Coffee and Tea Manufacturers

The 1,014 coffee and/or tea manufacturers in the US produce roasted coffee, packaged tea, and related products. Coffee manufacturers roast coffee beans and produce coffee-based products, such as concentrates, extracts, flavorings, and syrups. Tea manufacturers produce tea concentrates or herbal teas or blend tea. Firms may offer related products, such as green coffee, other types of beverages, coffee filters, sugar, and creamers.

Variable Ingredient Costs

The cost of green coffee, the primary input to roasted coffee, is volatile and affects margins and profitability.

Dependence on Imports

The US is the world’s largest importer of coffee beans and the second-largest importer of tea.

Aug 20, 2026 - Reconsidering Q Scores

• Coffee manufacturers and roasters are reconsidering reliance on traditional 100-point cupping scores as climate change, volatile prices, tariffs, and geopolitical pressures complicate sourcing, Fresh Cup reports. While cupping scores, determined by Q Graders, remain useful benchmarks, especially for newer buyers, they do not reliably predict consumer preferences or represent linear differences in quality. Manufacturers increasingly need to balance sensory quality with cost, supply availability, target-market tastes, and brand positioning, which may require reformulating blends, sourcing from new origins, or accepting coffees with different score profiles while preserving expected flavors. The Specialty Coffee Association's Coffee Value Assessment (CVA) supports a broader view of quality that accounts for cultural and commercial context. For manufacturers, the key implication is to treat Q scores as one sourcing input rather than the primary definition of quality, while strengthening internal evaluation standards and aligning purchasing, roasting, pricing, and product strategy with customer expectations.
• Coffee manufacturers and roasters may see some relief from raw material cost pressures as arabica coffee prices continue to decline in 2026, Perfect Daily Grind reported in June. The price drop is being driven by expectations of a record Brazilian coffee harvest, with production forecasts ranging from 66.7 million to nearly 72 million bags. Rabobank projects a global coffee surplus of 7 million to 10 million bags during the 2026/27 season, which could put further downward pressure on coffee prices. Lower green coffee costs could help improve margins for manufacturers and coffee shops after several years of elevated input costs and compressed profitability. However, the outlook remains uncertain, as weather risks, including the potential development of a strong El Niño event that could affect future Brazilian crops, may reverse recent price declines. While supply conditions currently appear favorable, coffee manufacturers are likely to remain cautious given the market's history of volatility.
• Brazilian coffee farmers increasingly are shifting from arabica to robusta coffee beans due to climate change, rising temperatures, and volatile weather that make arabica harder and more expensive to grow, Fresh Cup reported in December. Brazil is the world’s largest arabica grower and while arabica continues to dominate, robusta production has increased by 81% over the past decade. In just the last growing season, robusta production jumped nearly 22% compared to the previous harvest. As robusta production expands, its quality is improving, creating opportunities for manufacturers to introduce new flavor profiles and lower‑cost blends. The shift from arabica to robusta likely means higher arabica prices and tighter supply, which could pressure manufacturers’ margins. Coffee manufacturers could also meet resistance from consumers accustomed to arabica coffee and who may associate robusta beans with lower‑grade coffee.
• Producer prices for coffee and tea manufacturers rose 6.2% in July compared to a year ago, after soaring by 25% in the previous July-to-July annual comparison, according to the latest US Bureau of Labor Statistics data. Producer price increases are moderating following a period of double-digit growth driven by high prices for coffee beans and tea leaves due to crop failures in key growing areas and rising labor costs. At the retail level, coffee prices rose 10.3% year over year in July and 0.3% versus June, per the Labor Department’s Consumer Price Index July 2026 report. Employment by makers of coffee, tea, and other food products was flat YoY in June, while average wages at food manufacturers rose 2.4% YoY in July to a new high of $24.67 per hour, BLS data show.

Industry size & Structure

The average coffee or tea manufacturer operates out of a single location, employs 22 workers, and generates about $14.4 million annually.

• The coffee and tea manufacturing industry comprises about 1,014 firms that employ 22,372 workers and generate $14.6 billion annually.
• The industry is highly concentrated; the top 50 companies account for about 86% of industry revenue.
• Multi-national food conglomerates, including JM Smuckers (Folgers) and Kraft Heinz Group (Maxwell House), roast and sell coffee beans, as do large coffee chains, such as Starbucks and Dunkin'.
• Large coffee manufacturers include Farmer Brothers and Coffee Holding Co.
• Large tea manufacturers include Unilever, RC Bigelow, Hain Celestial, and Twinings. Major soft drink manufacturers like Coca-Cola and PepsiCo have tea brands in their product portfolios.
• Domestic production comes from Kona coffee grown in Hawaii, which represents less than 1% of US consumption. The rest is imported primarily from Brazil and Colombia.