Bad Times Ahead in Coffee Market

By Pan Demetrakakes, Senior Editor

Jan 02, 2019

The U.S. coffee market, which had been buoyed by single-serve coffee pods and falling bean prices, is in for some dark days, according to a report in the Wall Street Journal.

The Journal reports that J.M. Smucker, owner of Folgers and licensee of Dunkin’ Donuts retail coffee, saw its market share drop from 42% in 2012 to 38% in 2018. Kraft Heinz, which owns Maxwell House, suffered a drop in market share from 19% to 17% over that time.

Meanwhile, single-serve K-Cup coffee pods, which had enjoyed robust growth through the 21st century, are feeling pressure from private label. Ever since the patent on the K-Cup expired in 2012, private label has roared into a 22% market share, putting pressure on Keurig Dr Pepper to lower prices.