The value of the United States coffee shop market grew 8% to $49.5 billion over the past year, resulting in a 4% increase in the market’s pre-pandemic value, according to the newly released Project Café USA 2024.
The annual report produced by the Allegra Group’s World Coffee Portal also said that the number of U.S. coffee shops has for the first time surpassed 40,000, which is approximately 7% above pre-pandemic levels.
Growth was largely driven by large chains and/or drive-through specialists such as Starbucks (494 net new U.S. stores in the past 12 months), Dunkin’ (172 net new), Dutch Bros (164 net new) and Scooter’s Coffee (224 net new).
“To see the… overall number of stores rising above 40,000 for the first time ever is credible evidence of a very robust market, and there are strong times ahead for well-organized operators with strong a focus on customer service and clear brand purpose,” Allegra Group Founder and CEO Jeffrey Young said in an announcement of the report’s launch. “Nevertheless, the post-pandemic market still presents significant hurdles for many U.S. coffee chains. A tough labor market, high inflation and squeezed consumer spending will remain major market challenges over the next 12-18 months.”
According to World Coffee Portal, the 343-page 2024 report incorporates the results of 5,000+ consumer surveys and 150+ surveys with industry leaders, among other research.
The report notes that Starbucks maintains a whopping 40% share of the market in terms of number of outlets, with more than 16,000 in the U.S.
Regarding consumer trends, the report notes that cold coffee continues to grow in popularity, particularly among younger consumers. Daily consumption of cold coffee increased 8% over the 12-month period, with iced coffee trailing only filter coffee when consumers were asked about their most recent order.
“With 24% of consumers surveyed consuming iced coffee daily, up from 17% in 2022, half of industry leaders now consider cold coffee to be the most important market trend currently — ahead of the rise of specialty coffee (32%) and drive-thru growth (29%),” the report states.
The report arrived shortly before another major report on the U.S. coffee industry commissioned by the National Coffee Association. That report found that U.S. consumers spent nearly $110 billion on coffee and related goods in 2022 (the equivalent of $301 million per day), while coffee supports approximately 2.2 million U.S. jobs.
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