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Euromonitor International
December 2020
COFFEE IN THE US Passport i
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COFFEE IN THE US Passport 1
COFFEE IN THE US
KEY DATA FINDINGS
▪ Coffee suffers from a widespread loss of on-trade consumption occasions due to disruption to
this channel from COVID-19 in 2020, with higher off-trade consumption unable to prevent a
total volume decline
▪ Off-trade current value sales of coffee increase by 5% in 2020 to reach USD14.9 billion, whilst
off-trade volume sales increase by 4% to reach 820,783 tonnes
▪ On-trade volume sales of coffee see a steep sales decline in 2020, falling by 32% to reach
128,947 tonnes, contributing to a total volume decline of 3%
▪ Keurig Dr Pepper maintains its leading position in coffee in 2020, with a 22% off-trade value
share
▪ Over the forecast period, off-trade sales of coffee are expected to increase by a current value
CAGR of 3% (1% 2020 constant value CAGR), and off-trade volume sales are expected to
increase by a CAGR of 1%, to reach USD17.2 billion and 853,586 tonnes
2020 IMPACT
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economic concerns were also a priority. As a result, average unit prices have risen in the off-
trade channel in 2020, after several years of decline, as consumers tried to recreate a premium
coffee experience at home.
In terms of categories, this has meant a stronger off-trade volume growth rate for fresh coffee,
especially fresh ground coffee pods, than for instant coffee. The latter is also a much smaller
category, with such products purchased mainly by lower-income consumers as a cheap
alternative to standard ground coffee. The move to more premium products has also led to a
trend towards coffee shop brands, which are most often premium-priced, and through which
consumers have tried to recreate the on-trade experience and flavour at home. For instance,
branded coffee pods from Starbucks (from category leader Keurig Dr Pepper) and Dunkin’
Donuts (from second-placed The JM Smucker Co), and the premium Nespresso brand (from
third-placed Nestlé), have seen some of the highest growth rates amongst coffee brands in off-
trade value terms in 2020. Most brands have also seen a drop in unit prices, as consumers
chose larger pack sizes and multipacks, although the higher rate of premium coffee purchases
has contributed to a modest increase in off-trade unit prices. Nevertheless, some level of
polarisation has been seen, as at the other end of the spectrum consumers have moved
towards the cheapest products, including private label lines. With job losses and lower incomes
due to COVID-19, some consumers became particularly price-conscious, which has increased
the combined share of private label in 2020. Brands in the middle have suffered falling shares
as a result.
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buying coffee in foodservice. However, even though off-trade sales of coffee are generally quite
stable, given both its relative affordability as well as importance to consumers, by the end of the
forecast period even off-trade growth rates are set to turn to decline due to maturity and the
return to on-trade, whilst value sales are expected to continue to rise as consumers turn to
better-quality coffee. For this reason, fresh coffee is expected to see a positive off-trade volume
CAGR in the forecast period, whilst instant coffee is set to return to decline in 2021, and this is
set to continue for the rest of the forecast period. As in 2020, fresh ground coffee pods is
forecast to see the best performance, as along with quality, consumers will continue to demand
convenience. The continued off-trade growth at the beginning of the forecast period, combined
with a return to on-trade consumption, will ensure a return to the pre-COVID-19 level of total
volume sales of coffee as early as 2021.
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CATEGORY DATA
Table 1 Retail Sales of Coffee by Category: Volume 2015-2020
Tonnes
2015 2016 2017 2018 2019 2020
USD million
2015 2016 2017 2018 2019 2020
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% volume growth
2019/20 2015-20 CAGR 2015/20 Total
% retail volume
2015 2016 2017 2018 2019 2020
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Table 6 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2015-
2020
% retail volume
2015 2016 2017 2018 2019 2020
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Tonnes
2020 2021 2022 2023 2024 2025
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USD million
2020 2021 2022 2023 2024 2025
% volume growth
2020/21 2020-25 CAGR 2020/25 Total
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% retail volume
2020 2021 2022 2023 2024 2025
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