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October 09, 2008 11:04 ET

Learn About the Coffee in the U.S.: Retail, Foodservice and Consumer Trends

LONDON, UNITED KINGDOM--(Marketwire - Oct. 9, 2008) - Reportlinker.com announces that a new market research report related to the Tea - Coffee industry is available in its catalogue.

Coffee in the U.S.: Retail, Foodservice and Consumer Trends

http://www.reportlinker.com/p096417/Coffee-in-the-US-Retail-Foodservice-and-Consumer-Trends.html

With Starbucks' U.S. store business soft, McDonald's rolling out its McCafe specialty beverages concept and Procter & Gamble selling its Folger Coffee division to J.M. Smucker, massive changes are brewing in the U.S. coffee market, where sales surged 11% in 2007 to reach $39.5 billion. Covering both foodservice and retail channels, Packaged Facts new report analyzes in depth the broad and complex trends affecting this market, including the effects of the economy, worldwide green coffee prices, changing coffee consumption trends, competition from other beverages like sodas and energy drinks, corporate social responsibility and health and wellness benefits. Looking ahead, much of the growth will be coming from the specialty coffee segment, which will continue to chart double-digit growth rates despite the troubled economy, the report predicts, as marketers continue to focus on specialty coffee products and as single-portion packs continue to gain ground in the market.

Homing in on the foodservice market for java, the report examines at length trends in coffeehouse chains like Starbucks and Caribou Coffee, quick-service restaurants like McDonald's and Dunkin' Donuts, convenience store chains including 7-Eleven, office coffee service and hotel in-room service. It also thoroughly examines the myriad retail channels for purchasing packaged ground, whole bean and ready-to-drink (RTD), including supermarkets, mass merchandisers, supercenters, warehouse clubs and convenience stores.

Coffee in the U.S. makes important predictions and recommendations regarding the future of the coffee industry, and pinpoints ways current and prospective market participants can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that this study offers across following segments:

- The Products (descriptions of myriad classifications, from Arabica and Robusta to Fair Trade and Shade Grown).

- The Market (including market size, composition, projected market growth, future trends, and international perspective).

- The Marketers (market structure plus detailed marketer and brand shares).

- Sales and Distribution Channels (extensive discussion of foodservice and retail venues).

- Marketing and New Product Trends (e.g., foodservice/retail cross-over and number of product launches by trend/type).

- Competitor Profiles (packaged product marketers and foodservice players).

- The Consumer (demographics, attitudes and lifestyle trends).

Report includes extensive information from hundreds of sources as well as dozens of practical, easy-to-read charts, tables and graphs, all of which are thoroughly examined in light of the many dynamic trends at play in this rapidly shifting market.


Chapter 1: Executive Summary
Scope of Report: Foodservice and Retail Markets
Product Breakouts
Report Methodology
The Market
2007 Sales Approach $44 Billion
Foodservice Is Largest Channel in Dollar Sales
Figure 1-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs.
 Retail, 2003 vs. 2007 (percent)
Ground Coffee Dominates Retail Sales
Market Outlook
Looking Ahead
Coffee Popular Worldwide
The Marketers
A Complex Marketing Structure
Hundreds of Marketers
Kraft, Procter & Gamble Dominate Mainstream Coffee
Marketing and New Product Trends
Cross-Branding Foodservice and Retail Brands
Licensed Brands Another Popular Option
New Products Proliferate at Retail
Figure 1-2: Number of New Coffee Introductions, 2003-2008
The Top Retail Trends: Upscale, Organic/Natural, Single-Serve, Fair Trade
Higher Quality Coffee in Foodservice
Coffee for a Cause
Hybrid Coffee/Energy Drinks
New Entries Brewing in Ready-to-Drink Coffee
Distribution and Sales Channels
Explosion of Foodservice Locations
Starbucks the No. 1 Coffeehouse
QSRs Perk Up Their Coffee Offerings
Types of Retail Outlets
The Consumer
Coffee Tops List of America's Favorite Beverages
The Coffee Generation Gap
Foodservice Coffee Drinkers
Packaged Coffee Purchasers
One Out of Four Households Use Folgers Ground or Whole Bean Coffee
Figure 1-3: Leading Packaged Coffee Products and Brands by Usage Rates,
 2007 (percent of U.S. households)
Consumer Attitudes and Shopping Behavior
Chapter 2: The Products
Introduction
Scope of Report: Foodservice and Retail Markets 


