Table of ContentsCOFFEE MARKET OVERVIEW 4Coffee: World Markets and Trade 4Brazil Dominates the Exports 5Brazil dominates global production 6USA Coffee Consumption 7How many cups of coffee are consumed daily in theUS? 7What percentage of people drink coffee? 7How much coffee does the average person drink? 8Miscellaneous 8Market Scope 8Key Players 9Segmentation Analysis 9Industry Innovation 9Regional Analysis 9U.S. COFFEE MARKET – STATISTICS & FACTS 10Market Overview 11US Coffee Market Grew to US$87-88 Billion in 2018 11US coffee shop market grows to $45.4bn in 2018 12Premium demand drives innovation 12Americans Are Drinking More Coffee Than Ever 13How Many People Drink Coffee? 13So, How Many People Do Drink Coffee in the U.S? So, HowMany People Do Drink Coffee in the U.S? 14The Most Amazing Coffee Statistics 15US Coffee Consumption Statistics 15Coffee Drinker Demographics 16Consumer Behaviour 16The Coffee Market 17Coffee Shops 18COFFEE SHOP INDUSTRY – A STRATEGICANALYSIS 19Outlook for Coffee in US 20How is the Industry Trending in the US? 21Market Share in the US 21Industry SWOT Analysis 22Coffee & Snack Shops in the US Market Size 2010–2020 23

Questions Clients Ask About This Industry 23Coffee & Snack Shops Number of Businesses 2010–2020 24Questions Clients Ask About This Industry 25Coffee & Snack Shops Employment Statistics 2010 –2020 25Coffee & Snack Shops Wage Statistics 2010 – 2020 26Questions Clients Ask About This Industry 26Competitive Landscape 27Customer Overview 27U.S. coffee shops: market share 28Competitive Forces that impact competition (PorterModel) 28Competition within the Coffee Shop Industry 28Substitute Products 29Barriers to Entry 29Power of Suppliers 29Power of Customers 30Driving Factors that are causing the industry’s structure tochange 30Key factors that determine success in the future 31Coffee Shop Target Market 32Coffee Shop Target Market: Coffee Shop Lovers 33Coffee Shop Target Market: Specialty Coffee Lovers 34Coffee Shop Target Market: Whole Bean Lovers 34Key Market Trends 35Green Coffee as a Weight Loss Beverage 35Increasing Usage of Single Serve Coffee inHouseholds 35Growth 35Cold Brew 36Nitro Coffee 36Organic Coffee 36Trendy new coffee flavours 36Ready-to-drink coffee 37Technology to make your business more efficient 37Infographic: The Behaviors & Perceptions of US CoffeeDrinkers 38The Average Profits for a Small Café 41COFFEE STORE FRANCHISES INDUSTRY INUSA 42Coffee Store Franchises in the US industry statistics 43Biggest companies in the Coffee Store Franchises industry in

the US 43Coffee Store Franchises in the US Market Size 2010 –2020 43Coffee Store Franchises Businesses 2010 – 2020 45Questions Clients Ask About This Industry 45Coffee Store Franchises Employment Statistics 46Coffee Store Franchises Wage Statistics 2010 –2020 47Questions Clients Ask About This Industry 47COFFEE BEANS MARKET 48Key Findings of the Coffee Beans Market: 50Product Insights 51Application Insights 51Regional Insights 52Coffee Beans Market Share Insights 52BEST COFFEE CITIES IN AMERICA 53Infographics: Best Coffee Cities in America 54Coffee Shops Nationwide 56Ranking of USA states based of Coffee Shops 60These Cities Have the Most Coffee Shops Per Person 65

COFFEE MARKET OVERVIEW Coffee is the most popular beverage in the world, with morethan 400 billion cups consumed each year. More than 450million cups of coffee are consumed in the United Statesevery day.

• About half of the people in the United States over the ageof 18 (that's 107 million) drink coffee every day. Onaverage, each coffee drinker consumes three and a halfcups each day.

• As early as the ninth century, people in the Ethiopianhighlands were making a stout drink from ground coffeebeans boiled in water.

• Coffee is grown in more than 50 countries in SouthAmerica, Central America, Asia, Africa, and theCaribbean.

• In 1971, a group of Seattle-based entrepreneurs opened acoffee shop called Starbucks. Today there are more than6,000 Starbucks outlets in the United States. The chainalso operates stores in 36 other countries.

• Nearly 25 million farmers worldwide depend on coffeecrops for their economic livelihood.

• Coffee contains caffeine, the stimulant that gives you that"lift." Caffeine is the most popular drug in the world, and90 percent of people in the United States consume it insome form every day.

• Despite what you may believe, dark-roast coffee has lesscaffeine than coffee that's been lightly roasted.

• Scandinavia boasts the highest per-capita coffeeconsumption in the world. On average, people in Finlanddrink more than four cups of coffee a day.

• After oil, coffee is the world's second-most-valuablecommodity exported by developing countries. The globalcoffee industry earns an estimated $60 billion annually.

Coffee: World Markets and Trade World coffee production for 2019/20 is forecast 5.3 millionbags (60 kilograms) lower than the previous year to 169.3million, primarily due to Brazil’s Arabica trees entering theoff-year of the biennial production cycle. World exports areexpected down 4.7 million bags to 115.4 million primarily dueto lower shipments from Brazil and Honduras. With globalconsumption forecast at a record 166.4 million bags, endinginventories are expected to slip 400,000 bags to 35.0 million.Coffee prices, as measured by the International CoffeeOrganization (ICO) monthly composite price index, droppedto $0.93 per pound in May 2019, the lowest since September2006, but rebounded 15 percent to $1.07 by November 2019as supplies tighten

Source: USDA

Brazil Dominates the Exports Brazil accounts for 26% of global raw coffee beans exports.The four types of coffee beans are arabica, robusta, Liberia,and excels. Arabica coffee beans are produced more in Braziland robusta in Vietnam. There has been an escalation indemand for coffee beans market, as the existence of morenumber of coffee shop chains in many large populatedcountries has triggered the consumption of coffee.Export revenues mainly from coffee have declined over theyears in Brazil, due to the expansion of other industrialsectors. However, Brazil still continues to be the major marketfor coffee beans due to already well-established productionand export systems of coffee in the country.

Brazil

dominates global production Brazil holds a share of 36% of the coffee production,worldwide, followed by Vietnam and Colombia. The crop firstarrived in Brazil in the 18th century and had become thedominant producer of coffee beans. Coffee plantation in

Brazil covers about 10,000 square miles. It monopolized theinternational coffee market and accounts for 80% of themarket, it has exported between 32 million and 33 millionbags in 2014. Brazil is the largest producer and exporter ofcoffee beans in the world. It has produced 3,090,000 metricton and has exported 1,649,487 metric ton. The majorcountries that import raw coffee beans from Brazil in terms ofvalues, as of 2017, are United States (USD 921,697),Germany (USD 879,183), Italy (USD 491,040), Japan (USD323,977) among others. The share in the value of the UnitedStates in 2015 is 21.3% and it got reduced to 20% in 2017,Germany has 19% in 2015, and 19.1% in 2017. Brazil is alsothe second largest consumer of coffee.

Source:Mordor

Intellegence USA Coffee Consumption The United States imports the second-largest amount of coffeebeans in the world, and is forecast to jump 2.4 million bags to27.0 million. Ending stocks are forecast to gain 600,000 bagsto 7.2 million.The top U.S. coffee supplying countries are:

• Brazil – 23%• Colombia – 22%• Vietnam – 15%• Honduras – 6%

Coffee Market Size to Reach USD 102,279.2 Million by 2023at 4.32% CAGRCoffee Market is poised to touch USD 102,279.2 Mn by 2023at an impressive 4.32% CAGR during the forecast period(2018-2023), reveals the latest report by Market ResearchFuture (MRFR).Coffee is a beverage being largely consumed by the millennialpopulace. The popularity of the drink combined with itspreparation in a variety of ways has led to its proliferationglobally.Specialty coffee sales are increasing by 20% per year andaccount for nearly 8% of the 18 billion dollar U.S. coffeemarket.Coffee statistics show that among coffee drinkers the averageconsumption in the United States is 3.1 cups of coffee per day.How many cups of coffee are consumed daily in the US? Coffee Statistics: 50% of the population, equivalent to 150million Americans, drink espresso, cappuccino, latte, oriced/cold coffees.Coffee Shop Facts: Independent coffee shops equal $12billion in annual sales.At the present time there are approximately 24,000 CoffeeShops across the country.Statistics show there will be approximately 50,000+ CoffeeShops within the years to follow.The average Espresso Drive-thru Business sells approximately200-300 Cups of Espresso and Coffee Based Drinks per day.What percentage of people drink coffee? Coffee Consumption: Over 50% of Americans over 18 yearsof age drink coffee every day. This represents over 150million daily drinkers. 30 million American adults drinkspecialty coffee beverages daily; which include a mocha, latte,espresso, café mocha, cappuccino, frozen/iced coffeebeverages, etc.Average Espresso Price: The average price for an espressobased drink is $3.45Average Coffee Price: The average price for brewed coffee is

