Coffee, like blue jeans and rock & roll, is an integral component of American culture. Despite its late arrival on the coffee scene, the United States has subsequently changed it, from the launch of Starbucks to the present renaissance in coffee traditions and expertise. A famous mythology says that a goat herder named Kaldi discovered coffee beans on the Ethiopian plateau hundreds of years ago. His goats, which fed on the ancient fruit-bearing plants, ran around full of enthusiasm. Kaldi had a similar experience after testing the fruit himself, and he shared his discovery with a local monastery, and the word of the natural stimulant travelled swiftly across the continent. By the 15th century, coffee was being grown and traded in Arabia, and the beans were roasted and brewed after being stripped of their pulp shell. Public coffee cafes, known as Qahveh Khaneh, grew up across the east as locations for people to exchange information over a cup of the popular beverage. Coffee quickly became the preferred morning beverage over beer and wine in Europe, and by the mid-1600s, London had over 300 coffee houses, many of which were frequented by prominent painters, writers, and intellectuals. The British ultimately introduced coffee to the New World in the mid-17th century. The demand for coffee grew, and after the Dutch secured coffee seeds around the end of the 1600s, coffee growing spread outside of Arabia for the first time. By the 18th century, coffee was one of the world's most profitable commodities. Consumption and popularity in the United States soared, particularly during the Civil War, and astute businesses sought a way to profit from it. By the 19th century, it had become the driving force behind the Industrial Revolution, keeping manufacturing workers attentive and productive. The development of instant coffee during World Wars I and II democratised the beverage, making it available to both soldiers and civilians. Instant coffee became popular, and it stayed so until Starbucks launched in Seattle in 1971.
According to the research report "United States Coffee Market Overview, 2029," published by Bonafide Research, the United States coffee market was valued at more than USD 25 Billion in 2023. The online coffee market is ripe for growth, with e-commerce giants like Amazon and direct-to-consumer platforms like Blue Bottle Coffee catering to modern consumers' convenience and customisation desires. Coffee events like the Coffee Fest and barista contests like the US Coffee Championships highlight the industry's creativity and innovation, connecting brands with customers and promoting a sense of community. Specialty coffee, noted for its high-quality beans and rigorous brewing processes, is expected to be the fastest-growing market, while ready-to-drink, which includes practical options such as packaged lattes and cold brew, is also expected to increase significantly. Rising disposable incomes, hectic lives, and the ubiquitous presence of coffee shops such as Starbucks and Dunkin' Donuts are driving up demand for this aromatic beverage. However, the market confronts its own set of obstacles. Coffee bean price volatility, caused by variables such as weather and political instability in major producing countries, can have a considerable impact on the business. Climate change offers a long-term threat to coffee production worldwide, while labour shortages in cafes caused by factors such as minimum wage increases can disrupt operations and stifle growth. Pandemic-driven home brewing resulted in unprecedented coffee consumption in 2021. In 2022, cafes faced labour shortages and inflation, with oat milk lattes dominating menus. The year 2023 saw a rise in automation and cold brew popularity. The pandemic originally impacted the coffee shop industry but also increased homebrewing and online sales. The increased focus on health and wellbeing fueled coffee consumption even more.
The coffee market is divided into five segments based on product type; instant coffee, ground coffee, whole beans, coffee pods, and capsules. Instant coffee has the largest market size, while coffee pods and capsules are increasing at the fastest CAGR. Instant coffee, the first convenience product, provides quick fixes in the form of pre-brewed granules, making it ideal for those bleary-eyed mornings. Ground coffee, the traditional option, necessitates a ritual—the pleasing grind, the gurgle of the brewer—before producing a powerful, customised cup. For purists, whole beans reign supreme, delivering peak freshness and the freedom to grind to personal tastes. The proliferation of single-serve machines has resulted in coffee pods and capsules, which are pre-portioned bundles of ground coffee sealed for mess-free convenience and provide a nuanced caffeine dose without the hassle.
A Bonafide Research industry report provides in-depth market analysis, trends, competitive insights, and strategic recommendations to help businesses make informed decisions.
Download SampleWe are friendly and approachable, give us a call.