Topics & Conclusions presented at the National Coffee Association:
- The US coffee away-from-home market is growing and bifurcating. The “drive-through” segment is growing at a 20%+ rate and expanding the market; the “coffee house” segment, at a low-single-digit rate, is holding.
- Drive-through is growing consumption (the market) by serving up convenience (easy access) and a broad selection of drinks. Broadly speaking, it serves a different consumer segment / occasion than traditional coffee-house brands. As such, drive-through isn’t really encroaching on the incumbents, rather it’s adding consumer occasions to the overall away-from-home category.
Macro-trends
- GLP-1 –less calorie consumption when on (and maybe off) weight-loss drugs (GLP-1), which will be a bigger impact this year than in in 2025
- K-Shaped Economy – the bifurcation has widened since last summer
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