$2.38.How much coffee does the average person drink? Coffee Cup Consumption Per Day: Men drink as muchcoffee as women; each consuming an average of 1.6 cups perday. Women seem to be more concerned about the price thanmen. Among coffee drinkers, the average consumption in theUnited States is 3.2 cups of coffee per day.Average Cup Size: The average coffee cup size is 9 ounces.30% of the population drinks coffee occasionally.Time of Day: 65% of all coffee is consumed during breakfasthours, 30% between meals, and the remaining 5% with othermeals.Preferences: 35% of coffee drinkers prefer black coffee. 65%prefer to add sugar and/or cream.Miscellaneous The United States imports in excess of $4 Billion worth ofcoffee per year.Americans consume 400 million cups of coffee per daymaking the United States the leading consumer of coffee inthe world.On an average, 250 Cups of espresso and coffee drinks aresold per day at almost any espresso drive-thru business with agreat visible location. (500 cups per day is extraordinary.)Independent coffee shops manage to sell 31% of espresso-based drinks, while the rest is brewed coffee.Source: e-ImportzMarket Scope The global coffee market is predicted to expand at 4.32%CAGR from 2018 to 2023 (forecast period), as per the latestreport by Market Research Future (MRFR). It is consumed inhigh volume thanks to its caffeine content, taste, andmouthfeel. MRFR projects its valuation to touch USD102,279.2 million by 2023.Urbanization has led to the emergence of coffee shops whichis likely to drive the sales in the coffee market. The rise ofnew retail outlets which act as a focal point for meetings andoffer coffee in various styles to appeal to consumer tastes canaugur well for the market. Launch of new brews, changingtastes of consumers, and rise in disposable incomes ofconsumers are other factors deemed to spur the market growth

over the forecast period. The massive growth is indicated bythe growing yields of coffee-producing nations such as India,China, Kenya, and Senegal.Fluctuating prices of coffee beans can act as a possible growthdeterrent. But large beverage manufacturers are showingincreasing interest in the hot beverages segment. This isinstanced with the acquisition of the Costa retail chain byCoca-Cola in August 2018 to increase its share in the highlycompetitive market. Key Players Major producers in the coffee market include Nestlé SA(Switzerland), Tchibo Coffee International Ltd (U.K.), TheKraft Heinz Company (U.S.), Strauss Group Ltd (Israel), TheCoca Cola Company (U.S.), Tata Global Beverages Ltd(India), Jacobs Douwe Egberts (The Netherlands), J.M.Smucker Company (U.S.), Unilever PLC (U.K.), andStarbucks Corporation (U.S.).Segmentation Analysis The global coffee market is segmented by variety, form, anddistribution channel.By variety, Robusta is expected to exhibit an exemplarygrowth on account of containing high amounts of asparagine,which is deemed to be vital in brain development. The needfor instant coffee mixes is expected to propel the demand forRobusta in the forthcoming years. On the other hand, Arabicacan display 4.07% CAGR over the assessment period.By form, ground held the largest share of the coffee market in2017. It will continue to be the favored form till 2023. Thesegment can exhibit 4.45% CAGR over the review period togarner a value of USD 63,644.5 million. On the flip side, thewhole form is projected to expand at 4.12% CAGR over theassessment period to touch a value of USD 38,634.7 million.By distribution channel, the non-store based channel isexpected to exhibit 4.59% CAGR over the assessment periodto touch a size of USD 30,592.9 million by 2023. This can becredited to the slew of ecommerce stores available which offera plethora of coffee mixes at affordable rates. Moreover, thismode is likely to net in higher revenues and consumermindshare thanks to consumers able to access them via

smartphones.Industry Innovation Coffee pods are containers which contain pre-packaged orgrounded Coffee Market which can dole out portions for asingle person. In addition, efforts by manufacturers fordeveloping recyclable pods which can play a major role insustainability initiatives of various countries is expected tospur the coffee market growth. For instance, Nespresso haspartnered with Ag Choice for recycling aluminum pods.Ready-to-drink brews are another strategy by coffeemanufacturers in gaining customer attention. The indulgenceof customers in cold beverages coupled with their partnershipwith respected retail chains can ensure high bottom linemargins.Regional Analysis Regions taken under consideration with respect to the coffeemarket include North America, Europe, Asia Pacific, andRest-of-the-World (RoW).The North American region is expected to display a stellarCAGR of 23.88% during the review period to generate USD24,277.8 million for the coffee market. The consumption ofArabica blend of coffee and launch of new offerings by coffeemanufacturers are factors expected to usher in massivedemand for the market. Promotional activities via socialmedia or print channels for enticing customers is likely to netin significant revenues.The APAC coffee market is envisioned to be highly lucrativedue to the growth in middle-class and rapid urbanization. Theregion can exhibit 4.94% CAGR over the review period toattain a valuation of USD 28,031.9 million by 2023. Inaddition, the conferring of geographical indicator (GI) to localvarieties of coffee for promoting the domestic flavors isexpected to bode well for the market. The willingness ofconsumers to pay for premium blends is a good indicator formanufacturers to invest in R&D to capitalize on the trend.Source: Market Research Future

U.S. COFFEE MARKET – STATISTICS & FACTS Coffee is one of the most widely consumed beveragesworldwide and in the United States. Millions of consumers allacross the country cannot imagine starting their day without a

hot cup of coffee. The plant naturally contains caffeine, whichcan vary sharply between individual plants. The market issegmented into growers, roasters and retailers. On the coffee-growing level, South America was ranked as the major coffee-producing region. Thereof, Brazil produced about 61.7 million60 kg bags of coffee. Other major coffee producers wereVietnam and Columbia.On the U.S. retail level, the top selling coffee product was drycoffee, which generated 9.37 billion U.S. dollars in sales,while liquid coffee generated about 2.66 billion dollars insales. Primary ground coffee brands for the at-home coffeesegment included Folgers and Maxwell House, based on sales.Folgers is owned by The J.M. Smucker Co. and accounted for1.09 billion U.S. dollars in 2018.

Although people have been drinking coffee for hundreds ofyears, there are still new trends entering the market everyyear, such as cold brew coffee and nitro coffee. Cold brewcoffee is, as the name implies, brewed with cold or roomtemperature water over an entire day and has a higher caffeineconcentration than regular coffee. Nitro coffee is infused withnitrogen and can be served like beer. In 2017, cold brewcoffee experienced an 80 percent growth in sales compared tothe previous year, while hot coffee saw a three percentdecrease in sales.

Recent statistics show that American consumers drank onaverage about two cups of coffee per day. The majority of thecoffee was consumed at home, followed by the work place.When asked why they usually drink coffee, the most U.S.consumers stated that they often drink the "black gold" simplybecause they like the taste.Source: Statista Market Overview US Coffee Market Grew to US$87-88 Billion in 2018

Overall:• The retail value of the US coffee market continues to

grow, reaching US$87-88 billion in 2018• Most retail sales of coffee in the US come from the “Away

From Home” segment• “Away From Home” retail sales was almost US$74 billion,

while sales of coffee purchased for At Homeconsumption was US$14 billion

Away From Home:Coffeehouses continue to be a significant place ofconsumption out of the home, with sales at US$26.3 billion.Starbucks made up almost half of the total coffeehouse sales.Source: SCA NewsUnited States Coffee Market is forecasted to grow at a CAGRof 8.1% during the forecast period (2019-2024).

• Coffee is among the most consumed beverages in thecountry. The average consumption of coffee is almosttwo cups per day. In the United States, ready-to-drinkcoffee products are booming, hence boosting the demandfor instant coffee, as it is easy and convenient to prepareat home.

• As per the survey conducted by the National CoffeeAssociation in the United States, more than 70% of theconsumers prefer at-home coffee preparation. There hasbeen a gradual shift observed from soft drinks to coffeedrinks among consumers

US coffee shop market grows to $45.4bn in 2018 The US coffee market has increased in volume by 3.8%over the last 12 months, with growth set to continue,according to Allegra World Coffee Portal’s 2019 ProjectCafé USA report.

After surveying more than 5,000 US consumers and 50industry insiders, Allegra determined that the US coffee shopmarket grew to a $45.4bn valuation this year and that there arenow 35,616 stores nationwide.The report revealed that industry leaders are positive onmarket conditions, anticipating 40,800 outlets by 2023 with a5-year CAGR growth of 2.8%. But the industry also sees ahigh staff turnover rate, with labor costs and increasedcompetition cited among main challenges for the coming year.Allegra predicts a ‘5th wave sector’ will continue shaping thepremium coffee market due to increasing consumersophistication and larger multinational investments. It definesthe 5th wave as the Business of Coffee driven by focus andexcellence from smart boutique concepts. This recent erafollows the 4th wave Science of Coffee, which Allegra sayswas driven by science and roasting obsession born fromcustom, in-house brews. "The 5th Wave is characterised by hyper-professionalism,operational excellence, investment in technology, and trainingand people development programmes – ultimately supportingvaluable career paths for a new breed of hospitalityprofessionals," Allegra said.“An influx of international investment is pushing once nicheartisan principles into the mainstream across the US coffeeand food-focused sectors, with premiumization a keymarketing strategy deployed to sustain growth.” Premium demand drives innovation Nearly 60% of US consumers visited a branded coffee shopchain at least once a month in 2018, according to the report,though comparable sales among the top chains are flattening.The three largest coffee-focused chains are Starbucks,Dunkin’ Donuts and Tim Hortons, and they comprise 68.1%of the total branded market. Starbucks comes out on top witha 40.1% hold on the total branded coffee shop market, by farthe largest.These top chains are being influenced by consumer demandfor premium products and experiences, broadening theirspecialty coffee options and emphasizing quality. About aquarter of consumers said coffee quality is the biggest reasonbehind a repeat coffee shop visit. The industry insiderssurveyed by Allegra believe this to be the biggest continuingtrend in the coffee sector.

It’s a competitive market that fights to maintain consumerswho are becoming increasingly particular with how theyspend their money.“Operators must successfully combine convenience, coffeequality and good location to maintain footfall, with loyaltyapps, product diversity and a compelling brand USP allessential factors to success,” Allegra said.Source: Beverage Daily Americans Are Drinking More Coffee Than Ever The number of Americans who drink a cup of coffee daily isthe highest it's been in six years.It probably seems as though everyone inyour neighborhood and office building is in line for that cupof morning coffee just when you need it most. Well, it turnsout that you're not imagining things. A recent survey finds thatmore Americans are drinking a daily cup of coffee today thanthey have been for the past six years.According to Reuters, a study commissioned by the NationalCoffee Association surveyed 3,000 Americans about theircoffee drinking habits. The survey found that 64 percent ofAmericans drink a cup of coffee every day, up from 62percent in 2017, and the highest percentage since 2012.What's more is that while it might seem like you can't walk ablock without seeing another coffee shop, most people stillenjoy making coffee at home despite the popularity of caféslike Starbucks; 79 percent of participants said that they hadbrewed a cup of coffee at home the previous day, while only36 of people said they had bought a coffee from an outsidelocation.Meanwhile, artisan coffee remains popular among a youngergeneration: 48 percent of millennials said they had a cup ofcoffee the previous day that could be considered gourmet,which might account for events like the recent RoastersVillage at SXSW, where companies showcased innovations inthe coffee realm (including one stall outfitted with a robotbarista).Americans consume the most coffee in the world overall(although Finland consumes the most coffee per capita, or perperson). Nonetheless, most of the world's coffee is harvestedin the developing countries, like Guatemala and Indonesia.The majority of Americans drink coffee—around 83 percent

