Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Resources used for The Consumer sections
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Bottom line
- Topline view of the consumer and coffee
- Segments and players
- Retail distribution
- Coffee usage location perspective
- Factors to growth
- Coffeehouses drive exposure and shift to premium coffee
- Ready-to-drink coffee attracts consumers
- Taste and energy boost attributes provide leverage
- Fair trade and sustainable coffee attract consumers
- Single-serve coffee makers pique consumer interest
- Stomach-friendly coffee
- Challenges to growth
- Migration to other fast-growing beverage segments
- Health and price factor into decisions to drink less coffee
- Expanded coffeehouse coffee brand distribution a double-edged sword
- Leading national brands suffer from coffeehouse competition
- Baby Boomers and Swingers may not go for premium coffee
- On the horizon
Market Drivers
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- Coffeehouses and restaurants raise quality bar—and drive exposure to coffee variety
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- Figure 1: U.S. retail sales at coffeehouses and donut shops, at current and constant prices, 2004-06
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- Figure 2: Reasons for drinking more coffee, July 2007
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- Figure 3: Consumption of specialty coffee among adults, 2000-06
- Expanded coffeehouse coffee brand distribution a double-edged sword
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- Figure 4: Dollar and volume sales growth in major coffeehouse brands and lading national brands for ground and whole bean coffee*, 2004 and 2006
- Leading national brands suffer from coffeehouse competition
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- Figure 5: Household usage and usage frequency of coffee, 2002 and 2006
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- Figure 6: Combined FDM* sales of Folgers and Maxwell House **, 2002-07
- Migration to other fast-growing beverage segments
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- Figure 7: Reasons for drinking less coffee today than a year ago, by gender, July 2007
- Energy drinks
- Tea
- Coffee surpasses soda
- Baby Boomers and swingers driving population growth
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- Figure 8: personal consumption of coffee, by age, July 2007
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- Figure 9: Population aged 18 or older, 2002-12
- Hispanics
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- Figure 10: Incidence of household consumption of ground/whole bean, instant, and international flavored coffee, by race/ethnicity, January-October 2006
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- Figure 11: Population by race and Hispanic origin, 2002-12
Market Size and Trends
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- Market size
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- Figure 12: Total U.S. retail sales of coffee, at current and constant prices, 2002-07
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- Figure 13: FDM* dollar and volume sales and price per pound of coffee**, 2002-07
- Wal-Mart estimate
- Market trends
- Ready-to-drink coffee attracts consumers
- Product claims
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- Figure 14: New product releases, 2002-07
- Figure 15: New coffee* product claims, 2002-07*
- Fair trade
- Coffee with a cause—fair trade certified and sustainable coffee attract consumers
- Coffee innovations
- Single-serve coffee makers pique consumer interest
- Stomach-friendly coffee—the biggest innovation since the introduction of decaffeinated coffee
Market Segmentation
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- Introduction
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- Figure 16: Coffee sales through FDM*, segmented by type, 2005 and 2007**
- Ground coffee
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- Figure 17: FDM* sales of ground coffee, at current and constant prices, 2002-07
- Figure 18: FDM* volume sales of ground coffee and price per pound, 2002-07
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- Figure 19: FDM* select brand volume sales and price of ground coffee, 2005 and 2007
- Instant coffee
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- Figure 20: FDM* Sales of instant coffee, at current and constant prices, 2002-07
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- Figure 21: reasons for drinking less coffee today than a year ago, by gender, July 2007
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- Figure 22: Incidence of household consumption of instant coffee, by race/ethnicity, 2002 and 2006
- Whole bean coffee
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- Figure 23: FDM* sales of whole bean coffee, at current and constant prices, 2002-07
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- Figure 24: FDM* volume sales of whole bean coffee and price per pound, 2002-07
- Ready-to-drink coffee
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- Figure 25: FDM* sales of RTD coffee, at current and constant prices, 2002-07
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- Figure 26: Average price per 16-fluid ounce of various RTD non-alcoholic beverages at FDM, 2007
Supply Structure
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- Foreign trade
- Coffee imports
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- Figure 27: U.S. coffee imports, 2002-07*
- Alliances and acquisitions
- Top suppliers forge alliances with coffeehouse brands
- Acquisitions and divestiture
- Companies and brands
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- Figure 28: FDM* sales of major manufacturers in the coffee market in the U.S., 2004 and 2006
- Ground coffee
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- Figure 29: Selected brand sales and market share of ground coffee at FDM* in the U.S., 2004 and 2006
- Instant coffee
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- Figure 30: Selected brand sales and market share of instant coffee at FDM* in the U.S., 2004 and 2006
- Whole bean coffee
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- Figure 31: Selected brand sales and market share of whole bean coffee at FDM* in the U.S., 2004 and 2006
- Ready-to-drink coffee
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- Figure 32: Selected brand sales and market share of ready-to-drink coffee at FDM* in the U.S., 2004 and 2006
Advertising and Promotion
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- Proctor & Gamble
- Folgers—aroma seal packaging
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- Figure 33: Folgers Aroma Seal ground coffee—TV ad, 2006
- Folgers—Simply Smooth, the stomach-friendly coffee
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- Figure 34: Folgers Simply Smooth coffee—TV ad, 2006
- Folgers—gourmet
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- Figure 35: Folgers gourmet ground coffee—TV ad, 2006
- Millstone
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- Figure 36: Millstone ground/whole bean coffee—TV ad, 2007
- Kraft Food Company
