US Coffee Market Size Likely to Expand at a CAGR of 5.8% By 2034

US Coffee Market Size

As per the US Coffee Market size analysis conducted by the CMI Team, the US Coffee Market is expected to record a CAGR of 5.8% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 90.97 Billion. By 2034, the valuation is anticipated to reach USD 150.88 Billion.

US Coffee Market Overview

As per insights from industry experts at CMI, the US Coffee market is experiencing strong growth driven by shifting consumer preferences toward premium and specialty brews, as well as increasing demand for sustainable and ethically sourced products. A rising number of Americans are opting for gourmet coffee, supported by growing interest in artisanal and cold brew options. Health-oriented consumers are also looking for functional coffee drinks with added adaptogens, protein, and vitamins.

Moreover, environmentally friendly packaging and sustainable sourcing practices are emerging as major buying drivers that align with overall sustainability objectives. Innovations in brewing technologies, along with the expansion of café chains and ready-to-drink (RTD) options, further propel the market’s growth. These factors, together with changing taste profiles and lifestyle patterns, continue to define the future of the US Coffee industry.

US Coffee Market Growth Factors and Dynamics

• Rise in Specialty Coffee Demand: The US market has witnessed strong growth in the consumption of specialty coffee due to consumer preference for quality, ethics, and uniqueness in the taste. As stated by the National Coffee Association (NCA), nearly 60% of the American coffee consumer prefers gourmet or specialty coffee. This is attributed to growing consciousness about origin, roasting profile, and sustainability. Millennials and Gen Z are leading this trend on the back of a willingness to pay a premium for third-wave, single-origin, and artisanal coffee options. The specialty segment not only increases profit margins but also leads to brand loyalty and allows differentiation in an increasingly saturated market, making it a key growth driver both in terms of retail and foodservice channels.

• Expansion of Coffee Chains: Large coffee companies such as Starbucks, Dunkin’, and Peet’s are rapidly expanding into urban and suburban American markets. Expansion adds convenience and availability and enhances general consumption of coffee. Starbucks alone has over 16,000 US locations as of 2023 and is still opening shops in busy locations, such as airports, hospitals, and colleges. Concurrently, the development of independent cafes and boutique roasters brings diversity and supports local economies. By embracing new store formats, such as drive-thrus and pickup-only stores, coffee brands are responding to changing consumer behavior as well. Physical growth of cafes fortifies brand visibility and consumer contact points, positively driving sales and consumer interaction.

• Increase in At-Home Consumption: In-home coffee consumption grew during and post the COVID-19 pandemic, with consumers spending on high-end coffee machines, grinders, and accessories. According to a 2023 NCA report, 84% of US coffee drinkers had at least one cup at home daily. As remote and hybrid work models persist, the home has become a new center for coffee rituals. This trend has stimulated retail sales of beans, pods, and ready-to-brew formats such as ground and whole bean coffee. Coffee companies also have introduced premium blends and small-batch selections for home brewers, recreating a café-quality experience. This new segment has been a stable revenue source, taking the market away from traditional foodservice channels.

• Rising Coffee Consumption Among Younger Demographics: Gen Z and millennials are transforming the US coffee industry with higher per capita consumption and more experimentation. According to a 2023 NCA study, 46% of 18- to 24-year-olds and 67% of 25- to 39-year-olds consumed coffee every day, and many were experimenting with cold brews, nitro, and flavored coffees. Convenience, sustainability, and health-focused blends are what younger consumers value, and they also tend to connect with brands via social media and influencer channels. This group is also more likely to experiment with new forms and premium products such as RTD, organic, and functional coffee. As their income increases, these segments will increasingly influence innovation, demand, and market growth overall in the US coffee industry.

Report Scope

US Coffee Market SWOT Analysis

• Strengths: The US coffee market is supported by a strongly established culture of coffee consumption, with strong per capita consumption and prominent availability of global and local brands. The market also resists recession during economic downturns, as coffee is a mainstay for most consumers. Product innovation in terms of cold brews, ready-to-drink (RTD) coffee, and specialty coffee elevates brand loyalty and premiumization. In addition, an established supply chain and extensive availability across cafés, retail stores, and online media further enhance its grip on the market. The increasing popularity of health-oriented consumers has also promoted the growth of functional coffee derivatives, expanding the portfolio of the market.

• Weaknesses: Despite its size, the market is subject to risks such as dependence on volatile global coffee bean prices and climatic shocks in coffee-producing regions. Such volatility could have the impact of affecting profitability levels throughout the value chain. Moreover, stiff competition from big brands has a tendency to lead to price wars, cutting profitability. Changing consumer tastes are moving quickly in favor of sustainable and ethically produced products, and non-alignment with these could be detrimental to brand image. The industry also faces increasing concern over the health effects of high levels of caffeine intake, encouraging some consumers to turn to other drinks, which will cap long-term volume growth.

• Opportunities: The US coffee market has strong growth prospects in premium and specialty segments, particularly single-origin, fair-trade, and organic coffees. Functional coffee, which is added with health benefits such as probiotics or adaptogens, is gaining popularity among health-conscious consumers. Expansion opportunities also exist in RTD and on-the-go formats due to convenience-driven lifestyles. E-commerce, subscription models, and innovation in home brewing are creating direct-to-consumer (DTC) channels for brands. Furthermore, leveraging Gen Z and millennial tastes with sustainable habits, creative flavors, and technology-boosted experiences can amplify brand engagement and unlock new market channels.

• Threats: The US coffee industry is externally challenged by global climate change that impacts world coffee production and bean quality, having the potential to regulate supply and inflate the price. Pressure on regulation of labeling, sustainability, and import tariffs can also be a cause of compliance issues. Competition from beverages like energy drinks, teas, and health-oriented beverages may erode the share of coffee in the market. Changes in consumer behavior, such as reduced levels of caffeine use and rising demand for plant-based or caffeine-free options, can also slow traditional segment growth. Economic downturns can also influence premium product expenditures, compelling consumers to opt for cheaper alternatives.

List of the prominent players in the US Coffee Market:

• Nestlé
• Starbucks Coffee Company
• JDE Peet’s
• Tchibo Coffee
• LUIGI LAVAZZA SPA
• Strauss Coffee BV
• The J.M. Smucker Company
• Melitta
• UCC UESHIMA COFFEE CO. LTD.
• Massimo Zanetti Beverage USA
• Others

The US Coffee Market is segmented as follows:

By Product Type

• Whole Bean
• Ground Coffee
• Roasted Coffee
• Instant Coffee
• Others

By Form

• Coffee Pods
• Coffee Capsules
• Coffee Powder

By Distribution Channel 

• B2B
• B2C