866-997-4948(US-Canada Toll Free)

Coffee - US - September 2013

Published By :

Mintel

Published Date : Sep 2013

Category :

Beverages

No. of Pages : 215 Pages


Variety has fueled growth and led to a boost in sales for coffee manufacturers. However, Mintel research finds that many new products have yet to interrupt consumers’ everyday coffee rituals, namely, a cup of roasted ground coffee prepared in a standard drip coffee maker. Manufacturers must find ways to introduce new products into consumer routines through emphasis on affordability, flavor, and enjoyment.
TABLE OF CONTENT

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

Executive Summary
Overview
The market
Consumers’ desire for more, better coffee continues category’s annual growth
Figure 1: Total U.S. sales and fan chart forecast of coffee, at current prices, 2008-18
Roasted coffee’s dominance forecast to erode as more people opt for one cup at a time
Figure 2: Total U.S. retail sales and forecast of coffee, by segment, at current prices, 2008-18
Key players
Single-cup coffee, RTD companies offset declines from roasted, instant manufacturers
The consumer
Coffee fans apt to drink more coffee at home than away from home
Figure 3: Changes in personal consumption of coffee at home by out of home, July 2013
Roasted coffee dominates daily coffee consumption, single-cup catching up
Figure 4: Personal consumption of top five coffee types consumed at least daily, July 2013
Brand, but also price, drive most retail coffee purchases among races and ethnicities
Figure 5: Top five attributes influencing packaged coffee purchases, by race, July 2013
Younger people less likely to be coffee dependent, most likely to cut back for health
Figure 6: Attitudes and behaviors toward daily coffee consumption and caffeine content, by age, July 2013
What we think

Issues and Insights
Breaking out of the morning rut: when are other times to drink coffee?
Insight: introduce new times to socialize, relax, and entertain with coffee
What can keep coffee drinkers aged 18-36 more active in at-home market?
Insight: address out-of-home competition with affordable, great-tasting at-home coffee
What can encourage people aged 49+ to try new coffee products?
Insight: entice more traditional drinkers with innovations based on their favorites

Trend Applications
Trend: FSTR HYPR
Trend: Mood to Order
Mintel Futures: Human

Market Size and Forecast
Key points
Variety, specialization fuel category’s annual growth trajectory
Figure 7: Total U.S. sales and forecast of coffee, at current prices, 2008-18
Figure 8: Total U.S. sales and forecast of coffee, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 9: Total U.S. sales and fan chart forecast of coffee, at current prices, 2008-18

Market Drivers
Key points
Commodity prices of coffee supplies continue to decrease
Figure 10: Average monthly price for raw coffee supplies, January 2010-July 2013
Figure 11: Attitudes and behaviors toward coffee prices, by age, July 2013
Rising consumer confidence + falling prices = improved coffee budgets?
Figure 12: Changes in at-home personal coffee consumption, by age and household income, July 2013
Figure 13: Changes in out-of-home coffee consumption, by age and household income, July 2013
Consumption rate, population growth could lead to continued boom
Figure 14: Any personal consumption (net) of coffee segments, by race, July 2013
Younger consumers more willing to embrace new coffee formats
Figure 15: Any personal consumption (net) of coffee, by gender and age, July 2013

Competitive Context
Key points
After a.m. hours, coffee faces competition from other food, drinks
Figure 16: Timing and choice of beverages and foods consumed for energy, May 2013
Coffee houses, foodservice prove tempting to coffee drinkers
Figure 17: Changes in personal at-home coffee consumption of coffee, July 2013
Figure 18: Changes in personal out-of-home coffee consumption, by generations, July 2013
Figure 19: Consumption and frequency of out-of-home coffee purchases, July 2013

Segment Performance
Key points
Roasted coffee sees declines as single-cup, RTD segments grow
Figure 20: Total U.S. retail sales of coffee, at current prices, 2011 and 2013
Single-cup projected to close the gap with roasted coffee by 2018
Figure 21: Total U.S. retail sales and forecast of coffee, by segment, at current prices, 2008-18
Figure 22: Total U.S. retail sales and forecast single-cup coffee, at current prices, 2008-18
Ready-to-drink coffee on growth path following successful innovations
Figure 23: Total U.S. retail sales and forecast of ready-to-drink coffee, at current prices, 2008-18

