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Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice, 8th Edition


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Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice

In 2014 the U.S. coffee market approached $50 billion. That’s a lot of “joe,” sold either in retail or foodservice establishments. Coffee bought at a coffee shop, quick or full service restaurant, convenience store, etc., accounts for 77% of those sales – and operators of these establishments know that selling some food to go along with the cup of coffee is the way to grow the coffee sales.

Packaged Facts’ new report, Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice, examines the strategies coffee purveyors of all stripes are using to give a jolt to this already thriving business. Hot coffee still reigns supreme as the leading product sold, despite operators’ attempts to branch out into new kinds of beverages. And more and more operators are launching loyalty programs, employing new payment technology and turning to social media to tie our insatiable taste for coffee and coffee drinks to brand awareness and stickiness.

And while they account for only a quarter of coffee sales, retailers have some new tricks available to improve their sales. The rise of single-serve is changing the retail coffee landscape, and if Green Mountain Coffee Roasters has its way, single serve will also change away-from-home coffee consumption. But coffee co-branding is also moving beyond coffee shop brands to align with other indulgent brands. Building off coffeehouse expectations for a wide variety of options, retail coffee manufacturers are also embracing variety, and sourcing has become a key element in coffee premiumization. And innovation abounds: To combat attrition, instant coffee marketers are trying to breathe life into the category focusing on quality products underscored by variety, functional, and value positioning.

And this only scratches the surface.

Coffee and Ready-to-Drink Coffee in the U.S.: Retail and Foodservice provides industry participants with valuable insight on trends shaping this the highly competitive U.S. coffee market. The report offers a market size and forecast for coffee sales at retail and foodservice, along with retail sales analysis by coffee segment and by distribution channel; detailed company analyses of the retail coffee market by market segment (ground/whole bean, instant, instant flavored, espresso/cappuccino, and ready-to-drink coffee) and brand; and a detailed company analysis of leading foodservice participants, including Dunkin Donuts, Green Mountain Coffee Roasters, McDonald’s, Starbucks and Tim Horton’s, with a focus on how coffee fits into each company’s competitive and growth strategies.

  • Identifies key marketing opportunities for coffee, supported by consumer survey data, product examples and other metrics. In particular, we focus on food and beverage pairing, organic growth opportunities, growing sales of iconic retail brands, and harnessing loyalty programs.
  • Using proprietary survey results, assesses the degree which consumers get different coffee types for home use from different retail distribution channels; similarly, we assess the degree they get coffee for immediate consumption from a variety of foodservice channels. Comparative analysis is included.
  • Explores coffee retail product trends centered on bringing the coffee shop experience into the consumers’ home (with an emphasis on co-branding); sourcing; convenience; and instant coffee, liquid concentrate and single-serve pod innovation.
  • Assesses coffee menu trends, focusing on menu item penetration by restaurant segment, including beverage varieties, coffee flavors/types and coffee brands.
  • Assesses household and personal coffee usage and usage frequency trends, including ground, whole bean, single-serve/pod, instant and RTD coffee; and household and personal coffee brand usage and trends, ground, whole bean, single-serve/pod, instant and RTD coffee. To help gauge brand loyalty, we also trend brands’ “usage preference ratios,” the ratio that consumers drink that brand “most” over drinking that brand “also.”
  • Using proprietary survey results, provides comparative analysis on the degree to which consumers drink different flavors and types of coffee at home and at restaurants, as well as identifying which coffee types/flavors consumers drink most often.
  • Drawing from consumer survey “ranking” responses, identifies the relative importance consumers place on factors such as taste, getting a specific brand, low price, and time of day when deciding to order coffee at a restaurant.