Dollar Sales Based on Retail Value

Excluded Products
Product Breakouts
Product Types 

Coffee Brewed and Served by the Cup
Ground Coffee
Whole Bean Coffee
Single-Serve Pods and Capsules
Instant/Freeze-Dried Coffee
Instant Cappuccino and Specialty Coffee Mixes
Liquid Coffee Concentrates
Packaged Ready-to-Drink (RTD) Coffee Beverages

IRI Categories
Additional Descriptors 

Coffee-Growing Countries

Figure 2-1: World Coffee Production, Marketing Years 2003/04-2007/08
 (number of bags in millions) 

Arabica vs. Robusta
Decaffeinated Coffee
Types of Roasts
Espresso: A Brewing Process as Well as a Roast
Blends vs. Varietals
Estate Coffee
Flavors
Organic Coffee and Sustainably Grown Coffee
Fair Trade Coffee
Shade-Grown Coffee

Chapter 3: The Market
Market Size and Growth
Higher Coffee Prices Drive Dollar Sales Growth
2007 Sales Approach $44 Billion
Table 3-1: Total U.S. Sales of Coffee, 2003-2007 (in millions of dollars)
Foodservice Sales Top $38 Billion
Table 3-2: U.S. Sales of Coffee Through Foodservice Channels, 2003-2007
 (in millions of dollars)
Retail Sales of Coffee Near $5.7 Billion
Table 3-3: U.S. Sales of Coffee Through Retail Channels, 2003-2007
 (in millions of dollars)
Market Composition
Foodservice Is Largest Channel in Dollar Sales
Figure 3-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs.
 Retail, 2003 vs. 2007 (percent)
Ground Coffee Dominates Retail Sales
Figure 3-2: Share of U.S. Retail Dollar Sales of Coffee by Product Type,
 2003 vs. 2008 (percent)
Decaffeinated Coffee Just 10% of Retail Coffee Sales
Figure 3-3: Share of U.S. Retail Dollar Sales of Ground Coffee: Regular
 vs. Decaffeinated, 2003 vs. 2008 (percent)
Figure 3-4: Share of U.S. Retail Dollar Sales of Instant Coffee: Regular
 vs. Decaffeinated, 2003 vs. 2008 (percent)
Private Label About 8% of Retail Sales
Figure 3-5: Share of U.S. Retail Dollar Sales of Coffee: Branded vs.
 Private Label, 2003 vs. 2008 (percent)
Specialty Coffees 30% of the Market
Foodservice Sales Strongest in Restaurants
Figure 3-6: Share of U.S. Foodservice Dollar Sales of Coffee by Venue,
 2008 (percent)
Supermarkets Are Primary Retail Sales Channel
Figure 3-7: Share of U.S. Retail Dollar Sales of Coffee by Channel,
 2008 (percent)
Retail Sales Highly Seasonal
Regional Sales
Market Outlook
Economic Downswing Not Good News 