Retail Channels
Key points
Other retail channel, supermarkets nearly split share of coffee sales
Figure 24: Total U.S. retail sales and market share, by channel, at current prices, 2011 and 2013
Drug stores show the smallest share of coffee sales across retail channels
Figure 25: Total U.S. retail sales of coffee, by channel, at current prices, 2008-13
Natural channel hosts growing range of specialized coffee products
Figure 26: Natural supermarket sales of coffee, at current prices, 2011-13*
Packaged coffee dominates natural channel, RTD see growth
Figure 27: Natural supermarket sales of coffee, by segment, 2011 and 2013*
Natural channel brands of note
Organic, regular coffee see similar natural growth, organic leads
Figure 28: Natural supermarket sales of coffee, by organic status, 2010 and 2012*
Lack of fair trade RTD, instant coffee brings down natural total
Figure 29: Natural supermarket sales of coffee, by fair trade status, 2011 and 2013*

Leading Companies
Key points
Single-cup’s success, increasing interest in RTD fuel category growth
Figure 30: MULO sales of coffee, by leading companies, rolling 52 weeks 2012 and 2013
Smucker’s not resting on Folgers’ success, adding new coffee products
Starbucks plays the field with products spanning all coffee segments

Brand Share – Roasted Coffee
Key points
Price adjustments cause segment, dominant brands to drop
Figure 31: MULO sales of roasted coffee, by leading companies, rolling 52 weeks 2012 and 2013
Folgers the preferred coffee brand for nearly half of all consumers
Figure 32: Household use, ground/ whole bean brands, by race/ethnicity, January 2012-March 2013
Households that use espresso, cappuccino opt for Starbucks
Figure 33: Household usage of espresso/cappuccino, by brand, January 2012-March 2013

Brand Share – Single-cup Coffee
Key points
Green Mountain Coffee defends its lead in category it helped build
Figure 34: MULO sales of single-cup coffee, by leading companies, rolling 52 weeks 2012 and 2013
Variety appeals to single-cup owners, but how can they navigate options?

Brand Share – Instant Coffee
Key points
Instant segment falters as convenience takes other forms in coffee
Figure 35: MULO sales of instant coffee, by leading companies, rolling 52 weeks 2012 and 2013
Cold-brew coffee concentrates could enliven faltering segment
Flavored instant coffee should promote itself as an RTD alternative
Figure 36: Household usage of instant coffee, by type, by age, January 2012-March 2013
Figure 37: Household usage of instant coffee, by flavors, by age, January 2012-March 2013
Figure 38: Household usage, instant coffee, by flavors, by race/Hispanic origin, January 2012-March 2013
Multicultural consumers fuel instant, but are mixed on favorite brands
Figure 39: Household usage of instant coffee, by brand, by race/Hispanic origin, January 2012-March 2013
Maxwell House International faces competition from other brands
Figure 40: Household usage of instant flavored coffee mixes, by brand, January 2012-March 2013
Figure 41: Household volume usage of instant flavored coffee mixes, 2009-13

Brand Share – Ready-to-drink Coffee
Key points
New products brighten spotlight on RTD coffee options
Figure 42: MULO sales of ready-to-drink coffee by leading companies, rolling 52 weeks 2012 and 2013
Multiple-serving RTD coffee format grows with new additions
Companies ensure multiple-serving does not steal the spotlight
Starbucks Frappuccino dominates bottled, canned RTD preferences
Figure 43: Personal consumption of RTD coffee brands, by gender and age, January 2012-March 2013

Innovations and Innovators
Brand loyalty keeps innovation focused on new varieties, range extensions
Figure 44: Coffee launches by product launch type, 2008-13*
Dessert-inspired coffee flavors prove trend is not just for single-cup
Expanding beyond “sweet and creamy,” RTD differentiates with sparkling
Coffees aim to do a body good with functional formulations
Global innovations offer inspiration for potential U.S. products
Origin
Sweet inspiration
Packaging

