Dear Didi,
The decaffeinated coffee market in the US was estimated to be $478
million in 2001 and $307 million in 1998. While it had been growing
for a number of years, the sector has experienced declines over the
last five years. In 2001, it experienced a 5% decrease over 2000.
Please read the figures below along with dates, to get a good sense of
where the market is heading. Note that some figures are for the total
market, whereas some figures are for discount department stores (such
as WalMart) or supermarkets.
Regarding demographics, I have included those I found for coffee so
far. I have also included market figures for the whole category as a
whole. I shall provide you with information I find within a day.
SOURCES -----------------------------------------
“Ground coffee, both decaffeinated and regular, has slipped in dollar
sales, with almost all of the top players rep in sales.”
Table 1
Top coffee brands
WHOLE COFFEE BEANS
%CHANGE
DOLLAR SALES VS. PRIOR DOLLAR
BRAND (MILLIONS) YEAR SHARE
Eight O'Clock $85.7 3.8% 31.9
Starbucks $57.3 49.8% 19.1
Folgers Select $33.0 -11.2% 11.0
Private label $27.3 -9.3% 9.1
Millstone $25.3 0.6% 8.4
CATEGORY TOTAL $300.4 4.7% 100%
Source: Information Resources Inc., Total U.S. food,
drug and mass merchandise sales for 52 weeks
ending Aug. 12, 2001.
Table 2
GROUND COFFEE
Folgers $498.9 -6.9% 24.9
Maxwell House $324.9 -11.9% 16.2
Folgers Coffee House
Master Blend $172.5 0.4% 8.6
Maxwell House
Master Blend $167.7 -9.7% 8.4
Private Label $151.7 -3.8% 7.6
CATEGORY TOTAL $2,002.5 -4.5% 100%
Source: Information Resources Inc., Total U.S. food,
drug and mass merchandise sales for 52 weeks
ending Aug. 12, 2001.
Table 3
GROUND DECAFFEINATED COFFEE
Folgers $98.6 -3.6% 31.2
Private Label $56.3 -7.5% 17.8
Maxwell House $55.1 -17.2% 17.4
Starbucks $16.4 64.7% 5.2
Folgers Coffee Singles $13.0 -0.8% 4.1
CATEGORY TOTAL $316.4 -5.8% 100%
Source: Information Resources Inc., Total U.S. food,
drug and mass merchandise sales for 52 weeks
ending Aug. 12, 2001.
Table 4
INSTANT COFFEE
Folgers $126.6 -8.7% 20.9
General Foods
International Coffee $115.7 -3.6% 19.1
Tasters Choice
Original Blend $86.4 -0.5% 14.3
Maxwell House $80.7 -7.5% 13.4
Private Label $37.5 3.0% 6.2
CATEGORY TOTAL $604.4 1.5% 100%
Source: Information Resources Inc., Total U.S. food,
drug and mass merchandise sales for 52 weeks
ending Aug. 12, 2001.
Table 5
INSTANT DECAFFEINATED COFFEE
Folgers $45.6 -9.6% 28.3
Tasters Choice
Original Blend $33.4 -4.9% 20.7
Maxwell House Sanka $22.0 -16.4% 13.6
General Foods
International Coffee $20.7 -8.8% 12.8
Maxwell House $15.6 4.5% 9.7
CATEGORY TOTAL $161.3 -5.0% 100%
Source: Information Resources Inc., Total U.S. food,
drug and mass merchandise sales for 52 weeks
ending Aug. 12, 2001.
Source: Beverage Industry, “A fresh cup; US top 10 bagged and loose
tea brands ranked by food, drug and mass merchandise store sales in
dollars for the 52 weeks ending August 12, 2001,with percent sales
change from the previous year” page 14
October 2001
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“According to Information Resources Inc., Chicago, ground coffee sales
for the 52-week period ended Dec. 28, 1998, dropped 8.2%, although
sales were still close to $2 billion. Decaf ground-coffee sales, which
were about $307 million, slipped 7.4%, while private-label ground
sales slipped by almost 18%.”
Source: Supermarket News, “Beans Are Jumping; Ground coffee sales fell
8.2% in the 52 weeks ended 12/28/98, to about $2 bil, while sales of
decaf ground coffee fell 7.4% to about $307 mil,” page 60
May 17, 1999
“The overall retail coffee category declined during the past five
years, from $4 billion in 1995 to $3.5 billion for the 52 weeks ending
June 18, 2000, according to Information Resources Inc. Only whole bean
coffee increased in sales, from $232 million in 1995 to $284 million
during the past year. Ground coffee dropped by about $358 million and
instant coffee by about $124 million durin g that five year period.”
HOT DRINK SALES 1995 VS. 2000
1995 DOLLAR SALES 2000[*] DOLLAR SALES
CATEGORY (IN MILLIONS) (IN MILLIONS)
Coffee $4,023.8 $3,488.8
Ground coffee $2,447.7 $2,089.2
Instant coffee $720.0 $596.2
Whole coffee beans $231.9 $283.8
Cocoa mixes $347.8 $347.4
Tea bags/loose tea $636.8 $751.1
Flavored hot drink mixes $11.0 $10.5
Source: Beverage Industry, Coffee and tea run hot and cold; US seven
selected hot drink category sales in dollars for six types for 1995
and 52 weeks ended June 18, 2000, page NP24+, September 2000
----------------------------------------------------------
“According to the NCA, 65% of Americans drink coffee, of whom 47.2%,
or 109 million, consumed an average of three cups per day in 1998.
