Coffee Industry Trends Essay

Coffee let ons be considered to be specialty eateries, which in addition includes retail outlets that offer bagels, donuts, ice cream and frozen yogurt. In 2011 thither were around 20,000 hot chocolate sponsors in the United States with combined revenues of $10 billion. 70% of the sales are generated by the top 50 java shop operators. There are topical anesthetic mom and pop operators competing alongside of Starbucks and early(a) national injurys. The make out of coffee shops like Starbucks rose in 2004, only leveled off in the recession of 2008. The number of establishments has grown fast-flyinger than the number of firms.So while there are quite a some startups, those start- ups are starting up more than and more shops. International occupancy is becoming more and more important in this industry. Starbucks reported to piss 5,500 international locations in 2010. Starbucks is getting ready to open their first shop in Vietnam. Vietnam is a country with strong coffee t raditions and many local independent shops. In 2012, the National Coffee Association conducted a plain and they found that over 75% of adults living in the US jollify coffee and of those, 58% drink it daily. The age group 25-39 went from 44% inebriation daily to 54%.Why the increase? Most felt snap off about their finances. There are still more Americans drinking coffee than tea. There are 183 million coffee drinkers to 173. 5 million tea drinkers. There has been a surge of national quick service and fast food chains entering the market. McDonalds introduced their specialty coffee line, McCafe in 2005, Burger great power has BK Joe, Chick-Fil-A has Cafe blends, 7-Eleven has World Roasts, and Dunkin Donuts has lattes and cappuccinos that they introduced in 2003. Because of increased competition, many companies are trying to increase their sales thru whole and ground coffee.Many are selling thru grocery stores, specialty food stores, and also the internet. This helps build brand awareness and also brings people into the coffee shop itself. 85% of coffee drinkers make their coffee at home and now they have more ways to make their own specialty and espresso as well. These companies are real competing against themselves as they manufacture coffee for the Keurig and Vue machines. The average consumption of coffee has rattling fallen slightly in the last 30 years, but is project to remain stable over the next five years.