The annual report for 2017 by the National Coffee Association indicated that for the first time in almost seven decades of reporting the industry trends, more than half the coffee consumed daily in the United States was gourmet, which represented a hearty 59 percent of total consumption.
Coffee consumption in North America at highest levels since 2012
Gourmet coffee over half of all consumption for first time in recorded history
Coffee prices potentially bottomed out with some...
The annual report for 2017 by the National Coffee Association indicated that for the first time in almost seven decades of reporting the industry trends, more than half the coffee consumed daily in the United States was gourmet, which represented a hearty 59 percent of total consumption.
- Coffee consumption in North America at highest levels since 2012
- Gourmet coffee over half of all consumption for first time in recorded history
- Coffee prices potentially bottomed out with some analysts predicting major rise
- Product quality/innovation and end market resonance likely the key differentiating factors moving forward
With 64 percent of adults reporting drinking at least one cup per day, overall coffee consumption is up 2 percent from last year to reach the highest levels since 2012. The North American coffee market is on pace to run at a CAGR of some 5.8 percent through 2023, according to a recent report published by Mordor Intelligence. Youngevity International, Inc. (NASDAQ: YGYI), while historically recognized more for the company’s innovative products, direct sales and marketing, has been steadily executing on a plan to build scalable coffee operations across multiple vertical segments. Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) continues to differentiate itself in the consumer market with broad appeal and offerings such as its recently debuted Cold Brew coffee, the most successful launch in the company’s history on an incremental sales basis. Industry juggernaut Starbucks Corporation’s (NASDAQ: SBUX) share price may be in a holding pattern with a slight decline lately, but the king is still trying on new clothes, as evidenced by the recent launch of a plant-based Protein Blended Cold Brew in almond and cacao. Coffee Holding Co., Inc. (NASDAQ: JVA) continues to branch out in the commercial end of the market via deals such as its partnership extension with Smart & Final, which has 323 upscale locations across California and Oregon. Farmer Brothers Company (NASDAQ: FARM) is also banking heavily on North America’s seemingly unflappable love affair with coffee, as this roaster, wholesaler and distributor recently detailed expansion of its roasting capacity to more than 200 million pounds per year, as well as expansion of its distribution capabilities.
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