Retail Market for Coffee in the US Industry Market Research Report from IBISWorld Has Been Updated

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Increased sales of specialty beverages have increased overall revenue for coffee retailers. For this reason, industry research firm IBISWorld has updated a report on the Retail Market for Coffee in its growing industry report collection.

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Retailers such as grocery stores have experienced sales growth due to strong demand for coffee in K-cup packaging.

As more individuals made coffee their caffeinated beverage of choice over the past five years, the Retail Market for Coffee exhibited slight growth. Fewer consumers are now drinking plain coffee, but retailers have experienced robust demand for espresso-based beverages. According to IBISWorld Industry Analyst Sarah Turk, “Many retailers have included high-quality, Arabica bean-based coffee in their product portfolios, and coffee houses and other coffee retailers that offer coffee for on-site consumption have benefited from greater purchases of specialty coffees.”

According to the National Coffee Association, per capita coffee consumption is expected to rise at an annualized rate of 1.1% over the five years to 2015, driven by the 61.0% of adults who drink coffee on a daily basis. The organization’s National Coffee Drinking Trends survey found that 29.0% of respondents use single-cup coffee brewers. “Retailers such as grocery stores have experienced sales growth due to strong demand for coffee in K-cup packaging,” says Turk. “Furthermore, many time-strapped consumers have shifted toward gourmet instant coffee over the period, creating an alternative revenue stream for retailers, as evidenced by the popularity of Starbucks’ VIA ready-brew coffee.” Despite these favorable consumer trends, revenue is projected to contract in 2015 because the price of coffee beans spiked in 2014 and is expected to remain high through this year.

As a result of volatile input commodity costs, coffee retailers have struggled to accurately reflect purchase costs in their prices. Still, profit has risen since 2010 because coffee retailers were able to mark up prices for specialized coffee, such as coffee in K-cup packaging. Over the five years to 2020, retail coffee revenue is forecast to grow at a faster pace. Coffee bean prices are expected to exhibit less volatility, enabling coffee retailers to price their products to reflect purchase costs.

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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

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, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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