New coffee products, in addition to health and diet trends, have spurred significant growth.
Los Angeles, CA (PRWEB) May 21, 2013
Despite the recession, the Retail Market for Coffee has recovered and grown quickly. During the five years to 2013, market revenue increased at an average annual rate of 5.6% to $27.9 billion as the economy recovered from the economic downturn and trends in coffee consumption grew. Although revenue declined 1.5% in 2009 because of a high unemployment rate and low per capita disposable income, market revenue recovered quickly in subsequent years from growing trends in coffee consumption. According to IBISWorld Industry analyst Andrew Krabeepetcharat, “as coffee producers continue to offer new ways for coffee drinkers to get their fix, market revenue is expected to grow an additional 5.7% in 2013”. During the past five years, coffee makers have promoted new coffee products to consumers in an attempt to capture the demand for both high- and low-end coffees. Major companies like Starbucks introduced single-serving home brewing systems that have made drinking coffee at home more convenient and cost effective than going to a coffee shop. At the same time, more coffee producers started promoting bottled and instant coffee mixes for consumers who are short on time and seeking a less expensive alternative to visiting a coffee shop. These new coffee products, in addition to health and diet trends, have spurred significant growth during the five years to 2013 despite a slowly recovering economy.
During the five years to 2018, revenue for the Retail Market for Coffee is forecast to grow. “This growth will be the result of an improving economy, new coffee products introduced to the market and increasing coffee consumption trends,” says Krabeepetcharat. As the unemployment rate declines and per capita disposable income rises, more consumers will be willing to spend on premium coffee products. Coffee producers are also expected to continue promoting new ways for consumers to drink coffee. The selection of ready-to-drink, single-serving home brews and instant coffees is also expected to increase during the next five years. The number of young coffee drinkers is expected to increase, as well, as health and diet trends continue to increase the demand for coffee.
The Retail Market for Coffee is highly fragmented, with many restaurants and food-based retailers selling America's most-loved beverage. From grocery stores to coffee shops to fast-food chains and convenience stores, coffee is available in many businesses and in many forms. Given the industry's wide reach, only Starbucks has gained a significant market share. Even the most ubiquitous purveyors of coffee, such as convenience-store giant 7-Eleven, do not earn a significant share of coffee retailing revenue.
For more information, visit IBISWorld’s Retail Market for Coffee in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this market sell coffee. The market includes all on-premises, off-premises and online sales of hot, iced and instant coffee, as well as sales of coffee beans and ground coffee. This market includes sales from all major retail channels, including specialty stores, general merchandisers and internet retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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