The market for packaged coffee in the U.S. continues its upward momentum, with a strong pace of innovation, an influx of creative new players and a steady flow of new products that engage consumers.
The market is dominated by both long-established brands in consumer packaged goods, as well as foodservice brands looking to expand their reach.
Several recent developments are impacting the coffee landscape. These include increased competition in the K-Cup segment, including Dunkin' Donuts successful foray into the segment; the new partnership between Dunkin' Donuts and Coca-Cola on the introduction of a new line of RTD coffee beverages; the cold brew trend, which is experiencing a big wave of new products; Starbucks' core strategies, one of which includes expanding at-home consumption; and JAB Holdings activity and interest in gobbling up coffee brands.
The report "Coffee and Ready-to-Drink Coffee: U.S. Retail Market, 9th Edition" focuses on the dynamic market for packaged coffee, particularly with respect to the impact of current product, marketing, and consumer trends. The report offers market size and growth projections for coffee and features the results of an exclusive national online consumer survey of coffee drinkers' tendencies, preferences, and purchase influences.
Scope and Methodology
Market trends and market size estimates within "Coffee and Ready-to-Drink Coffee: U.S. Retail Market, 9th Edition" are based on both public and syndicated data sources. Sales, market size, and consumer data sources drawn upon include:
IRI sales tracking through U.S. supermarkets and grocery stores, drugstores, and mass merchandisers with annual sales of $2 million or more;
Published company reports and news releases.
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CHAPTER 1 EXECUTIVE SUMMARY
Scope of Report
Report Methodology
Coffee Sales Rise to $13.6 billion
Table 1-1 Coffee Sales in the U.S., 2011-2015 (in billions of dollars and percent)
Coffee by Channel
IRI-tracked Coffee Shows Healthy Growth
Table 1-2 IRI-Tracked Sales of Coffee: Overall and by Segment, 2016 (in millions)
Looking Ahead
Table 1-3 Projected Coffee Sales in the U.S., 2016-2020 (in billions of dollars and percent)
Culture of Innovation
Diffusion of Innovation
JAB Reshapes Market
Marketing Trends
Product Trends
Retail Trends
Market Share Concentrated
Coffee Consumption Trends
Hot and Cold Coffee Usage by Gender
Table 1-4 Coffee Usage by Gender, 2016
CHAPTER 2 COFFEE TRENDS & OPPORTUNITIES
KEY OPPORTUNITIES
Consumption of Gourmet and Specialty Coffee
Marketing
Product Form Innovation
FACTORS TO MARKET GROWTH
Culture of Innovation
Table 2-1 Level of Agreement with Statement: “I understand the process behind cold brew coffee,” 2016 (percent)
Diffusion of Innovation
Strategic Consolidation and Investment
Illustration 2-1 High Brew Coffee
CHAPTER 3 MARKET SIZE AND PROJECTIONS
MARKET SIZE AND SEGMENTATION
Coffee Sales Rise to $13.6 billion
Table 3-1 Coffee Sales in the U.S., 2011-2015 (in billions of dollars and percent)
Coffee by Channel
Table 3-2 Share of U.S. Sales of Coffee by Channel, 2016 (percent)
IRI-tracked Coffee Shows Healthy Growth
Table 3-3 IRI-Tracked Sales of Coffee: Overall and by Segment, 2016 (in millions)
Looking Ahead
Table 3-4 Projected Coffee Sales in the U.S., 2016-2020 (in billions of dollars and percent)
CHAPTER 4 THE MARKETERS
MARKETER SHARES
Concentration at the Top
Table 4-1 Top Marketers of Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
J.M. Smucker Leads Way in Ground Coffee
Table 4-2 Top Marketers of Ground Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-3 Biggest Ground Coffee Brand Line Gainers, 2016 (in millions)
Folger and Private Label Top Ground Decaffeinated
Table 4-4 Top Marketers of Ground Decaffeinated Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-5 Biggest Ground Decaffeinated Coffee Brand Line Gainers, 2016 (in millions)
Three Companies Control Nearly Three-Quarters of Instant Coffee Category
Table 4-6 Top Marketers of Instant Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-7 Top Marketers of Instant Decaffeinated Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-8 Biggest Instant Coffee Brand Line Gainers, 2016 (in millions)
Starbucks Dominates in RTD Coffee
Table 4-9 Top Marketers of Ready-to-Drink Cappuccino/Iced Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-10 Biggest Ready-to-Drink Cappuccino/Iced Coffee Brand Line Gainers, 2016 (in millions)
90% of Refrigerated RTD Coffee Category in Hands of Four Players
Table 4-11 Top Marketers of Refrigerated Ready-to-Drink Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-12 Biggest Refrigerated Ready-to-Drink Coffee Brand Line Gainers, 2016 (in millions)
Single Cup Coffee Sees Intense Competition
Table 4-13 Top Marketers of Single-Cup Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions) .
