Single-cup coffee options boost coffee market
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ROCKVILLE, MD. — The U.S. coffee market grew 10% in dollar sales in 2012, boosted by an increase in the single-cup segment, according to a new report from Packaged Facts.
The Keurig K-Cup from Green Mountain Coffee Roasters had a compound annual growth rate of more than 75% between 2007 and 2012. Overall, Packaged Facts said single-cup coffee sales in the United States increased 82% from $1 billion in 2011 to more than $1.8 billion in 2012 and are expected to reach $5 billion by 2015.
“Proven market performance and the expiration of an important K-Cup patent in September 2012 has led to a new round of marketplace competition, motivating long-standing category participants to step up their competitive strategies,” said David Sprinkle, research director for Packaged Facts.
There also has been an increase of private label and unlicensed beverage pods that work in Keurig K-Cup brewers.
Packaged Facts said there are several factors that will contribute to the continued growth of the single-cup market. These include dedicated and discerning coffee consumers, consumer desire to have coffee-shop quality at home, more systems in offices and hotels, innovations leading to increased beverage quality, a large selection of brewers, the popularity of the systems as a kitchen gadget, a wider selection of beverage options, and reports showing health benefits of coffee.