Coffee Shop Statistics 2003 to 2018 - Try Coffee
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Coffee Shop Statistics 2003 to 2018

We just can’t get enough of our favorite blend of coffee. For some drinkers, it’s about the taste and aroma, others simply need a cup of Joe in the morning to get them going. Whether you’re a fan of Frappuccino’s and need that sweet fix of sugar to get through the workday or need a double espresso at 2 PM to keep you going, there’s no shortage of options as it relates to coffee drinks, brands, or coffee shops. We all know Starbucks, Dunkin Donuts, and Tim Horton’s here in the US; however, there are worldwide contenders that are also favorites and have a much larger hold on the coffee industry than we might think. So, how do the big brands in the US, rank worldwide?

Starbucks, Duncan Donuts, and Tim Horton’s are some of the most well-known coffee chains in the US. But, just how do these chains rank worldwide? As of 2015, Starbucks revenue (USD) was 21,095 (millions), however, the other two major brands didn’t crack the top-ten list. Contenders including Caribou Coffee, Costa Coffee, and McCafé (McDonald’s) were among the leading coffee chains in the US and around the world. Starbucks was also the worldwide leader in the total number of coffee shops worldwide in 2015, with 22,557 stores, and Caribou Coffee closing out the top-ten list, with a total of 522 stores.

Consumption of coffee around the world has increased significantly since the 2012/2013. In that year, 146. 98, 60-Kg bags of coffee were consumed around the world. Compare this to 2017/2018 figures, where 161.74, 60-Kg bags were consumed. With over 15 million, 60-Kg bags increase in under a decade, its no wonder coffee lovers in the US, and internationally, have a specific tie to their favorite brands. Here, we’ll take look at the most popular brands in the US, sales and consumption figures, and how the numbers have significantly increased in a span of under 10 years.

It’s not all about coffee shops either. There are the instant brew and pods you can make from the comfort of your home. In 2017, Keurig Green Mountain was the leading brand in the US, with 1,157.9 million in sales for the year, followed by a private-label brand with 656.5 million. Closing out the top-five list of pod/instant coffee was Folgers, with 307,000 in sales for 2017.

Let’s see where the top contenders in the coffee industry stack up from 2003 to the present.

Market Share: US Sales

There’s no wonder that Starbucks is the leading coffee shop in the US; but, by how much is it the leader? As of 2016, Starbucks coffee shops had nearly a 40% hold of the US market (with 39.8%) share. This was followed by Dunkin Donuts, which had a total of 21.9% of the market share, and all other industry competitors held the remaining 38.3% of the market share.

Starbucks: Revenue and Total Shops – 2003 to 2018

Dating back to 2003, Starbucks revenue around the world was $4.1 billion dollars. This figure grew statistically up to $10.4 billion in 2008, and in 2009, dipped to $9.8 billion. The figures continually increased from 2010 to 2018, with total sales reaching its peak in 2018, at $24.72 billions of dollars in the US and international sales. This is more than $20 billion in revenue increase in a 15-year span.

The number of coffee shops that Starbucks has opened since 2003 has also increased significantly. In 2003, the chain had a total of approximately 7000 stores in the US, which hit a peak in 2008 at just over 16,000 shops. This figure didn’t increase again until 2013 when the company grew to nearly 20,000 shops in the US. By 2018, Starbucks had a total of nearly 30,000 coffee shops in the US alone. This is approximately four times the number of shops the company had dating back to 2003.

Tim Hortons: Revenue and Shop Openings – 2003 to 2018

Although it’s one of the most popular coffee shops in the US and probably Canada’s leading coffee shop, Tim Horton’s is one of the leading coffee shops in terms of total stores and revenue worldwide as well. Between 2015 and 2018, Tim Hortons sales increased from $2.96 billion dollars in sales, up to $3.29 billion in 2018. The coffee shop also saw several shops open between 2007 to 2018, not only in Canada and the US but around the world. In 2007, there were approximately 2800 Canadian shops and nearly 400 US shops. By 2016, a total of 3800 shops in Canada and 811 coffee shops had opened in the US. And, in 2017, the total number of Tim Hortons shops worldwide had reached nearly 4800, and by 2018, this figure jumped to 4850.

These figures indicate that the coffee shop increased a significant growth in the US and Canadian marketplaces. However, the worldwide appeal also grew, as the total number of shops from 2007 to 2018, grew by over 2000.

Costa Coffee: Revenue and Shops in the EU 2011 to 2018

Costa Coffee is one of the brands that many US and Canadian coffee drinkers might not be too familiar with. However, in the UK and Europe, it is one of the leading coffee shops. Dating back to 2011, the revenue for Costa Coffee was approximately $425 million (British pounds). This figure grew exponentially, reaching over $1292 million (British pounds) by 2018. This increase of three times the sales in less than a 10-year span, speaks volumes about the quality of the coffee, and the availability of the brand in the UK and Europe.