Consumer Behavior Changing
Impact on Coffee

A Shift to Gourmet/Specialty Coffee
"Friendly Service" a Top Foodservice Driver
Four Out of Five Americans Drink Coffee
Competition from Other Beverages
Table 3-4: Coffee in Context: Comparative Penetration of Beverages,
 2003-2007 (% of U.S. adults)
PR Keeps Coffee's Health Benefits in the News
Coffeemakers Lead in Small Electric Kitchen Appliances
Figure 3-8: Unit Shipments of Coffee-Related Small Electric Kitchen
 Appliances, 2006-2010 (in thousands)
Single-Serve Systems Begin to Take Off
Wholesale and Retail Coffee Prices Fluctuate Up and Down
Figure 3-9: Average U.S. Retail Coffee Prices for Roasted Coffee,
 2003-2007 (in dollars)
Figure 3-10: Consumer Price Index and Producer Price Index for Coffee,
 2000-2008
Coffee Pricing Volatile
Raw Coffee Prices Soar into 2008
Table 3-5: Composite Green Coffee Prices, 2005-2008 (in cents per pound)
Looking Ahead
Importance of Environmental and Social Responsibility Will Grow
Opportunities for Coffee with Health and Wellness Benefits
Opportunities to Market Coffee to Hispanic Consumers
Figure 3-11: Projected Hispanic Population as Percent of Total U.S.
 Population
Table 3-6: High-Index Coffee Products and Brands Among Hispanic
 Consumers, 2007 (index)
Projected Market Growth
Coffee Sales Will Surpass $59 Billion by 2012
Table 3-7: Projected Total U.S. Sales of Coffee, 2007-2012 (in millions
 of dollars)
Foodservice Sales to Near $52 Billion
Table 3-8: Projected U.S. Sales of Coffee Through Foodservice Channels,
 2007-2012 (in millions of dollars)
Retail Sales Will Grow to Almost $7.8 Billion
Table 3-9: Projected U.S. Sales of Coffee Through Retail Channels, 2007-2012
 (in millions of dollars)
International Perspective
Coffee Popular Worldwide; U.S. Consumes One-Fifth
Table 3-10: Per Capita Consumption of Coffee in Top 10 Importing
 Countries vs. the United States, 2003-2007 (in kilograms of coffee beans)
U.S. Coffee Imports and Exports
Opportunities for U.S. Players
New Product Trends 

New in Japan
Functional Coffee Drinks
U.S. Potential a Mixed Bag

Chapter 4: The Marketers
Competitive Overview 

A Complex Marketing Structure
Hundreds of Marketers
Major Coffee Marketers 

Foodservice Cross-Over

Specialty Coffee Marketers
Hispanic-Style Coffee Marketers
Joint Ventures Provide Synergies 

The North American Coffee Partnership
Coca-Cola, Godiva, Caribou and More

Mergers, Acquisitions and Divestures Shape Industry
Competitive Positioning

Retail Marketer and Brand Shares
Methodology
Kraft, Procter & Gamble Dominate Mainstream Coffee
Folgers Captures One Out of Four Dollars
Figure 4-1: Top Packaged Coffee Brands by Share of Retail Dollar
 Sales, 2008 (percent)
P&G, Kraft Lead Ground Coffee Category
Figure 4-2: Top Brands of Regular Ground Coffee by Share of Retail
 Dollar Sales, 2008 (percent)
Ground Decaf Tips Scales at $258 Million
Figure 4-3: Top Brands of Ground Decaffeinated Coffee by Share of
 Retail Dollar Sales, 2008 (percent) 

