Changes Brewing in Coffee Market

Retail sales of premium packaged coffees are putting a jolt in foodservice coffee sales. A new report from Packaged Facts, Rockville, MD, notes that sales of premium packaged coffee through retail channels will soon outpace sales at foodservice venues as consumers increasingly begin brewing coffee at home.

According to the report, “Coffee in the U.S.: Retail, Foodservice and Consumer Trends,” the coffee market will reach an estimated $59 billion by 2012. Although coffee sales at foodservice venues accounted for 87% of the market in 2007, the introduction of packaged versions of recognized brands, such as Seattle’s Best, Starbucks and Peet’s, will boost current retail market sales of 30% to an estimated 45%.

“The specialty coffee industry is at the forefront of offering ethical, eco-friendly products. Although this is a niche market, it is rapidly touching mainstream,” notes Tatjana Meerman, publisher, Packaged Facts. “For example, in April 2008, Wal-Mart launched a line of six premium packaged ground coffees that are either fair trade certified, USDA certified organic, or Rainforest Alliance certified.”