It’s not only the sales and revenues which increased over the period of 2011 to 2018, however. In 2008, Costa Coffee had a total of 1288

stores. This figure has grown to 3821 stores worldwide in 2018. This increase of 2.5 times the number of shops Costa Coffee has introduced is linked directly to the sales and revenues the shop has taken in. The popularity of the coffee, availability, marketing, and types of blends available to customers, are a few of the reasons the chain has seen such enormous growth in a 10-year period.

Dunkin Donuts: Growth and Revenue from 2007 to 2017

Behind Starbucks coffee shops, Dunkin Donuts is probably the second largest chain of coffee shops in the US. Unlike Starbucks, however, it is more of an East-Coast chain, with few stores making their way past the Midwest in the United States. Loyalists love the brand; but, the chain has seen several revivals, logo changes, and re-introduction of the coffee into the marketplace, in an effort to keep up with the leader, and new competitors that are joining the playing field.

In 2007, Dunkin had a total of nearly $517 millions in US sales. In 2017, this figure had reached $860.5 million in sales. Although not as significant as the increase in sales that Starbucks or even a chain like Tim Hortons has seen in the US, this does indicate a strong brand loyalty for Dunkin Donuts. Those who love the coffee, and love the brand, are going to purchase from that brand, regardless of what the competition has for sale.

The number of stores Dunkin Donuts has opened up in the US, and around the world, has increased since 2007 as well. Dating back to 2007, there were a total of nearly 5800 stores in the US and 2200 stores around the world. In 2017, the number of US stores had increased to 9140, and the total number of stores worldwide had grown to nearly 3400 stores. This is over 12,500 stores in 2017, an increase from 8,000 stores dating back to 2007.

Who’s Your Consumer? Customers Drinking Coffee From Top Chains

In 2018, a total of 48% of 18 to 24-year old’s who were surveyed, indicated that they drank at least one cup of coffee per day. 63% of those from 25 to 39 years of age drank at least one cup daily, and 66% of people 40 to 59 drank at least one cup. The group which drank the most coffee was seniors, age 60 and up, with 72% of individuals indicating they drink at least one cup of coffee per day. What these figures indicate, is that coffee shops are targeting the demographic groups who are purchasing their products. A brand like Starbucks is likely targeting older demographics. Individuals who have more to spend, retirees, and those who are in the working class, are more likely to spend $5 or more on a cup of coffee, as opposed to an 18-year old without a full-time job.

Conversely, chains like Dunkin or Tim Hortons can attract a younger demographic. With cheaper drinks, donuts, and other confectionary treats, these shops can attract younger individuals, who are drinking coffee but are also more likely to purchase other items while they visit these coffee shops.

2018 Coffee Sales: What US Consumers are Buying

Traditional coffee still has a stronghold in the marketplace, in 2018, with a total of 45% of total coffee sales in the US falling into this category. There are, however, other flavors and types of coffee drinks that are quite popular in the US. 31% of the total sales were traditional, non-gourmet types of coffee drinks, indicating people are not looking to pay more for coffee.

24% of total sales accounted for were in the form of espresso drinks, with 16% falling into the gourmet (traditional) coffee sales. 9% of total sales were decaf sales, which falls in line with those coffee drinkers who were purchasing coffee because they like the taste, not because they need the caffeine fix. 11% of sales were non-espresso based, and 5% of total sales were instant coffee sales.

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What Sales Figures Suggest

There’s a broad range of coffee drinkers, amongst all age brackets and demographic groups in the US. What this suggests is that coffee shops, as well as manufacturers of instant coffee, must understand who their target audiences are. In some cases, marketing to a younger demographic, with cheaper foods, and other options in coffee shops is the way to go. In shops like Starbucks, or other higher-priced chains, espresso drinks, and traditional flavor blends is likely the best type of product to promote. Individuals who are visiting these chains are looking for their daily fix of coffee, to help get them through the day.

As a manufacturer, or marketing professional working for these chains, understanding your niche audience, and how to market to them, is directly going to affect the total number of sales, and new clients, coffee shops are going to see. Conversely, this is going to increase the number of new customers which shops are going to have come into their business as well.

Coffee Sales: How Much Do Consumers Spend Each Week?

In 2017, a majority of people indicated they weren’t spending anything on coffee weekly. This is a major draw for instant coffee manufacturers. Targeting sales towards those who are brewing their own coffee at home, is the easiest way to ensure an increase in revenues. A total of 17% of respondents noted that they were spending $16 or more on coffee per week.

Shops like Starbucks are typically going after these individuals when they are creating their marketing campaigns. Quality cups, high-end beverage names, and higher-end food items are a few of the ways in which coffee shops like Starbucks, get their target clientele coming back through their doors. What these figures likely indicate, is the fact that there are coffee loyalists, versus those who simply want to spend as little as possible, on a decent cup of coffee. For coffee shop chains as well as for instant coffee manufacturers, it’s important to understand who your niche audience is, in order to ensure the sales are going to continue to increase.

Coffee Chain and Brand Marketing –

Understanding your niche audience is key to increasing sales in the US and worldwide. It’s highly unlikely that Starbucks is going to go out of business any time soon; in fact, it’s likely that the chain will continue to increase sales, revenues, and will continue to see the total number of shops they open, increase over the years. This, however, doesn’t mean that a shop like Dunkin Donuts, which is popular in the US, but not as popular internationally, can’t continue to grow.

