Mobile Menu

Coffee & Snack Shops in the US - Market Research Report (2014-2029)

Thi Le Thi Le New York, United States Last Updated: October 2024 NAICS 72221b

Revenue

$71.3bn

2024

$71.3bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

927k

Businesses

78,851

Wages

$XX.Xbn

Coffee & Snack Shops in the US industry analysis

The coffee and snack shops industry experienced a positive trend, with revenue soaring at a CAGR of 5.0% to $71.3 billion. However, this includes an anticipated 1.1% decline in 2024 alone, driven by an expected dip in coffee consumption. Overall, this impressive growth, outpacing most segments of the food service sector, primarily stemmed from increased consumer spending on coffee and snacks before the pandemic.

Trends and Insights

  • Coffee shops face bean-sourcing issues due to weather. Unpredictable conditions in key growth areas and supply chain disruptions have significantly increased input volatility.
  • Coffee dominates industry revenue and the industry is largely made up of coffee shops. Owners increasingly offer premium selections to appeal to coffee enthusiasts, elevating sales.
  • Coffee shops proliferate in populous, high-income states like California and New York. These areas' dense populations and robust economies foster vibrant café cultures.
  • Low start-up costs result in a highly fragmented industry. New competitors can easily join via franchising, making the marketplace fiercely competitive.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
  • 100% money back guarantee

Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 5.0 % over the past five years, to reach an estimated $71.3bn in 2024.

Trends and Insights

Health-conscious snacking steers coffee shop offerings

  • Consumers are increasingly health-conscious, prompting a change in coffee and snack shops' food. There is a high demand for vegan, gluten-free and low-sugar snack options. Other options customers seek include plant-based items, low-calorie options or organically-sourced food. Many coffee shops have expanded their product range to reflect this evolution, ensuring they cater to these ever-growing consumer groups.
  • Additional trends and insights available with purchase
Coffee & Snack Shops in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Technology integration and sustainability will enhance customer experience

  • The outlook period will see a further technological fusion to enhance the customer experience in coffee and snack shops. This includes mobile order-and-pay apps.

Biggest companies in the Coffee & Snack Shops in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Starbucks Corporation
17,656.1
2,897.3
16.4
Krispy Kreme Doughnuts Inc.
1,695.0
139.7
8.2

To view the market share and analysis for all 2 top companies in this industry, view purchase options.

Products & Services Segmentation

Coffee & Snack Shops in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Food consumed in-store, Beverages consumed in-store and Food taken to-go. Food consumed in-store is the largest segment of the Coffee & Snack Shops in the US.

Trends and Insights

Increased taste for high-end coffee and seasonal varieties shapes demand trends

  • Coffee and snack shops primarily retail various coffee beverages, differentiated by strength, style, type of beans and milk used. The industry's largest segment is coffee, with an array of offerings from traditional brews to more upscale options like siphon and filtered coffee.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry comprises operators that prepare or serve specialty snacks and nonalcoholic beverages, including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas. Purchases may be consumed on-site, taken to go or delivered.

What's included in this industry?

Snack shopsIce cream and soft-serve shopsFrozen yogurt shopsDonut shopsBagel shopsCoffee shopsCookie shopsJuice and smoothie shopsPretzel shopsCupcake shops

Companies

Starbucks CorporationKrispy Kreme Doughnuts Inc.

Purchase this report to view all 2 major companies in this industry.

Related Terms

FRANCHISEPOINT OF SALE (POS)BABY BOOMERSFOOD SERVICEESPRESSOBARISTA

Industry Code

NAICS 2017

NAICS 722515 - Coffee & Snack Shops in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Coffee shops face bean-sourcing issues due to weather. Unpredictable conditions in key growth areas and supply chain disruptions have significantly increased input volatility...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Coffee dominates industry revenue and the industry is largely made up of coffee shops. Owners increasingly offer premium selections to appeal to coffee enthusiasts, elevating...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Coffee shops proliferate in populous, high-income states like California and New York. These areas' dense populations and robust economies foster vibrant café cultures.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Low start-up costs result in a highly fragmented industry. New competitors can easily join via franchising, making the marketplace fiercely competitive.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Small coffee shops face market entry challenges due to dominant national chains. These established giants monopolize the industry, creating steep operational hurdles for smal...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Starbucks Corporation's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Krispy Kreme Doughnuts Inc.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Starbucks Corporation, and factors influencing its performance in the industry
  • Description and key data for Krispy Kreme Doughnuts Inc., and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Coffee and snack shops must obey food preparation and labor rules. They're governed by strict beverage and food prep regulations and stringent labor laws.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Rising competition and fluctuating costs impact profit. Inflationary pressures can also dampen profitability, indicative of the volatile nature of the market.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Coffee & Snack Shops in the US industry in United States in 2024?

The market size of the Coffee & Snack Shops in the US industry in United States is $71.3bn in 2024.

How many businesses are there in the Coffee & Snack Shops in the US industry in 2024?

There are 78,851 businesses in the Coffee & Snack Shops in the US industry in United States, which has grown at a CAGR of 3.8 % between 2019 and 2024.

Has the Coffee & Snack Shops in the US industry in United States grown or declined over the past 5 years?

The market size of the Coffee & Snack Shops in the US industry in United States has been growing at a CAGR of 5.0 % between 2019 and 2024.

What is the forecast growth of the Coffee & Snack Shops in the US industry in United States over the next 5 years?

Over the next five years, the Coffee & Snack Shops in the US industry in United States is expected to grow.

What are the biggest companies in the Coffee & Snack Shops in the US market in United States?

The biggest companies operating in the Coffee & Snack Shops market in United States are Starbucks Corporation and Krispy Kreme Doughnuts Inc.

What does the Coffee & Snack Shops in the US in United States include?

Snack shops and Ice cream and soft-serve shops are part of the Coffee & Snack Shops in the US industry.

Which companies have the highest market share in the Coffee & Snack Shops in the US in United States?

The company holding the most market share in United States is Starbucks Corporation.

How competitive is the Coffee & Snack Shops in the US industry in United States?

The level of competition is high and increasing in the Coffee & Snack Shops in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Specialty Food Stores in the US
  • Chain Restaurants in the US
  • Single Location Full-Service Restaurants in the US
  • Street Vendors in the US
  • Fast Food Restaurants in the US

Complementors

  • Caterers in the US
  • Bars & Nightclubs in the US

International industries

  • Coffee & Snack Shops in Canada
  • Cafes and Coffee Shops in Australia
  • Cafes and Restaurants in New Zealand
  • Juice & Smoothie Bars in the UK
  • Cafes & Coffee Shops in the UK

View all industries in United States

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.