—and it’s long been a booming industry in this country. Forinstance, the average American spends $1,110 on coffeeannually, while coffee exporting is valued at $20 billionglobally.Source: Food and WineHow Many People Drink Coffee? In case you didn’t know, Americans love coffee. And whilewe still lag behind our European friends in coffeeconsumption (the U.S. ranks 25th in coffee consumption at4.2 kg of coffee consumed per person per year, Finland ranks1st at 12 kg per person per year – according to World Atlas),the U.S. consumption has increased by an entire kilogram inthe last five years, and there is no sign of that trend stopping.The National Coffee Association produced a study this yearand found that 64% of Americans drink coffee. Furthermore,79% of people drinking coffee within the past day brewedcoffee at home, compared to 75% in 2017 and 84% in 2012. Itseems as though more people are starting to move towardsmaking their coffee at home as opposed to going andpurchasing it at a coffee shop (sorry Starbucks, but people arestarting to opt for being their own baristas at home).In fact, past day consumption of coffee prepared outside thehome dropped from 40% in 2017 to 36% in 2018, though itremains at higher levels than found in 2012-2017.Coffee in the home has become a morning tradition for manypeople, and we all know 1 or 2 people who we don’t dare talkto until they’ve had their first cup of the day. It’s part of justabout everyone’s routine, and many Americans enjoy theprocess of making their cup of joe before they begin the day.With the rise of in-home coffee consumption and brewing, anincrease in the need for mugs has also taken place.So, How Many People Do Drink Coffee in the U.S? So, How Many PeopleDo Drink Coffee in the U.S? To put a fixed number on just how many coffee drinkers thereare is near impossible. That said, let’s go with an optimisticapproach – according to USA Today as many as 83% of USadults drink coffee and according to Wikipedia in 2017 therewere about 245,300,000 adults in the US. So that means we’relooking at roughly 20o million on the high end. Wow – that isa ton of cups per day and a huge opportunity.We’d love to help connect you with your favorite coffee

drinkers!These coffee statistics are interesting to look at, and here aresome other noteworthy statistics from the National CoffeeAssociation:

• Over the past six years, past-day soft drink consumptionhas dipped 15 points to 35%

• 56% of people reported drinking unflavored bottled waterwithin the past day, compared to 49% for tap water

• Last year saw the highest one-year jump in past-dayconsumption of espresso-based beverages. The numberheld steady at 24% this year

• Past-day consumption of traditional “gourmet” coffee(“regular coffee” brewed from “gourmet quality” beans)remained at 16%

• Traditional “non-gourmet” past-day consumption also heldsteady at 31%

• The numbers similarly held steady in each of thesecategories for past-week consumption

• The only espresso-based beverage to see a statisticallysignificant decline in past-week consumption this yearwas cafe mocha, from 14% to 12%

• Only 19% of respondents age 18-24 drank traditional“non-gourmet” coffee within the past day

• Within that same 18-24 range, 37% reported drinking agourmet beverage within the past day

• For respondents age 60+, past-day consumption ofgourmet was 38%, while consumption of non-gourmetwas 42%

Source: Deneen Pottery The Most Amazing Coffee Statistics

▪ Americans consume 75% of all their caffeine in the formof coffee.

▪ 66% of women drink coffee every day, compared to 62%of men.

▪ 79% of Americans prepare coffee at home.▪ 48% of millennials consume gourmet coffee.▪ About 29% of US coffee consumers drink coffee to relax.

▪ Robusta beans have a higher caffeine content than Arabicabeans.

▪ A coffee plant can live up to 100 years.▪ Brazil exports 5.7 billion pounds of coffee every year.• The second most sought after commodity in the world is

coffee, Second only to crude oil.• 500 billion cups of coffee are drank every year worldwide.• 25 million people worldwide depend on farming for coffee

for livelihood.• There are essentially only two type of coffee (Arabica &

Robusta).• Over half of the population in America over the age of 18

drink coffee.• 75 percent of America’s caffeine intake source is coffee.• The fastest growing niche in the restaurant business are

coffee shops.• Developing countries produce 90% of the worlds coffee.• Most coffee drunk per capita is in Finland.

US Coffee Consumption Statistics 1. 64% of American adults currently consume coffee everyday.2. An average American drinks 3.1 cups of coffee per day.The FDA recommends that we keep our caffeine intake at 400mg a day or less, which is equivalent to about 4 cups ofcoffee. Therefore, it looks like Americans stick to thisrecommendation, on average.3. Americans drink about 400 million cups of coffee everyday.According to recent coffee drinking statistics, the US isamong the leading consumers of coffee in the world.4. Americans drink about 146 billion cups of coffee peryear.This statistic clearly shows just how obsessed Americans arewith this tasty beverage. Still, when it comes to coffeeconsumption, they don’t even rank among the top tencountries in the world.5. Americans consume 75% of all their caffeine in theform of coffee.Besides coffee, other common sources of caffeine are tea,energy drinks, soda, and chocolate. Interestingly enough,several health benefits of coffee aren’t related to its caffeinecontent, but to the fact that coffee is also a great source of

antioxidants.6. The average coffee cup measures 9 ounces.However, a typical cup of coffee in Japan is 200 milliliters(6.7 ounces), and in Canada, it’s 227 milliliters (7.6 ounces).7. More than half of all coffee consumers would ratherskip a shower in the morning than skip their coffee.Also, about 49% of them would rather do without their mobilephone for a whole month than give up coffee.Coffee Drinker Demographics 8. 66% of women drink coffee every day, compared to62% of men.According to the statistics, there’s no big difference betweenmen and women when it comes to consuming coffee.9. The percentage of people who drink coffee is greateramong workers with a higher income.In particular, 66% of people with an income greater than$30,000 consume coffee, compared to 58% of workers whoearn less than that amount.10. 74% of Americans aged 55+ drink at least one cup ofcoffee every day.If we look at coffee consumption by age, seniors are thegreatest coffee consumers. Conversely, US adults aged 18–34drink this beverage the least often.Consumer Behaviour 11. 65% of US adults drink coffee with their breakfast.30% of them drink coffee between meals, and 5% drink itwith meals other than breakfast. Some studies point out thatthe best times for this energy-boosting drink are between 10a.m. and 12 p.m., and then 2 p.m. and 5 p.m.12. 79% of Americans prepare coffee at home.According to a survey conducted by the National CoffeeAssociation (NCA), Americans tend to drink coffee at home.Only 36% of respondents said that they’d had a cup of coffeeaway from home the previous day.13. About 35% of coffee consumers usually drink blackcoffee.The remaining 65% prefer to sweeten this beverage or to addsome cream.14. 48% of millennials consume gourmet coffee.Data collected by the NCA shows that younger coffeedrinkers consume more gourmet coffee than other age groups.

According to the coffee statistics from 2018, 36% of peoplefrom this generation drink cappuccinos, lattes, and the like,and 22% of them like espresso.15. Most women like drinking coffee because this ritualhelps them relax.On the other hand, men say that coffee improves theirefficiency. Apparently, there’s a big difference among genderswhen it comes to their reasons for drinking coffee.16. About 29% of US coffee consumers drink coffee torelax.Why do most people drink coffee? According to the NCA’ssurvey results, almost a third of Americans who drink coffeeenjoy this beverage because it helps them unwind.17. 9% of US coffee drinkers order coffee through an app.The NCA’s survey shows that only a few Americans use appsto order coffee.18. 45% of US coffee consumers brew their coffee by adrip coffee maker.A survey conducted by the NCA revealed that 45% of theirrespondents used a drip coffee maker the day before. Thiscoffee preparation method is followed by single-cup brewingsystems.19. About 13% of coffee drinkers in the US use espressomachines.In the survey conducted by the NCA about coffeeconsumption in the US in 2019, about 12% of respondentssaid they’d used an espresso machine the previous day.The Coffee Market 20. The average price of a cup of coffee in the US is $3.28.Considering how much coffee Americans drink, we canconclude they spend a considerable amount of money on thisbeverage.21. The annual coffee retail sales in the US are about $5.2billion.This piece of coffee industry statistics depicts consumerspending habits as well as the coffee market’s potential.22. South America produced 81.5 million bags of coffee in2018.Considering that each bag weighs 60 kilograms, SouthAmerica produced more than 5 million tons that year. Thismakes them the greatest coffee producer in the world.23. Brazil exports 5.7 billion pounds of coffee every year.

This country is the largest coffee exporter in the world.Interestingly, Brazil produced about 80% of all the coffee inthe world in the 1920s. Nowadays, according to the coffeestats, it supplies around a third of the world’s coffee.24. Colombian mild Arabicas were the most expensivecoffee per pound in 2017.Arabica and Robusta are the most popular coffee varieties.Generally, Arabicas are more expensive than Robustavarieties. Coffee Shops 25. There are about 24,000 coffee shops in the US.Considering this sector’s growth rate, this number is expectedto double within the following years. Interestingly, Seattle hasthe largest number of coffee shops per 100,000 residents inthe US.26. On average, a coffee shop sells 230 cups of coffee perday.Therefore, based on coffee shop sales statistics, its annualsales amount to about 84,000 cups of coffee on average.27. Coffee shops have a 7% annual growth rate.This growth rate makes coffee shops one of the fastest-growing segments of the restaurant industry.28. Monaco has about 52 Starbucks branches per onemillion inhabitants.According to statistics, Monaco is the leading country when itcomes to the number of Starbucks branches per capita. TheUS comes second in this list.Source: Disturbmenot

