|Last Quarterly Update:||5/20/2013|
|SIC Codes:||2095, 2099|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry roast coffee, blend tea, and manufacture coffee and tea concentrates. Major companies include US producers Farmer Bros, Green Mountain Coffee Roasters, JM Smucker (owner of Folgers), and Kraft Foods (owner of Maxwell House), as well as Nestlé (Switzerland), Tata Global Beverages (India), and Unilever (UK).
Globally, coffee and tea manufacturers generate about $70 billion in annual sales. The top green coffee producing countries are Brazil, Indonesia, and Vietnam. Leading tea producing countries include China, Kenya, India, and Sri Lanka.
The US coffee and tea manufacturing industry includes about 300 companies with combined annual revenue of about $12 billion and is forecast to grow at a low rate over the next two years. Key growth challenges include volatile raw ingredient prices and intense competition in the beverage industry.
Consumer taste and population growth drive demand in the consumer sector, while economic growth of businesses, such as restaurants and hotels, drives demand in the commercial sector. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market. The US industry is highly concentrated: the top 50 companies generate more than 90 percent of revenue.
Imports of roasted coffee and tea are 20 percent of the US market; exports ...
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