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Office Coffee

Office Coffee Industry: News & Trends

Do you currently work in the office coffee industry or looking into getting involved? The new year is a great time to get informed about industry news & trends! But because the coffee retail industry is so diverse with many different markets, it can be tricky to know where to look to find relevant information. So we prepared a “cheat sheet” for you – including up-to-date news and trends about the B2B retail market for coffee!

Here are the top news & trends as of the end of 2019:

1. The coffee industry has shown strong, consistent growth over the last five years.

From 2014-2019, the office coffee industry grew at an annualized growth rate of 4%. Industry experts predict high long-term growth in the next five years (2020-2025) and beyond. This will present promising revenue opportunities for businesses. As of 2019, the coffee retail industry came in at about $46.5 billion in revenue. The profit margin for businesses from 2014-2019 rose by 7.7% and that number is expected to rise in the next five years. Experts predict by 2024, the industry will account for just slightly under $50 billion in revenue.

2. Recent coffee consumption trends signal increased profitability for coffee businesses into 2020.

The past several years (2014-19) demonstrated that commercial consumers favor high-cost, high-quality coffees. Additionally, commercial consumers are buying more coffee in general. Take a look at the top office coffee industry trends from the past few years:

  • There is a rising demand for varieties of high-quality (“premium”) coffee. This includes gourmet types like Arabica coffee, single-origin blends, espresso drinks and cold brew . These sales will predictably boost industry revenue into 2020 and beyond. According to data from a National Coffee Association (NCA) survey, 42% of consumers aged 25 to 39 consume “gourmet” coffee beverages on a daily basis. The workplace is becoming more and more saturated with employees of this age demographic. This will result in more profit for industry professionals.
  • More businesses are preferring to buy coffee in single-cup formats (ie. “k-cups”). This generates more revenue for businesses compared to standard ground coffee. Industry experts expect the sales of K-cups to rise even more in 2020. This should stimulate revenue growth for millions of American coffee businesses.
  • Businesses are choosing coffee as their caffeinated drink of choice. Reports show that more American employees are adding coffee to their daily regimen. Businesses are accommodating their employees by ordering more coffee from suppliers.
  • Per capita coffee consumption has risen consistently year over year. According to the NCA, 57% of US adults drink coffee on a daily basis. Accordingly, consumption is expected to continue rising into the next few years.

3. Competition in the coffee industry is considered “medium.” The difficulty of entering the coffee industry as a dealer is considered “low.”

Coffee vendors are staying ahead of their competition by offering more options to their clients. Coffee businesses are buying more types of coffee for their inventory – such as fresh brewed coffee, coffee beans and grounds, ready-to-drink coffee, single-cup coffee, iced and cold brew coffee, and espresso. Selling more types is resulting in higher gross revenue for these businesses. Despite the competition, the number of businesses is expected to rise at an annualized rate of only 1.5%. This gives vendors entering the industry a fair chance at success.

4. In 2018, IBISWorld released the top 4 “Key Success Factors” for coffee dealers.

  • Having a clear market position – including appropriately targeting clientele, finding a niche, and advertising to the right audience. Be intentional when marketing to prospective B2B clients.
  • Using effective cost controls. The coffee industry has key input costs – including coffee purchases, transportation/delivery, and marketing. Therefore, cut and control costs of these factors whenever possible.
  • Proximity to key markets. Locality tends to be favored in the coffee industry. Make sure your business is visible and accessible in high-traffic areas.
  • Customer service and flexibility. Customers do business with companies that provide excellent customer service and have a reliable staff that flexibly work with a variety of different clients.

Looking for for high-quality, low-funnel office coffee leads to boost revenue? Give 360’s revenue growth model a look. We help you boost your R.O.I. on marketing expenses, introduce new clients to your brand, and help you improve sales. It’s the ultimate plan to grow your coffee business this year!

Want to grow your business?
Click the button, answer a few questions, and we'll contact you.
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