COFFEE SHOP INDUSTRY – A STRATEGICANALYSIS Coffee Shops market worldwide is projected to growby US$58.7 Billion, driven by a compounded growth of 4.1%.Coffee, one of the segments analyzed and sized in this study,displays the potential to grow at over 4.6%. The shiftingdynamics supporting this growth makes it critical forbusinesses in this space to keep abreast of the changing pulseof the market. Poised to reach over US$143.4 Billion by theyear 2025, Coffee will bring in healthy gains addingsignificant momentum to global growth.Representing the developed world, the United States willmaintain a 4.2% growth momentum. Within Europe, whichcontinues to remain an important element in the worldeconomy, Germany will add over US$2.8 Billion to theregion's size and clout in the next 5 to 6 years. Over US$10.8Billion worth of projected demand in the region will comefrom Rest of Europe markets. In Japan, Coffee will reach amarket size of US$10 Billion by the close of the analysisperiod. As the world's second largest economy and the newgame changer in global markets, China exhibits the potentialto grow at 7.8% over the next couple of years and addapproximately US$5.6 Billion in terms of addressableopportunity for the picking by aspiring businesses and theirastute leaders. Presented in visually rich graphics are theseand many more need-to-know quantitative data important inensuring quality of strategy decisions, be it entry into newmarkets or allocation of resources within a portfolio. Severalmacroeconomic factors and internal market forces will shapegrowth and development of demand patterns in emergingcountries in Asia-Pacific, Latin America and the Middle East.Companies in this industry sell coffee drinks and other foodand beverages for consumption on the premises or for takeout.Major companies include International Coffee & Tea (TheCoffee Bean & Tea Leaf), Peet's Coffee, and Starbucks (all

based in the US), as well as Costa Coffee and Caffè Nero(both based in the UK).The biggest US coffee chains operate stores abroad, primarilythrough licensing agreements. Starbucks owns and licensesabout 30,000 locations in about 78 global markets. Theworld's largest coffee consumers include the US, Brazil,Germany, and Japan.The US coffee shop industry includes more than 35,500 storeswith combined annual sales of about $45 billion, according toAllegra World Coffee Portal. Coffee shops are part ofthe specialty eatery industry, which also includes outletsspecializing in products such as bagels, donuts, frozen yogurt,and ice cream.Coffee is one of the world’s largest commodities. The topgreen coffee producing countries are Brazil, Colombia, andVietnam. Many grower countries are small, poor developingnations that depend on coffee to sustain local economies. TheU.S. is the world’s largest importer of green coffee beans andthe largest consumer of coffee. With the exception of Hawaiiand Puerto Rico, the United States’ climate cannot supportcoffee trees.Major products sold by coffee shops include beverages aswell as complimentary food items. Beverages include brewedcoffee and tea; espresso drinks (cappuccinos, cafe lattes); coldblended beverages; bottled water; soft drinks; and juices.Food products include pastries, bakery items, desserts,sandwiches, and candy. Many coffee shops sell whole orground coffee beans for home consumption. Some coffeeshops sell coffee or espresso-making equipment, grinders,mugs, and other accessories. Most coffee shops serve high-quality, premium coffee known as specialty coffee.

Source: Allegra Project Outlook for Coffee in US ▪ Revenue in the Coffee segment amounts to US$85,135m

in 2020. The market is expected to grow annually by4.2% (CAGR 2020-2023).

▪ The market's largest segment is the segment Roast Coffeewith a market volume of US$69,720m in 2020.

▪ In global comparison, most revenue is generated in theUnited States (US$85,135m in 2020).

▪ In relation to total population figures, per person revenuesof US$257.20 are generated in 2020.

▪ The average per capita consumption stands at 3.8 kg in2020.

▪ In terms of liquid beverage equivalents, coffee is amongthe most consumed beverages worldwide with roughly42.6 liters per person and year (12.6 liters of roast coffeeand 30 liters of instant coffee). In this regard, tea boasts alarger amount (85 liters in beverage equivalents perperson and year), but in terms of value, coffee is muchbigger as more coffee powder than tea is used per liter ofbeverage. Value sales of coffee have been propelled inrecent years by the out-of-home sector, which is morerelevant in this segment than in many other drinkscategories. Another trend is the redefinition of coffee

from a common means of caffeination to a sensualexperience, which has driven premiumization.

▪ By 2023 89% of spending in the Coffee segment will beattributable to out of home consumption (e.g. in bars andrestaurants).

▪ In the Coffee segment, volume is expected to amount to1,309.7 mkg by 2023.

▪ The average volume per person in the Coffee segmentamounts to 3.8 kg in 2020.

▪ The average price per unit in the Coffee segment amountsto US$68.49 in 2020.

▪ With a market volume of US$85,135m in 2020, mostrevenue is generated in the United States.

Source: StatistaOver the five years to 2019, the Coffee and Snack Shopsindustry has been bolstered by growth in the domesticeconomy. Increases in consumer spending, driven by higherdisposable income and rising consumer confidence, have ledto increased spending at industry locations when coupled withthe falling unemployment rate. Demand for coffee and snackshops has increased at a faster rate than most segments of thefood service sector as consumers are increasingly seekingconvenience at an affordable price. The industry hasexperienced a boost from increases in consumer spending andper capita coffee consumption during the five-year period,which have grown at annualized rates of 2.9% and 1.1%,respectively. How is the Industry Trending in the US?

Market Share in the US The companies holding the largest market share in the Coffee& Snack Shops in the US industry include StarbucksCorporation.What Products & Services Make Up This Industry in theUS?The Coffee & Snack Shops in the US industry consists of

Food consumed in-store, beverages consumed in-store, foodtaken to-go, beverages taken to-go, food ordered via drive-through, beverages ordered via drive-through and other.

IndustrySWOTAnalysis

The industry is exposed to the following threats andopportunities:

• In the US, there has been an increase in awareness ofhealth and nutrition over the past decade, which has ledto growth in healthy eating. Consumers are more awareof health issues associated with fatty foods and areincreasingly going out of their way to avoid them. Thehealthy eating index is expected to marginally decreasein 2019. However, as consumers' diets progressivelyimprove, it poses a potential threat to industry operators.

• Factors that influence consumer spending also affect theCoffee and Snack Shops industry. During periods of loweconomic growth, spikes in unemployment lead toconsumption declines. However, when consumerspending is high, consumers are more likely to spendmoney at snack and coffee shops. Consumer spending isexpected to increase in 2019, providing a potentialopportunity for the industry.

Source: IBIS Coffee & Snack Shops in the US Market Size 2010–2020

$51.6bn -Coffee & Snack

Shops in the US Market Size in 20201.8% - Coffee & Snack Shops in the US Market Size

Growth in 20203.1% - Coffee & Snack Shops in the US Annualized

Market Size Growth 2015–2020Questions Clients Ask About This Industry • What is the market size of the Coffee & Snack Shops

industry in the US in 2020?- The market size, measured by revenue, of the Coffee &

Snack Shops industry is $51.6bn in 2020.

• What is the growth rate of the Coffee & Snack Shopsindustry in the US in 2020?

- The market size of the Coffee & Snack Shops industry isexpected to increase 1.8% in 2020.

• Has the Coffee & Snack Shops industry in the US grown ordeclined over the past 5 years?

- The market size of the Coffee & Snack Shops industry in theUS has grown 3.1% per year on average between 2015 and2020.

• How has the Coffee & Snack Shops industry in the USperformed compared with the Accommodation and FoodServices sector in the US?

- The market size of the Coffee & Snack Shops industry in theUS increased faster than the Accommodation and FoodServices sector overall

• Where does the Coffee & Snack Shops industry in the USrank in terms of market size in 2020?

- The Coffee & Snack Shops industry in the US is the 8thranked Accommodation and Food Services industry bymarket size and the 204th largest in the US.

• What factors affect growth of the Coffee & Snack Shopsindustry in the US?

- The primary negative factor affecting this industry is highcompetition, while the primary positive factor is a lowrevenue volatility.

• What is the biggest opportunity for growth in the Coffee &Snack Shops industry in the US?

- Factors that influence consumer spending also affect theCoffee and Snack Shops industry. During periods of loweconomic growth, spikes in unemployment lead toconsumption declines. However, when consumer spendingis high, consumers are more likely to spend money at snackand coffee shops. Consumer spending is expected toincrease in 2019, providing a potential opportunity for theindustry.

• How has the Coffee & Snack Shops industry performedcompared with other US industries over the past five years?

- The market size of the Coffee & Snack Shops industry in theUS increased faster than the economy overall.

Source: IBISCoffee & Snack Shops Number of Businesses 2010–2020

59,679 - Coffee& Snack Shops

Businesses in the US in 20202.4% - Coffee & Snack Shops in the US Business

Growth in 20202.8% - Coffee & Snack Shops in the US Annualized

Business Growth 2015–2020 Questions Clients Ask About This Industry • How many businesses are there in the Coffee & Snack

Shops industry in the US in 2020?- There are 59,679 Coffee & Snack Shops businesses in the

US as of 2020.

• What is the business growth in the Coffee & Snack Shopsindustry in the US in 2020?

- The number of businesses in the Coffee & Snack Shopsindustry is expected to grow 2.4% in 2020.

• Has the number of Coffee & Snack Shops businesses in theUS grown or declined over the past 5 years?

- The number of businesses in the Coffee & Snack Shopsindustry has grown 2.8% per year on average over the fiveyears between 2015 - 2020.

• Which States have the highest number of businesses in theCoffee & Snack Shops industry in the United States?

- Alabama, Alaska and Arizona are the States with the mostnumber of Coffee & Snack Shops businesses in the US.

• Does the Coffee & Snack Shops industry in the US requiresignificant investment in equipment?

- The Coffee & Snack Shops industry relies on both capital(plant, machinery and equipment) and labor to similardegrees.

• What companies have the highest market share in theCoffee & Snack Shops industry in the US?

- The Coffee & Snack Shops industry has low market shareconcentration and the largest business is Starbucks.

• What region has the highest number of businesses in the

Coffee & Snack Shops industry in the US?- The West region of the United States accounts for the largest

share of Coffee & Snack Shops business locations.Source: IBISCoffee & Snack Shops Employment Statistics 2010 – 2020

Source: IBIS

Coffee & Snack Shops Wage Statistics 2010 – 2020

$13.1bn - Coffee &Snack Shops Wages in

the US in 20202.4% - Coffee & Snack Shops in the US Wage

Growth in 20203.7% - Coffee & Snack Shops in the US Annualized

Wage Growth 2015–2020 Questions Clients Ask About This Industry • What are total wages in the Coffee & Snack Shops industry

in the US in 2020?- The Coffee & Snack Shops industry pays total wages of

$13.1bn in 2020.

• What is the total wage growth in the Coffee & Snack Shopsindustry in the US in 2020?

- Total wages paid by the Coffee & Snack Shops industry is

expected to increase 2.4% in 2020, to $13.1bn.

• Have wages grown or declined in the Coffee & Snack Shopsindustry in the US over the past 5 years?

- Total wages paid by the Coffee & Snack Shops industryincreased 3.7% per year on average over the five yearsbetween 2015 and 2020.

• What is the average wage in the Coffee & Snack Shopsindustry in the US in 2020?

- The average wage per employee in the Coffee & SnackShops industry is $796k in 2020.

• Where does the Coffee & Snack Shops industry in the USrank in terms of average wage in 2020?

- The Coffee & Snack Shops industry in the US is the 8thranked Accommodation and Food Services industry byaverage wage and the 147th largest in the US.