  • Executive Summary
    • Report Scope
    • Report Summary
      • Market size, segmentation and forecast
      • Marketing opportunities
      • Retail product trends
      • Foodservice menu trends
      • Restaurant segment trends
      • Coffee flavor & variety trends
      • Coffee usage & brand trends
      • Household coffee usage and usage frequency
      • Household coffee usage trending
      • Trended coffee brand usage
      • Coffee retail & foodservice channel usage trends
      • Coffee types drunk at home & restaurants
      • Factors influencing restaurant coffee ordering decision
      • On the retail side: company and brand analysis
      • Top marketers
      • Top brands
      • Top marketers and brands: segment analysis
      • On the foodservice side: company and brand analysis
      • Dunkin' Donuts
      • Green Mountain Coffee Roasters, Inc.
      • McDonald's
      • Starbucks Corporation
      • Tim Hortons
  • Market Size, Segmentation and Forecast
    • Summary analysis
    • Market size and forecast
    • Coffee sales at retail
      • Retail market segmentation
        • Table Retail Coffee Sales and Share, by Segment, 2012-2013
    • Coffee sales at foodservice
      • Table Foodservice Coffee Sales, 2009-2016
    • Analysis: coffee price outlook
      • Summary pricing analysis
        • Table Coffee Commodity PPI & CPI Index and Percent Change, 2010-2014
      • At the commodity level: coffee price declines drive margin gains
      • On restaurant menus
        • Table Coffee/Coffee Drink Menu Prices and Price Trends, 2007-2013
        • Table Average Coffee/Coffee Drink Menu Price, by Drink Type, 2011-2013
      • By restaurant segment
        • Table Coffee/Coffee Drink Menu Price Trends, by Restaurant Segment, 2009-2013
        • Table Average Coffee/Coffee Drink Menu Price, by Drink Type & Restaurant Segment, 2013
      • At retail: coffee commodity declines passed on to consumer
      • Coffee imports: volume and value
      • Coffee import volume growth tapers; value dives
        • Table Total Coffee Imports, by Value, Volume and Price per Ton Trends, 2009-2013
        • Table Coffee Imports, by Coffee Type: Value, Volume and Price per Ton Trends, 2009-2013
        • Table Coffee Imports, by Coffee Type: Value & Volume Share Trends, 2009-2013
  • Coffee Market Opportunities
    • Summary analysis
    • Finding the right pairing
      • Table Caribou Coffee New, Returning & Limited-Time Restaurant Beverage Item Introductions, 2013-2014
      • Table Caribou Coffee New, Returning & Limited-Time Restaurant Food Item Introductions, 2013-2014
      • Mixing and matching coffee variety and beverage menu breadth
      • You know what? I'll just get a hot coffee
      • Organic market growth requires more than just new product innovation
      • Driving the association between coffee and usage
      • Healthy at home, taste at restaurants?
      • Breathing life into iconic coffee brands
      • Turning mobile lifestyles, technology and social media into loyalty
      • Coffeehouse users receptive to social media and brand interplay . . .
        • Table Coffeehouse Users' Social Sharing/Networking Website Attitudes, by Coffeehouse Visited in Last 30 Days, 2013
      • are more technology-forward
        • Table Technology Adoption Segmentation, by Coffeehouse Visited, 2013
      • and connected to their mobile phones
        • Table Mobile Segmentation, by Coffeehouse Visited, 2013
      • Making them prime targets for technology-forward, mobile-driven loyalty platforms
      • My Starbucks Rewards
      • DD Perks Rewards Program
        • Table Dunkin' Donuts' DD Perks Rewards Program Features, 2014
      • Location-based promotions a growing reality
  • Coffee Retail Product Trends
    • Bringing the coffee shop home
      • Coffeehouse branding lends expertise position
      • Panera Bread: upscale brand, meet upscale retail coffee platform
      • Dunkin' Donuts: building loyal drinkers-at the coffeehouse and at home
      • Caribou Coffee: bring home a little social responsibility
      • Co-branding creates brand recognition
      • Godiva: upscale chocolate builds expectation
      • Entenmann's: baked goods & coffee a natural cross-merchandising pair
      • Cold Stone Creamery: decadence in a bottle
      • Variety plays to coffeehouse expectations
      • Eight O' Clock
      • Wegmans
      • Target
      • Quality of coffee is denoted by sourcing
      • Kauai Coffee Company: leveraging Hawaiian sourcing-replete with peaberry line
      • Trader Joe's: private label peaberry!
