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Beverage NewsTea and Coffee

Single-cup coffee up 74 percent in retail

Overall coffee category up 1.6 percent

Beverage News
March 15, 2016

Single-cup coffee is playing an increasingly larger role in retail coffee sales. Single-cup sales growth comprised 74 percent of retail coffee sales growth of $761 million, according to Rockville, Md.-based Packaged Facts. Subtracting single-cup sales from the total, retail coffee sales grew only 1.6 percent, one-twelfth the growth rate of single cup. 

In its recently published report “Single-Cup & Single-Cup Brewer Usage Trends,” Packaged Facts provides context to this growth. The market research firm highlights a market undergoing major transition related to the migration of licensed branded single-cup coffee onto the Keurig 2.0 platform, a broader influx of brands into the single-cup space, an increasing gap in pricing between branded and private- label portion packs and Keurig's push into the private-label space, and the emergence of new brewers’ coffees keen to compete against the Keurig platform. 

Consumers will benefit from exploding single-cup coffee variety, ranging from super-premium to value-oriented; a wider array of less expensive portion packs from which to choose, and the ability to purchase single-cup brewing devices  priced less than $100, it states. Packaged Facts also thinks tea and cold beverage innovations will add at least incremental sales to single-cup beverages. Down the road, it envisions cold beverage platforms broadening the market for single-cups beverages to teenagers and children, providing a plethora of new potential drinking occasions. 

Data related to consumer demographics, attitudes and behaviors for this report were derived from Experian Marketing Services' Simmons National Consumer Survey, a booklet-based survey of a large and random sample of consumers who in aggregate represent a statistically accurate cross-section of the U.S. adult population (age 18+). It analyzed results primarily from its 12-month Spring 2015 survey; however, to trend household brewer and single-cup usage, Packaged Facts also drew from six-month Spring, Summer and Fall 2013 surveys,  Winter, Spring, Summer and Fall  2014 surveys and Spring 2015 surveys.

Results also were included from Packaged Facts' proprietary August 2015 consumer survey. The survey consisted of 2,000 online respondents, who in aggregate represent a statistically accurate cross-section of the U.S. adult population (age 18+). The surveys were analyzed in aggregate via SPSS statistical software. Where applicable, results have been tested with Fisher's Least Significant Difference contrast test at a confidence level of 95 percent.

KEYWORDS: coffee sales single-cup coffee

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