Market Trends of US Coffee Industry
Working Youth Population Boosting the Market Growth
Over the recent past, coffee shops have witnessed tremendous growth due to their increasing popularity as social outlets for friends, family, colleagues, and business associates, among others. As a result, coffee chains such as Starbucks and Dunkin’ Donuts focus on enhancing their ambiance by creating a relaxing and attractive atmosphere to add an experiential element to coffee drinking.
In the United States, coffee shops have become icons of urban neighborhoods. They create vibrant streetscapes and produce massive pedestrian activity as they include high customer footfall. They are highly profitable as well. These factors strengthened the average growth rate of cafes/bars regarding value sales and transactions.
The increasing working youth population in the country is aiding the market growth. As per data published by the National Coffee Association in 2022, about 50% of people who buy coffee outside the home prefer a takeaway. Thus, such data depict an increase in the country's out-of-home coffee consumption culture, which indicates potential market growth during the forecast period.
Coffee Pods and Capsules Demand Augmenting the Market Growth
The consumption of healthy and convenient food and beverages in the United States became integral to most consumers’ lifestyles. Until recent years, the market for coffee pods and capsules in the United States was minimal, owing to the heavy centralization of this segment in Western Europe, primarily Switzerland. However, the quality, efficiency, and diversity offered in a single serving of coffee are responsible for the rapid increase in demand for coffee pods and capsules in the United States over the review period. A growing consumer base demonstrates an increased willingness to purchase coffee machines to recreate a café-style experience at home. It increased the demand for coffee pods and capsules. Key players utilize evolving packaging technologies to improve sustainability and enhance their reputation among environment-conscious consumers. For instance, in September 2022, Cafe Royal invented a coffee pod in the shape of a ball. This ball is coated in a thin shell made of a vegetable layer, which is 100% compostable. It is an actual zero waste for capsules. Such innovations will likely drive the market in the coming years.