The Up-and-Comer: Pods

Figure 4-4: Top Three Coffee Pod Brands by Share of Retail Dollar
 Sales, 2008 (percent)
Starbucks and Eight O'Clock Top Whole Bean Brands
Figure 4-5: Top Whole Bean Coffee Brands by Share of Retail Dollar
 Sales, 2008 (percent)
Instant Coffee a Declining Category
Figure 4-6: Top Brands of Regular Instant Coffee by Share of Retail
 Dollar Sales, 2008 (percent)
Instant Decaf Plunging Even Faster
Figure 4-7: Top Brands of Instant Decaffeinated Coffee by Share of
 Retail Dollar Sales, 2008 (percent)
Starbucks Dominates RTD Coffee
Figure 4-8: Top Brands of Ready-to-Drink Coffee by Share of Retail
 Dollar Sales, 2008 (percent)
Liquid Coffee Concentrates a Tiny Business at Retail
Table 4-1: Top Marketers and Brands of Packaged Coffee by IRI-Tracked
 Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-2: Share of IRI-Tracked Sales of Packaged Coffee by Marketer
 and Brand, 2003-2007 (in millions of dollars)
Table 4-3: Top Marketers and Brands of Regular Ground Coffee by
 IRI-Tracked Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-4: Share of IRI-Tracked Sales of Regular Ground Coffee by
 Marketer and Brand: 2003-2007 (in millions of dollars)
Table 4-5: Top Marketers and Brands of Ground Decaffeinated Coffee by
 IRI-Tracked Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-6: Share of IRI-Tracked Sales of Ground Decaffeinated Coffee by
 Marketer and Brand: 2003-2007 (in millions of dollars)
Table 4-7: Top Marketers and Brands of Whole Bean Coffee by IRI-Tracked
 Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-8: Share of IRI-Tracked Sales of Whole Bean Coffee: 2003-2007
 (in millions of dollars)
Table 4-9: Top Marketers and Brands of Regular Instant Coffee by
 IRI-Tracked Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-10: Share of IRI-Tracked Sales of Regular Instant Coffee:
 2003-2007 (in millions of dollars)
Table 4-11: Top Marketers and Brands of Instant Decaffeinated Coffee
 by RI-Tracked Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-12: Share of IRI-Tracked Sales of Instant Decaffeinated Coffee:
 2003-2007 (in millions of dollars)
Table 4-13: Top Marketers and Brands of Ready-to-Drink Coffee by 
 IRI-Tracked Sales and Share: 2007 vs. 2008 (in millions of dollars)
Table 4-14: Share of IRI-Tracked Sales of Ready-to-Drink Coffee: 2003-2007
 (in millions of dollars)
Chapter 5: Marketing and New Product Trends
Marketing Trends
Cross-Branding Foodservice and Retail Brands
Licensed Brands Another Popular Option
Sampling and Giveaways
Celebrity Spokespeople
Product Customization Is Customary
Packaging Innovations Emphasize Fresh, Convenience, Branding
New Product Trends
New Products Proliferate at Retail
Figure 5-1: Number of New Coffee Introductions, 2003-2008
The Top Retail Trends: Upscale, Organic/Natural, Single-Serve, Fair Trade
Figure 5-2: Number of New Coffee Introductions by Top Package Tags/Claims:
 2006 vs. 2007
Chapter 5: Marketing and New Product Trends (Cont.)
Table 5-1: Number of New Coffee Introductions by Package Tags/Claims,
 2003-2007
Higher Quality Coffee in Both Foodservice and Retail
Coffee for a Cause
Light vs. Dark Roasts
Flavored Coffees Becoming More Sophisticated
Single-Origin Coffees
Limited Editions
Hybrid Coffee/Energy Drinks and Other Spins 

Java Monster
Coca-Cola's Full Throttle
C-Store Push Includes 7-Eleven's Fusion Energy
Other Coffee Hybrids

Coffee the Latest Functional Beverage
Iced Coffee Hot in Foodservice
New Entries Brewing in Ready-to-Drink Coffee
In Retail, Private Label Has Room to Grow
Marketers Extending Single-Serve Coffee Options
Some Coffees Trade on the Novelty of their Names
Instant Coffee and Instant Specialty Coffee Bank of Convenience
Liquid Coffee Concentrates
Chapter 6: Distribution and Sales Channels
Foodservice Overview
Foodservice Venues
Foodservice Distribution Methods
Explosion of Foodservice Locations
Foodservice Sales Strongest in All Types of Restaurants
Table 6-1a: Share of Dollar Sales of Meals and Snacks Away from Home:
 By Type of Outlet, 2003-2006 (percent)
Table 6-1b: Share of Dollar Sales of Meals and Snacks Away from Home:
 By Type of Outlet, 2003-2006 (percent)
Restaurant Industry Sales Reach New Record 

What's Hot & What's Not

Foodservice Competition Grows
Table 6-2: Major U.S. Quick-Service Restaurants with a Strong Coffee
 Niche, 2007 (dollars, percent and number)
Coffeehouses on Every Corner
Starbucks the No. 1 Coffeehouse
QSRs Perk Up Their Coffee Offerings 

McDonald's Switches to Premium Coffee, Launches McCafes
Burger King Pioneers Premium Coffee with BK Joe
Dunkin' Donuts Leads QSRs in Coffee Servings
Wendy's Also Aiming to Be a Coffee Destination
Jack In The Box Another QSR Competitor

More Drive-Thrus and Customized Options, But Fuel Costs May Hamper Sales
Convenience Stores a Lively Competitor 

7-Eleven Plays Up Freshness
Sheetz Offers Barista-Staffed Coffee Bars
At ExxonMobil, 'Serious Gourmet Coffee Without the Fuss'
Hess and Pantry Gourmet Offers Co-Branded Takes
Walgreen Tests Cafe W