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- Figure 37: Maxwell House—TV ad, 2007
- Eight O’Clock Coffee
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- Figure 38: Eight O’Clock coffee—TV ad, 2007
Retail Distribution
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- Introduction
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- Figure 39: Choice of retail channel to purchase coffee, July 2007
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- Figure 40: U.S. retail sales of coffee, by channel, 2005 and 2007
- Supermarkets
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- Figure 41: U.S. supermarket sales of coffee at current and constant prices, 2002-07
- Mass and other
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- Figure 42: U.S. mass and other* sales of coffee at current and constant prices, 2002-07
The Consumer: Usage, Frequency, Types and Brands
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- Summary
- Personal consumption of coffee
- Personal preference for caffeinated and decaffeinated coffee and use of creamer
- Personal frequency of drinking coffee
- Household usage and frequency of use of different types of coffee
- RTD coffee
- Personal consumption of coffee
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- Figure 43: Incidence of personal consumption of coffee, by key demographics, July 2007
- Personal preference for caffeinated and decaffeinated coffee and use of creamer
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- Figure 44: preference for caffeinated and decaffeinated coffee and use of creamer, by gender, July 2007
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- Figure 45: Personal preference for caffeinated and decaffeinated coffee and use of creamer, by age, July 2007
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- Figure 46: Personal preference for caffeinated and decaffeinated coffee and use of creamer, by race/ethnicity, July 2007
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- Figure 47: Personal frequency of drinking coffee, by gender, July 2007
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- Figure 48: Personal frequency of drinking coffee, by age, July 2007
- Household usage of different types of coffee
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- Figure 49: Incidence of household consumption of ground/whole bean, instant, and international flavored coffee, by age, January-October 2006
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- Figure 50: Incidence of household consumption of ground/whole bean, instant, and international flavored coffee, by age, January-October 2006
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- Figure 51: Incidence of household consumption of ground/whole bean, instant, and international flavored coffee, by race/ethnicity, January-October 2006
- Household frequency of consumption
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- Figure 52: Household frequency of consumption of coffee in average day, by type, 2002-06
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- Figure 53: Household frequency of consumption of coffee in average day, by type, January-October 2006
- Personal consumption of ready-to-drink coffee
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- Figure 54: Incidence of personal consumption of RTD coffee, by key demographics, January-October 2006
The Consumer: Retail Channel Preference and Places to Drink Coffee
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- Summary
- Retail channel preferences
- Where people drink coffee
- Choice of retail channels to purchase coffee
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- Figure 55: Choice of retail channel to purchase coffee, July 2007
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- Figure 56: choice of retail channel to purchase coffee by age, July 2007
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- Figure 57: Choice of retail channel to purchase coffee, by income, July 2007
- Where people drink coffee
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- Figure 58: Locations where respondents have had coffee in past month, by age, August 2007
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- Figure 59: Locations where respondents have had coffee in past month, by household income, August 2007
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- Figure 60: Locations where respondents have had coffee in past month, by race/ethnicity, August 2007
The Consumer: Attitudes and Behavior
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- Summary
- Reasons for drinking coffee
- Incidence of drinking more or less coffee compared to a year ago
- Reasons for drinking less coffee today than a year ago
- Reasons for drinking more coffee today than a year ago
- Reasons for drinking coffee
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- Figure 61: Reasons for drinking coffee, by age, July 2007
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- Figure 62: Reasons for drinking coffee, by race/ethnicity, July 2007
- Incidence of drinking more or less coffee compared to a year ago
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- Figure 63: Incidence of drinking more or less coffee compared to a year ago, by age, July 2007
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- Figure 64: Incidence of drinking more or less coffee compared to a year ago, by race/ethnicity, July 2007
- Reasons for drinking less coffee today than a year ago
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- Figure 65: reasons for drinking less coffee today than a year ago, by gender, July 2007
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- Figure 66: Reasons for drinking less coffee today than a year ago, by gender, July 2007
- Reasons for drinking more coffee today than a year ago
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- Figure 67: reasons for drinking more coffee today than a year ago, by gender, July 2007
Future and Forecast
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- Future trends
- Entry of “mid-priced” premiums
- Coffee prices are likely to keep upward trend
- Continued path of alliance between manufacturers and premium coffee brands
- Increasing research and media attention to coffee’s health-promoting benefits may drive growth
- Market forecast
- Coffee
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- Figure 68: Forecast of total U.S. sales of coffee, at current and constant prices, 2007-12
- Ground coffee
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- Figure 69: Forecast of U.S. FDM sales of ground coffee, at current and constant prices, 2007-12
- Instant coffee
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- Figure 70: Forecast of U.S. FDM sales of instant coffee, at current and constant prices, 2007-12
- Whole bean coffee
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- Figure 71: Forecast of U.S. FDM sales of whole bean coffee, at current and constant prices, 2007-12
- RTD coffee
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- Figure 72: Forecast of U.S. FDM sales of RTD coffee, at current and constant prices, 2007-12
- Forecast factors
Appendix: Trade Associations
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