Description

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, Foodservice Analyst, Mintel Menu Insights

 

Pooja Lal
US Foodservice and Mintel Menu Insights

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
  2. Executive Summary

    • Top takeaways
    • Consumer trends
    • Competitive strategies
    • Opportunities
    • Promotional incentives will motivate customers partake in AFH occasions
      • Figure 1: Coffee/tea motivators, 2023
    • Textures and flavors provide elevated experiences
      • Figure 2: Trended AFH coffee and tea purchase by generation, 2023
    • Serve permissible indulgence through cold coffee offerings
      • Figure 3: AFH coffee: hot vs cold, 2023
  3. Market Drivers

    • Inflation will continue to deter AFH coffee/tea occasions
      • Figure 4: Consumers and the Economic Outlook – US – Summer 2023
    • Coffee cultivation threatened by climate change
    • Retail offerings help offset consumers shying away from AFH experiences
  4. Competitive Strategies and Market Opportunities

    • Gong cha set to blow up bubble tea in the US market
      • Figure 5: Gong Cha Global Tea Party, 2023
    • Boba surges on US menus
      • Figure 6: Boba on Menus
    • Starbucks pushes efforts on sustainability and innovation
    • Dunkin’s charitable approach to theme days
      • Figure 7: Dunkin’ Iced Coffee Day
    • New store formats to meet changing consumer needs
    • Innovative concepts will drive curiosity and trial
      • Figure 8: New menu items, 2023
    • Elevate interactions through immersive experiences
    • Coffee chain collaborate beyond beverages
      • Figure 9: Coffee chains and cross-collaborative efforts
    • Protein + Coffee = Proffee
      • Figure 10: Protein coffee on TikTok, 2023
  5. The Coffee and Tea Consumer – Fast Facts

  6. Trended AFH Coffee and Tea Purchases

    • In 2023 consumers are cutting back on AFH coffee/tea
      • Figure 11: Trended AFH coffee and tea purchase, 2023
    • Gen Z’s iced beverage preferences paves the way for bubble tea
      • Figure 12: Trended AFH coffee and tea purchase by generation, 2023
    • Parents are exploring beverages beyond hot brewed coffee
      • Figure 13: Trended AFH coffee and tea purchase by parental status, 2023
  7. Trended Coffee and Tea Foodservice Visitation

    • Starbucks remains the leader of the coffee/tea category
      • Figure 14: Trended coffee and tea foodservice visitation, 2023
    • AFH coffee offers permissible indulgence to those struggling financially
      • Figure 15: Trended coffee and tea foodservice visitation, 2023
    • Gen Z and Millennials are loyal Starbucks fans
      • Figure 16: Trended coffee and tea foodservice visitation by generation, 2023
  8. Frequency of Ordering Coffee

    • Consumers are finding the balance between at-home and AFH coffee
      • Figure 17: Frequency in ordering coffee, 2023
    • Boost coffee consumption at breakfast with loyalty rewards
      • Figure 18: Reasons for increased coffee consumption
    • Capture male consumers with craveability through the screen
      • Figure 19: Reasons for increased coffee consumption by gender
    • Younger generations take note of what’s new on menus
      • Figure 20: Reasons for increased coffee consumption by generation
    • Appeal to cost-conscious consumers through promotions
      • Figure 21: Reasons for decreased coffee consumption
  9. Coffee/Tea Consumption by Daypart

    • Cold and caffeinated, meet functional and indulgent
      • Figure 22: Reasons for increased coffee consumption by parental status
  10. AFH Coffee – Hot vs Cold

    • Cold coffee is poised to become more routine
      • Figure 23: AFH coffee: hot vs cold, 2023
    • High protein beverages are an appealing meal replacement
      • Figure 24: AFH coffee: hot vs cold by gender – cold coffee beverages, 2023
  11. Coffee/Tea Motivators

    • Special deals on new, innovative concepts will encourage trial
      • Figure 25: Coffee/tea motivators, 2023
    • Lean on loyalty memberships to promote new menu items
      • Figure 26: Coffee/tea motivators by gender, 2023
    • Capture Gen Zs interest through creative LTOs
      • Figure 27: Coffee/tea motivators by generation, 2023
    • Appealing imagery will help parents make quick order decisions
      • Figure 28: Coffee/tea motivators by parental status, 2023
  12. Coffee/Tea Attitudes

    • Simplicity may only go so far
      • Figure 29: Coffee/tea attitudes, 2023
    • Unique flavor offerings will captivate females taste buds
      • Figure 30: Coffee/tea attitudes by gender, 2023
    • Sustainable packaging will win over Gen Zs and Millennials
      • Figure 31: Coffee/tea attitudes by generation, 2023
  13. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations

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 tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

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