Licensed Cafes and Kiosks 

Books Go Better with Cafes
Mountain Mudd Franchises its Concept to C-Stores

Office Coffee Service an Important Perk
Vending Machines Lagging Behind 

Starbucks to Field Vending Machines

Hotel Coffee Programs
Airline Coffee Programs
Retail Overview
Retail Distribution Methods
Smaller Marketers Work Through Brokers
Types of Retail Outlets
Supermarkets Lead Retail Market for Packaged Coffee
Mass Merchandisers and Supercenters
Warehouse Clubs
Gourmet/Specialty Food Stores 

The Balducci's Example

Health and Natural Food Stores
Internet, Mail Order, and Subscriptions
Chapter 7: Competitor Profiles
Competitor Profile: Caribou Coffee Co., Inc.
Company Overview
Expansion Strategy 

2008 Initiatives

Competitor Profile: Dunkin' Brands, Inc.
Company Overview 

A Competitive Upstart
Advertising Push

The Dunkin' Donuts Consumer
Dunkin' Donuts Coffee and Donuts at More Locations
Retail Expansion Also on the Menu
Strategic Alliances Build a Branded Presence
Competitor Profile: Green Mountain Coffee Roasters, Inc.
Company Overview
Balanced, Multichannel Distribution
The Keurig Connection
Social Responsibility a Strong Driver
Competitor Profile: Kraft Foods, Inc.
Company Overview
Maxwell House 

The Arabica Advertising Push

Yuban
Sanka
General Foods International Coffee Mixes
Starbucks Agreement
Gevalia Kaffe
Kraft Expands Tassimo Home Brewing System 


Kraft Launches Advertising "Webisodes"

Competitor Profile: McDonald's Corp.
Company Overview
McDonald's Upgrades Its Coffee...
...and Takes on Starbucks
Advertising Approaches
McCafes Abroad
Competitor Profile: Massimo Zanetti Beverage USA, Inc.
Company Overview
Chock full o'Nuts: A New York Favorite
Hills Bros. Popular with Heavy Coffee Drinkers
MJB Premium Coffee in the Pacific Northwest
Chase & Sanborn Offers Affordable Price
Cafes and Foodservice
Competitor Profile: Nestle USA, Inc.
Company Overview
Nestle Leads Instant Coffee Market
Nestle Plans to Expand its Nespresso Espresso System
Competitor Profile: Peet's Coffee & Tea, Inc.
Company Overview
It's All About the Coffee
Peet's Retail Stores
Peet's Expands to Grocery Channels, and Eastward
Peet's in Foodservice
Competitor Profile: The Procter & Gamble Co.
Company Overview
Mainstream Folgers the Nation's Leading Coffee Brand
Millstone, P&G's Mass-Gourmet Brand
P&G Partners with Dunkin' Donuts
P&G Sells Folgers Unit to Smucker
Competitor Profile: Sara Lee Corp.
Company Overview
Sara Lee Exits U.S. Retail Coffee Business...
...But Keeps Senseo
Company Is Largest Foodservice Player
Sara Lee Thrives in Coffee Internationally
Competitor Profile: The J.M. Smucker Co.
Company Overview
Smucker Buys Folgers Coffee Business
Competitor Profile: Starbucks Corp.
Company Overview
Expansion Through Acquisitions
The Starbucks Coffeehouse Phenomenon
Starbucks Expands Drive-Thrus
Foodservice Operations
Profitable Partnerships in Consumer Packaged Goods 

Kraft Markets Starbucks' Ground and Whole Bean Coffee
The North American Coffee Partnership
Other Partnerships, Other Products

Starbucks Tests Vending and Self-Serve Kiosks
Starbucks Reevaluates and Regroups 

Company Brings Back Howard Schultz, Shutters 600 Stores
Starbucks Takes Time Out to Retrain Baristas
Strategic Initiatives

Starbucks Begins Perks for Loyal Customers
"My Starbucks Idea" Yields Viable Suggestions
Starbucks Criticized on a Number of Fronts
Starbucks Lowers Financial Expectations
Starbucks Launches Pike Place Roast and Other New Products 