Marketing Strategies
Theme – Variety
Folgers promotes the diversity of formats across its portfolio
Figure 45: Folgers, “Black Silk” print ad, June 2013
Theme – Convenience
International Delight builds on a successful debut with educational ads
Figure 46: International Delight Iced Coffee Light, print ad, May 2013
Figure 47: International Delight Iced Coffee, “Canyon Tours” ad, 2013
Nescafé promotes its presweetened 3-in-1 coffee with subtle humor
Theme – Quality
Gevalia switches gears from “cup of Johan” to taste test results
Figure 48: Gevalia, “Meet Johan” ad, 2013

Social Media
Key points
Key social media metrics
Figure 49: Key brand metrics, coffee brands, August 2013
Market overview
Brand usage and awareness
Figure 50: Usage and awareness of selected coffee brands, July 2013
Interaction with brands
Figure 51: Interaction with selected coffee brands, July 2013
Online conversations
Figure 52: Online mentions, selected coffee brands, by week, Feb. 24, 2013-Aug. 25, 2013
Where are people talking about coffee brands?
Figure 53: Mentions by page type, selected coffee brands, Feb. 24, 2013-Aug. 25, 2013
What are people talking about?
Figure 54: Mentions by type of conversation, selected coffee brands, Feb. 24, 2013-Aug. 25, 2013
Figure 55: Major areas of discussion surrounding coffee brands, by week, Feb. 24, 2013-Aug. 25, 2013
Figure 56: Major areas of discussion of coffee brands, by page type, Feb. 24, 2013-Aug. 25, 2013
Brand analysis
Starbucks
Figure 57: Starbucks key social media indicators, August 2013
Key online campaigns
What we think
International Delight
Figure 58: International Delight key social media indicators, August 2013
Key online campaigns
What we think
Dunkin’ Donuts
Figure 59: Dunkin’ Donuts key social media indicators, August 2013
Key online campaigns
What we think
Folgers
Figure 60: Folgers key social media indicators, August 2013
Key online campaigns
What we think
Nescafé
Figure 61: Nescafé key social media indicators, August 2013
Key online campaigns
What we think
Green Mountain Coffee
Figure 62: Green Mountain Coffee key social media indicators, August 2013
Key online campaigns
What we think

The Consumer – Personal Consumption of Coffee
Key points
Younger drinkers increasing in-home consumption more than out-of-home
Figure 63: Changes in personal consumption of coffee made at home, by age, July 2013
Figure 64: Changes in personal consumption of coffee bought out of home, by age, July 2013
Economic rebound helps some, continues to hinder others
Figure 65: Changes in personal coffee consumption at home by away from home, July 2013
Roasted coffee, out-of-home hot coffee most likely to be consumed daily
Figure 66: Any personal consumption of coffee, by frequency of consumption, July 2013
Variety embraced by younger consumers, those aged 68+ prefer traditional
Figure 67: Any personal consumption (net) of coffee, by generations, July 2013
New coffee products find traction among younger generations
Single-cup, out-of-home more likely among higher-income 18-34 year olds
Figure 68: Any personal consumption (net) of coffee, by age and household income, July 2013
Roasted coffee has corner on budget-conscious coffee clutchers
Figure 69: Household use, ground/whole bean coffee, by household income, January 2012-March 2013
Figure 70: Household volume usage, ground/whole bean coffee, by age, January 2012-March 2013

The Consumer – Attributes and Attitudes toward Coffee
Key points
Flavors, coffee house brands top purchase influencers for youngest buyers
Figure 71: Attributes influencing packaged coffee purchases, by age, July 2013
Low prices, brand recognition could encourage new product trial
Figure 72: Attitudes and behaviors toward new product trial, by age, July 2013
Young drinkers support caffeine labeling, but less likely to need a daily cup
Figure 73: Attitudes and behaviors toward daily consumption and caffeine content, by age, July 2013
Older coffee drinkers see no difference between name brands, store brands
Figure 74: Attitudes and behaviors toward store brand and certified coffee, by age, July 2013