      • Fresh & Easy taps Rogers Family Coffee Company for direct trade
    • Convenience
      • Ready-to-drink requires no preparation
      • Hain Celestial
      • Bolthouse Farms
      • International Delight
      • Starbucks Discoveries
      • Instant coffee innovation to debunk poor quality and taste associations
      • Starbucks VIA
      • BarnDad's Rise
      • Seattle's Best Coffee
      • Liquid concentrates
      • Single-serve pods
      • Green Mountain
      • Starbucks
      • Maxwell House
  • Coffee Foodservice Menu Trends
    • Summary analysis
    • Beverage variety trends
      • Nearly two-thirds of restaurants feature coffee
        • Table Top Beverage Varieties: Percent of Restaurants Featuring: by Restaurant Segment, 2013
      • Fine dining showing growth in coffee offerings; Chai tea creates competition
        • Table Top Beverage Varieties: Change in Percent of Restaurants Featuring: By Restaurant Segment, 2009-2013
      • Soda commands largest share of beverage menu
        • Table Top Beverage Varieties: Beverage Menu Share: By Restaurant Segment, 2013
      • Growth in "healthy" beverages creates more choice on the beverage menu
        • Table Top Beverage Varieties: Change in Beverage Menu Share: By Restaurant Segment, 2013
    • Coffee flavor & variety trends
      • Specialty coffees most prevalent at fine dining restaurants
        • Table Top Coffee Varieties: Percent of Restaurants Featuring: By Restaurant Segment, 2013
      • Americano coffee showing significant growth
        • Table Top Coffee Varieties: Change in Percent of Restaurants Featuring: By Restaurant Segment, 2009-2013
      • Classic flavors have strongest penetration on restaurant menus
        • Table Top Coffee Flavors/Types: Percent of Beverage Items Featuring: By Restaurant Segment, 2013
      • The premiumization trend is alive and well in restaurant coffee
        • Table Top Coffee Flavors/Types: Change in Percent of Restaurants Featuring: By Restaurant Segment, 2009-2013
  • Coffee Usage & Brand Trends
    • Summary analysis
      • Personal coffee usage and usage frequency
      • Household coffee usage and usage frequency
      • And household coffee usage trending
      • Trended coffee brand usage
    • Household & personal coffee use and usage frequency trends
      • The majority of adults drink coffee
      • Most coffee drinkers consume several cups per day
      • Coffee usage, by demographic
        • Table Monthly and Daily Coffee Drinkers: Cups of Coffee Drunk, by Gender, 2014
      • Young coffee drinkers are less engaged
        • Table Monthly and Daily Coffee Drinkers: Cups of Coffee Drunk, by Age, 2014
        • Table Monthly and Daily Coffee Drinkers: Cups of Coffee Drunk, by Employment Status, 2014
      • Less affluent drink the most coffee per day
        • Table Monthly and Daily Coffee Drinkers: Cups of Coffee Drunk, by HH Income, 2014
      • Hispanics are Asians more likely to be coffee drinkers
        • Table Monthly and Daily Coffee Drinkers: Cups of Coffee Drunk, by Race/Ethnicity, 2014
      • Trended coffee usage, by coffee type
        • Table Household Ground/Whole Bean, Instant, Instant Flavored Mix & Espresso/Cappuccino Usage, Personal RTD Iced Coffee Usage, 2008-2013
      • Trended HH coffee usage frequency, by coffee type
        • Table Household Coffee Usage Frequency: Ground (Regular vs. Decaffeinated, 2008-2013
      • Household penetration of instant coffee is on the rise
        • Table Household Instant Coffee Usage Frequency, 2008-2013
      • Flavored instant coffee mix household use is flat
        • Table Household Instant Flavored Coffee Mix Usage Frequency, 2008-2013
      • Coffee use, by type: demographic analysis
        • Table Household Ground/Whole Bean, Instant, Instant Flavored Mix & Espresso/Cappuccino Usage, Personal RTD Iced Coffee Usage: By Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
    • Household and personal coffee use and preference, by type
      • Ground/whole bean coffee
