Worried about rumors of a recession? Order up a latte! Coffee means jobs, wages, and tax receipts that benefit people, companies, and communities.
That's the takeaway of a major study by the industry's largest trade group in the United States, the National Coffee Association. Conducted by food industry market researcher Technomic, the study estimates that Americans spent some $110 billion on coffee and related goods in 2022, accounting for more than 8% of the value of the food service industry. Daily spending was $301 million dollars.
Coffee spending trickled down through the U.S. economy in the form of 2.2 million jobs, $101.2 billion in wages, and $38 billion in federal, state, and local tax receipts. If the coffee economy is viewed broadly to include activity beyond consumer spending, it represents 1.3% of the U.S. economy, or $343.2 billion, according to the study.
“This landmark study confirms the great news that coffee not only fuels our daily lives, but it is also a powerful engine for jobs, communities, and the U.S. economy, all while supporting coffee farmers’ livelihoods in Hawaii, Puerto Rico, and around the world,” said NCA president and CEO William “Bill” Murray.
Although the study only covered the U.S., the clear implication is that spending on coffee stimulates economies all over the world via spending on consumption and supply chains.
Consumption trends
Yet coffee has a special place in America, where it is the favorite beverage among adults, taken daily by 63% of grownups, as shown in a separate research report on consumer behavior, the autumn edition of NCA's semiannual National Coffee Data Trends Report.
The popularity of cold brew leaped by 45% since the January 2023 edition of the report and by 300% since 2016. Nevertheless, the drip coffee maker remains the most popular preparation method (40% of past day coffee drinkers), followed by the single-cup brewer (27%), cold brewing (16%), and espresso machine (11%).
Among espresso-based beverages, latte is the most popular, consumed by 18% of Americans in the past week, followed by espresso (16%), and cappuccino (15%).
By dayparts, 81% of American coffee drinkers take it with breakfast, compared to 38% in the morning, 15% with lunch, 19% in the afternoon, 7% with dinner, and 10% in the evening.
The NCA Data Trends study surveyed a weighted sample of 1,543 adult respondents, grouping results by region, age, gender, household size, household income and ethnicity. It examined 13 types of coffee, including 10 brewed, 2 instant, and ready-to-drink.
NCA reports can be purchased at https://www.ncausa.org/