Global Revenue Growth

Globally, the revenue growth of coffee in 2020 is pretty stable. The coffee roast is at 5.4% and instant coffee is at 6.1%. In the year 2025, instant coffee is expected to drop to 6.0% from 7.2% in 2024. Roast coffee has a peak drop in the year 2024 but is expected to increase to 5.2% in 2025. Overall, the revenue growth of both types of coffee is stable from 2020 to 2023.

g

Source: Statista

Global Revenue:

Globally, coffee revenue is expected to be $448,382 million US dollars in the year 2020 and $585,258 million dollars in 2025. Globally, the coffee industry is a good place to do marketing in because the CAGR expects to grow annually by 5.5%. Roast coffee makes more revenue than instant coffee so roast coffee would be a better product to do business in.

Overall, with the continuous growth in revenue globally, introducing more coffee products can be ideal for a business.

Source: Statista

Coffee Segment Price Per Unit: Average Retail Value Per Unit

  • The average price per unit for both roast and instant coffee is $61.72 US dollars in 2020 and is expected to grow to $74.62 dollars in 2025. This is the total price per unit of coffee.
  • Price per unit for roast coffee equals to $57.34 US dollars in 2020 and is expected to grow to $68.41 dollars in 2025.
  • Price per unit for instant coffee equals to $76.80 US dollars in 2020 and is expected to grow to $95.51 dollars in 2025

 

Total coffee revenue

Source: Statista

Coffee Market Analysis

Coffee is one of the most consumed beverages worldwide. The CAGR is expected to grow 5.5% annually from the years 2020 to 2025. The coffee industry is a good industry to do business in because the coffee revenue continues to rise. The total revenue worldwide equals to $448,383 million dollars and the US leads the coffee industry with a revenue of $86,207 million dollars.

The average revenue per capita equals to $60.25 dollars and the consumption rate is 1.0 kilograms per person in the year 2020. The revenue growth rate is pretty stable within the next five years only with a slight decrease in the year 2023. Overall, the coffee market is increasing in demand and the revenue is increasing stably.

Import/Export

Global coffee importers with the highest coffee dollar value in 2019.

 

coffe import

Source: Worldstopexports

Global coffee exporters with the highest coffee dollar value in 2019.

coffee export

Source: Worldstopexports

US Revenue Growth

In the United States, the revenue growth of coffee has been decreasing. In 2020, the average revenue growth is 4.6% and will decrease to 3.3% in 2025. Instant coffee revenue growth is a bit greater than roast coffee.

 

Source: Statista, 2020 Outlook

US Revenue

In 2020, the United States’ coffee revenue is expected to be $86,205 million in US dollars. The coffee revenue is increasing throughout the years and is expected to reach $102,643 million dollars in the year 2025. The United States has a good market for coffee because of the continuous increase in revenue. CAGR is expected to grow by 3.6% annually.

Roast coffee is the leading type of coffee with a large market segment. The roast coffee revenue equals to $70,606 million US dollars and instant coffee only amount to $15,601 million US dollars.

 

 

Coffee Segment Price Per Unit: Average Retail Value Per Unit

  • The average price per unit for both roast and instant coffee is $69.20 US dollars in 2020 and is expected to grow to $77.89 dollars in 2025. This is the total price per unit of coffee.
  • Price per unit for roast coffee equals to $62.26 US dollars in 2020 and is expected to grow to $69.85 dollars in 2025.
  • Price per unit for instant coffee equals to $139.72 US dollars in 2020 and is expected to grow to $159.50 dollars in 2025.

 

Source: Statista, 2020 Outlook

United States’ Coffee Market Analysis:

The CAGR is expected to grow 3.6% annually from the years 2020 to 2025. The coffee industry is a good industry to do business in because the United States generates the most coffee revenue globally. The US leads the coffee industry with a revenue of $86,207 million US dollars. The revenue growth rate is expected to drop throughout the years but it should not affect the overall coffee industry revenue. Overall, the coffee market is increasing in demand and the revenue is increasing stably.

 

United States’ Import/Export:

In 2018, the United States’ import dollar value equals $5.7 billion dollars and exports are $861.2 million dollars.

Coffee imports and exports are both declining for the United States. The imports dropped by 4.9% and exports are dropped by 10.2%. The decline in imports and exports are most likely linked to the increased in tariffs.

 

Coffee Trends in the United States:

According to NCDT, “63% of American adults drink coffee daily” and it was said that coffee is a top favorite beverage in America. Individuals are starting to prefer gourmet coffee and is more concerned with the quality of their coffee than the quantity.

  • Cold brew coffee and/or nitro cold brew is the new big thing in the coffee industry. According to a study from the National Coffee Association, there are 60% of people that have heard of cold brew but never tried it. There should be more advertising to entice individuals to try out this coffee.
  • There is a trend that says coffee has health benefits. In modern-day, there are many health-conscious individuals that drinks coffee and more youth are starting to consume coffee.
  • Iced coffee and specialty drinks are popular amongst millennials. Snapchilled coffee is a new chilled coffee that rapidly cools down after hot brewing. It is a good alternative to prevent ice cubes from diluting the coffee.
  • In 2020, there is a trend that has coffee and cola as a combination drink. Pepsi is also planning to release a drink that has twice as much caffeine as a regular soda.
  • Many coffee shops now offer non-dairy milk as substitutes. They are adapting to the current health lifestyle.
  • Sustainability seems to be playing a big part in the coffee industry as there are more reusable cups, better packaging without plastic, and organic coffee beans.