Occasional coffee consumption added another 41 million drinkers. By
age groups, that's 30% of adults ages 20 to 29; 58% of adults ages 30
to 59; and 75% of Americans age 60 and older.”
“While discount stores account for a relatively small amount of the
overall sales and units, the gains certainly lead the pack. According
to Information Resources Inc., total coffee sales grew by 12% for the
four most popular coffee grinds (regular, decaf., instant and instant
decaf.) at discount stores for the 52 weeks ended Dec. 6, compared to
small market declines at supermarkets, drugstores and for all three
channels combined. The biggest area of growth at discount stores last
year was for instant coffee, up 19.8%, followed by instant
decaffeinated coffee, up 15.1%.”
Coffee sales at discount department stores
Type of
Coffee Sales[*] % chg. Unit Sales % chg.
Ground regular $366.1 (1.3%) 31.0 6.8%
Ground decaf. 54.6 11.8 73.0 14.4
Instant 73.7 19.8 19.6 27.1
Instant decaf. 20.6 15.1 4.7 19.2
[*] millions
() = decline
Source: Discount Store News, “Coffee sales good to last drop; US
coffee sales in dollars and units through discount department stores
by product type for 52 weeks ended December 6, 1998,” page 32, January
25, 1999
---------------------------------------------
DEMOGRAPHIC CONSUMPTION COFFEE
(propensity to consume)
100 IS NORMAL/AVERAGE
ETHNICITY - WHITE 102
ETHNICITY - BLACK 73
ETHNICITY - HISPANIC 101
ETHNICITY - OTHER 93
NO CHILDREN 102
WITH CHILDREN 96
Demographic indices are used to profile buyers of the category. High
indices (> = 120) indicate that the households matching this
demographic
have a high propensity to purchase the category. Low indices (< = 80)
indicate a low propensity to purchase the category. 100 is
normal/average.
Total U.S. all outlets.
“From whole bean to instant decaffeinated coffee, and tea bags or
loose tea, both the coffee and tea categories are showing decreases in
overall dollar and unit sales. With few exceptions in each category,
the picture in all of the segments -- whole bean, ground, ground
decaffeinated, instant, instant decaffeinated and bag/loose tea -- is
of downward movement, according to Chicago's Information Resources
Inc.
Ground coffee also reported some dipping figures as both regular and
decaffeinated reported sales declines of almost 9 percent. The ground
coffee category overall totaled more than $1.6 billion, with the
Folgers and Maxwell House brands accounting for a huge chunk of that
market. Decaffeinated sales topped $250 million.”
Source: Beverage Industry “A fresh cup. (2002 State of the Industry
Report: Coffee & Tea); page 43(1), June 2002
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Search Keywords:
Decaf coffee market size
Decaffeinated coffee market size
Decaf coffee market size demographics
Also search:
National Coffee Association
Marketing Intelligence Service
I hope this answers you question. Let me know if you need
clarification.
Claudietta
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Clarification of Answer by
claudietta-ga
on
23 Nov 2002 16:45 PST
Dear Didi,
Unfortunately, I was not able to find typical demographic information
on decaffeinated coffee drinkers. I searched extensively, and was
able to find the following bits of helpful information.
From my knowledge I know that typically those people who are quite
chemically sensitive to caffeine, pregnant women, and older people
(because they have more difficulty sleeping as they get older) are the
typical consumers of decaffeinated beverages.
I'm sorry for not being successful in finding more information,
however, if you feel that I can help you find more information on the
subject, I can do that to compensate for the lack of this information.
Claudietta
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"People are trying to consume less caffeine for health reasons," says
Ken Toltz, vice president of marketing for Brothers Gourmet Products
Inc., a Denver-based company that sells gourmet coffees to
supermarkets. "They switch to decaf, they say `Ick,' and they stop
drinking coffee altogether."
Source: Deveny, Kathleen, Wall Street Journal, “Marketscan: Decaf
loses favor with seekers of flavor “; New York; Feb 25, 1993
--------------------------------------------------------------
“Decaffeinated coffee is increasing in popularity, commanding an
amazing 12 per cent of the US coffee market share and a growing share
in Australia and the rest of the coffee-drinking world. More drinkers
are looking for a balance between the taste of coffee without the
stimulating effect of caffeine. A 170g cup of coffee contains 50mg to
75mg of caffeine (Robusta beans contain twice as much caffeine as
Arabica beans). A similar cup of decaffeinated coffee contains below
10mg of caffeine (typically 2mg to 5mg).”
“Curiously, decaffeinated coffee is frequently sought by people who
also buy organic foods and are willing to pay the extra required for
organic accreditation, which is identified internationally by specific
accreditation stickers on the packaging.”
Source: ANN OLIVER , The Advertiser, “The decaf difference,” April 10,
2002, Wednesday
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