US coffee consumption hits 20-year high – and specialty coffee is leading the way

The US has always loved coffee – most notably with its penchant for drinking filter – so it comes as no surprise that consumption is on the rise in the country.

According to the latest data from the National Coffee Association, over two-thirds of American adults reported drinking coffee the previous day (which is more than any other beverage, including tap and bottled water). The NCA says this number has increased by 37% since 2004 – marking the highest levels in over 20 years.

What’s more, the amount of people in the US drinking specialty coffee in the past week has also increased by 7.5%. Of all specialty coffee beverages, consumption of espresso-based drinks has grown the most. This signals quite a shift in consumer preferences, with more people seemingly moving away from filter when drinking coffee out of home.

The US coffee market is clearly changing, and specialty coffee seems to be leading the way – so what does the future hold? To find out more, I spoke to Bill Murray, president and CEO of National Coffee Association, and Jake Leonti, Director of Coffee at Gregory’s Coffee.

The US continues to drink more coffee

Coffee consumption in the US has been rising for some time now. It was only in the NCA’s spring 2023 National Coffee Data Trends report that Americans claimed to drink coffee more than any other beverage in the past day.

William “Bill” Murray is the CEO and president of the National Coffee Association, which has been collecting data on US coffee consumption for more than 70 years.

“Coffee’s popularity and status as America’s favourite beverage has grown steadily over the last two decades, and while it’s hard to pinpoint exactly why, we know that coffee does a remarkable job keeping up with Americans’ diverse and changing needs and tastes,” he tells me.

According to the NCA’s 2024 NCDT report, 75% of American adults drank coffee in the past week – an increase of 4% since the spring 2023 report. Interestingly, consumption increased the most (by 9%) among consumers aged 60 and over, while people aged between 25 and 59 reported a 4.5% rise in the amount of times they drank coffee in a week. For those aged between 18 and 24, coffee consumption held steady at 47%.

“We can safely assume that coffee will continue to be America’s favourite beverage,” Bill says. “Coffee accounts for around 1.3% of the US economy annually, is a touchstone in people’s everyday lives, and we also know it has significant health benefits – that’s a lot to love.”

How specialty coffee is leading the trends

It’s no secret that specialty coffee is huge in the US. Many high-end coffee shops and roasters can be found across the country, and the buzz and excitement surrounding the US Coffee Championships is undeniable.

Moreover, the US is home to some of the most influential roasters and coffee brands in the world – think Intelligentsia, Blue Bottle, Stumptown, La Colombe, and Counter Culture, to name a few.

At the same time, however, large chains like Starbucks, Peet’s, and Dunkin’ are vastly popular among US consumers – catering to their demand for both convenience and consistency (in terms of beverage quality for the latter).

But looking at the spring 2024 NCDT report, it’s evident that specialty coffee is tightening its grip on the US market.

“The growth of specialty coffee is definitely a driver of overall increasing consumption,” Bill says. “Past-day consumption of specialty coffee has grown by a whopping 64% since 2010. Today, 57% of American adults had a specialty coffee beverage in the past week, up by 7.5% since last year alone and with strong popularity across various age groups.”

Perhaps even more interesting, however, is how specialty coffee is shaping consumer preferences in the US. Historically, filter coffee has been the most popular coffee beverage both in and out of the home – but this seems to be changing for the latter.

“Within specialty coffee, espresso-based beverages show strong growth,” Bill tells me. “Past-week consumption of espresso-based beverages is up by 10% since last year, with 44% of people reported to have drank them during that period.”

There could be many reasons for this, although it’s likely that younger consumers’ preferences for espresso and milk-based drinks is spearheading the shift – with these beverages perceived as more “special” or a “treat”.

But how is specialty coffee changing?

As specialty coffee clearly becomes more influential in the wider US coffee market, consumer demand is also shaping the industry in the long term – essentially making it become more accessible to a broader range of people.

Jake Leonti is the Director of Coffee at Gregory’s Coffee – a New York roaster and retailer.

“The overall shift in the approach to making specialty coffee more accessible is a big contributor to growing consumption,” he says. “Specialty coffee aims to be more inclusive and less elitist in how it treats potential customers – best illustrated by the industry’s recent embrace of single-serve options, including instant and K-Cups.

“Robusta is now also welcomed with open arms in specialty coffee,” he adds. “There were more booths offering robusta at the 2024 Specialty Coffee Expo in Chicago than ever before, while Nguyen Coffee Supply is sold in Whole Foods nationwide and Blue Bottle offers robusta on its menu.”

RTD coffee: One to watch

The ready-to-drink coffee market is booming in many different countries, but the US is definitely leading the charge. According to the spring 2024 NCDT report, while filter machines and single-cup brewers remain the top two most popular home brewing methods, RTD coffee is now the third most popular preparation method among past-day coffee drinkers – nearly doubling from 8% to 15%.

Simply put, this is big news, and is a huge indication that consumers are prioritising convenience more than ever before.

“Cold coffee (particularly cold brew) has been gaining momentum since the early 2010s and it’s never let up,” Jake says. “This segment is only growing as more specialty brands launch their own cold coffee products, adding milk and sugar which appeals to a larger audience – cold coffee is like the specialty gateway drug.”

The US is one of the most important coffee markets in the world, and as overall consumption rises, specialty’s foothold on the industry also tightens.

As a result, specialty coffee is having a big impact on consumer preferences. And in the long term, we could see the US’ relationship with coffee evolve even further – with even more people embracing espresso and RTD options.

Enjoyed this? Then read our article on whether specialty coffee is dominated by the US.

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