        • Table Household Coffee Use: Caffeinated & Decaffeinated Ground/Whole Bean, Loose Grinds, Single-Serve/Pod & Whole Bean: With Usage Preference Ratios, 2008-2013
      • Instant coffee
        • Table Household Instant Coffee Usage: Regular, Decaffeinated, Flavored, &Unflavored: With Usage Preference Ratios, 2008-2013
      • Instant flavored coffee mix
        • Table Instant Flavored Coffee Mix HH Usage: Regular and Sugar-Free, 2008-2013
    • Household and personal coffee use by brand
      • Whole bean & ground coffee brand usage trending
        • Table Household Ground/Whole Bean Usage, by Brand, 2008-2013
      • Whole bean & ground coffee brand usage, by demographics
        • Table Household Ground/Whole Bean Usage, by Top 15 Brands: Generation, 2013
        • Table Household Ground/Whole Bean Usage, by Top 15 Brands: HH Income, 2013
        • Table Household Ground/Whole Bean Usage, by Top 15 Brands: Nielsen Region, 2013
      • Instant coffee brand usage trending
        • Table Household Instant Coffee Usage, by Brand, 2008-2013
      • Instant coffee brand usage, by demographics
        • Table Household Instant Coffee Usage, by Brand: By Race/Ethnicity, 2013
        • Table Household Instant Coffee Usage, by Brand: By HH Income, 2013
        • Table Household Instant Coffee Usage, by Brand: By Nielsen Region, 2013
      • Espresso/cappuccino brand usage trending
        • Table Household Espresso/Cappuccino Usage, by Brand, 2008-2013
      • Espresso/cappuccino brand usage, by demographics
        • Table Household Espresso/Cappuccino Usage, by Top Four Brands: By Race/Ethnicity, HH Income & Nielsen Region, 2013
      • RTD coffee brand usage trending
        • Table Personal Ready-to-Drink Coffee Usage, by Brand, 2008-2013
      • RTD coffee brand usage, by demographics
        • Table Personal RTD Coffee Usage, by Top Four Brands: By Race/Ethnicity, HH Income & Nielsen Region, 2013
      • Instant flavored coffee mix: flavor usage trending
        • Table HH Use of Instant Flavored Coffee Mix Flavors, 2008-2013
  • Coffee Retail & Foodservice Channel Usage Trends
    • Summary analysis
    • Coffee forms bought for home use in the past 12 months, by channel
      • Cross-usage
        • Table Cross-Use of Coffee Forms Bought for Home Use in the Past 12 Months
      • Coffee retail distribution, by coffee form
      • Another view
      • Demographic analysis
        • Table Coffee Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by Age, 2014
        • Table Coffee Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by HH Income, 2014
        • Table Coffee Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by Region, 2014
        • Table Coffee Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by Race/Ethnicity, 2014
    • Coffee gotten for immediate consumption, by channel
      • Demographic analysis
        • Table Coffee Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Age, 2014
        • Table Coffee Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by HH Income, 2014
        • Table Coffee Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Employment Status, 2014
        • Table Coffee Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Region, 2014
  • Coffee Types Drunk at Home & Restaurants
    • Summary analysis
    • Coffee Drunk in Past 12 Months, by Type/Flavor
      • Coffee type drunk most
      • At home versus at restaurants
      • Gender differences
        • Table Coffee Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Gender, 2014
      • Age differences
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Age, 2014
      • HH income differences
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, HH Income, 2014
      • Regional differences
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Region, 2014
      • Race/ethnicity differences
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Race/Ethnicity, 2014
  • Factors Influencing Restaurant Coffee Ordering
    • Factors influencing decision to order type of coffee at restaurant
      • Taste and timing
      • Health at the bottom of the list-should it matter?
