New Generation Of Coffee Drinkers Shape Future Of Market

The U.S. market for packaged and ready-to-drink coffee sold at retail was $13.5 billion in 2015, up almost 10%, according to Packaged Facts “Coffee and Ready-to-Drink Coffee” report. By 2020, Packaged Facts expects sales to reach $18 billion.
Growth in the industry can largely be attributed to three segments – single cup coffee, cappuccino/iced coffee and refrigerated ready-to-drink coffee. At the same time, traditional coffee products such as ground coffee and instant coffee have seen declines. Ground coffee is still the largest contributing segment to the category, although single-cup has been quickly closing the gap.
Packaged Facts notes that retail dollar sales continue to grow largely because of the category’s continued reinvention, whether from k-cups or ready-to-drink varieties or cold brew. The rising popularity of new options points back to an evolving population of coffee drinkers. “The coffeehouse revolution created a new generation of consumers who appreciate premium and specialty coffee,” said David Sprinkle, research director, Packaged Facts. “Retailers see the generational shift in the coffee category playing out on supermarket shelves.”