Demand for coffee has remained resilient in the U.S, and new data from Circana shows consumption is also surging worldwide. Total global coffee servings increased 5% year-over-year in 2023, signaling a promising opportunity for brands.
“Coffee is a unique category where trends and competition intertwine on both global and local scales,” said Tim Fires, president of Global Foodservice at Circana, in a press release presenting new analysis based on the firm’s Commercial Foodservice data.
Per Circana, “global” refers to the cumulative data from 12 countries, including the U.S, Canada, Great Britain, Spain, France, Italy, Germany, Australia, China, Japan, South Korea, and Brazil.
U.S. Coffee Consumption Remains Strong
“Despite persistently high inflation in the food-away-from-home industry, coffee is a resilient category that has been largely unaffected by rising prices,” Brooks Berrodin, Thought Leadership Analyst, Foodservice, at Circana told The Food Institute.
U.S. coffee visits per capita to commercial foodservice locations grew year-over-year with every income group in the 12 months ending September 2023.
“Consumers are more likely to continue their coffee trips because it has a lifestyle attached to it and is more likely to be seen as a treat or reward,” said Berrodin. “Further, coffee growth has not slowed amidst high inflation as a result of continued innovation in the specialty coffee category, which drives purchase frequency.”
China Leads Global Growth
Globally, coffee servings cleared $36 billion as of September 2023. Among the 12 countries tracked, all but South Korea witnessed year-over-year increases and are also forecasted to grow.
China led overall growth with a 15% increase in servings, followed by 11% in France. Comparatively, servings were up 3% in the U.S.
Coffee also outpaced tea (+4%) and carbonated soft drinks (+3%) during the same time period, emphasizing its position as one of the fastest-growing beverage categories worldwide.
“Coffee is a larger category than tea globally, though smaller than carbonated soft drinks,” said Berrodin. “This order holds in the U.S. and France, though not in China. Despite strong growth from coffee in China, it remains a smaller category than tea and carbonated soft drinks.”
Cold Coffee Popularity Rising
While hot coffee remains the dominant choice globally, cold coffee has gained momentum, indicating a long-term growth trend.
China led cold coffee consumption growth from 2019 to 2023, boasting a 20% compound annual growth rate, with cold servings constituting 33% of total coffee consumption.
“Cold coffee emerges as a standout trend, experiencing substantial growth across all 12 countries we monitor. However, the competitive landscape, encompassing both chain and independent establishments, exhibits unique characteristics in each country,” said Fires. “Understanding both the overarching global trends and the intricacy of the local marketplace is critical for success in this category.”
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