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Office Coffee Service in the U.S.: Market Trends and Opportunities


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The office coffee service (OCS) market is on the rebound after slumping during 2008-2010. Sales (including related hot beverage and creamer/sweetener supplies) approached the $4 billion mark in 2011, and are forecast to grow 3.5% in 2012 and in 2013.

The competitive landscape and consumer trends are transforming the where, how, and what of coffee drinking in the workplace. Packaged Facts consumer survey data show that among full-time employed daily coffee drinkers who have drunk coffee at work within the last seven days, the office coffee pot remains king, with 50% drinking an office coffee pot brew while at work. Even so, almost a quarter (22%) drink individually brewed coffee from coffee pods/k-cups, among whom 70% use coffee pods/k-cups supplied by their employer. Moreover, while the office coffee pot is the most common way to grab a cup of coffee at work, it is also the option with which employees are least satisfied.

Convincing employers that office coffee service can increase productivity and morale—and thereby justify the cost associated with office coffee service—is key to the industry’s future success. Many employees do use coffee as a productivity booster, and view high-quality office coffee as an important workplace perk. Packaged Facts data show that among coffee-drinking workers, 40% “strongly” agree and 43% “somewhat” agree that coffee helps keep them productive through the workday.

In addition, opportunity exists for office coffee service providers that blend a wider variety of beverage options speaking to health and wellness. Wellness programs have continued to gain momentum in Corporate America to address skyrocketing health care costs and reduce absenteeism, along with enhancing productivity throughout the workday.

Significant challenges nonetheless remain for market. For example, while targeting coffee drinkers primarily means targeting breakfast, 71% of the 66 million full-time employed adults who drink coffee on a daily basis do so before they get to the office—more people than drink it while they are at work. So the drive-thru or stop-in foodservice and coffeehouse/donut chains are formidable competitors to office coffee service.

The entrance of Starbucks and Dunkin Donuts into the single brew coffee space throws an additional wild card into the market. The OCS market may be undercut by single brew systems that allow consumers to swap in their own K-cups, already widely available to them via office supply vendors and big-box stores. Single-brew systems and Starbuck’s VIA coffee sticks are playing a major role in the decline in whole bean coffee usage among higher-income groups, and single-serves will have an analogous cannibalization effect on office coffee service sales.

At the same time, smaller office coffee operators face increasing competition from national contractors Aramark and Compass Group, which are aggressively growing their presence in office coffee service via acquisition. For smaller players, this will mean targeting locations with smaller headcounts, where national players will be less likely to tread.

Office Coffee Service in the U.S.: Market Trends and Opportunities provides insight on the challenges and opportunities shaping the U.S. office coffee service market. Scope of analysis is centered on office coffee service provisions and employee office coffee usage and attitudes; however, content also draws from competitive context, such as household coffee usage and usage preferences and foodservice alternatives to office coffee service. The report provides the following:

  • Market size and forecast for office coffee service revenue for 2005-2014, as well as product category analysis and industry segment share.

  • Analysis of the impact of macro-economic drivers shaping office coffee service, including an economic forecast through 2014; consumer confidence, unemployment, and spending trends; and commodity and retail coffee pricing trends and forecasts.

  • Discussion of opportunities and challenges central to the growth of office coffee service, including employee morale, retention and productivity; the rise of the K-Cup; the need to move beyond coffee; tapping into breakfast; the VIA effect; virtual workspaces; tapping into wellness; and restaurant competition.

  • Assessment of coffee menu trends, focusing on menu item penetration by restaurant segment, including top flavors and types. Trended menu item data is provided courtesy of Datassential, a leading food research company.

  • Assessment of consumer coffee usage, type and flavor/variety preferences; office coffee procurement methods; satisfaction with these methods; and employee attitudes toward coffee as a productivity tool and office perk.

The report also analyses leading coffee service providers, including national foodservice contractors, coffeehouse chains and independent providers. Companies include Aramark Corp, Compass Group PLC, Farmer Bros. Co., Green Mountain Coffee Roasters, Inc., Peet’s Coffee and Tea, Royal Cup Coffee Office Beverages, and Sodexo Inc.


