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.

Oct 20, 2026 - Record Specialty Coffee Consumption

• Coffee remains America's most popular beverage, with 66% of US adults drinking it daily, according to a September report from the National Coffee Association (NCA). Specialty coffee consumption reached a record high, with 48% of adults drinking it in the past day, while 47% consumed an espresso-based beverage in the past week. Coffee consumption away from home also reached its highest level since January 2020, and cold coffee continues to gain popularity. For coffee manufacturers, these trends create opportunities to expand specialty blends, espresso products, and cold coffee offerings. However, shifting shopping habits could require adjustments to distribution strategies. Grocery stores' share of coffee purchases for home preparation fell from 42% to 35% since January, while mass merchandisers gained share. Manufacturers that adapt their products and distribution channels could be better positioned for growth.
• 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 just 0.7% in September compared to a year ago, after soaring by 28.7% in the previous September-to-September 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 7.1% year over year in September and 0.6% compared to August, per the Labor Department’s Consumer Price Index September 2026 report. Meanwhile, employment by makers of coffee, tea, and other food products shrank 1.1% in August, while average wages at food manufacturers rose 1.9% YoY in September to $24.63 per hour, easing a bit from their high in July, BLS data show.

Industry size & Structure

The average coffee or tea manufacturer operates out of a single location, employs 25 workers, and generates about $12.3 million annually.

• The coffee and tea manufacturing industry comprises about 1,015 firms that employ about 25,355 workers and generate $12.4 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.