US Foodservice Coffee and Tea Market Report 2023

This report looks at the foodservice coffee and tea market in the US. Discover how to cater best to the discerning foodservice coffee and tea consumer by understanding their needs, directly from them. Our independent consumer research reveals relevant trends and opportunities for brands to respond effectively.

Below, we outline the report scope, summarize the key topics covered, and offer handpicked insights from the report itself.

Report Scope

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 (away from home) / foodservice coffee market.

Key Topics Covered

• • Changes in AFH frequency of coffee and tea ordering.
  • Consumer associations to AFH hot vs. cold coffee.
  • Consumer ordering motivations relating to coffee and tea.
  • Attitudes toward AFH coffee and tea.

US Foodservice Coffee Market Overview

Foodservice operators continue to face the challenge of rising costs, and this is being passed onto consumers with menu price hikes. So, people are spending less on AFH offerings as a result. Not only this, but the ongoing climate crisis is affecting the yield of coffee producers, particularly in tropical countries. Yet, there are positives to be observed in the market. Iced beverages are picking up, as consumers are looking for a hit of cool fresh coffee more than ever before. This leaves room for innovation in the iced coffee space (see Opportunity below).

Foodservice Coffee Consumer Preferences

• Almost a quarter of consumers would pay more for specially prepared coffee/tea and over a third want unique drinks. This indicates that trending flavors and ingredients will win consumers over going forward. Consumers want something different when it comes to foodservice coffee and tea, and brands/operators may want to experiment to find out what will resonate.

• Consumers are cutting back on discretionary spending, including AFH coffee/tea. As discussed, consumers are spending less here. But that doesn’t mean they’re not receptive; consumers can be encouraged to continue to spend with premium and craft offerings that are difficult to make at home. Paired with competitive pricing, this is one way to encourage further enjoyment, and therefore engagement.

Opportunity for Foodservice Operators

Iced coffee/tea beverages are generating more interest than ever before. This is particularly true with younger demographics according to our research, who can be encouraged to engage with eye-catching beverages that are different from the simple coffee/tea drinks that can be crafted at home.

For a comprehensive analysis of opportunities in the foodservice coffee and tea market, buy the full report. You may also be interested in our US Coffee Market Report for a broader analysis. Alternatively, view our foodservice market research or drinks market research to find what you’re looking for.

Brands Discussed

Want to know what brands are doing in the foodservice coffee and tea space? This report offers a comprehensive insight into the competitive strategies out there that are winning. From brands such as Gong cha sweeping the bubble tea market to Dunkin’s successful charity campaign, we cover the brands that are making an impact, so your business can compete effectively.

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

Leading foodservice analyst Pooja Lal delivers an in-depth analysis to highlight current trends in the US foodservice coffee and tea market.

Elevated foodservice coffee and tea drinks that are not easily replicated at home and that deliver on quality and affordability will encourage patrons to justify AFH experiences as they remain challenged to limit discretionary spending due to inflation. Coffee and tea operators must nail down the basics to continue to appeal to consumers through innovative menu concepts. While many consumers will stick to simple offerings, others will seek unique flavors and ingredients within hot and cold coffee and tea offerings.

 

Pooja Lal
US Foodservice and Mintel Menu Insights