Coffee Maker Manufacturing Market Research Report Now Available from IBISWorld

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In the five years to 2011, revenue from the Coffee Maker Manufacturing market is expected to decline at an average annualized rate of 1.1 percent to $637.2 million, according to IBISWorld the nation’s largest publisher of industry market research. Not only has the recession hurt the demand of the discretionary goods produced by the coffee maker manufacturing industry, rising import penetration has eroded the sales of domestic manufacturers. While US-based companies produce coffee maker brands, most firms offshore production to low-cost facilities, especially those in China. IBISWorld has expanded its industry research report collection to include the Coffee Maker Manufacturing market.

IBISWorld Market Research

IBISWorld Market Research

IBISWorld has expanded its industry research report collection to include the Coffee Maker Manufacturing market

During the recession, consumers cut back on unnecessary spending as per capita disposable income fell for the first time in two decades. More consumers opted to make coffee at home than go to a local coffee shop, but the recession created little motivation to buy new small household appliances, including coffee makers. Furthermore, the poor housing market has offered little hope to industry operators, as people often buy coffee makers when they move to new homes. Nevertheless, IBISWorld estimates revenue will increase 1.3 percent in 2011 as consumer sentiment and disposable income slowly increase. With the economy anticipated to continue its slow recovery, consumer demand for coffee makers will likely increase in the coming years. However, rising consumer demand will not likely benefit domestic manufacturers in the long run, since cheap imports will capture an increasing proportion of domestic demand. Furthermore, rising input costs are expected to place pressure on manufacturers, causing revenue and profit margins to decline over the next five years. Consequently, IBISWorld forecasts that the Coffee Maker Market revenue will fall 1.0 percent annually in the five years to 2016 to total $604.7 million.

Although industry revenue is expected to experience a small uptick in 2011, the growth will be short-lived. The continued shift to overseas production offers too many benefits for manufacturers to ignore. The cost of producing coffee makers abroad in low-wage countries undercuts the cost of producing them domestically. China has lenient labor laws and cheap wage requirements, so manufacturers can supply to domestic buyers at discounted prices. While imports are projected to decrease at an average annual rate of 2.3 percent in the five years to 2011, they have consistently grown as a percentage of domestic demand. In 2011, IBISWorld estimates that imports will represent 72.3 percent of domestic demand, up from 56.0 percent a decade ago.

Despite rising consumer demand for coffee makers, domestic manufacturers will not benefit, as cheap imports capture a greater slice of domestic demand. Industry operators will also have to cope with rising input costs, which will continue to strain profit margins. In particular, the price of plastic is expected to increase in the next five years due to the rising value of oil and growing activity across the entire manufacturing sector.

For more information, download the full report from IBISWorld on the Coffee Maker Market

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Coffee Maker Market Report Table of Contents

About this Industry
Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

Jargon & Glossary

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information call 1-800-330-3772.

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Savannah Haspel
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