Source: IBISCompetitive Landscape Consumer taste and personal income drive demand. Theprofitability of individual companies depends on the ability tosecure prime locations, drive store traffic, and deliver high-quality products. Large companies have advantages inpurchasing, finance, and marketing. Small companies cancompete effectively by offering specialized products, servinga local market, or providing superior customer service.Coffee shops compete with businesses such as conveniencestores, gas stations, quick-service and fast-food restaurants,gourmet food shops, and donut shops. The US industryis concentrated: the eight largest companies account forabout 70% of revenue.Competitors identified in this market include, among others,Starbucks; Costa Coffee; McCafe; Doutor Coffee; CoffeeBean & Tea Leaf; Caffe Nero; Tullys Coffee; Ediya Espresso;Caribou Coffee; Gloria Jeans CoffeesThe reports says intense competition within the largest citieshas encouraged major operators to focus expansion in second-tier locations and less densely populated urban areas

Starbucks is by far the largest coffee chain in the US,retaining a 40 per cent share of the total coffee shop market

with 14,875 outlets and adding 585 net new stores over thelast 12 months. Dunkin’ remains the second largest brandedcoffee chain with 9570 outlets, opening 309 net new stores toachieve a 26 per cent market share. The two market leadersaccounted for 80 per cent of new US store openings duringthe last 12 months.German-owned conglomerate JAB Holdings continues toexert significant market influence, operating a total of 4739outlets across 15 prominent brands including Panera Bread,Peet’s Coffee, and Caribou Coffee. Collectively, Starbucks,Dunkin’, and JAB Holdings-owned brands comprise 78 percent of the US branded coffee shop segment, a collectiveincrease of 899 outlets compared with 12 months ago.Industry leaders surveyed by Project Café USA 2020 citedgrowth in specialty coffee as the most important consumertrend currently affecting the US coffee shop market.More than 80 per cent also identified cold brew as the fastestgrowing product in coffee shops. These product trends areheavily influenced by under-30s consumers, who are morewilling to try new products than older demographics. This agegroup is also most likely to have significantly increased coffeeshop visitation over the last 12 months, making them a keydemographic for sales growth.Customer Overview The typical and most committed coffee drinkers are 25 to 45year old, affluent, educated adults. While baby boomers havedriven the success of coffee shops, specialty coffee appeals toa diverse adult demographic, including college students andyoung adults. Larger companies may also sell coffee beanswholesale to commercial customers, such as grocery storesand restaurantsCoffee shops depend highly on part-time employees, and mostworkers require few skills. Many employees make just abovethe minimum wage, and pay can be significantly below theaverage for all U.S. workers.A typical chain coffee shop may have one manager and 10 to15 workers; independents have six to seven. New employeesmay go through training courses and receive in-store trainingto ensure superior customer service and product consistency.Master roasters oversee coffee roasting to develop trademarkblends and flavors. Baristas receive training to operatecommercial grade espresso machines used to make specialty

drinks.Sales are seasonal, with a peak during fourth quarter, drivenby the winter holiday. In addition, poor weather can affectsales by decreasing store traffic. For large companies,inventory amounts to between 40 and 80 days sales. Accountsreceivable runs between 20 and 30 days sales, mainly due tocommercial customers. Accounts payable runs between 30and 60 days sales. Companies may use contracts to buy greencoffee and dairy products. Gross margins range between 40and 60 percent, and higher commercial sales tend to decreasemargins. Chains use comparable store sales to measuregrowth.Most companies lease store locations for a fixed term. Rentfor coffee shops in malls may include a fee for shared areamaintenance. Companies compete for prime locations,sometimes with other retailers, and negotiating power may belimited. Chains periodically close underperforming stores, andset aside a reserve for remaining lease payments.Franchise and license agreements typically include an upfrontfee, payments or royalties based on percentage of sales, andrenewal options. Master license agreements may allowlicensees to grant sublicenses to third parties within a territory.U.S. coffee shops: market share Starbucks was the largest coffee shop chain in the UnitedStates by number of units as of October 2019. According tothe source, the world famous chain accounted forapproximately 14.88 thousand stores in its home nation. Incomparison, competitor Dunkin' (formerly known as Dunkin'Donuts) had around 9.57 thousand stores.Source: StatistaCompetitive Forces that impact competition (Porter Model) Competition within the Coffee Shop Industry ▪ Highly concentrated at top and fragmented at bottom –

Starbucks ~ 75% of sales▪ Major companies: Starbucks, Caribou Coffee, Coffee

Bean and Tea Leaf, competitor Dunkin' (formerly knownas Dunkin' Donuts)

▪ Competitors can also be found in other industries(convenience stores, gas stations, quick service, fast foodrestaurants, gourmet food shops, donut shops, filter /

specialty coffee machines for home use) e.g. Dunkin’Donuts and McDonalds

▪ Competition through special offers (new tastes),outstanding service/ environment (internet, music,comfortable seating areas, short waiting queues), loyaltyprograms (bonus cards ensuring frequency of visits) andfor premium locations (retail centers, universitycampuses, etc.)

Substitute Products ▪ Competition with other drinks that are not the main focus

of by coffee shops: Soda, Juice, Water, Beer, SportsDrinks

▪ Competition with other products, people are spendingtheir money on: Ice Cream, Cigarettes, Sweets

▪ Consumers have limited discretionary budget to spend onconsumer goods, such as cigarettes, beer and also coffee;coffee shops are therefore fighting for a fraction of thisbudget.

Barriers to Entry ▪ Rather low entry barriers: easy to open a single small café▪ Rent a place, remodel, install the equipment, get license as

needed▪ However there are high entry barriers for the specialty

level or big league/chain players▪ High up-front investment needed to grow significantly

(distribution system: shops, equipment, premiumlocations; marketing: creation of brand awareness &brand recognition, customer retention)

▪ Strong brand recognition of major players, especiallyStarbucks

▪ Partnerships with large, international companies alsoserve as potential entry barrier for new competitors –Starbucks with Pepsi/ Jim Beam/ Dryer’s Grand IceCream/ Barnes & Noble or Caribou Coffee with Apple

▪ Economies of scale (purchase advantages; centralized HRand Marketing) realized by big players, especiallyStarbucks ➔ cost disadvantage for new entrants

Barriers to Entry in the Coffee Industry➔ Small barriers to entry for small regional chains / cafés, buttheir expansion is relatively slow due to the increasing speedof the expansion of the major players

➔ High barriers to entry into the industry for big players dueto high industry concentration on top, huge brand recognitionof major brands and high up-front investments are neededPower of Suppliers ▪ Volatile Raw Material Costs▪ Particular dependence on supply of higher-priced Arabic

beans (premium coffee) – as imported mostly fromdeveloping countries, price varies along with theeconomical and political situation of the export country

▪ Dairy products, whose retail prices vary a lot, used forspecialty drinks

▪ Coffee Shop Chains have contracts securing price stability▪ For most coffee-exporting countries (over 60 ) that is their

only “source of cash”▪ Higher world market demand and higher prices for

differentiated (Gourmet and specialty coffees) andsustainable coffee (organic, fair trade, eco-friendly orshade grown) than for coffee commodity: Farmers notagile enough or don’t have the means to switchproductionCompanies are helping communities to make the change(train them, purchase at fair trade prices and providetechnical assistance).

Power of Suppliers in the Coffee Industry➔ Very limited power of suppliers as they depend onproducer’s help and sell a commodity.Power of Customers ▪ High dependency of coffee shop chains on frequency of

customer purchases▪ Most customers appreciate the nice atmosphere in the

coffee shops▪ Preferences of customers are very likely to switch as they

might get bored with / tired of the same flavor (relativelylow brand loyalty)

▪ Shopping behavior is very likely to be influenced bybudget constraints, weather conditions or health concernsin the general public

▪ Interested in continuous product innovation or seasonalspecialties

▪ Essential for success – word of mouth and frequency ofpurchase

Power of Customers in the Coffee Industry➔ Very strong power of customers as coffee shops depend onword of mouth and customer retention Furthermore acustomer’s opinion, preferences and shopping habits can beinfluenced easily which creates a big threat for the companies.Driving Factors that are causing the industry’s structure to change Expansion/GrowthA significant driver in the coffee shop industry is growth inthe form domestic and international expansion. The keychannel of distribution in this industry is “company-operatedstores located in high-traffic, high visibility centers,” andindustry competition is structured around vying for marketshare by opening new retail shops in cities around the world.Product/Service InnovationA second driving force in this industry is tied to productinnovation. Serious coffee shop contenders now offer aproduct selection broader than the traditional cup of coffee.National chain and even local coffee shops boast menusincluding coffees, teas, hot chocolate, pastries, bottled water,and even sandwiches.Service innovation is also impacting the industry in thatcompanies are now required to offer a diverse set of servicesincluding music, drive-through services and newspapers tostay competitive. For example, to compete with Starbucks’alliance with T-Mobile which offers wireless capabilities to itscustomers, Caribou now offers free wireless Internet access(for up to an hour) to its customers.Collaboration/PartnershipA further critical driver, which ties into the industry’s focus ongrowth and product/service innovation, has been collaborationand partnership. Starbucks was the first to realize the benefitsof partnering when it reached out to powerhouse brands likePepsi, Barnes and Noble, Nordstrom, Kraft and UnitedAirlines to create new products, reach new customers andenter new channels of distribution like grocery, cruise linesand the airline industry. Caribou has followed suit andpartnered with General Mills to produce a breakfast bar,USAToday to provide a news services to its customers, andmost recently, Coca-Cola, to directly compete with Starbucksready-to-drink iced coffees.Image/Lifestyle

