U.S. Hot Drinks Market– Statistics And Analysis & Forecast To 2025

Posted by Mrudula Anil Karmarkar on March 19th, 2021

The U.S. hot drinks market size is expected to reach USD 21,600.4 million by 2025, according to a new report by Grand View Research, Inc. The industry is anticipated to grow, primarily on account of the increased usage of healthy beverages supporting the dietary requirements of the growing population of the country.

The consumers in the economy lay higher emphasis on the sourcing of the product. In addition, the overall quality is generally determined by the consumers through the certifications associated with the product. The industry is characterized by the presence of a notable regulatory framework with regulations related to processing, roasting, packaging, and transportation of the product.

The consumers are inclined towards the use of tea on account of the recognition of healthy properties exhibited by tea as compared to CSDs. The industry in the country is expected to register prominent gains driven by high consumption volume of the such beverages by the growing millennials population in the country.

There is an upsurge in the consumption of coffee beverages in the economy. owing to the growing gourmet culture exhibited in the industry as well as on account of major expansions undertaken by the leaders in the industry. The escalating demand of hot coffee is attributed to the increasing demand of coffee pods in the mature coffee industry in the economy.

The industry is likely to grow on account of increasing awareness among the emerging young population regarding the health benefits of tea and coffee to reduction of lifestyle-related diseases such as obesity, blood pressure, diabetes, and others.

The U.S. is a developed economy with a high amount of investment noted in research & development for processing and manufacturing of the raw materials used for the production of beverages. The established industry players are engaged in establishing a roastery along with the distribution center for attracting a larger pool of customers.

Further key findings from the report suggest:

  • U.S. brewed tea industry segment is expected to be the fastest-growing segment, in terms of revenue, registering a CAGR of 4.1% from 2018 to 2025 owing to the superior health benefits offered by the product as compared to other cold brewed and carbonated beverages.
  • The brewed coffee segment is expected to be the largest in the economy with a value of USD 14,241.1 million in 2017, on account of the presence of a large number of industries offering varieties of coffee products available in the country
  • The fastest growing tea segment is anticipated to be fruit/herbal tea with a CAGR of 6.1%, in terms of revenue from 2018 to 2025, on account of growing awareness among the consumers regarding the ill effects of other beverages as compared to herbal tea
  • Key companies in the industry are involved in the production in accordance with the requirements listed by the commercial and non-commercial consumers. The companies involved in the product manufacture operate across the country through extensive distribution networks

Factors such as growing awareness about the sustainable sourcing of products and creating shared value for the industry players are expected to drive the production. Producers are adopting various regulations and certifications namely FSSC 22000, GRAS, USDA Organic, Fairtrade, Kosher, HACCP, GMP, to ensure quality and selling ability of products in an attempt to lure large base of customers.

The industry is characterized by the presence of large number of substitutes, namely fruit juices, toddy, and other beverages. However, with the lesser advertisement of the substitute products and diminished propensity of the buyer towards the consumption of substitutes, the products are likely to lose share to hot beverages.

The rising number of commercial industry players and increased demand for hot beverages among the population is expected to create an increased risk of labor exploitation in the plantations. The exploitations include lesser pay, unhygienic conditions, abuses, and reduced resources along with non-existent work contract increasing the apathy of the workers which is presumed to hamper the U.S. hot drinks market growth over the forecast period.

The increasing market demand for hot beverages among the millennials populations is leveraged by the growing demand for artificial sweeteners. The market of artificial sweeteners is expected to be growing at a CAGR of 3.5%, in terms of revenue over the forecast period with consumer base shifting from naturally sourced sugar and corn syrup to artificial flavors for perceived health benefits.

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The major industry players in the U.S. hot drinks market are engaged in extensive and robust supply chain operations with a large number of distributors, namely grocery stores, mass merchandisers, supermarkets, dollar shops, retail stores, food brokers, and online stores constituted in the country for the growing demand.

The companies present in the U.S. hot drinks market use innovative technologies for roasting of the beans to enhance the flavor and to reduce the holding times which is presumed to increase the customer base. These technologies process the ingredients at lower temperatures, avoiding the evaporation of volatile components and increasing the demand among the consumers in the country.

The coffee consumption in the U.S. is expected to step up the prices of coffee beans with massive changes registered in the demand-supply balance of the commodity. In addition, there is a setback in the coffee plantations, restricting the supply and elevating the price pressure on the industry players. The tightening of the coffee market is presumed to hamper market growth over the forecast period.

Grand View Research has segmented the U.S. hot drinks market on the basis of product and its sub segments:

Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Coffee
    • Fresh
    • Instant
  • Tea
    • Fruit/Herbal
    • Black
    • Green
    • Others
  • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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