US Foodservice Coffee and Tea Market Report 2024
$ 4,995 (Excl.Tax)
Report Summary
In 2024, the foodservice coffee and tea industry sees strong consumer demand and visitation traffic, with nearly 40% of consumers purchasing more coffee AFH compared to the last year. Interest in trying out new drinks, premium options and discovery of new locations is driving increased visits on the basis of variety and convenience.
Operators have an opportunity to expand their offerings, with 60% of consumers purchasing at least three different types of AFH coffee and tea beverages, highlighting a robust demand for variety on the menu. A wide array of beverage options will keep consumers engaged with brands as they continue to develop innovative beverage selections, pushing them to opt for more frequent AFH coffee/tea experiences.
To continue attracting consumers, brands must find a delicate balance between retaining traditional offerings and innovating the menu to cater to a range of consumer preferences. Operators should continue to tap into the BFY movement in new ways that complement developing needs, such as beverage enhancements like added-protein and adaptogens. By offering a diverse range of hot and cold options and incorporating unique flavors and health-friendly ingredients, operators can significantly broaden their appeal while tapping into niche markets.
This report looks at the following areas:
- Changes in AFH frequency of coffee and tea ordering
- Reasons for purchasing AFH coffee more/less
- Consumer ordering motivations and visitation factors relating to coffee and tea
- Type of food items ordered with coffee/tea
- Attitudes towards AFH coffee and tea
FS coffee and tea operators will sustain interest with flavor-rich, customizable options and versatile innovations that cater to evolving preferences and convenience.
Pooja Lal, Research Analyst
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
This Report focuses on coffee drinks (regular hot brewed coffee, iced coffee, specialty espresso-based drinks) and tea drinks (regular tea, iced tea, specialty tea drinks) found at foodservice establishments (coffee shops, QSRs, FSRs, c-stores).
While tea trends are analyzed here, this Report primarily focuses on the AFH coffee market.
Table of Contents
-
Executive Summary
- What you need to know
- Market predictions
- What consumers want & why
- Opportunities
-
Market Dynamics
- Market context
- Market drivers
- Climate change continues continues to challenge the coffee industry
- Dunkin’ charging extra for non-dairy milk goes sour
- It’s time for operators to embrace a tech-forward ordering landscape
- Coffee drinkers are covering the basics at home
- Graph 1: coffee type associations, by occasion, 2024
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Consumer Insights
- Consumer fast facts
- Away from home coffee/tea purchases
- A combination of traditional and novel offerings will garner wider reach
- Graph 2: trended AFH coffee and tea purchases, 2023-24
- Nail down the basics, but also strive for variety
- Graph 3: repertoire of coffee & tea types purchased, 2024
- On-the-go consumers display a need for value and convenience
- Graph 4: trended coffee and tea foodservice visitation, 2023
- Younger consumers aren’t too picky about where they’re getting their coffee
- Graph 5: coffee and tea foodservice visitation, by generation, 2024
- Diverse offerings will extend accessibility
- Graph 6: coffee and tea foodservice visitation, by financial situation, 2024
- Foodservice coffee consumption frequency
- Over one-third of consumers are ordering coffee more often this year
- Graph 7: frequency in ordering coffee vs last year, 2024
- Younger consumers are driving increased consumption
- Graph 8: frequency in ordering coffee, by generation, 2024
- Male consumers are seeking variety and more than just coffee
- Graph 9: frequency in ordering coffee, by gender, 2024
- Reasons for buying coffee AFH more/less frequently
- New drinks can drive new explorations
- Graph 10: reasons for increased coffee consumption, 2024
- Millennials are interested in more than just coffee
- Graph 11: reasons for increased coffee consumption, 2024
- Consumers are willing to make their own coffee at home to save money
- Graph 12: reasons for decreased coffee consumption, 2024
- Interests in coffee/tea related offerings
- Flavor is at the forefront regardless of location type
- Graph 13: interest in coffee/tea related offerings by location, 2024
- Consumers are in their convenience era
- Graph 14: interest in coffee/tea related offerings, 2024
- Menu and tech innovation invite short and sweet interactions
- Younger consumers seek innovation in multiple ways
- Graph 15: interest in coffee/tea related offerings, by generation, 2024
- Added-enhancements to coffee pique male diners interest
- Graph 16: interest in coffee/tea related offerings, by gender, 2024
- Coffee/tea menu motivators
- Balance the hot with the cold
- Graph 17: coffee/tea menu motivators, 2024
- Capture younger consumers through snacking opportunities
- Graph 18: coffee/tea menu motivators, by generation, 2024
- Loyalty-exclusive promotions will motivate women
- Graph 19: coffee/tea menu motivators, by gender, 2024
- Important visitation factors
- Service is just as important as great taste
- Graph 20: important visitation factors, 2024
- Millennials forge a path toward health-conscious choices
- Graph 21: important visitation factors, by generation, 2024
- Parents will go out of their way to get what they want
- Graph 22: important visitation factors, by parental status, 2024
- Food ordered with coffee/tea
- Donuts take the cake on menus
- Graph 23: food ordered with coffee/tea, 2024
- Time savers gravitate towards easy handheld options
- Graph 24: food ordered with coffee/tea, by food segmentation, 2024
- Classics with a twist could be the gateway to new exploration
- Graph 25: food ordered with coffee/tea, by generation, 2024
- Foodservice coffee and tea attitudes
- Consumers can justify extra spending on their cup of joe
- Graph 26: foodservice coffee and tea attitudes, 2024
- Consumers are ready to fill their reusable cups again
- Refreshers and caffeinated beverages are taking up space on coffee shop menus
- Graph 27: foodservice coffee and tea attitudes, 2024
- Cold foam makes its way to energy drinks
- Online buzz has the potential to cultivate new customer connections
- Graph 28: foodservice coffee and tea attitudes, by generation, 2024
- Alternatives are an easy way to expand the menu
- Graph 29: foodservice coffee and tea attitudes, by generation, 2024
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Innovation and Marketing strategies
- Launch activity and innovation
- Consumers are drinking up the aesthetics
- Layered matcha drinks are having a moment
- Refreshers carve out a permanent spot on foodservice coffee menus
- Starbucks extends non-dairy offerings
- Krispy Kreme and McDonalds bakery collaborating with doughnut offerings
- Dutch Bros follows suit in summer innovation with a twist
- Dutch Bros goes all in on protein coffee
- Retail innovations are giving consumers more power to curate beverages at home
- Homemade and fresh options provide a unique angle
- Opportunities
- Can sugar free syrups can unlock new doors?
- Starbucks & Arla unveil protein coffee in the UK
- Create a welcoming environment for more than just coffee lovers
- Dutch Bros is tapping into a niche market
- Consumers are merging the beauty of blooms with the joy of coffee
- Marketing and advertising
- Starbucks and Dunkin’ launch value deals for consumers seeking cost savings
- Comedian Hannah Berner links up with Caribou Coffee
- Cold brew takes off with United Airlines
- Qamaria Coffee Co is a new love language for Muslim communities
- Starbucks gets back on its sustainability track
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Appendix
- Market definition
- Consumer research questions
- Consumer research methodology
- Food and Drink Segmentation
- Generations
- Abbreviations and terms
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