Additionally this industry is increasingly impacted byconsumer’s perception of what a brand stands for. WhenStarbucks was first created, its CEO’s vision was to create a“third place” for Americans. Americans already spentconsiderable time at home and work and his vision was toprovide a third place for Americans to not only drink coffeebut to invest significant personal time. For this reason,industry marketing efforts are closely tied the image/lifestyleprojected by the chain.Key factors that determine success in the future Product and Service Innovation in the FutureSeveral key factors within the coffee shop industry areessential components that will likely lead to success or failureof market participants. As already highlighted in the “DrivingFactors” product and service innovation are necessary in orderto stay competitive in the market and attract new / keepexisting customers successfully. Many customers focus on thespecial atmosphere each store has and which is characterizedby the location, music, interior design, seating or whetherinternet access is provided. Particularly for specialty coffeeshops it is important not to sell only the beverage but thewhole experience. Coffee shops have to establish a uniqueimage that prevents customers from buying products fromanother shop or use home-brewing systems which are also onthe rise in American households. In addressing the increasedlevel of competition, every company’s focus should be ondifferentiating from the rest of the market in every possiblebusiness segment (products, atmosphere, location, image etc.)TechnologyFurthermore it is important to have state-of the art technologyin the shop in order to serve high quality and differentiatedproducts. Advantages of high level technology and machinesare shorter waiting times for the customers and the ability tocreate a variety of fresh, new and unique flavors.On the other hand it is essential that the level of automationand machinery is well chosen and that there is a clear planhow to integrate the new machinery into the business. Eventhough there is an increase in efficiency it might mean a lossof identity and differentiation for some stores, such asStarbucks, which focuses on a special spirit in their shops.Education About CoffeeCoffee shop companies should start or continue to educate the

consumers about coffee, its ingredients, quality differences,and about the movements in the market, such as “Fair Trade”or “organic coffee”. This could be beneficial for developing arelationship with the customers which in turns leads to greaterbrand loyalty. Informed customers are able to make educateddecisions and will be less likely to switch just based on gutfeeling. Furthermore this education might motivate coffeebuyers to pay a higher price for better products.CooperationSeveral companies have proven already that a key factor inthe future will be the ability and willingness to cooperate withother market participants without losing control of thebusiness. Therefore it is important to pursue a full range ofalliance opportunities: partnerships for innovation and costreduction but also geographic expansion and co-marketingdeals. Finally such partnerships might become tickets to the“global game” as Coca-Cola and Microsoft already provedQuality Control, ConsistencyBesides the cooperation with other partners in the industry thecoffee shop companies have to ensure that the quality ofproducts and services as well as the cleanliness of the locationare consistent and at the desired level from shop to shop(including especially franchisees and licensees) so that theconsumers can build trust in the brand. Furthermore the role ofthe “barista” should not be underestimated and greatcommitment should be recognized and rewarded. The baristais the personality and sole representative of the specialtycoffee supply chain to the consumer. They not only can makedrink suggestions or recommendations, but their skill can bethe difference between an everyday latte and an amazingspecialty coffee experience.Role of RegulationsThe trend of stricter regulations in the coffee industry startedalready, e.g. with new organic rules and is expected to becomeeven more severe in the future which underlines the fact thatcoffee shops have to cooperate with their suppliers in order tocontrol the quality of their products along the value chain.Companies should participate mainly for ethical reasons incampaigns such as “Fair Trade”. In addition to that, if thesesocial movements gain more attention in the market, thecompanies could also benefit from the positive public relationassociated with the social commitment and engagement.To sum it up, coffee shops have to target their customers

effectively in terms of product portfolio, company image andatmosphere as well as advertising and coffee shop locationwhile paying attention to the partners along the value chainand look out for beneficial cooperation within and betweenindustriesCoffee Shop Target Market If your interested in opening your own coffee shop then thispost on Coffee Shop Target Market is something you don’twant to miss. Lets find out why coffee shop target market isso important.According to recent research about 77% of all adults in theUnited States alone drink some sort of coffee on a regulardaily basis. A lot of these coffee lovers actually prefer dripcoffee so it is important that you make sure that your coffeeshop has the right equipment to offer this type of coffee loverthis kind of coffee.If you are wanting to draw in people from all economic rangesand age groups then you will want to make sure that you priceyou coffee at a reasonable price, especially for the drip stylecoffee. If on the other hand you only want to attract theupscale market then you can get away with charging more foryour drip coffee.

Coffee Shop

Target Market: Coffee Shop Lovers Since your business is an actual coffee shop then this is themain target market you want to focus on. These are the type

of coffee lovers who spend time in a coffee shop or cafewhere they can choose from a variety of different specialtybeverages or regular coffee where the atmosphere is inviting.These are people who are not in a hurry and just want to graba quick cup of java and be on their way.They prefer to sit and relax while drinking the coffee you’veserved them, perhaps have a little to eat with it and just enjoythe social atmosphere a nicely planned coffee shop has tooffer. So it’s important that if this is your key target marketthat your coffee shop be set up in a comfortable and invitingmanner.If your seriously thinking of starting your own coffee shopstartup then it would be in your interest to check these in-depth, A to Z guides which will teach you everything there isto learn about starting your own coffee shop and beingsuccessful at it.

Coffee Shop Target Market: Specialty Coffee Lovers Knowing your coffee shop target market – specialty coffeelovers is very important. There are always going to bethose coffee lovers that won’t have anything to do withregular drip coffee or anything like it and if you want to alsoattract this kind of customer you will need to have the rightequipment and coffee to be able to serve them what they want.This means you should be able to serve espressos, lattes,mochas and cappuccinos. These people love to have lots ofextra ingredients put in their coffee and they will be willing topay for it too. This is a fast growing market and is continuingto grow so it’s important that your coffee shop is able to bringthem in and cater to them as well. Keep in mind just havinghigh quality coffee beans is not enough. You need to have the

right kind of coffee equipment.Coffee Shop Target Market: Whole Bean Lovers This is a group of coffee lovers that prefer to make their owncoffee but will only do it with whole bean coffee. If you areinterested in serving this type of customer as well this meansthat you need to have a variety of bagged whole beancoffee available for them to choose from. These are peoplewho prefer to buy the beans, grind them at home so they canhave the freshest coffee they can right in their own kitchensevery morning. So make sure that you sell it by the pound in avariety of flavors from different regions and offer a good mixof Arabica and Robusta whole bean varieties for this type ofcoffee lover.Source: Espressogurus Key Market Trends Green Coffee as a Weight Loss Beverage Owing to the health benefits of green coffee, a lot of peopleare consuming it for their weight loss mechanism. Although,the production of green coffee has increased but not at asignificant pace. There are fluctuations in the demand forgreen coffee which is leading to the fluctuations in productionof green coffee. It is expected that its production will increasein the coming years but at a slow pace. Green coffee haspositive health impacts on blood vessels as well as on hearthealth. It also affects the bodies absorb and use carbohydrates.Increasing Usage of Single Serve Coffee in Households An increasing number of consumers are willing to purchasecoffee machines to recreate the coffee shop experience athome. Players are introducing coffee pods that are compatiblewith popular machines, such as Nespresso, to feat thistrend. There are more than 25 million Keurig® and K-Cup®Brewers installed in homes and offices across the UnitedStates, with millions more being sold each year. Single-servebrewer household penetration rates in the largest cities in theUnited States and Western Europe range from approximately

23% to 75%. Source: Mordor

IntellegenceGrowth While research from the National Coffee Association’s 2017National Coffee Drinking Trends report suggests that coffeeconsumption is increasing among coffee drinkers of all ages,it appears that younger groups are having the biggestinfluence. Bill Murray, National Coffee Association presidentand CEO suggests that “More of us are drinking coffee, andyounger consumers appear to be leading the charge.”According to the report, 50% of youth aged between 18-24claimed to have consumed a coffee beverage within the pastday, a 2% increase from 2016. Significantly, 63 percent ofadults between the ages of 25-39 said they consumed coffeewithin the past day, a 3 percent increase from last year.Cold Brew Cold brew coffee is gaining popularity among consumers,with sophisticated machines continually refining the processand enhancing the taste. Cold brew is more than simplyadding ice to your regular cup of joe; the process involvesbrewing coffee with room temperature or cold water between12 and 24 hours. The result is a cold cup of coffee with amore rounded taste and less acidity, and younger consumersare becoming increasingly fond of the gourmet variety.Nitro Coffee Another increasingly popular way to drink coffee is what isknown as “Nitro” coffee. While the beverage has existed inthe market for the past few years in various third wave coffeeshops, it is becoming increasingly mainstream and Starbuckshas recently introduced it to their menu.Nitro coffee consists of cold brew coffee with nitrogen added,

resulting in a beverage with a creamy mouthfeel. Itsincreasing popularity among consumers will inevitably see itspread to other retailers, as millennials look for new andunique ways to get their morning kick.Organic Coffee Another trend that is dominating the coffee craze especiallyamong the younger generations is organic coffee. Sincemillennials appear to be increasingly concerned with eco-sustainability, coffee products processed without using anyartificial or chemical substances are becoming extremelytrendy. Manufacturers and retailers need to be aware of thistrend and adjust their processes to suit.Source: UnleashedTrendy new coffee flavours Another emerging coffee industry trends that you can takeadvantage of right now is the introduction of new coffeeflavors. Frappuccino and iced lattes are classic favorites, butthe ever-changing taste buds of coffee fanatics demand newaromas and exciting mixes. Attract customers by offeringthem different flavors, new types of coffees, and exclusivealternatives that are unique only to your shop.You can start introducing sweeter and creamier beverages forthose with a sweet tooth, while health-conscious patrons canlavish on nutrient-rich drinks filled with organic andsuperfood ingredients. You can also offer cold brews to loweracidity without removing the natural flavors and invigoratingaroma of the coffee. Other new coffee mixes you canexperiment with include:

• Bulletproof coffee for a quick burst of long-lasting energywith no crash or jitters.

• Mix espresso with tonic water for a bubbly brew thatmillennials will definitely love.

• Add healthy ingredients like grains and mushrooms tomake flavor-infused hot or iced coffee.

Ready-to-drink coffee The second wave of the coffee movement made coffee moreof a luxury rather than a necessity, but as the industry entersthe third wave, consumers will soon start to see changes inhow they drink and think about coffee.This time, the emphasis is focused on faster service and

convenience of experience. Keep in mind that coffee is stillconsidered a beverage, and its sales are affected by the latesttrends within the canned and bottled industry.While soft drinks and sugary juices are becoming less and lesspopular, ready-to-drink coffee, on the other hand, is seeing ahuge surge in demand. Nowadays, people want things quickand easy, including their coffee. With the rising trend ofready-to-drink coffees, it creates new opportunities for playersin the market to capitalize on this newest coffee consumptionmania.

• Offer new concoctions that consumers can easily grab inyour store.

• People want high-end, low-calorie, and less sugary drinks,as well as lattes.

• It’s okay to go premium, as long as it is healthy and withinreasonable limits.

Technology to make your business more efficient The important coffee industry trend you really shouldn’t missis focusing on improving customer experience. From yourdaily operations to engaging in customer service, you shouldbuild your efforts to simplify the whole process to makethings more convenient.Your shop should be conducive enough to welcomecustomers, and you should have the right tools to streamlinethe process such as using point of sale (POS) systems. Whenit comes to tracking your inventory, invest in applications thatwill provide real-time insights regarding your current stocklevel. You could also do the following to keep the linesmoving:

• Optimize your ordering area to maximize the space forboth employees and customers.

• Develop a system that will allow online ordering andpickup to minimize the time customers spend queuing.