  • Executive Summary
    • Scope and Methodology
      • Scope of coverage
    • Methodology
      • Consumer survey methodology
      • Market size and forecast
      • Menu item trend analysis
      • Other sources
      • Restaurant categories
      • Limited-service restaurant definitions
      • Full-service restaurant definitions
      • Other definitions
    • Office Coffee Service Market Size and Forecast
      • Insight Capsule
    • Office Coffee Service Macroeconomic Drivers
      • Insight Capsule
    • Consumer Trends Shaping Office Coffee Service
      • Insight Capsule
    • Coffee Foodservice Menu Trends
      • Insight Capsule
    • Consumer Coffee and Office Coffee Usage & Behavior
      • Insight Capsule
    • Office Coffee Service Provider Analysis
  • Office Coffee Service Market Size and Forecast
    • Market size and forecast summary
      • Moderate growth ahead
      • But competition looms
      • Pursuing smaller accounts is paramount
      • Consumer purchase patterns a wildcard
      • Bottom line
    • Largest sales category? Coffee, naturally
    • Branded coffee makes a comeback
      • Table Office Coffee Service Revenue, Percent Share by Product Category, 2005-2011
    • Industry segment analysis
      • Table Office Coffee Service Accounts, by Industry Served, 2005-2011
  • Office Coffee Service Macroeconomic Drivers
    • Overview
    • Macroeconomic trends: our take
    • Economic forecast through 2014
      • GDP: A long time getting back, but finally passes pre-recession levels
      • Forecast factors
      • Consumer confidence remains abysmal but is rising from bottom
      • Unemployment remains high but is tapering downward
      • Demographic analysis
      • Trouble areas
        • Table Unemployment Trends, by Demographic, October 2009 to December 2011
    • Consumer spending trends
      • Consumer spending ticks upward
      • Inflation-adjusted foodservice & accommodations consumer spending up 4% since 2005
    • Coffee price outlook
      • Commodity coffee prices coming back down to earth?
      • PPI for coffee
      • PPI industry index follows commodity trends
      • Translation: higher coffee and coffee drink menu prices
        • Table Average Increase in Price of Coffee and Drinks, by Beverage Type, 2007-2011
      • Retail price trends
      • Coffee imports: volume flat; value on the rise
      • Increase in coffee sales highly influenced by cost per ton, not volume increases
        • Table Coffee Imports, by Product Type Value, 2006-2010
        • Table Coffee Imports, by Product Type Volume, 2006-2010
        • Table Coffee Imports, U.S. Dollars per Ton, by Product Type, 2006-2010
  • Consumer Trends Shaping Office Coffee Service
    • Overview
    • Opportunity: morale, retention and productivity
      • Coffee does helps employees through the workday-at least employees think so
      • Employees view coffee as productivity tool
      • For many, high-quality office coffee is an important workplace perk
    • Rise of the K-Cup
    • The office coffee pot is still king-but for how long?
      • Pods/K-cups closing gap; office usage significantly influenced by personal purchases
        • Table Office Coffee Service Single Cup Brewer Placements: Manufacturer Share, 2005-11
      • Consumer K-cup purchases encroach on office coffee service territory
      • It's going to get worse-fast
      • Dunkin' Donuts
      • Starbucks
      • Tripling household penetration within 5 years?
    • Opportunity: move beyond coffee
      • Water filtration
      • Office and cleaning supplies
      • Specialty coffee & tea growth
      • Mainstreaming is at hand
      • Shift away from carbonated beverages
    • Opportunity and challenge: tapping into breakfast
      • 142 million opportunities to sell coffee every morning: but office coffee service loses out
      • Pre-work coffee drinking siphons away workplace drinking
    • Challenge: the VIA effect
      • Starbucks VIA revitalizes instant; threatens office coffee
      • The Via Effect
    • Challenge: virtual workspace trend
      • Off-site-only employment reaches 16% in 2009
      • Percentage of employed working only at home surges
        • Table Employed Persons* Working At Home, At Workplace, and Away From Workplace, Time Spent Working At Locations, 2003-2009
      • Office coffee service vulnerability
      • Continued growth in remote employment expected
    • Opportunity: tap into wellness
      • A trend on the rise
        • Table Wellness Program Benefit Access, 2000-2010
      • Healthy food promotion policies nearing majority status
      • Tea provides health and wellness halo