The Consumer – Brewer Ownership and Preferences
Key points
Standard drip brewer remains leading brewer choice across age, income
Figure 75: Coffee brewer ownership, by generations, July 2013
Figure 76: Coffee brewer ownership, by household income, July 2013
Households that have more than one brewer split between drip, single-cup
Figure 77: Coffee brewer ownership, by frequency of use, July 2013
Coffee drinkers aged 68+ motivated by ease of use, quickness, taste
Figure 78: Reasons for using preferred coffee brewer, by generations, July 2013
Single-cup offers good value to some, quality could be an easy emphasis
Figure 79: Attitudes and behaviors toward single-cup and out-of-home coffee, by age, July 2013

Race and Hispanic Origin
Key points
Hispanics adding home consumption only slightly more than out-of-home
Figure 80: Changes in personal consumption of coffee made at home, by race, July 2013
Figure 81: Changes in personal consumption of coffee bought out of home, by race, July 2013
Retail brands capture Hispanics, other race prefers coffee house brands
Figure 82: Attributes influencing packaged coffee purchases, by race, July 2013
Other race respondents most interested in new products, premium options
Figure 83: Attitudes and behaviors toward new products, by race, July 2013
Figure 84: Attitudes and behaviors toward consumption, caffeine, and certification, by race, July 2013
Young blacks, Hispanics of any age drink most instant coffee
Figure 85: Household volume usage of instant coffee, by race and age, January 2012-March 2013
Figure 86: Household volume use of instant flavored mixes, by race and age, January 2012-March 2013
Figure 87: Household instant coffee volume use, by Hispanic origin and age, January 2012-March 2013
Single-cup brewers could appeal to black coffee drinkers
Figure 88: Coffee brewer ownership, by race, July 2013

Consumer Segmentation – Volume, Frequency Groups
Figure 89: Coffee user groups, July 2013
Non-drinkers
Opportunities
Low-volume coffee drinkers
Opportunities
Medium-volume coffee drinkers
Opportunities
High-volume coffee drinkers
Opportunities
Custom group tables
Figure 90: Personal consumption of coffee, by user groups, July 2013
Figure 91: Changes in personal consumption of coffee made at home, by user groups, July 2013
Figure 92: Changes in personal consumption of coffee bought out of home, by user groups, July 2013
Figure 93: Attributes influencing packaged coffee purchases, by user groups, July 2013
Figure 94: Attitudes and behaviors toward coffee, by user groups, July 2013
Figure 95: Coffee brewer ownership, by user groups, July 2013
Figure 96: Reasons for using preferred coffee brewer, by user groups, July 2013
Custom user group demographics
Figure 97: Custom user group demographics, July 2013

Key Driver Analysis – Single-cup Coffee
Methodology
Coffee house brands, quality important to young single-cup shoppers
Figure 98: Key drivers of personal consumption of single-cup coffee, July 2013

Information Resources Inc. Builders Panel Data
Overview
Ground coffee
Consumer insights on key purchase measures
Brand map
Figure 99: Brand map of ground caffeinated coffee buying rate, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 100: Key purchase measures, top ground caffeinated coffee, by household penetration, 2012*
Ground decaffeinated coffee
Consumer insights on key purchase measures
Brand map
Figure 101: Brand map ground decaffeinated coffee, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 102: Key purchase measures, top ground decaffeinated brands, by household penetration, 2012*
Instant coffee
Consumer insights on key purchase measures
Brand map
Figure 103: Brand map, instant caffeinated coffee buying rate, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 104: Key purchase measures, top instant caffeinated brands, by household penetration, 2012*
Instant decaffeinated coffee
Consumer insights on key purchase measures
Brand map
Figure 105: Brand map, instant decaffeinated coffee buying rate, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 106: Key purchase measures, top instant decaffeinated brands, by household penetration, 2012*
Single-cup coffee
Consumer insights on key purchase measures
Brand map
Figure 107: Brand map, single-cup coffee buying rate, by household penetration, 2012*
Brand leader characteristics
Key purchase measures
Figure 108: Key purchase measures, top brands of single-cup coffee, by household penetration, 2012*

Appendix – Food and Beverage Market Drivers
Consumer confidence
Figure 109: University of Michigan’s index of consumer sentiment (ICS), 2007-13
Racial, ethnic population growth
Figure 110: U.S. population by race and Hispanic origin, 2008, 2013, and 2018
Figure 111: Households with children, by race and Hispanic origin of householder, 2012
Shifting U.S. demographics
Figure 112: U.S. population, by age, 2008-18

