U.S. Coffee Market Perks Up

In the United States, coffee is hot; here, consumers drink more cups of Joe than any other country in the world. Sales of coffee, the second largest U.S. import next to oilare expected to grow by a compounded rate of 6.9% from 2005 to 2010, reaching $48.2 billion by 2010, according to "The U.S. Market for Coffee and Ready-to-Drink Coffee," a new report that examines new product trends and analyzes consumer behaviors regarding coffee from market-research publisher Packaged Facts, New York, a division of MarketResearch.com. Packaged Facts estimates that the 2005 U.S. coffee market grew to $34.5 billion, an 8.7% jump over 2004. The largest sales channel, foodservice, takes up the lion's share: 87.9% of the market. Retail outlets account for the remaining 12.1% of sales, the majority consisting of ground coffee.

The report notes that half of the coffee drunk away from home falls under the "regular" banner, while 42% are brewed from a specialty blend. Although actual coffee consumption has fallen, the price per cup has risen significantly as consumer preferences turn to higher-end, novelty brews.

"Across the board, were seeing an upscaling of product as consumer demand soars," said Don Montuori, publisher, Packaged Facts. "Economy brands resurfacing in high-tech, easy-to-use containers; 'pods' taking off as a quick way to brew single-cup, espresso-based coffees; savvy marketing touting newly discovered health claims; and sustainable, organic, and 'fair trade' beans coming into vogue; these and many other factors are driving the current coffee boom as consumer palates are becoming increasingly sophisticated, and health- and eco-conscious."