Make no mistake, coffee is big business: Packaged Facts forecasts that retail and foodservice sales of coffee will top $48 billion in 2014. Of this amount, we expect $11.2 billion (or 23%) to come from retail sales and $37 billion (or 77%) to come from sales at foodservice establishments. For coffeehouse and quick-service restaurant operators, attaching food to the purchase of coffee is more important than ever. Brands are aggressively innovating on both the beverage and food side of the menu to provide customers the ammunition needed for more pairing firepower. But more and more of these players are also branching into other beverages, which has the potential to dampen coffee sales growth. Any yet despite all the variety, hot coffee is still the go-to beverage, with 75% of coffee/coffee drink users saying that among 10 choices “hot coffee” is the coffee/coffee drink they drink most often. As restaurant operators race to launch loyalty programs, coffeehouse chains are fertile ground for programs that blend and harness social media, mobile technology and rewards. Our research suggests that coffeehouse users are receptive to social media and brand interplay, and when it comes to adapting to technology, these consumers are also ahead of curve. On the retail side, the rise of single-serve is changing the retail coffee landscape—and if Green Mountain Coffee Roasters has its way—single serve will also change away-from-home coffee consumption. But coffee co-branding is also moving beyond coffee shop brands to align with other indulgent brands. Building off coffeehouse expectations for a wide variety of options, retail coffee manufacturers are also embracing variety, and sourcing has become a key element in coffee premiumization. And innovation abounds: To combat attrition, instant coffee marketers are trying to breathe life into the category focusing on quality products underscored by variety, functional, and value positioning.

1. Culinary Trend Tracking Series (CuTTS) and
Packaged Facts team up to bring you this next
installment in our Trends in Motion series:
Coffee and Ready-to-Drink Coffee Trends,
Coffeehouse Marketing and Category Growth.
Trends in Motion Series

2. Coffee and Ready-to-Drink Coffee in the U.S.
© MarketResearch.com
“I
consume
hot coffee
most
often.”
75% of
U.S.
Adults
Source: Compiled by Packaged Facts in
its Coffee and Ready-to-Drink Coffee in the
U.S. report, 8th Edition

3. Coffee and Ready-to-Drink Coffee in the U.S.
© MarketResearch.com
Hot Coffee Reigns Supreme
Hot coffee is the #1 coffee consumed the most, but restaurants take the lion’s share of specialty coffee
drink consumption. The opportunity for coffee makers is ‘pushing the envelope” at home.
Infographic: Which Coffee Do You Consume the Most?
0% 20% 40% 60% 80%
Hot coffee
Iced coffee
Latte
Cappucino
Blended Iced Coffee Drinks
Cappuccino
Espresso
Macchiato
Café au lait
75%
15%
15%
13%
10%
9%
7%
5%
3%

4. Coffee and Ready-to-Drink Coffee in the U.S.
©
MarketResearch.com
Single-cup and RTD are Growth Coffee Categories
While ground coffee and instant coffee in retail were down. Single-cup and RTD (Ready-to-Drink)
coffee showed increases.
Infographic: Select Retail Coffee Categories and Share of Total
54.8%
27.9%
7.3%
-5.9%
43.6%
39.2%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Whole Bean and
Ground
Single Cup RTD
2
0
1
3
S
a
l
e
s
C
h
a
n
g
e
H
o
u
s
e
h
o
l
d
U
s
a
g
e HH Usage

5. Coffee and Ready-to-Drink Coffee in the U.S.
© MarketResearch.com
Premium and Niche Coffee Brands are Seeing Growth
Consumer desire for premium and Latin-sourced coffee is driving
growth at these brands. For example, Starbucks posted 2.1%
ground coffee sales growth and 3% total packaged
(ground/RTD/single-serve) coffee sales growth in 2013 vs. 2012.
Bustelo posted a 1.6% sales growth in 2013.
Starbucks
Café Bustelo
(JM Smucker
brand)
Café Pilon Café Goya

6. Coffee and Ready-to-Drink Coffee in the U.S.
Coffeehouse users are receptive to
social media and brand interplay.
According to Packaged Facts’
survey analysis, those using
several major coffeehouse chains
are more apt than the average
adult to interact with brands via
social media.
For example, consumers who have
visited Dunkin’ Donuts in the past
30 days are almost 2.5 times as
likely as the average adult to view
social sharing/ networking
websites as a way for them to tell
people about companies and
products that they like, and they
are twice as likely to enjoy
following their favorite brands or
companies on social sharing/
networking websites.
© MarketResearch.com
Insight: Coffeehouse loyalty
programs blend and harness
social media, mobile technology
and rewards into forceful loyalty
programs.

7. Coffee and Ready-to-Drink Coffee in the U.S.
© MarketResearch.com
Select Brands in Households
Starbucks isn’t the only coffee story in town with Latin brands showing the power of the Latino
consumer in America. Cuban brands Pilon and Bustelo need little help in growing. Census data shows
Hispanics of Cuban origin, in particular, are the fourth-largest population of Hispanic origin in the U.S.
and have a higher annual income and education compared to all Hispanics. Insight: Market coffee to
Hispanics with unique messaging based on origin.
Infographic: Usage of Select Coffee Brands, 2013
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
Starbucks
Café Bustelo
Café Pilon
Café Goya
12.8%
2.6%
1.2%
1.0%

8. Additional Resources
© MarketResearch.com
8
Info
• Packaged Facts Food & Beverage Reports
• http://www.packagedfacts.com/food-beverage-market-c84/
Report
• Coffee and Ready-to-Drink Coffee in the U.S.
• http://www.packagedfacts.com/Coffee-Retail-Foodservice-
8133971/
White
Paper
• Complimentary White Paper: How to Identify Food Trends
• http://content.marketresearch.com/how-to-identify-food-
trends-white-paper