Infographic: The Behaviors & Perceptions of US Coffee Drinkers

Source: National Coffee Association

Source: DIG InsightThe Average Profits for a Small Café Although most adults drink coffee at least once a day, runninga small cafe is unlikely to make you rich. The top 50 coffeeshop chains actually earn 70 percent of the profit in theindustry. Gross margins for cafes run as high as 85 percent,but small coffee shops tend to have average operating incomeof just 2.5 percent of gross sales. Despite the financialhurdles, if you open a coffee shop, you may find yourselfdoing work you love and creating a gathering space that's afocal point for your community.TipThe average profit for a small cafe is about 2.5 percent, butlarge coffee operations tend to earn much higher profits.Direct costs average about 15 percent, so most of a smallcoffee shop's expenditures go toward overhead expenses.Building sales volume makes a small cafe more profitable.Gross Margin vs. Operating IncomeThe average gross margin in the coffee industry is high, yetthe average operating income, or profit, for small cafes tendsto be low. This apparent contradiction points to the high priceof operating expenses other than cost of goods sold. Directcosts consist of the price of coffee and cups, along with thelabor that goes directly into producing the food and drinks yousell. The other expenses that winnow average profits down tojust 2.5 percent include rent, advertising, utilities and supplies.These expenses are fixed costs, that is, their total price tagdoesn't really vary relative to how much product you sell.Because the overall cost of these expenses remains fairlyconsistent, the cost per unit diminishes as you produce andsell more units. In other words, the coffee industry benefitstremendously from economies of scale, which explains whythe biggest players make the lion's share of the profit.Average Coffee PricesThe average price for an espresso-based coffee drink is $3.45in 2018, and the average price for a cup of brewed coffee is$2.38. Compare this with the restaurant industry, where pricescan run $10 to $15 per menu item, even at a relativelyinexpensive spot.To make a living at a small cafe you need to sell many morecups of coffee than the number of meals you would have tosell to bring in comparable revenue at a small restaurant. You

can increase the size of each ticket by offering baked goodsand some other foods that can be served quickly and easily.But make sure the coffee you serve is high quality, because it'slikely to be your cafe's main draw.Increasing Cafe ProfitsIn addition to increasing your sales volume so your fixed costsare averaged over a greater number of sales, you can makeyour cafe more profitable by keeping costs under control.Schedule enough workers for your busiest shifts, but keepfewer workers on the floor during slow times. Fine-tune yourbrewing so there's less coffee to throw away at the end of theday. Search far and wide for the best prices you can find oneverything from cups to tables. Keep scrupulous bookkeepingrecords and glean as much information as possible from them.Source: Small Business Chron

COFFEE STORE FRANCHISES INDUSTRY IN USA The Coffee Store Franchises industry has experienced stronggrowth over the five years to 2019 as the franchise model hasbecome a popular way for large chains to increase their storefootprint with relatively low capital investment. Dunkin', partof Dunkin' Brands Inc., the industry's largest player, has addedmore than 1,500 stores over the past five years, expandinginto states where it is underrepresented relative to itstraditional stronghold in the Northeast. Increased consumerspending in the United States has been bolstered by risinglevels of consumer confidence and per capita disposableincome, leading individuals to spend more on small luxuriesincluding specialty coffee. Industry revenue is expected togrow at an annualized rate of 5.9%.Younger consumers driving growth in specialty coffee,cold brew and deepening digital interactionIndustry leaders surveyed by World Coffee Portal citedgrowth in specialty coffee as the most important consumertrend currently affecting the US coffee shop market. Morethan 80% identified cold brew as the fastest growing productin coffee shops. These product trends are heavily influencedby under-30s consumers, who are more willing to try newproducts than older demographics. This age group is also mostlikely to have significantly increased coffee shop visitationover the last 12 months, making them a key demographic forsales growth.Young people are embracing technology such as mobile apps

and online ordering. This trend is evident in the growingadoption of third-part digital delivery platforms, such asDoorDash, UberEats, and Grubhub by major chains includingStarbucks, Dunkin’, and Panera Bread. The influence ofyounger consumers using social media is also evident, withindustry leaders citing social media advertising as the mosteffective form of marketing for coffees shops.Major chains tighten grip on the marketStarbucks is by far the largest coffee chain in the US,retaining a 40% share of the total coffee shop market with14,875 outlets and adding 585 net new stores over the last 12months. Dunkin’ remains the second largest branded coffeechain with 9,570 outlets, opening 309 net new stores toachieve a 26% market share. The two market leadersaccounted for 80% of new US store openings during the last12 months.German-owned conglomerate JAB Holdings continues toexert significant market influence, operating a total of 4,739outlets across 15 prominent brands including Panera Bread,Peet’s Coffee and Caribou Coffee. Collectively, Starbucks,Dunkin’ and JAB Holdings-owned brands comprise 78% ofthe US branded coffee shop segment, a collective increase of899 outlets compared with 12 months ago. Coffee Store Franchises in the US industry statistics

Biggest companies in the Coffee Store Franchises industry in theUS The companies holding the largest market share in the CoffeeStore Franchises industry include Dunkin' Brands Inc. andTim Hortons Inc.Source: IBIS

Coffee Store Franchises in the US Market Size 2010 –2020

$12.7bn -Coffee Store Franchises in the US Market Size in 2020

2.3% - Coffee Store Franchises in the US MarketSize Growth in 20204.4% - Coffee Store Franchises in the US Annualized

Market Size Growth 2015–2020 Questions Clients Ask About This Industry• What is the market size of the Coffee Store Franchises

industry in the US in 2020?- The market size, measured by revenue, of the Coffee Store

Franchises industry is $12.7bn in 2020.

• What is the growth rate of the Coffee Store Franchisesindustry in the US in 2020?

- The market size of the Coffee Store Franchises industry isexpected to increase 2.3% in 2020.

• Has the Coffee Store Franchises industry in the US grown ordeclined over the past 5 years?

- The market size of the Coffee Store Franchises industry inthe US has grown 4.4% per year on average between 2015and 2020.

• How has the Coffee Store Franchises industry in the USperformed compared with the Business Franchises sector inthe US?

- The market size of the Coffee Store Franchises industry inthe US increased faster than the Business Franchises sector

overall.

• What factors affect growth of the Coffee Store Franchisesindustry in the US?

- The primary negative factors affecting this industry are highcompetition and low barriers to entry.

• What is the biggest opportunity for growth in the CoffeeStore Franchises industry in the US?

- Factors that influence consumer spending affect the industry.During a recession, the spike in unemployment generallyleads to declines in consumption. Conversely, when theeconomy is strong, consumers are more likely to spendmoney on discretionary purchases such as drinks and snacksat coffee shops. Consumer spending is expected to increasein 2019, providing a potential opportunity for the industry.

• How has the Coffee Store Franchises industry performedcompared with other US industries over the past five years?

- The market size of the Coffee Store Franchises industry inthe US increased faster than the economy overall.

Source: IBISCoffee Store Franchises Businesses 2010 – 2020

10,992 - Coffee StoreFranchises Businesses in the US in 2020

3.4% - Coffee Store Franchises in the US BusinessGrowth in 2020

3.5% - Coffee Store Franchises in the USAnnualized Business Growth 2015–2020

Questions Clients Ask About This Industry • How many businesses are there in the Coffee Store

Franchises industry in the US in 2020?

- There are 10,992 Coffee Store Franchises businesses in theUS as of 2020.

• What is the business growth in the Coffee Store Franchisesindustry in the US in 2020?

- The number of businesses in the Coffee Store Franchisesindustry is expected to grow 3.4% in 2020.

• Has the number of Coffee Store Franchises businesses in theUS grown or declined over the past 5 years?

- The number of businesses in the Coffee Store Franchisesindustry has grown 3.5% per year on average over the fiveyears between 2015 - 2020.

• Which States have the highest number of businesses in theCoffee Store Franchises industry in the United States?

- Alabama, Alaska and Arizona are the States with the mostnumber of Coffee Store Franchises businesses in the US.

• Does the Coffee Store Franchises industry in the US requiresignificant investment in equipment?

- The Coffee Store Franchises industry relies on both capital(plant, machinery and equipment) and labor to similardegrees.

• What companies have the highest market share in the CoffeeStore Franchises industry in the US?

- The Coffee Store Franchises industry has high market shareconcentration and the largest business is Dunkin' Brands.

• What region has the highest number of businesses in theCoffee Store Franchises industry in the US?

- The Southeast region of the United States accounts for thelargest share of Coffee Store Franchises business locations.

Source: IBISCoffee Store Franchises Employment Statistics

Source: IBIS

Coffee Store Franchises Wage Statistics 2010 –2020

$3.0bn -Coffee Store

Franchises Wages in the US in 20203% - Coffee Store Franchises in the US Wage

Growth in 20204.6% - Coffee Store Franchises in the US

Annualized Wage Growth 2015–2020Questions Clients Ask About This Industry • What are total wages in the Coffee Store Franchises industry

in the US in 2020?- The Coffee Store Franchises industry pays total wages of

$3.0bn in 2020.

• What is the total wage growth in the Coffee Store Franchisesindustry in the US in 2020?

- Total wages paid by the Coffee Store Franchises industry isexpected to increase 3% in 2020, to $3.0bn.

• Have wages grown or declined in the Coffee Store

Franchises industry in the US over the past 5 years?- Total wages paid by the Coffee Store Franchises industry

increased 4.6% per year on average over the five yearsbetween 2015 and 2020.

• What is the average wage in the Coffee Store Franchisesindustry in the US in 2020?

- The average wage per employee in the Coffee StoreFranchises industry is $173k in 2020.

Source: IBIS COFFEE BEANS MARKET According to Allied research, the Global Coffee BeansMarket size was valued at $10,471 million in 2017 and islikely to reach $15,635 million at a CAGR of 6.1% during theforecast period. The demand for coffee beans in Asia-Pacifichas grown significantly over the years, owing to increase in itsconsumption. Japan, India, and Philippines are the majorcontributors to its growth.Global Coffee Beans market is expected to reach $15,635millions in 2024, Growing at a CAGR of 6.1% (2018-2024)The global coffee beans market growth is driven by increasein coffee consumption among consumers. In addition, healthbenefits associated with coffee and expansion of retail marketmakes the buying process easy for the consumers, whichboost the global coffee beans market. Moreover, decrease inconsumption of carbonated drinks has supplemented thecoffee beans market growth. However, availability of tea isprojected to restrain the global coffee beans market.