Table 4-14 Biggest Single-Cup Coffee Brand Line Gainers, 2016 (in millions)
Whole Coffee Beans Led by Starbucks
Illustration 4-1 Peet’s Coffee JR Reserve Blend
Table 4-15 Top Marketers of Whole Coffee Beans by IRI-Tracked Mass-Market Sales, 2016 (in millions)
Table 4-16 Biggest Whole Coffee Beans Brand Line Gainers, 2016 (in millions)
Other Small Categories Also Tracked by IRI
Private Label Coffee Led by Single Cups
Illustration 4-2 Target Archer Farms Infographic
Table 4-17 Private Label Coffee by IRI-Tracked Mass-Market Sales, 2016 (in millions)
CHAPTER 5 MARKETING AND NEW PRODUCT TRENDS
RANGE OF APPROACHES
Brand Landscape
Peet’s Celebrates 50 Years
Starbucks Explores Branding
Doubleshot YouTube Series Explores Creative Passions
Illustration 5-1 Starbucks Doubleshot YouTube Series
Folgers Stays on Message
Illustration 5-2 Folgers Tweets on Black Friday and CyberMonday
Maxwell House Turns to Brand Heritage
Gevalia Takes It to Starbucks
Illustration 5-3 Gevalia Advertising
New Identity for Hills Brothers
Illustration 5-4 Hills Bros.: Identity Restage
Eight O'Clock Reveals Its Secrets
George Clooney and the Nespresso Lifestyle
First U.S. Advertising for Lavazza
If Caribou Could Talk
Illustration 5-5 Caribou Coolers: Simple Ingredients Launch
Califia Farms Unveils Cold Brew Effort
Nescafé Moves from Traditional Websites to Tumblr
PRODUCT TRENDS
Green Coffee Prices Hit Ground Coffee Segment
Illustration 5-6 New Folgers Product Form: Perfect Measures
Starbucks Continues Advance in Retail
Kraft Fuels Growth with Single-Serve Pods
Illustration 5-7 McCafé: K-Cups and Packaged Coffee
Single-Serve Pod Market Returning to Earth
More Setbacks
Specialty Brands Driving Innovation
Illustration 5-8 Nespresso: Cafecito de Cuba Limited Edition Package
Whole Beans on Trend
Instant Form Lags Category
Illustration 5-9 Jiva’s Instant Coffee Cubes
Decaffeinated in Decline
Cold Brew Origins
Illustration 5-10 Stumptown: Cold Brew Packaging
New Products Surge into RTD Coffee
Illustration 5-11 Coca-Cola’s New Dunkin’ Donuts and Gold Peak Offerings
Illustration 5-12 Doubleshot Coffee & Protein TV spot
Illustration 5-13 Stok YouTube Video Screen Shot
Table 5-1 Level of Agreement with Statement: “ I like the idea of coffee flavored with dairy alternatives such as almond or coconut milk,” 2016 (percent)
Illustration 5-14 Jùs by Julie’s Probiotic Coffee
Concentrates and Flavorings Aim for Young Consumers
Illustration 5-15 Maxwell House: Iced Coffee Concentrates
High-Caffeine Segment Getting Buzz
CHAPTER 6 RETAIL TRENDS
A CHALLENGING MIX
Retail Channels
Table 6-1 Purchasing Rates for Coffee by Channel, 2016
Turbulent Market Landscape
New Generation of Coffee Shoppers
Starbucks Signature Aisle
Cross-Selling at Target
Illustration 6-1 Target Coffee Merchandising Test
Branded Retail
Illustration 6-2 Nespresso: Pilot Boutique, London
Illustration 6-3 Starbucks: Reserve Roastery and Tasting Room
New Product Collaborations
Online Channel
Packaged Goods Brands Explore Online Commerce
Amazon Dash Buttons
Illustration 6-4 Amazon Dash Buttons: Coffee Brands
Illustration 6-5 7-Eleven/ Flirtey: First Consumer Drone Delivery
CHAPTER 7 THE COFFEE CONSUMER
Coffee Consumption Trends
Table 7-1 Usage Rates for Home-Brewed or Home-Made Coffee by Type, 2009-2016 (percent of households)
Table 7-2 Usage Rates for Ready-to-Drink Coffee, 2009-2016 (percent of adults)
Table 7-3 Coffee Maker and Pod Ownership, 2009-2016 (percent of households)
Hot and Cold Coffee Usage by Gender
Table 7-4 Coffee Usage Rates by Gender, 2016 (percent of adults)
Gender Differences in Frequency of Consumption
Table 7-5 Number of Coffee or Coffee Drinks Consumed Per Day: Overall and by Gender, 2016 (percent of adults)
Coffee Channel Habits by Gender
Table 7-6 Coffee Purchasing Patterns by Gender, 2016 (percent of adults)
Type Preferences by Age
Table 7-7 Caffeinated vs. Decaffeinated Coffee Consumption Patterns: Overall and by Age Bracket, 2016 (percent of adults)
Table 7-8 Coffee Usage Rates by Form: Overall and by Age Bracket, 2016 (percent of adults)
Table 7-9 Types of Coffee Drunk at Home: Overall and by Age Bracket, 2016 (percent of adults)
Table 7-10 Types of Coffee Drunk at Restaurants/Cafes: Overall and by Age Bracket, (percent of adults)
Table 7-11 Types of Coffee Drunk Most Often at Home or Restaurants/Cafes): Overall and by Age Bracket, 2016 (percent of adults)
Brand Preference Trends
