What is the market size for office coffee machines in the US in terms of revenue and number of machines?
While there are no preexisting industry reports available in the public domain pertaining to office coffee machines in the United States, I was able to come up with an estimate of the market size based on triangulation derived from available and reliable statistics and industry reports. For the purpose of this research, office coffee machines are considered as coffee machines or coffee makers that are used at workplaces and/or offices such as automatic drip coffee makers, single-serve brewing machines, and espresso machines.
The estimated revenue of office coffee machines in the United States is $668.40 million, or an equivalent of 15.8 million units sold annually at a compound annual growth rate (CAGR) of 4.48% until 2020. Below, you will find calculations and estimations of the figures presented above.
COFFEE INDUSTRY IN THE UNITED STATES
According to IBIS World report, overall coffee market revenue in the United States is $37 billion at an annual growth of 3.6% from 2012 to 2016. According to this report, "single-serve coffee makers and instant coffee grew in popularity, which increased revenue."
From the statistics released by The Motley Fool stated that "approximately 150 million Americans drink 400 million cups of coffee per day -- or more than 140 billion cups per year -- making the United States the leading consumer of coffee in the world."
OFFICE COFFEE MACHINES MARKET SIZE
A report released by Market Inspector in 2017 stated that coffee consumers in North America bought approximately 29 million coffee machines in 2014 (the latest available figure) at an average cost of £30 (or US$42.3, using a conversion rate of 1.41 GPB to USD). From Statista report, total coffee machine units sold in the United States in 2010 was 24 million — 1.4 million espresso machines, 18.5 million automatic drip machines, and 4.1 million single-serve coffee makers.
Assuming that the 3.6% CAGR for the overall coffee industry in the U.S. is concurrently similar to the coffee machine segment, the yearly coffee machine units sold each year would be;
2015: 29,000,000*1.036 = 30,044,000
2016: 30,044,000*1.036 = 31,125,584
2017: 31,125,584*1.036 = 32,246,105
If the average price was at £30 (about $42.3), then the estimated revenue of coffee machines in the United States is calculated as;
32,246,105 * $42.3 = $1,364 million (estimated overall coffee machine revenue in the United States)
Technavio, a research company, estimated that 49% of the revenue comprised the office coffee services in the United States. Using this percentage share to calculate for office coffee machines;
$1,364 million * 49% = $668.40 million (estimated office coffee machine in the U.S.)
Using the same percentage share, the calculated number of units would be;
32,246,105*49% = 15.8 million (estimated units of coffee machines that are used in the office settings)
OTHER COFFEE TRENDS AND STATISTICS
Some leading companies in the office coffee services are Keurig, Bunn-o-Matic, D.E. Master Blenders, Jarden, among others. These key players account for "more than 34% of the overall revenue generated from this market."
--Single-serve coffee machines--
A survey conducted in 2017 for the U.S. coffee consumers revealed that a total 8% of American coffee consumers have a single-serve or single-cup coffee maker in their workplace, while another 8% stated that they have both at work and at home. If there are about 32.5 million units (from our calculation above) were sold in 2017 and 16% of these are used in workplaces, that would give a rough estimate of 5.1 million single-serve machines are used in offices.
--Coffee consumed at workplaces--
Coffee consumed at workplaces or offices has increased from 16% in 2013 to 21% in 2016, according to a report by the National Coffee Association (NCA), that's a growth rate of about 9.5%.
--Office coffee services growth rate (CAGR)--
According to Technavio, the office coffee service market in the U.S. will grow at a CAGR of over 4%, or 4.48% from 2016 to 2020.
Office coffee services in the United States is growing at over 4% annually. Workplace coffee consumption is also tremendously increasing at a growth rate of 9.5%. Current estimated annual revenue for coffee machines used in workplaces is $668.40 million, or an equivalent of 15.8 million units and of these, an estimated 5.1 million units accounts for single-serve machines.