      • Tea's healthful properties a hit with consumers
        • Table Consumer Beverages Purchased for Nutritional Benefits, 2011
        • Table Tea Types Purchased in Last 12 months: Health Significance, 2011
    • Challenge: Restaurant options beckon offsite
      • Familiarity and ease of use drive restaurant decision
      • Convenience is King
      • Among restaurants, convenience comes in many forms
      • For employees, what does it mean?
      • Restaurant density analysis provides insight
      • As urban as it gets: Aon Corporation
      • 400 restaurant choices!
      • A giant in Rural America: Tyson Foods
      • Setting up shop on the suburban fringe: General Motors
      • Suburban sprawls: Baxter International, Allstate and
      • Why it matters
        • Table Restaurant Selection Density, Selected Fortune 500 Locations
    • Challenge: healthy coffeehouse and coffee-centric QSR chain performance
      • Same-store sales comparisons
      • Reading the graphs
      • One-year and multi-year comparisons
    • Coffeehouses ride positive sales wave
      • Positive segment momentum through 2011
    • QSR coffee players: coffee is big business
      • McDonald's: the behemoth grows while others falter
      • Mixed momentum through 2011
  • Coffee Foodservice Menu Trends
    • Overview
      • Datassential
      • Coffee varieties
        • Table Top Coffee Varieties, Restaurant Penetration, by Segment, 2011
      • Restaurant penetration increases
        • Table Top Coffee Varieties, Restaurant Penetration, by Segment, 2007-2011
      • Coffee flavors and types
        • Table Top Coffee Flavors/Types, Restaurant Incidence, by Segment, 2011
  • Consumer Coffee and Office Coffee Usage & Behavior
    • Summary Analysis: Coffee
      • Mature usage dictates need for expanding varieties & usage occasions
      • The Via Effect
      • Single-brew/instant innovation cannibalizing ground/whole bean coffee?
      • Coffee conversion opportunities
      • 143 million opportunities to sell coffee every morning
      • But office coffee service faces "first cup" dilemma
      • Weakness: Drive-thru
      • Competing on price and customized programs are keys to success
    • Coffee usage holds steady through recession
      • Table Coffee Usage Trending, 2008-2011
    • Coffee drinks, espresso/cappuccino and instant coffee
      • Note on reading charts on this section
      • Instant coffee gaining traction among higher-income households
      • Espresso/cappuccino an important racial/ethnic distinction; usage trends are afoot
        • Table Coffee Drinks, Espresso/Cappuccino and Instant Coffee Usage Trending, 2008-2011
    • Instant coffee & instant flavored coffee
      • Usage upswing among black consumers
        • Table Instant Coffee & Instant Flavored Coffee Usage Trending, 2008-2011
      • Ground and whole bean coffee: suffering at the hands of single-brew?
        • Table Ground and Whole Bean Coffee Usage Trending, 2008-2011
    • Framing foodservice coffee drinking trends: coffee drinkers
      • Usage baseline: 183 million adult coffee consumers
      • Age gap exists-but is gap narrower?
      • Relevance to Hispanic and Asian consumers
        • Table Coffee Drinkers, Selected Demographics, 2011
    • Daily coffee consumption frequency
      • At least 240 million opportunities to sell coffee per day
        • Table Daily Coffee Consumption Frequency, Selected Demographics, 2011
    • Coffee drinking by daypart
      • 142 million opportunities to sell coffee every morning
        • Table Coffee Drinking by Daypart, 2011
    • Coffee Procurement in Past 7 Days, by Method/Location
      • Coffee relevance rises among full-time employed
      • Coffee procurement methods among the employed
      • Before work versus during work
      • A toss up: Bringing coffee versus making coffee
      • On-the-go importance
        • Table Coffee Procurement in Past 7 Days, by Method/Location: Full-Time Employed Consumers, 2011
      • Feeding the habit: usage frequency
        • Table Coffee Procurement Method/Location in Past 7 Days: Full-Time Employed Consumers, by Coffee Usage Frequency, 2011
      • Generational analysis
        • Table Coffee Procurement Method/Location in Past 7 Days: Full-Time Employed Consumers, by Generation, 2011
      • HH income analysis
        • Table Coffee Procurement Method/Location in Past 7 Days: Full-Time Employed Consumers, by Coffee Usage Frequency, 2011
    • The office coffee pot remains king-for now
      • Pods/K-cups closing gap; office usage significantly influenced by personal purchases
        • Table Coffee Types/Methods Used by Consumers Drinking Coffee at Work, 2011
