US Coffee and Tea On Premise market report
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Providing the most comprehensive and up-to-date information and analysis of the Coffee and Tea On Premise market, and the behaviours, preferences and habits of the consumer.
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This Report focuses on coffee drinks (ie regular hot brewed coffee, iced coffee, and specialty coffee such as espresso-based drinks) and tea drinks (ie hot brewed tea, iced tea, and specialty tea such as tea lattes) found at foodservice establishments. While special attention is paid to coffee houses, coffee and tea are found at nearly all foodservice segments, thus coffee and tea found at other locations (eg QSRs, donut shops, convenience stores, etc) are also discussed.
Last year’s Report focused more on consumers’ interest in emerging third wave coffee drinks and general trends in the third wave coffee market. While third wave trends are discussed, this Report focuses more on mass market second wave coffee. For more information on the third wave coffee trends please look to last year’s Report (see Coffee and Tea On Premise – US, December 2016).
While the retail coffee and tea markets are discussed briefly, this Report excludes any in depth analysis on the retail coffee and tea markets. For information on retail coffee and tea please see:
- Coffee – US, July 2018
- Tea and RTD Tea – US, August 2018
Sales and unit data found in Market Size and Forecast and Market Breakdown are from Mintel Market Sizes. This data includes sales of coffee houses only. Coffee houses are defined as “outlets where coffee accounts for a sizeable (usually at least around 40%) part of sales with quite a restricted, mainly packaged, food offer and small amounts, if any, of alcohol” (see, Appendix – Data Sources and Abbreviations).
Coffee wave definitions
- First wave coffee: Dates back to the 19th century as packaging and brewing technologies made it feasible for the average American to purchase coffee.
- Second wave coffee: Characterized by the growth of coffee houses and specialized coffee drinks (eg lattes, cappuccinos, etc) in the US. The rise of second wave coffee was largely due to the aggressive expansion of Starbucks from the 90’s to the 2000’s. Regular coffee became specialized with some roasts specifying point of origin. Most mass-market coffee houses (eg Starbucks, Peet’s Dunkin’ Donuts, etc) are typically regarded as second wave coffee houses.
- Third wave coffee: Regular coffee is regarded as a specialty product, point of origin, processing methods, and tasting notes are often provided on third wave coffee menus. Third wave coffee is almost always at a higher price point than second wave, sometimes significantly higher. The coffee is also often brewed using a unique method such as pour-over, vacuum pot, or aeropress. Artisan coffee chains such as Blue Bottle, Stumptown, Revelator, and La Colombe are considered third wave coffee chains.
Expert analysis from a specialist in the field
Written by Caleb Bryant, a leading analyst in the Foodservice sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
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.
Senior Foodervice Analyst
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* This is a sample representation of the report layout and does not reflect the research included in this report.
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