Coffee & Tea Manufacturing
Description
Companies in this industry roast coffee, blend tea, and manufacture coffee and tea concentrates. Major companies include Farmer Brothers, JM Smucker, Keurig Dr Pepper, and Kraft Heinz (all based in the US), as well as ITO EN (Japan), Maxingvest ag (Germany), Nestlé (Switzerland), Tata Consumer Products (India), and Unilever (the UK).
World coffee production reached about 180 million 60-kilogram bags as of 2025, according to United States Department of Agriculture (USDA) - Foreign Agricultural Service (FAS). Tea production is about 7 million tons, with China, India, and Kenya as the top tea-producing countries, according to Tea and Coffee Trade Journal.
The US coffee and tea manufacturing industry includes about 720 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $14 billion. Brazil and Vietnam were some of the top coffee producers.
COMPETITIVE LANDSCAPE
Consumer tastes and disposable income drive demand. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market. The US industry is highly concentrated: the top 50 companies generate about 90% of revenue.
In 2025, imports of coffee beans to the US mainly come from Colombia, Brazil, Switzerland, Honduras, and Mexico, totaling about $12 billion, according to the Observatory of Economic Complexity (OEC). Japan, India, China, Argentina, and Sri Lanka are the main importers of tea in the US, according to the World's Top Exports.
Coffee and tea manufacturers face intense competition from other beverage companies, especially soft drink, bottled water, and juice manufacturers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include: flavoring agents; dried and dehydrated fruits; spoon-type salad dressing; roasted coffee; and concentrated coffee. Roasted coffee includes both whole and ground beans. Tea includes tea bags as well as loose and instant tea. Coffee concentrates include freeze-dried, frozen, or liquid concentrates, along with coffee substitutes. Companies in the commercial sector may provide wholesale customers coffee brewing and grinding equipment to maintain product quality, and some own and operate retail coffee shops. Specialty coffees and teas are generally high-quality, premium-priced products.
Coffee production starts with the harvest of coffee cherries, either by hand or machine. Suppliers remove the coffee bean from the cherry and dry the beans to produce green coffee. Blending multiple types of green coffee results in different flavors.
Green coffee beans are agricultural commodities. Most beans are imports from countries with tropical climates conducive to growing coffee trees. Companies may use brokers to buy coffee on the open market. Manufacturers may also have direct agreements with farms, estates, exporters, and cooperative groups, especially if the company produces specialty coffee. Companies may hold futures contracts and options to protect against price changes.
The two main varieties of green coffee are arabica and robusta. Manufacturers typically use high-quality arabica beans in specialty coffees, and robusta beans in commercial or instant coffee. Arabica beans generally command a premium price, although blending allows companies to mix in less expensive robusta beans and still produce high-quality coffee.
Types of tea include green, oolong, and black. Most Americans drink iced tea brewed from black tea. Herbal teas aren't actually tea, but a combination of leaves, bark, roots, and flowers of other plants. Orange pekoe is the classification for the largest leaves, followed by pekoe, and pekoe souchong. Companies sell loose tea for multiple servings. Restaurants and food service vendors often use tea concentrates and extracts to produce mass servings. Instant sweet tea typically consists of sugar, additives, and a very small amount of tea. Companies typically establish contracts to buy tea from importers or growers; large companies may own tea estates.
Common packaging includes bags (paper, plastic, or foil), cans (plastic or metal), and single-serving pods meant for use with proprietary brewing appliances. Companies in the commercial segment may provide private label products for businesses, and offer custom packaging bearing the institution’s name. Companies typically have a network of distribution centers or warehouses to store products prior to delivery. Many specialty products require fast delivery to maintain flavor and freshness.
World coffee production reached about 180 million 60-kilogram bags as of 2025, according to United States Department of Agriculture (USDA) - Foreign Agricultural Service (FAS). Tea production is about 7 million tons, with China, India, and Kenya as the top tea-producing countries, according to Tea and Coffee Trade Journal.
The US coffee and tea manufacturing industry includes about 720 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $14 billion. Brazil and Vietnam were some of the top coffee producers.
COMPETITIVE LANDSCAPE
Consumer tastes and disposable income drive demand. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market. The US industry is highly concentrated: the top 50 companies generate about 90% of revenue.
In 2025, imports of coffee beans to the US mainly come from Colombia, Brazil, Switzerland, Honduras, and Mexico, totaling about $12 billion, according to the Observatory of Economic Complexity (OEC). Japan, India, China, Argentina, and Sri Lanka are the main importers of tea in the US, according to the World's Top Exports.
Coffee and tea manufacturers face intense competition from other beverage companies, especially soft drink, bottled water, and juice manufacturers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include: flavoring agents; dried and dehydrated fruits; spoon-type salad dressing; roasted coffee; and concentrated coffee. Roasted coffee includes both whole and ground beans. Tea includes tea bags as well as loose and instant tea. Coffee concentrates include freeze-dried, frozen, or liquid concentrates, along with coffee substitutes. Companies in the commercial sector may provide wholesale customers coffee brewing and grinding equipment to maintain product quality, and some own and operate retail coffee shops. Specialty coffees and teas are generally high-quality, premium-priced products.
Coffee production starts with the harvest of coffee cherries, either by hand or machine. Suppliers remove the coffee bean from the cherry and dry the beans to produce green coffee. Blending multiple types of green coffee results in different flavors.
Green coffee beans are agricultural commodities. Most beans are imports from countries with tropical climates conducive to growing coffee trees. Companies may use brokers to buy coffee on the open market. Manufacturers may also have direct agreements with farms, estates, exporters, and cooperative groups, especially if the company produces specialty coffee. Companies may hold futures contracts and options to protect against price changes.
The two main varieties of green coffee are arabica and robusta. Manufacturers typically use high-quality arabica beans in specialty coffees, and robusta beans in commercial or instant coffee. Arabica beans generally command a premium price, although blending allows companies to mix in less expensive robusta beans and still produce high-quality coffee.
Types of tea include green, oolong, and black. Most Americans drink iced tea brewed from black tea. Herbal teas aren't actually tea, but a combination of leaves, bark, roots, and flowers of other plants. Orange pekoe is the classification for the largest leaves, followed by pekoe, and pekoe souchong. Companies sell loose tea for multiple servings. Restaurants and food service vendors often use tea concentrates and extracts to produce mass servings. Instant sweet tea typically consists of sugar, additives, and a very small amount of tea. Companies typically establish contracts to buy tea from importers or growers; large companies may own tea estates.
Common packaging includes bags (paper, plastic, or foil), cans (plastic or metal), and single-serving pods meant for use with proprietary brewing appliances. Companies in the commercial segment may provide private label products for businesses, and offer custom packaging bearing the institution’s name. Companies typically have a network of distribution centers or warehouses to store products prior to delivery. Many specialty products require fast delivery to maintain flavor and freshness.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