      • Age
        • Table Factors Influencing Decision to Order Type of Coffee at Restaurant, Ranked by Importance, by Age, 2014
      • Yes to lower price
        • Table Factors Influencing Decision to Order Type of Coffee at Restaurant, Ranked by Importance, by HH Income, 2014
      • Race/ethnicity
        • Table Factors Influencing Decision to Order Type of Coffee at Restaurant, Ranked by Importance, by Race/Ethnicity, 2014
        • Table Factors Influencing Decision to Order Type of Coffee at Restaurant, Ranked by Importance, by Employment Status, 2014
  • Retail Company and Brand Analysis
    • Segment summary
      • Table Retail Coffee Sales and Share, by Segment, 2012-2013
      • J.M. Smucker takes the lead among coffee marketers
      • Hip coffee house Starbucks brand coexists with iconic Folgers and Maxwell House brands
    • Coffee marketers and brands by category
      • Folgers is the undisputed top ground coffee marketer
        • Table Top Retail Ground Coffee Marketers, by Marketer and Brand, 2012-2013
      • Folgers at the helm of the ground decaffeinated coffee brands
        • Table Top Retail Ground Decaffeinated Coffee Marketers, by Marketer and Brand, 2012-2013
      • Starbucks captures largest share of whole bean coffee
        • Table Top Retail Whole Bean Coffee Marketers, by Marketer and Brand, 2012-2013
      • Green Mountain maintains its first mover advantage in single-cup coffee
        • Table Top Retail Single-Cup Coffee Marketers, by Marketer and Brand, 2012-2013
      • Nestle Nescafe has a stronghold on instant caffeinated coffee
        • Table Top Retail Instant Caffeinated Coffee Marketers, by Marketer and Brand, 2012-2013
      • Folgers leads instant decaffeinated coffee sales, but all marketers in decline
        • Table Top Retail Instant Decaffeinated Coffee Marketers, by Marketer and Brand, 2012-2013
      • All marketers of refrigerated RTD coffee category share impressive success
        • Table Top Retail Refrigerated Ready-To-Drink Coffee Marketers, by Marketer and Brand, 2012-2013
      • Starbucks' Frappuccino dominates cappuccino/iced coffee category
        • Table Top Retail Cappuccino/Iced Coffee Marketers, by Marketer and Brand, 2012-2013
      • Marketers of "other" coffee additive/flavorings/substitutes is fragmented
        • Table Top Retail Coffee Additive/Flavoring, Refrigerated Coffee Concentrate & Coffee Substitutes Marketers, by Marketer and Brand, 2012-2013
    • J.M. Smucker
      • Folgers is the anchor in Smucker's coffee platform
        • Table J.M. Smucker Retail Sales, by Coffee Category and Brand, 2013
      • Innovation is necessary to meet the evolving needs of coffee consumers
    • Green Mountain Coffee Roasters
      • GMCR dominates single-cup coffee category by leveraging brand partnerships
      • Expired patent opens up the playing field
      • GMCR demonstrating strong growth despite increased competition
        • Table Green Mountain Coffee Roasters Retail Sales, by Coffee Category and Brand, 2013
    • Starbucks
      • Bringing coffee shop coffee to retail
        • Table Starbucks Retail Sales, by Coffee Category and Brand, 2013
      • Starbucks continues to focus on innovation
    • Kraft Foods
      • Kraft rewarded with sales growth despite lower coffee prices
        • Table Kraft Retail Sales, by Coffee Category and Brand, 2013
      • Leveraging single-cup format
      • Going after the premium coffee consumer
      • Future plans to bring a powerhouse restaurant brand to retail
    • Nestlé USA
      • Nescafé finds success through its Latino consumer base
        • Table Nestlé Retail Sales, by Coffee Category and Brand, 2013
      • New marketing strategy to bolster demand for Nescafé
    • Massino Zanetti Beverage USA
      • Massimo Zanetti struggles with an underperforming coffee portfolio
        • Table Massimo Zanetti Retail Sales, by Coffee Category and Brand, 2013
    • Eight O'Clock Coffee Company
      • Eight O'Clock brand sales down for whole bean and ground coffees
        • Table Eight O'Clock Coffee Company Retail Sales, by Coffee Category and Brand, 2013
      • Brand refresh strategy to turnaround sales
    • Joh. A Benckiser
      • Finding success in the market through premium coffee shop brands
        • Table Joh. A Benckiser Coffee Retail Sales, by Coffee Category and Brand, 2013
  • Foodservice Companies and Brands
    • Dunkin' Donuts
      • Brand positioning
      • Trends and initiatives
      • Redesign to woo all-day visits
      • Brand audience
        • Table Dunkin' Donuts Demographic Analysis, by Demographic & Visit Frequency, 2013
      • Trends over time
        • Table Dunkin' Donuts Visits in Past 30 Days 6+ Visits in Past 30 Days, by Age, HH Income & Race/Ethnicity, 2009 vs. 2013
      • Sales performance: coming up roses
        • Table Dunkin' Donuts U.S. Sales & Unit Growth, 2009-2013
    • Green Mountain Coffee Roasters, Inc.
