The Latest Trends in the Coffee, Tea and Cocoa Categories 12/1/2016
“Hot” Facts
- Tea ranks as the most consumed beverage in the world after water, according to the U.N. Food and Agriculture Organization *U.N. Food and Agriculture Organization
- Typical customers in the consumer segment include grocery stores, grocery wholesalers, mass merchandisers, warehouse clubs, drugstores, and specialty food stores.
- The industry is capital-intensive: average annual revenue per worker is about $750,000 *Hoovers
- Gourmet coffee consumption among 18-24 year-olds jumped from 36% to 46% between 2017-2025; for ages 25-39, it rose from 41% to 69% *National Coffee Association
- Espresso-based beverage consumption rose to 45% of Americans in the past week in 2026, up from 40% in 2022 *National Coffee Association
- Espresso-based beverages specifically increased from 22% to 44% for younger consumers between 2016-2025 and 29% to 66% for the older demographic *NCA
By the Numbers
- 5+ Billion: Cups of tea consumed globally each day *International Tea Committee
- 7%: Share of Americans who drank decaf coffee in the past day *NCA
- $1,100 to $1,180: Annual U.S. per-capita coffee spending *Statistia
- 1,680 Gallons: Hot cocoa volume created in Esmeraldas, Ecuador *Guiness World Records
Industry Breakdown
Major Coffee Companies:
- Major U.S. Coffee Companies include Farmer Bros, Keurig Dr Pepper, JM Smucker (Folgers owner), and Kraft Heinz (Maxwell House owner).
- International - International leaders include Nestlé, Tata Consumer Products, and Lipton Teas and Infusions.
Cocoa Overview
The global chocolate powder drinks market is worth approximately US$6 billion and emerging markets account for over half of retail sales. Nestlé’s is the leader with brands like Nesquik, Nescau and Dancow. Nesquik is the world’s largest brand, with retail sales of US$850 million in 2014, followed by Nescau, at US$620 million. *Euromonitor
Industry Forecast
Trends & Opportunities
- Consumer spending on specialty coffee, tea, and cocoa has continued to outpace broader food-away-from-home growth.
- US retail sales for food services and drinking places increased 6.4% in the first nine months of 2016 compared to the same period in 2015.
- Since 2010, consumers have had more spending money and, thus, have been willing to spend it on nonessential beverages like cocoa and drinking chocolate, boosting industry revenue *Hoovers 2016
- The global chocolate powdered drinks market was valued at $2.68 billion in 2022 and is projected to reach $4.85 billion by 2030, growing at roughly 8.8% annually. *Open PR
Trends & Opportunities
Be Special — The “Indulgence Trend” drives the demand for specialty coffee.*Global Industry Analysts Specialty coffee accounted for 47% of past-day coffee consumption in 2026, ahead of traditional coffee at 42%, and reached 58% on a past-week basis.*NCA Interest in specialty tea also continues to grow.*SCAA
Go Cold – Cold brew now leads non-espresso cold coffee drinks, chosen by 18% of past-week cold coffee drinkers, and consumption has grown 31% since 2025.*NCA For the fourth quarter of 2015, Starbucks reported a 20 percent increase in iced drink sales nationwide following its introduction of a new cold brew coffee in its retail stores.*Bloomberg The ready-to-drink coffee market has continued double-digit annual growth well past 2020, with current global market sizing well into the tens of billions of dollars.*Technavio
Go Decaf — New processes have improved the flavor of decaf coffee and many consumers often switch to decaf for health reasons as they age. By providing decaffeinated options, companies can prevent some consumers from switching to alternative beverages and preserve brand loyalty.*Hoovers
Go Green — Interest in health has driven sales for organic coffee and tea. Organic coffee sales have been rising steadily over the last 10 years as a growing number of consumers look to organic products as an alternative to conventionally grown foods.*Hoovers
Single-Cup Brew – Single-serve brewers now reach nearly one-third of U.S. households, and single-cup systems hold a 54% revenue share of the household coffee machine market as of 2025, growing at a projected 7.68% annually through 2031.*Mordor Intelligence
Certifications — Nearly 21% of global coffee exports were purchased as verified sustainable coffee in 2023, representing about 13% of total world coffee consumption, according to the Global Coffee Platform's 2024 Annual Report.*Global Coffee Platform
“Organic Coffee: Aims to promote and enhance natural soil activity and cycling of resources, which helps to create a rich and fertile substrate for the crop and maintain ecological balance by prohibiting use of artificially produced (synthetic) agrochemicals.” *University of Florida
“Fair Trade: Fair Trade Certified™ products were made with respect to people and planet. Our rigorous social, environmental and economic standards work to promote safe, healthy working conditions, protect the environment, enable transparency, and empower communities to build strong, thriving businesses.” *Fairtradeusa.org
“Rainforest Alliance: Coffee is grown on farms where forests, rivers, soils, and wildlife are conserved and workers are treated with respect, paid decent wages, have proper and safe equipment, and are given access to education and medical care. *Rainforest Alliance
Product Breakdown in Coffee & Tea by % of industry revenue
*International coffee Organization 2014
*First Research 2016
*Euromonitor International
*Fairtradeusa.org
*Rainforest Alliance
