U.S. coffee market to surpass $48 billion by 2010
February 6, 2006
NEW YORK — As the second-largest U.S. import — next to oil — coffee is a hot commodity, and U.S. consumers drink more cups of java than do consumers in any other country, according to a new report from market research publisher Packaged Facts, a division of MarketResearch.com. The report said consumers drink coffee mostly at coffee shops, restaurants or other foodservice venues.
Sales of coffee are expected to grow by a compounded rate of 6.9 percent from 2005 to 2010, reaching $48.2 billion by 2010, according to the report.
Packaged Facts estimates that the 2005 U.S. coffee market grew to $34.5 billion, an 8.7 percent jump over 2004. Foodservice is the largest sales channel, accounting for 87.9 percent of the market. Half of the coffee drunk "out" consists of "regular" coffee, while 42 percent is a specialty blend. Retail outlets account for the remaining 12.1 percent of sales, with ground coffee garnering the bulk of those sales.
While actual consumption of coffee is down, the price paid per cup is up significantly as consumer tastes have migrated toward higher-end, novelty brews, according to the report.
"Across the board we're seeing an upscaling of product as consumer demand soars," said Don Montuori, the publisher of Packaged Facts. "Economy brands resurfacing in high-tech, easy-to-use containers; 'pods' taking off as a quick way to brew single-cup, espresso-based coffees; savvy marketing touting newly discovered health claims; and sustainable, organic and 'fair trade' beans coming into vogue; these and many other factors are driving the current coffee boom as consumer palates are becoming increasingly sophisticated and health- and eco-conscious."