Appendix – Other Useful Consumer Tables
Segment performance
Figure 113: Total U.S. retail sales and forecast of roasted coffee, at current prices, 2008-18
Figure 114: Total U.S. retail sales and forecast of roasted coffee, at inflation-adjusted prices, 2008-18
Figure 115: Total U.S. retail sales and forecast of single-cup coffee, at inflation-adjusted prices, 2008-18
Figure 116: Total U.S. retail sales and forecast of instant coffee, at current prices, 2008-18
Figure 117: Total U.S. retail sales and forecast instant coffee, at inflation-adjusted prices, 2008-18
Figure 118: Total U.S. retail sales and forecast of RTD coffee, at inflation-adjusted prices, 2008-18
Retail channels
Figure 119: U.S. supermarket sales of coffee, at current prices, 2008-13
Figure 120: U.S. drug store sales of coffee, at current prices, 2008-13
Figure 121: U.S. sales of coffee, through other channels, at current prices, 2008-13
Figure 122: Natural supermarket sales of coffee at inflation-adjusted prices, 2011-13*
Brand share – instant coffee
Figure 123: Household use, instant flavored mixes, by type, by age, January 2012-March 2013
Figure 124: Household usage of instant flavored coffee mixes, by flavor, January 2012-March 2013
Brand share – ready-to-drink coffee
Figure 125: Personal consumption, RTD coffee brands, by race/Hispanic origin, January 2012-March 2013
The consumer – personal consumption of coffee
Figure 126: Any personal consumption (net) of coffee, by marital/relationship status, July 2013
The consumer – attributes and attitudes toward coffee
Figure 127: Attitudes and behaviors toward coffee, by generations, July 2013
The consumer – brewer ownership and preferences
Figure 128: Coffee brewer ownership, by age and household income, July 2013
Figure 129: Reasons for using preferred coffee brewer, by gender and age, July 2013
Race and Hispanic origin
Figure 130: Attitudes and behaviors toward coffee, by race, July 2013
Figure 131: Household volume use, instant flavored mixes, by Hispanic origin and age, January 2012-March 2013

Appendix – Social Media
Brand usage or awareness
Figure 132: Brand usage or awareness, July 2013
Figure 133: Folgers usage or awareness, by demographics, July 2013
Figure 134: Dunkin’ donuts usage or awareness, by demographics, July 2013
Figure 135: Starbucks usage or awareness, by demographics, July 2013
Figure 136: Green mountain coffee usage or awareness, by demographics, July 2013
Figure 137: Nescafé usage or awareness, by demographics, July 2013
Figure 138: International delight usage or awareness, by demographics, July 2013
Activities done
Figure 139: Activities done, July 2013
Figure 140: Folgers – Activities done, by demographics, July 2013
Figure 141: Dunkin’ donuts – Activities done, by demographics, July 2013
Figure 142: Dunkin’ donuts – Activities done, by demographics, July 2013
Figure 143: Starbucks – Activities done, by demographics, July 2013
Figure 144: Starbucks – Activities done, by demographics, July 2013
Figure 145: Green mountain coffee – Activities done, by demographics, July 2013
Figure 146: Nescafé – Activities done, by demographics, July 2013
Figure 147: International delight – Activities done, by demographics, July 2013
Online conversation
Figure 148: Online mentions, selected coffee brands, by week, Feb. 24, 2013-Aug. 25, 2013
Figure 149: Mentions by page type, selected coffee brands, Feb. 24, 2013-Aug. 25, 2013
Figure 150: Mentions by type of conversation, selected coffee brands, Feb. 24, 2013-Aug. 25, 2013
Figure 151: Major areas of discussion surrounding coffee brands, by week, Feb. 24, 2013-Aug. 25, 2013
Figure 152: Major areas of discussion surrounding coffee brands, by page type, Feb. 24, 2013-Aug. 25, 2013

Appendix – Key Driver Analysis
Interpretation of results
Figure 153: Personal consumption of single-cup coffee-key driver output, July, 2013

Appendix – Information Resources Inc. Builders Panel Data Definitions
Information Resources Inc. Consumer Network Metrics

Appendix – Trade Associations

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....