Starbucks Limited Reserve
New Products, Including Health/Weight Targeted Ones

Three New Beverage Platforms for a Transformation Agenda
Starbucks Boosts Advertising
Social Responsibility
Employees Win Lawsuit
Chapter 8: The Consumer
The Consumer
Coffee Tops List of America's Favorite Beverages
80% of Adults Drink Coffee
Table 8-1: Annual Consumption of Coffee by Type, 2004-2008
 (percent of U.S. adults)
Daily Consumption of Gourmet Coffee at an Unprecedented High
The Coffee Generation Gap
Figure 8-1: Daily Coffee Consumption by Age, 2004-2008 
 (percent of U.S. adults)
QSR Magazine Survey of Fast-Food Consumers
Where Coffee Is Consumed
How Consumers Get Their Morning Java Jolt
Figure 8-2: How Consumers Get Their Morning Java Jolt, 2008 (percent)
Consumers Buy Coffee on Auto-Pilot
Consumer Use and Demographics
Simmons Consumer Survey
Foodservice Coffee Drinkers
Figure 8-3: Leading Fast-Food and Drive-In Chains, 2007 (percent of
 U.S. adults)
Packaged Coffee Purchasers
Figure 8-4: Coffee Usage Rates by Product Type, 2007 (percent of U.S.
 households)
Demographic Indicators by Product Type
Regular vs. Decaf Users
27% of All Households Drink Three to Six Cups of Coffee Daily
Figure 8-5: Trended Use of Ground or Whole Bean Coffee: By Heavy,
 Average and Light User Households, 2003-2007 (percent of total U.S.
 households)
Demographic Indicators for Heavy, Average and Light User Households
One out of Four Households Use Folgers Ground or Whole Bean Coffee
Figure 8-6: Leading Packaged Coffee Products and Brands by Usage
 Rates, 2007 (percent of U.S. households)
A Detailed Look at Coffee Usage
Demographic Indicators by Product and Brand
Consumer Attitudes and Shopping Behavior
Organic Coffee and Tea Purchasers
Figure 8-7: Top Organic Grocery Categories, 2008 (percent of U.S. adults)
Figure 8-8: Top Retail Chains for Organic Grocery Categories: Percent of
 Organic Grocery Shoppers Purchasing Most Often at That Chain, 2008
 (U.S. adults)
Table 8-2: Top Demographic Indicators for Selected Fast-Food and
 Drive-In Chains, 2007 (index)
Table 8-3: Trended Number of Coffee Users by Product Type, 2003-2007
 (U.S. households)
Table 8-4: Top Demographic Indicators for Coffee by Product Type, 2007
 (index)
Table 8-5: Trended Number of Coffee Users, Regular vs. Decaffeinated,
 2003-2007 (U.S. households)
Table 8-6: Top Demographic Indicators for Ground or Whole Bean Coffee 
 Use: By Heavy, Average and Light User Households, 2007 (index)
Table 8-7: Usage Rates for Packaged Coffee by Product Type and Brand,
 2007 (percent of U.S. households)
Table 8-8: Top Demographic Indicators for Selected Ground Coffee Brands,
 2007 (index)
Table 8-9: Top Demographic Indicators for Selected Ready-to-Drink (RTD)
 Coffee Brands, 2007 (index)
Table 8-10: Top Demographic Indicators for Selected Instant/Freeze-Dried
 Coffee Brands, 2007 (index)
Table 8-11: Top Demographic Indicators for Selected Espresso/Cappuccino
 Brands, 2007 (index)
Table 8-12: Top Demographic Indicators for Selected Instant Specialty
 Coffee Mix Brands, 2007 (index)
Table 8-13a: Shopper Indexes by Type of Coffee: Eating and Shopping
 Attitudes and Behavior, 2007 (U.S. households)
Table 8-13b: Shopper Indexes by Type of Coffee by Attitudes and
 Shopping Behavior, 2007 (U.S. households)

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Coffee in the U.S.: Retail, Foodservice and Consumer Trends

http://www.reportlinker.com/p096417/Coffee-in-the-US-Retail-Foodservice-and-Consumer-Trends.html

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