US Liquid Coffee Market Overview: Market Dynamics, Trends, and Future Prospects

The global U.S. liquid coffee market size was USD 6.01 billion in 2021. The market is expected to grow from USD 6.33 billion in 2022 to USD 9.61 billion by 2029, exhibiting a CAGR of 6.17% during the forecast period. In semi-urban and urban areas, the coffee shop market is increasing due to the growing population, demand for new generational cafes, and disposable income of young consumers. Based on our analysis, the U.S. market exhibited an average growth of 3.80% in 2020 compared to 2019 due to COVID-19-related disruptions. Fortune Business Insights presents this information in their report titled “U.S. Liquid Coffee Market, 2022-2029.”

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Flavored Coffee Segment to Record Substantial Growth over 2022-2029

Based on type, the market is divided into flavored and unflavored. Generation Z and millennials are inclined toward trying new flavors of coffee, which is expected to drive the U.S. liquid coffee market growth. Flavored coffee is a preferred beverage among office workers and professionals as a refreshing drink. Coffee producers have focused on producing more unique and authentic flavors to achieve consumer attention and boost flavored coffee sales.

Food Service Industry Gained Traction Due to Increased Demand for Instant Liquid Coffee

Based on end-user, the market is segmented into household, food service industry, and processed food industry. The U.S. market is dominated by the food service industry, which is anticipated to grow at a significant CAGR during the forecast period. Involvement of the food service industry in hotels, restaurants, motels, cafes, takeaway outlets, fast food restaurants, and food delivery kiosks that offer instant coffee is likely to gain the U.S. liquid coffee market share.

Report Coverage:

The report offers:

  • Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
  • Comprehensive insights into the regional developments.
  • List of major industry players.
  • Key strategies adopted by the market players.
  • Latest industry developments include product launches, partnerships, mergers, and acquisitions.

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Drivers & Restraints:

Increasing Demand For RTD Products to Foster Market Growth

Café culture has brought light on ready-to-drink coffee to the U.S. The product is becoming popular among young adults and the middle-aged working population as it is a prime source for instant energy. Lavazza, an Italian coffee giant entered the U.S. ready-to-drink coffee market in April 2022. The distribution of RTD coffee has also expanded to various mainstream channels such as hypermarkets, specialist stores, supermarkets, grocery stores, and convenience stores. Convenience and ease with supermarket purchases and rise in demographic spending are expected will be a vital path for RTD coffee manufacturers.

On the contrary, distribution, shipping, marketing, and advertising drive up coffee costs. Distribution and shipping from coffee-producing countries to coffee-consuming countries play a vital role in the final cost of coffee.

Competitive Landscape

Key Players Prioritize Product Innovation and New Product Launches to Accelerate Market Growth

The major participants in the U.S. market place a strong emphasis on new product development methods and innovations. The companies are focusing on developing new tastes of coffee, such as coffee spritzers and nitro coffee, as well as enhancing the efficiency of the coffee extraction process without compromising flavor.

Key Industry Development:

March 2021: The J. M. Smucker Company and JDE Peet’s entered into a strategic liquid coffee partnership. This partnership will enable JDE Peet’s to assist Smucker’s away-from-home coffee business with food service, production equipment innovation, and product development.

List of Key Players Profiled in the Report

  • The Kraft Heinz Company (U.S.)
  • The J.M. Smucker Company (U.S.)
  • Eight O’ Clock Coffee Company (U.S.)
  • The CAFEA Group (Germany)
  • Keurig Dr Pepper Inc. (U.S.)
  • Neumann Gruppe GmbH (Germany)
  • John Swire & Sons Ltd. (U.K.)
  • All American Coffee LLC (U.S.)
  • JDE Peet’s (Netherlands)
  • Gavina & Sons, Inc. (U.S.)

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