These beans are more resistant to pests and diseases and arewidely produced in Vietnam. Robusta is likely to grow at thefastest rate because of its high caffeine content and strongproperties as blends. These beans are comparatively small,rounded, and brownish yellow in color. Robusta beans aretypically used in instant coffee, espresso, and as a filler inground coffee blends.

The

usage of coffee beans in the pharmaceutical industry isaugmenting the global coffee beans market. The health-benefits that are associated with coffee beans in the form ofdietary supplements have increased its consumption. Thegreen coffee beans extract has a higher level of chlorogenicacid as compared to other roasted and regular coffee beans, asthese beans are not roasted. Thus, the adoption of green coffeebeans in the form of weight loss supplements has been widelyobserved among consumers.

LAMEAis one oftheemergingregionsin termsof coffee

consumption, as Brazil, South Africa, Saudi Arabia, andTurkey offer potential opportunities for the coffee beansmarket. New product offerings and flavor differentiation arethe key strategies adopted by manufacturers to increase theirmarket share. Furthermore, manufacturers have introducedpromotional pricing strategies to increase their sales.Moreover, introduction of appealing packages and newflavors combined with campaigns through social events andnetworks fuel the growth of the global coffee beans market.The key players operating in the coffee beans industry includeKicking Horse Whole Beans, Death Wish Coffee, LaColombe Corsica Blend, Caribou Coffee, Luigi LavazzaS.P.A., Illycaff S.p.A., Hawaiian Isles Kona Coffee Company,Ltd., La Colombe Torrefaction, INC., Peets Coffee & Tea,Inc., Coffee Beans International, Inc.The European consumers prefer high-value specialty coffeethat offer a unique experience and are knowledgeable aboutcoffee varieties. In addition, increase in health consciousnessof the young population boosts the adoption of black coffee,which drives the market growth. This further offersopportunities for coffee beans suppliers to provide uniqueblends, flavors, and ready-to-drink coffee.Key Findings of the Coffee Beans Market:

• In terms of value, the arabica caf beans generated themaximum revenue in 2017 and is expected to grow at aCAGR of 5.5% during the forecast period.

• The pharmaceutical industry is likely to grow at the fastestrate at a CAGR of 6.9% by 2024.

• Europe is expected to dominate the market, registering theCAGR of 5.4% in terms of value.

• Asia-Pacific is projected to show exponential growth indemand throughout 2024, growing at a CAGR 7.6% of interms of value.

• India and China are expected to witness considerably highgrowth rates at a CAGR of 10.9% and 9.0% respectively,during the forecast period.

Source: Allied Research According to Grandview Research, The global coffee beansmarket size was valued at USD 27.0 billion and is expected toexpand at a CAGR of 6.7% from 2019 to 2025. Increasingpenetration of franchise outlets such as CCD and Starbucks inIndia, China, and other countries is a main factor anticipatedto drive the market over the forecast period. Demand forcoffee beans is expected to witness significant growth owingto increasing application of such beans in various sectorsincluding pharmaceuticals, cosmetics, and food andbeverages.Coffee is gaining popularity among the young population,especially in India and China. Owing to growing popularity,various franchise retailers are entering these markets to meetconsumer demand. India has more than 1,400 registered cafés.In China, Starbucks alone has more than 1,500 outlets. Thenumber of cafes are expected to increase in coming years,which is expected to fuel demand for robusta and arabicabeansThese types of beans help in preventing certain type ofdiabetes, skin cancer, and heart diseases, as well as help inimproving immune system. Growing awareness related tohealth benefits of these beans has resulted in increase inconsumption among the diabetic population as it helps inreducing the risk of diabetes type 2. This, in turn, is expectedto fuel demand for coffee beans over the forecast period.Arabica and robusta beans are widely used owing to theircaffeine content. Robusta contains 2.7% caffeine, which isalmost double of 1.5% of arabica. In addition, arabica type ispleasant in taste and contains almost 60% lipid and almosttwice concentration of sugar than robusta owing to whichpeople prefer arabica over robusta. More than 60% coffeecultivation is arabica, where Brazil is one of the leadingproducers in the world. Arabica has higher acidity than

robusta, which adds a fruity, chocolate, and nutty flavor of thebeans.Product Insights Arabica was the largest segment, accounting for 61.2% shareof global revenue in 2018, owing to the less caffeine contentand sweeter taste. Increase in the penetration of cafes indeveloping countries, coupled with surge in use of arabicabeans in chocolates, nuts, and caramels, is expected to have apositive impact on the market growth.Robusta is expected to be the fastest growing market with aCAGR of 7.4% during the forecast period. These beans arestrong and bold in taste and have a chocolaty flavor that lingeron pleasantly in the mouth. Moreover, these beans are rich incaffeine content, which has a direct effect on brain. Thecaffeine replaces adenosine, which stimulates brain and makesyou active and alert. This, in turn, is expected to gainpopularity among the working population over the forecastperiod.In addition, these beans are a rich source of naturalantioxidants, which act as natural anti-inflammatory agents.Moreover, they help in reducing the risk of various diseasesincluding Alzheimer and Gallbladder stones, and promotingweight loss. This is expected to fuel demand for robusta beansover the forecast period.Application Insights Food and beverages emerged the largest segment, accountingfor more than 70.0% share in 2018. Increase in consumptionof coffee, coupled with coffee flavored beverages, is expectedto drive demand for coffee beans over the forecast period.These beans are used in cakes, cookies, and muffins, which isexpected to have a positive impact on the market growth.Espresso flavor is gaining popularity in the food andbeverages segment owing to its strong and bold taste. Inaddition, this flavor is widely used in cakes, cookies, andvarious dietary supplements owing to its high caffeinecontent. Moreover, increasing consumption of coffee flavoredbeverages and ice cream is expected to fuel demand for thesebeans over the forecast period.

Thepharmaceuticalssegment isestimated to bethe fastestgrowingsegment,expanding at aCAGR of

10.3% over the forecast period. Increase in awareness relatedto health benefits is a key factor driving the segment over theforecast period. For instance, green coffee beans areconsumed to reduce weight and improve metabolism. Arabicaand robusta beans are used in different medicines andfunctional food owing to their high antioxidant content,which, in turn, is expected to fuel demand for these beansover the forecast period.The cosmetics segment is expected to witness growth in thecoming years due to increasing use of coffee beans indifferent personal care products such as facewash, scrubs, andlipsticks. Coffee extract provides prolong moisturizing effectand helps to remove sun tan. Therefore, extracts are blendwith lip balms, moisturizer, and different face creams.Increasing demand for moisturizer, facewash, lip balm, andlotion is expected to fuel demand for coffee beansRegional Insights North America was the largest market with a share of 29.2%in 2018 due to high consumption of coffee brew. Growingdemand for coffee vending machines at railway stations,airports, offices, and other places and increasing demand fromthe working population are anticipated to make a reasonablecontribution to the market revenue. Furthermore, increase inthe number of coffee shops in Canada and U.S. is expected tofuel demand for coffee beans over the forecast period.MEA is estimated to expand at the fastest CAGR of 9.9% overthe forecast period owing to increasing consumption ofcoffee. Moreover, penetration of various pharmaceuticalcompanies such as Novartis and Allergan is expected to fueldemand for coffee beans over the forecast period.Asia Pacific is expected to witness significant growth duringthe forecast period due to rising disposable income, coupled

with coffee consumption. Growing popularity of coffeeamong the young population and increasing number of cafesare expected to provide growth opportunity for coffee beansin the region.Coffee Beans Market Share Insights The global market is highly competitive in nature. Some ofthe major players in the market are Kicking Horse WholeBeans; Death Wish Coffee; The Coffee Beans Co.; LaColombe Torrefaction, INC.; Coffee Beans International, Inc.;illycaff S.p.A.; Luigi Lavazza S.P.A.; La ColombeTorrefaction, INC.; Hawaiian Isles Kona Coffee Company,Ltd.; and Peets Coffee & Tea, Inc.The manufacturers are focusing on launching different flavorsand new products to increase their market share. Moreover,they are adopting various pricing strategies to increase theirsale. Introduction of new flavors and appealing packages,together with campaigns through networks and social media,are anticipated to increase the growth of the global market inthe coming years.• By product, arabica dominated the global market with anoverall revenue share of 61.2% in 2018. Robusta isanticipated to ascend at a CAGR of 7.4% over the forecastperiod• The food and beverages application segment held the largestshare of more than 70.0% in 2018 owing to increasing numberof coffee retail outlets in developing countries such as Indiaand China• North America dominated the global market in 2018,accounting for 29.2% share of the overall revenue. This trendis projected to continue over the next few years• Middle East and Africa is anticipated to be the fastestgrowing market with a CAGR of 9.9% during the forecastperiodSource: Grandview Research

BEST COFFEE CITIES IN AMERICA Coffee first became popular in the U.S. after the Boston TeaParty, when the switch was seen as “patriotic,” according toPBS. And since Starbucks debuted in 1971, the drink is nowaccessible almost anywhere you go. In a recent Reuters poll,sixty-three percent of Americans age 18 or older said they

drank coffee the previous day.What gave way to java culture? Science, for one, hasconvinced us that caffeine possesses multiple health benefitsbesides mental stimulation. At the right dosages, caffeine maycontribute to longevity. Perhaps just as important, though, iscoffee’s social purpose. Today, coffee stations are a staple ofthe workplace, and tens of thousands of shops serve asmeeting places for friends, dates and coworkers. The creationof these drinks has grown increasingly professional, too.Being a barista has become less a part-time job than a careerfield. Latte art has even inspired a national competition.But some local coffee scenes are stronger than others. Todetermine the best among them, WalletHub compared the 100largest cities across 14 key indicators of coffee lover-friendliness. Infographics: Best Coffee Cities in America

Source: Coffeebi

Coffee Shops Nationwide

Source: e-Importz

Source: SCA Coffee

Source

Source

Ranking ofUSA statesbased ofCoffee Shops

Source: WalletHub These Cities Have the Most Coffee Shops Per Person 10. Ann Arbor, MI — one for every 2,825 people9. Everett, WA — one for every 2,752 people8. Pittsburgh, PA — one for every 2,607 people7. Minneapolis, MN — one for every 2,427 people6. Salt Lake City, UT — one for every 2,387 people5. Portland, OR — one for every 2,322 people4. Seattle, WA — one for every 2,308 people3. San Francisco, CA — one for every 2,297 people

2. Vancouver, WA — one for every 2,224 people1. Berkeley, CA — one for every 2,073 peopleSource