Hotline: 1800 102 2007
X
Search Business Opportunities
Jun, 23 2015

Coffee consumption in the US to fall at 23.7 mn bags

The nation will be the only one of the top eight global coffee-drinking countries to see a decline in consumption, with overall global demand rising by nearly 2 million bags to 147.6 million bags.

Americans are spending more money on coffee than ever before, but for the first time in six years, they will be drinking less of it as the single-serve revolution transforms the brewing habits of the world's largest coffee-drinking nation, reported Reuteurs.

Coffee consumption in the United States is expected to fall to 23.7 million 60-kg bags in the upcoming 2015-16 season, down from 24 million bags in the year that ends in September and the first drop since 2009-2010, the US Department of Agriculture (USDA) forecast in its biannual coffee report on Friday.

The nation will be the only one of the top eight global coffee-drinking countries to see a decline in consumption, with overall global demand rising by nearly 2 million bags to 147.6 million bags.

The forecast will upset traders and roasters as arabica coffee futures prices continue to fall amid plentiful supplies.

The report provides further evidence that the growing popularity of single-serve pods, dominated by Keurig Green Mountain's K-Cups, is having a material impact on US demand for green coffee beans, market participants said.

As Americans shift from traditional roast and ground coffee toward single-serve, they are brewing only what they intend to drink, reducing the amount thrown down the drain.

"People used to make a pot of coffee, now they make a cup," said Pedro Gavina, owner of Vernon, California-based roaster Gavina & Sons. "Right there we're losing the sink as a consumer."

In February, Reuters reported that Americans are buying less coffee as coffee pods increase the efficiency of consumption, limiting the amount of beans roasters will need to buy per consumer.

Ownership of single-serve brewers has ballooned in 2015, with more than a quarter of American households having one, up from just 15 percent in 2014, a National Coffee Association (NCA) survey in March showed.

Single-serve machines have yet to reach a similar level of popularity abroad.

While consumption by volume is falling, Americans spent a record $11.9 billion on coffee in 2014, and are expected to spend $12.8 billion in 2015 and $13.6 billion in 2016, forecasts from market research firm Mintel show. Roasters often charge a hefty premium for single-serve coffee.

In addition to the impact of single-serve, the aging of the population has contributed to a decline in consumption, with Americans drinking 1.85 cups a day, the lowest level since 2010, the NCA survey shows.

Comment
Related opportunities
  • Others Entertainment & Leisure
    About: Toon Mart is a one shop for wide range of..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Partner with Siyaram Silk Mills Ltd - one of the..
    Locations looking for expansion Maharashtra
    Establishment year 1978
    Franchising Launch Date 2006
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai City Maharashtra
  • About Us GingerBread House IND is efficiently managed & headed by..
    Locations looking for expansion West Bengal
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 1300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • Imitation/Art/Junk Jewellery
    About Us Brand Tistabene is owned by the leading lifestyle retail..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts