Did you know that 54% of Americans over the age of 18 consume coffee on a daily basis? Research has proven that coffee, when enjoyed in moderation, indeed provides the body with a variety of health benefits, for example: coffee provides the body with a boost of caffeine, thus stimulating the mind cognitively and body physically. With coffee being so popular among a large consumer segment, it should come as no surprise that coffee has done extremely well in retail sales in the past, and is only projected to see a greater deal of growth in the next five years. With the increase of coffee sales in the ready to drink market, one cup variety’s, along with variety blends, functional blends, and iced coffees, its seems as though the coffee market
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Factors that have impacted the retail sales of coffee have included: perceived health and dietary effects, cognitive and mental performance, functionality, introduction of varieties of coffee (single cup, ready to drink, and iced), median income of consumers, and changes in consumer demographic have all contributed to the sales and marketability of coffee products. Undeniably, the variety in coffee products produced, has led a great deal of growth and opportunity for coffee retail sales to continue grow in the years to come.
However, the coffee market is still continuing the recovery from the price jump in coffee prices in the years 2012 and 2013, which sent the average coffee retail price to $5.50 and $5.90 respectively. This spike in retail price was caused by a draught which severely impacted Arabica bean production in Brazil. Recently, the average price per retail coffee drink has begun to show sign of stabilization and recovery as in 2014 and 2015, the retail price per drink had trended back down to $5.02 and $4.74 …show more content…
These types of coffee products all have their own benefits and setbacks. The coffee market in the United States is tasked with identifying the segments of consumers most interested in the variety of coffee products. Challenges present themselves early in this task of segmentation, as each type of coffee product has a unique and specific segment that must be fully realized to experience the greatest deal of growth the United States coffee market. The coffee market is surely to be expanding to meet the demands of its consumers, manufacturers are in the process of designing in wall coffee makers, coffee makers on the go (car), smart coffee, and even coffee flavored sodas and
Factors that have impacted the retail sales of coffee have included: perceived health and dietary effects, cognitive and mental performance, functionality, introduction of varieties of coffee (single cup, ready to drink, and iced), median income of consumers, and changes in consumer demographic have all contributed to the sales and marketability of coffee products. Undeniably, the variety in coffee products produced, has led a great deal of growth and opportunity for coffee retail sales to continue grow in the years to come.
However, the coffee market is still continuing the recovery from the price jump in coffee prices in the years 2012 and 2013, which sent the average coffee retail price to $5.50 and $5.90 respectively. This spike in retail price was caused by a draught which severely impacted Arabica bean production in Brazil. Recently, the average price per retail coffee drink has begun to show sign of stabilization and recovery as in 2014 and 2015, the retail price per drink had trended back down to $5.02 and $4.74 …show more content…
These types of coffee products all have their own benefits and setbacks. The coffee market in the United States is tasked with identifying the segments of consumers most interested in the variety of coffee products. Challenges present themselves early in this task of segmentation, as each type of coffee product has a unique and specific segment that must be fully realized to experience the greatest deal of growth the United States coffee market. The coffee market is surely to be expanding to meet the demands of its consumers, manufacturers are in the process of designing in wall coffee makers, coffee makers on the go (car), smart coffee, and even coffee flavored sodas and