Office Coffee Service in the US: Market Trends & Opportunities, 6th Edition

Report Overview

Remote Work Reshapes Office Coffee: How to Brew Up Success in a Challenging Business Climate

Historically, the office coffee service (OCS) market grew steadily, fueled by job growth and a focus on employee perks. However, the COVID-19 pandemic triggered a sharp decline as remote work surged and offices were closed or operating at a limited capacity. While essential businesses with on-site workers such as hospitals and manufacturing plants kept OCS afloat, overall revenue plummeted in the latter half of 2020 and continued to dive in early 2021. This forced OCS suppliers to adapt and consider new markets for sales and rethink distribution occasions.

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Recovery in OCS revenues began as some offices began to reopen, mostly starting in late 2021 or in 2022. Particularly in 2023, consumers and companies alike were no longer considering the pandemic a primary driver of decision-making. This led to more offices re-opening for full-time work or for hybrid work schedules with some in-office days. Consequently, the OCS market has experienced surging growth in the last few years.

Nonetheless, the market hasn't fully bounced back. Remote work is part of the “new normal” for many white-collar workers. A large number of fully remote jobs and hybrid schedules with less in-person work remain a major hurdle for OCS suppliers. Some companies have even closed offices permanently if they have found their employees work well from home. These trends have led to a smaller base of sales for on-site office coffee services.

The “new normal” for office work will require continued adjustments for OCS suppliers. Because remote work is not going away, OCS providers will need to change their business models to target the remote worker market for continued sales.

Scope of the Report

This Packaged Facts report analyses the $2.49 billion US office coffee service market. Office coffee service revenues are projected to grow at an average rate of 17.2% annually through 2028 as recovery of lost revenues continues from a still-low 2023 base of sales.

The scope of analysis is centered on office coffee service provision and employee office coffee use and attitudes. While there is a focus on businesses that operate office environments, many other businesses also offer free on-site coffee service to their employees, such as:

• hospitals

• manufacturing facilities

• schools

This report:

• provides a market size and forecast for office coffee service, along with sales by product category, brewer placement share by brewer marketer, coffee consumption and pricing trends, and single-cup revenue and pricing trends

• identifies opportunities and challenges central to the growth of office coffee service, including the importance of coffee to workplace productivity and morale; the potential costs associated with keeping coffee-drinking employees on-site; and coffeehouse chain performance trends

• analyzes consumer coffee use trends by type and coffee maker ownership and purchasing trends by coffee maker type and brand

• assesses at-home coffee habits, including whether coffee is made at home or purchased outside of the home, type of coffee consumed, and method used to make coffee

• analyzes the relationship among at-home and at-work coffee habits of employed adults, including:

  • the interplay between drinking coffee before work and at work

  • before-work and at-work on-site and off-site sources and methods used and frequency of use

  • the availability and use of a range of workplace food and beverage services

• assesses workplace coffee importance, satisfaction, and attitudes, including the importance employed adults give to coffee attributes and their satisfaction with those attributes in the workplace

• analyzes workplace coffee attitudes, including coffee as productivity tool, coffee as workplace perk, the cost of workplace coffee, and workplace coffee expectations

• analyzes the foodservice and office coffee service strategies of leading providers, including Aramark, Compass Group/Canteen Vending Services, Farmers Brothers, First Choice Coffee Services, Keurig Dr Pepper, Red Diamond, Royal Cup, Sodexo, Starbucks, and Westrock Coffee Holdings

• covers trends and themes such as generational differentiation, the premium trend, coffee type and variety expansion, brewer variety and versatility expansion, and product and services expansion

This Packaged Facts report analyzes the dynamics of the current landscape of the office coffee service market. Consumer demographics, perceptions, motivations, and behavior are examined as pertaining to coffee consumption, work habits, and diet choice. Overall food and health habits and attitudes are also surveyed.

Total office coffee service revenues are provided in billion dollars from 2013 to 2023 and projected from 2024 to 2028. Office coffee service revenues in 2023 are also segmented by product category (coffee, soft drinks, pantry service/micro kitchen, water filtration service (non-bottled), foodservice disposables, bottled water service (5 gallon), creamers and sweeteners, tea, and non-coffee hot beverages).

The report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous marketing photographs. This report goes in-depth on COVID-19 and inflation trends that have affected the food and beverage market.

The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities.

Primary research includes national online consumer polls of U.S. adult consumers (age 18+) conducted on an ongoing basis by Packaged Facts to analyze consumer attitudes and their relevant preferences.

Survey data from MRI-Simmons are used to analyze the demographics and psychographics of consumers.

Supplementing Packaged Facts’ exclusive surveys is analysis from the Spring 2024 and Fall 2023 National Coffee Data Trends reports from the National Coffee Association.

This report also utilizes data from Automatic Merchandiser’s State of the Coffee Service Industry Report.

Data from the 2023 Food & Health Survey conducted by the International Food Information Council is also discussed. This survey analyzes consumer food purchase decisions, diet and lifestyle choices, snacking activity, and perception of health benefits in foods.

Recent Historical Trends

Highlights

• The coronavirus pandemic led to long-term changes in the eating and drinking habits of many consumers. Some were seeking food when other sources of comfort and indulgence feel less available, while others were seeking out foods or beverages they think are healthy to counterbalance bad habits.

• Convenient food and beverage ordering methods have continued to be used more commonly after the pandemic. First-time purchases and higher volumes of purchases among those who order food online have led to sustained sales via online order fulfillment.

• The pandemic has had lasting impacts on consumers and changed many shopping habits permanently. Many are still concerned about COVID-19 variants – as well as shortages and inflated prices – after the trauma of nearly four years of varying levels of economic, social, and health-related upheaval.