The importance is targeting the right niche, the right campaign, and understanding who your demographic, coffee drinking audience is. A chain like Starbucks can add an item to their menu that is $10, and a handful of their customers are going to buy it. On the other hand, a chain like Dunkin, or even a McCafé, can’t do the same. Targeting sales figures at a lower point, marketing cheaper coffee, with similar names as chains like Starbucks, and offering lower-priced food options on the menu, are ways in which competitor chains can keep up with the major competitors in the industry.

Coffee Shop

Understanding Coffee Drinkers’ Needs: Targeting Your Niche Audience –

Similarly, to marketing the right price points for coffee products, chains also have to understand who their demographic audience is. For example, Starbucks is going to promote nearly anything to its target audience, and the product is going to sell. However, if coffee drinkers are visiting McDonald’s for a cup of coffee, they are likely going there for other food items. Therefore, adding the coffee at a low price point of $0.99, with a value-meal, is a great way to sell more coffee, and increase revenues.

By understanding that the type of audience visiting a coffee shop is there for a specific item, and you can sell them a cup of coffee in addition

to that item, coffee shops are likely going to increase sales, while keeping their audience coming back for the food items, they are originally visiting the shops for. Dunkin Donuts has a similar situation on their hands. As a leader in donut sales, the coffee shop can easily target and attract their niche audience, by adding on a cup of coffee with the sales of donuts, for a low price point. This will allow the shops to sell more coffee while keeping their audience coming back for the product, they are there to purchase, the donuts.

What the External Factors Matter –

In 2018, McDonald’s was the leading fast-food chain in the US, with Starbucks coming in second place. Subway, KFC, Domino’s Pizza, and other popular fast food chains topped out the list. Coffee shops like Dunkin Donuts didn’t make the list, and although Tim Hortons did, it was closer to the bottom of the list in terms of the total revenues for the year. What does this say about coffee sales, and how to target audiences?

Basically, what this figure suggests is that fast food restaurants have to understand how to target their consumer audience. People aren’t visiting

McDonald’s for a cup of coffee. They’re there to buy a value meal. If, however, these individuals visit to purchase breakfast in the morning, McDonald’s can easily up-sell the customer, and add coffee to the menu, in order to increase revenues. With over $126 million US dollars in sales over the year, McDonald’s is likely going to have some coffee drinkers that come into the fast food restaurants. This is an easy way to market to those patrons and increase revenues, without straying away from the main focal point of the business (which is selling fast food).

Understanding the niche audience, and what consumers are looking for when they visit a specific restaurant chain, is extremely important for marketing and business professionals to do. Not only to help increase revenues but also to easily increase the sales of food and drink items, including coffee, in a restaurant where this isn’t the primary reason customers are visiting the shops.

A Focus on International –

Although only one coffee shop on the list is an international leader, Costa Coffee, major leaders in the US can take a look at what the brand is doing correctly on the international front. Not only will this allow the US brands to increase their sales internationally, but also learn what their international audiences are going to love. For example, although the Frappuccino is a popular US-based drink for Starbucks, international coffee drinkers in the UK or Europe, don’t like those sugary drinks nearly as much as US drinkers. Therefore, targeting espresso drinks in these countries, and understanding their international audiences, is one way in which Starbucks, and other popular US coffee chains, is going to increase their sales in international sales.

It seems Starbucks has a clear understanding of what their US and international audiences are looking for when visiting coffee shops. However, it’s always possible to increase sales, revenues, and the number of coffee shops in the coming years, by understanding what the leading international coffee shops are doing and mimicking those marketing efforts to help increase brand loyalty outside of the US.

Conclusion –

Starbucks isn’t going to lose its grip as the leader in the US or international coffee sales any time soon. This, however, doesn’t mean that other brands can’t take a few pages out of their marketing books, as well as popular international coffee shops, to learn how to increase their market share and growth outside of the US. A majority of coffee drinkers actually enjoy the taste of coffee; this is a great marketing tool for coffee shops to work off of when they’re trying to sell their product line.

There are several factors which are going to increase or decrease the appeal of a specific coffee brand in the US and internationally. For coffee shops, and for marketing professionals working for these shops, understanding your audience, and what they’re interested in (value, low price, food items, coffee, espresso, etc.), is imperative to growth and increasing revenues in the coming years. Working with these key figures, and properly targeting marketing efforts to appeal to the right audience, will help drive sales in the coming years, keep loyal customers coming back, and help increase the growth of the brand in the US and worldwide, to help the company continue to grow into 2019 and beyond.

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By taking more of a “big picture” approach, coffee chains are going to expand sales, and increase revenues in the US as well as internationally. This is important for chains, apart from Starbucks, trying to increase their market share. In an ultra-competitive niche, small changes and impacts make a big difference. Coffee shops that take the right approach to appease to their audience, and their demographic niche, are far more likely to see the results, and experience growth, in the coming years.