Market Size of US Coffee Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 28.06 Billion |
| Market Size (2029) | USD 33.64 Billion |
| CAGR (2024 - 2029) | 3.69 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Coffee Market Analysis
The US Coffee Market size is estimated at USD 28.06 billion in 2024, and is expected to reach USD 33.64 billion by 2029, growing at a CAGR of 3.69% during the forecast period (2024-2029).
The United States coffee market is experiencing exponential growth due to changing consumer lifestyles. With increasingly busy schedules and long working hours, coffee chains gained popularity as they cater to on-the-go coffee enthusiasts. American consumers prioritize premium products, especially when it comes to their daily coffee fixes, leading them to favor high-quality coffeehouses. Consistency in coffee quality becomes a pivotal factor for repeat visits. Additionally, the adoption of machine-based food processing units is expected to enhance the production of coffee in the country.
Instant coffee products such as ready-to-drink and ready-to-mix are being retailed across the market. As coffee is frequently consumed across the country, consumers prefer instant coffee products over others as they require less and minimum preparation time. According to the National Coffee Association Report 2022, about 66% of consumers destroyed coffee daily, higher than tap water in 2021.
With increasing exposure to novel products, consumers in the country are exposed to artisanal single-origin coffee products that are retailed across the market. Owing to its popularity and exclusivity, consumers prefer single-origin coffee products. Moreover, with the increasing purchasing power of consumers, consumers are willing to spend more on specialty coffee products to experience the taste. Due to its demand, manufacturers focus on introducing more products with single-origin claims to attract consumers. For instance, in July 2023, Starbucks Corporation opened reserve roasteries in Chicago, Seattle, and New York, where consumers can try various types of single-origin coffee and their mixology.
These factors are expected to propel the market growth in the country over the forecast period.
US Coffee Industry Segmentation
Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain flowering plants in the Coffea genus.
The United States coffee market is segmented by product type and distribution channel. By product type, it is segmented into whole bean, ground coffee, instant coffee, and coffee pods and capsules. The distribution channel is segmented into supermarkets/hypermarkets, convenience/grocery stores, online retail, and other distribution channels.
The market sizing is done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Whole Bean | |
| Ground Coffee | |
| Instant Coffee | |
| Coffee Pods and Capsules |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience/Grocery Stores | |
| Online Retail | |
| Other Distribution Channels |
US Coffee Market Size Summary
The US coffee market is experiencing significant growth, driven by evolving consumer lifestyles and preferences. As busy schedules and long working hours become the norm, coffee chains have gained popularity by catering to on-the-go consumers who prioritize convenience and quality. American consumers are increasingly drawn to premium coffee products, favoring high-quality coffeehouses that offer consistency in taste. The market is also seeing a rise in the adoption of machine-based food processing units, which are expected to enhance coffee production. Instant coffee products, such as ready-to-drink and ready-to-mix options, are becoming more popular due to their ease of preparation. Additionally, artisanal single-origin coffee products are gaining traction, as consumers with increasing purchasing power are willing to spend more on specialty coffee experiences. This trend is further supported by the expansion of coffee chains like Starbucks, which are introducing reserve roasteries to offer a variety of single-origin coffee options.
The coffee shop segment in the United States has transformed into vibrant social hubs, contributing to their popularity and profitability. These establishments have become integral to urban neighborhoods, attracting high foot traffic and enhancing the streetscape. The growing out-of-home coffee consumption culture, particularly among the working youth population, is fueling market expansion. The demand for coffee pods and capsules is also on the rise, driven by the desire for convenience and quality in single servings. Innovations in packaging, such as compostable coffee pods, are appealing to environmentally conscious consumers. The competitive landscape of the US coffee market is marked by the presence of both domestic and multinational players, with companies focusing on strategic mergers, expansions, and product developments to strengthen their market position. Key players include Eight O'Clock Coffee, J. M. Smucker, Douwe Egberts, Keurig Green Mountain, and Starbucks Corporation, all of which are actively introducing new products and formats to meet evolving consumer demands.
US Coffee Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Demand for Specialty Coffee
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1.1.2 Popularity of Clean Labeled Products
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1.2 Market Restraints
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1.2.1 Emergence of Tea as a Healthier Alternative
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Whole Bean
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2.1.2 Ground Coffee
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2.1.3 Instant Coffee
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2.1.4 Coffee Pods and Capsules
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2.2 Distribution Channel
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2.2.1 Supermarkets/Hypermarkets
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2.2.2 Convenience/Grocery Stores
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2.2.3 Online Retail
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2.2.4 Other Distribution Channels
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US Coffee Market Size FAQs
How big is the US Coffee Market?
The US Coffee Market size is expected to reach USD 28.06 billion in 2024 and grow at a CAGR of 3.69% to reach USD 33.64 billion by 2029.
What is the current US Coffee Market size?
In 2024, the US Coffee Market size is expected to reach USD 28.06 billion.
