Study: Coffee Could See More At-Home Brewing

Economic pressures are expected to drive consumers to brew more premium coffee at home and possibly choose less extravagant out-of-home coffees, according to a Packaged Foods study referenced by mediapost.com.

The end result could mean the foodservice sector will maintain the lion’s share of coffee dollars, though growth in coffee purchased in retail could slightly outpace foodservice in the next five years.

That was one trend among many percolating in the coffee market, according to a Packaged Foods study, "Coffee in the U.S.: Retail, Foodservice and Consumer Trends.”

According to the study, total foodservice and retail coffee sales, driven in no small part by rising prices, rose 11% to $43.9 billion last year. From 2003 to 2007, total sales experienced compound annual growth of 9.7%, outperforming Packaged Foods’ February 2006 prediction that the category would see 6.9% growth for the 2005 to 2010 period.

Mediapost.com cited National Coffee Association statistics that said three out of four cups of coffee are already made at home, though foodservice’s higher price has typically meant that out-of-home dollar sales dwarf retail’s.

In addition to economic jitters, retail coffee sales are benefiting from the growing number of premium food service-branded varieties now available at supermarkets and other mass retail outlets, mediapost.com reported, adding that packaged coffee marketers and retailers are increasingly combining forces with foodservice leaders.

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