      • Coffee usage frequency significantly influences office coffee procurement choice
      • Pods/k-cups may pose price barrier for frequent coffee drinkers
        • Table Coffee Types/Methods Used by Consumers Drinking Coffee at Work, by Coffee Usage Frequency, 2011
      • Generational differences
        • Table Coffee Types/Methods Used by Consumers Drinking Coffee at Work, by Generation, 2011
      • Coffee pods/k-cups: urban office usage emphasis
        • Table Coffee Types/Methods Used by Consumers Drinking Coffee at Work: Urban/Outer Suburbs/Rural, 2011
      • Satisfaction with office coffee procurement methods
      • Free vending on top?
        • Table Satisfaction with Coffee Types/Methods Provided by Employer, 2011
      • Coffee helps them through the workday
        • Table Coffee Helps Keep Me Productive Through The Workday, Selected Demographics, 2011
      • For many, high-quality coffee is an important workplace perk
        • Table Coffee Helps Keep Me Productive Through The Workday, Selected Demographics, 2011
  • Office Coffee Service Provider Analysis
    • Aramark Corp
    • Foodservice operations
      • Sales analysis
      • North America Education Sector
      • North America Health Care Sector
      • North America Business and Industry Sector
      • Vending & Office Refreshments Operations
      • Filterfresh acquisition
      • Waste-to-Energy and Terracycle sustainability initiatives
      • Small business service innovation
      • Giving clients choices
      • Equipment upgrades help drive bottom line
      • On-Site Foodservice
      • Event Catering
      • Strategy: Workplace Productivity, Value-Added Services, Contract Design
      • Value-Added Services
      • Contract Design
        • Table Aramark by the Numbers
    • Compass Group PLC
      • Compass Group North America (CGNA)
      • Sales analysis
      • Foodservice strategy
      • Room for growth
      • It Takes You - Eat Local
      • Leveraging role of single-source provider
      • North America Business & Industry Sector
      • Corporate Dining
      • Premium/Executive Dining
      • Catering and Event Services
      • Vending and Refreshment
      • Canteen Office Coffee Service
      • The Starbucks connection
      • Canteen's aggressive acquisition path
      • Coffee Distributing Corp brings strong northeast office presence
      • Strategy
      • Kimco & Cross-Selling
        • Table Compass Group by the Numbers
    • Farmer Bros. Co.
      • Acquisition-based growth
      • Business operations
      • Office Coffee Service: Custom Coffee Plan
      • Sales performance
        • Table Farmer Bros. by the Numbers
    • Green Mountain Coffee Roasters, Inc.
      • Growth strategy
      • "A beverage for every occasion"-pushing beyond coffee
      • Penetrating away-from-home venues
      • K-Cup branding reach
      • Expanding its own foodservice & retail coffee brands
      • Timothy's Coffees of the World
      • Diedrich Coffee Roasters
      • Tea branding
      • Other beverages
        • Table Green Mountain Coffee, Tea and Other K-Cup Brands, 2011
      • Coffee makers & accessories leader
      • Significant business relationships with coffeehouse giants
      • Dunkin Donuts
      • Starbucks
      • Lavazza
      • Filtered coffee machine in the works
      • Operating segments
      • Sales performance
      • Segment sales
        • Table Green Mountain Coffee Roasters, Selected Metrics, 2007-2011
    • Peet's Coffee and Tea
      • Coffee & tea types and blends
      • Growth strategy
      • Geographic expansion
      • Thwarted acquisition crimps single cup presence
      • Distribution channels
      • Grocery: strong growth
      • Home delivery
      • Foodservice and office
      • Office Coffee
      • Sales performance
      • Business categories
      • Historical summary
      • Q3 2011
        • Table Peet's Coffee and Tea, Selected Metrics, 2007-2011
    • Royal Cup Coffee Office Beverages
      • On the office menu
        • Table Royal Cup Coffee, Coffee Offerings
      • Marketing & promotional activity
      • Sales performance
    • Sodexo Inc
      • Education Foodservice
      • North American Health Care
      • Corporate Foodservice
      • North American Corporate Foodservice
      • Strategy: Sustainability, Celebrity Chef Partnerships, Employee Health
      • Celebrity Chef Partnerships
      • Sustainability
      • Work/Life Balance
      • Cafes, Retail Brands
      • Catering
      • Office Refreshment
      • Recent initiatives
        • Table Sodexo by the Numbers

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