The U.S. Liquid Coffee For Foodservice Application Market, estimated at USD 17.3 Mn in 2025, is expected to exhibit a CAGR of 4.8% and reach USD 24.0 Mn by 2032.
The Food and Beverages sector is driving global growth, balancing rising consumer demand for sustainable, healthier options with industry investments in digital transformation, e-commerce, and supply chain innovation.
Drivers
Several people are drinking coffee out-of-home, which has led to an increasing number of coffee shops across the country. For instance, according to the National Coffee Association’s (NCA) 2020 National Coffee Drinking Trends report, more people are drinking coffee out of home than ever, reaching a high of 46% in 2020. New coffee shops are opening across the U.S. to meet this increasing demand. Moreover, according to NCA, in 2020, there were 33,129 gourmet coffee shops in the U.S., an increase of 2% in units from 2019.
Major brands are also opening their outlets on university campuses in order to meet the increasing demand for coffee. For instance, in 2020, Pret A Manger (an international sandwich shop franchise chain) entered into a franchise agreement with Bon Appétit Management (a California-based on-site restaurant company that provides café and catering services to corporations, colleges, and universities) to open outlets at university campuses in the U.S. In the initial stage, they opened outlets at the University of Pennsylvania and the University of Chicago. The outlets offer a range of organic coffees, salads, and sandwiches.
Market Restraints
Increasing penetration of single-cup brewers in households is expected to hamper market growth of liquid coffee for foodservice applications during the forecast period. For instance, according to the National Coffee Association (NCA), one-third of American households owned a single-cup brewer in 2020, up from 29% in 2019. Thirteen-to 18-year-olds reported that single-cup ownership in their households jumped from 23% to 31% over the last two years.
Key Trends and Analysis of the U.S. Liquid Coffee for Foodservice Application Market:
- There has been an increasing demand for flavored coffee drinks, especially among younger consumers. To meet this increasing demand, coffee outlets or chains are launching new products, which also helps them to expand their product portfolio. For instance, in January 2020, Starbucks Corporation launched an almond milk honey flat white and a coconut milk latte. The beverages were added to the permanent menu in stores in the U.S. and Canada as part of the new winter food and beverage lineup. The almond milk honey flat white combines shots of blonde espresso with a honey blend and steamed almond milk. For the coconut milk latte, the beverage is crafted using shots of Starbucks blonde espresso combined with steamed coconut milk and finished with a strike of cascara sugar.
- The increasing inclination of customers towards ordering food online is further expected to drive growth in the U.S. liquid coffee for foodservice applications market. Owing to rising home delivery and online ordering trends. For instance, the study by Coherent Market Insights' suggests that contactless ordering has become a priority and that over 45% of customers prefer online ordering for off-premise orders. Moreover, the study also suggests that fast casual, quick-service, coffee stores, snack stores, and other food service outlets in the U.S. have experienced a major uptick in off-premise sales compared to the pre-pandemic period.