      • Growth strategy
      • Brewers
      • Non-coffee beverage expansion, but coffee still rules
        • Table Green Mountain Coffee & Tea K-Cup Retail Sales, 2012-2013
      • Licensing/partner strategy
      • No license: no Keurig 2.0
      • Make mine carafe sized
      • Platform expansion
      • Cold brewing with Coca-Cola
      • Channel expansion
      • At home versus away from home
        • Table Keurig Brewer Placements & Attachment Rate, by Location Type, 2013
      • At home
        • Table Keurig Brewer Penetration, by Region, 2013
      • Away from home
      • Sales performance
        • Table Green Mountain Coffee Roasters, Selected Metrics, 2009-13
    • McDonald's
      • Competitive differentiation: First mover advantage
      • Growth strategy: Modernize the menu and consumer experience
      • Menu trends: Expanding the beverage menu
      • Coffee drinks
        • Table McDonald's Food and Beverage Menu Share, by Menu Item Type, 2013
      • Beverage flavor expansion beyond coffee
        • Table McDonald's Coffee & Tea Drinks, Lemonade and Chillers: New Items and Limited-Time Offers, 2013-2014
      • And food pairings to meet a variety of purchase rationales
        • Table McDonald's Breakfast Sandwiches & Pastries: New Items and Limited-Time Offers, 2013-2014
    • Starbucks Corporation
      • Competitive differentiation: Store experience
      • Menu trends: beverage category expansion around coffee core
      • Menu trends: coffee at the core
        • Table Starbucks Food and Beverage Menu Share, by Menu Item Type
      • Menu trends: Addressing the food challenge and building food share
        • Table Starbucks Company-Operated Stores: Revenue Mix by Product Type, 2009-2013
      • Brand audience
        • Table Starbucks Demographic Analysis, 2013
      • Sales performance
        • Table Starbucks U.S. and Global Company-Owned & Licensed Locations, 2012-13
        • Table Starbucks Revenue: Restaurant & Retail/Foodservice, 2009-2013; Product Type & Geography, 2011-2013
        • Table Starbucks Comparable Sales, Transaction & Ticket Growth, by Geography, 2009-2013
    • Mid-size players
      • Caribou Coffee
      • Brand audience
        • Table Caribou Coffee Restaurant Brand Users, by Demographic, 2013
      • Tim Hortons
      • On the menu
      • Brand initiatives and strategies
      • Brand audience
        • Table Tim Hortons Brand Users, by Demographic, 2013
        • Table Tim Hortons Franchised Sales Systemwide Sales Growth & Sales per Restaurant: Canada and U.S., 2009-13
        • Table Tim Hortons U.S. and Canada Locations, by Restaurant Type, 2009-13
  • Appendix
    • Methodology
      • Consumer survey methodology
    • Market size and forecast
    • Terms and definitions
      • Restaurant categories
      • Consumer segmentation groups

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