US coffeehouses generated $23.4 billion in sales in 2017 but expansion slowed to 2%, the worst performance since the end of the recession.
Coffee sales increased 41% since 2011, according to market research firm Mintel International. In its latest report on Coffee US 2017, Mintel identified ready-to-drink (RTD) coffee as the fastest growing segment in the $13.6 billion retail coffee market. Mintel forecasts RTD coffee will experience 67% growth form 2017-22.
“The coffee shop market is benefiting from shifting consumer interest in more premium, albeit pricier, coffee drinks such as specialty coffees, cold brew coffee, and third wave coffee. However, the number of new coffee shops hitting the US market is slowing, indicating sales growth is coming from increased consumer expenditure on these more expensive beverages rather than unit growth and expansion,” said Caleb Bryant, senior foodservice analyst at Mintel.
Bryant explains that “innovation may help persuade consumers to enjoy cold brew at home as one in eight (12%) are interested in roasts specially made for cold brewing coffee at home and one in 10 (10%) are interested in RTD nitro cold brew.”
Megan Hambleton, Beverage Analyst at Mintel said: “The overall retail coffee market enjoyed strong growth between 2012 and 2015, primarily driven by increased availability and interest in single-cup coffee and consumers buying single-cup coffee makers for their homes and offices.”
“However, as market penetration of single-cup coffee makers has become more saturated and less people are purchasing new single-cup coffee makers, the segment has begun to stabilize, ultimately resulting in slowed growth of the coffee market as a whole over the last two years,” concluded Hambleton.
Looking at the market overall, total retail sales of coffee in the US have slowed, with just 2.5% growth 2016-17, down from 2.6% the year prior.