and single-cup specialty coffees
    • Consumers drink cold brew for its flavor and energy boost
  12. Coffee Consumption

    • Brewed coffee dominates but preferences are shifting
      • Figure 34: Coffee consumption, 2021
      • Figure 35: Coffee consumption, any consumption, by generation, 2021
  13. Creamer Usage

    • Gen Z will set the creamer trends
      • Figure 36: Creamer usage, by generation, 2021
    • Follow young Hispanics’ flavor preferences
      • Figure 37: Creamer usage, by Hispanic origin and age, 2021
  14. Reasons for Drinking Cold Brew Coffee

    • Cold brew delivers on flavor and energy
      • Figure 38: Reasons for drinking cold brew coffee, 2021
    • Younger women are cold brew enthusiasts
      • Figure 39: Reasons for drinking cold brew coffee, by gender and age, 2021
    • Develop cold brew drinks for Gen X
      • Figure 40: Reasons for drinking cold brew coffee, by generation, 2021
  15. Reasons Why Hot Coffee Beverages Are Primary Coffee Type

    • Hot coffee consumption is a routine, but routines can change
      • Figure 41: Why hot coffee beverages are primary coffee type, 2021
  16. Reasons Why Cold Coffee Beverages Are Primary Coffee Type

    • Cold coffees offer a refreshing break
      • Figure 42: Why cold coffee beverages are primary coffee type, 2021
    • Men turn to cold coffee for an extra energy boost
      • Figure 43: Why cold coffee beverages are primary coffee type, by gender, 2021
    • Younger coffee consumers habitually consume cold coffee drinks
      • Figure 44: Why cold coffee beverages are primary coffee type, by age, 2021
  17. Coffee Product Interest

    • Consumers will trade up to premium coffee
      • Figure 45: Coffee product interest, 2021
    • Create premium home coffee experiences for Gen X
      • Figure 46: Coffee product interest, by generation, 2021
    • Add a flavor shot and extra caffeine to RTD coffee
      • Figure 47: Coffee product interest, by coffee types consumed, 2021
  18. Creamer Product Interest

    • Creamers can go bold with flavors
      • Figure 48: Creamer product interest, by creamer usage, 2021
    • Dairy-free is the way to be for Gen Z
      • Figure 49: Creamer product interest, by generation, 2021
    • Affluent consumers drive interest in functional creamers
      • Figure 50: Creamer product interest, by age and income, 2021
  19. Coffee and Creamer Functional Ingredient Interest

    • Functional ingredients pair with RTD and single-cup specialty coffee formats
      • Figure 51: Coffee and creamer functional ingredient interest, by creamer and coffee format users, 2021
    • Heavy creamer users would like their coffee with a splash of functionality
      • Figure 52: Creamer functional ingredient interest, by creamer usage, 2021
  20. At-home Coffee Pandemic Behaviors

    • Consumers experimented with coffee during the pandemic
      • Figure 53: At-home coffee pandemic behaviors, by generation, 2021
    • Asian consumers are a key group for premium coffee brands
      • Figure 54: At-home coffee pandemic behaviors, by race/ethnicity, 2021
    • Younger affluent consumers are the target market for D2C coffee brands
      • Figure 55: At-home coffee pandemic behaviors, by age and HHI, 2021
    • Rising coffee prices will motivate already price-sensitive consumers to trade down
      • Figure 56: At-home coffee pandemic behaviors, by HHI, 2021
  21. Ethical and Sustainable Claim Interest

    • Sustainable claims connect with coffee consumers
      • Figure 57: Coffee and tea ethical and sustainable claim interest, among coffee drinkers, 2021
    • Support less common ethical/sustainability initiatives to reach Gen Z consumers
      • Figure 58: Coffee and tea ethical and sustainable claim interest, any importance, among coffee drinkers, by generation, 2021
  22. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
  23. Appendix – The Market

      • Figure 59: Total US retail sales and forecast of coffee and RTD coffee, at inflation-adjusted prices, 2016-26
      • Figure 60: Total US retail sales and forecast of roasted coffee, at inflation-adjusted prices, 2016-26
      • Figure 61: Total US retail sales and forecast of single-cup coffee, at inflation-adjusted prices, 2016-26
      • Figure 62: Total US retail sales and forecast of instant coffee, at inflation-adjusted prices, 2016-26
      • Figure 63: Total US retail sales and forecast of ready-to-drink coffee, at inflation-adjusted prices, 2016-26
      • Figure 64: Total US retail sales of coffee, by channel, at current prices, 2016-21
  24. Appendix – Market Share

      • Figure 65: Multi-outlet sales of coffee and RTD coffee, by leading companies, rolling 52 weeks 2020 and 2021
      • Figure 66: Multi-outlet sales of instant coffee, by leading companies and brands, rolling 52 weeks 2020 and 2021
      • Figure 67: Multi-outlet sales of cream and creamer, by leading companies, rolling 52 weeks 2020 and 2021
      • Figure 68: Multi-outlet sales of cream, by leading companies and brands, rolling 52 weeks 2020 and 2021
  25. Appendix – Category Sales

      • Figure 69: MULO sales of coffee by category, rolling 52 weeks 2020 and 2021
      • Figure 70: MULO sales of cream and creamer by category, rolling 52 weeks 2020 and 2021

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.

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

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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

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*databooks not available with UK B2B Industry reports.

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