Coffee and Tea Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 910 coffee 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 third-largest importer of tea.
Industry size & Structure
The average coffee or tea manufacturer operates out of a single location, employs fewer than 22 workers, and generates about $13-14 million annually.
- The coffee and tea manufacturing industry comprises about 910 firms that employ 20,000 workers and generate $12.5 billion annually.
- The industry is highly concentrated; the top 50 companies account for about 91% of industry revenue.
- Multi-national food conglomerates, including J.M. Smuckers (Folgers) and Kraft Heinz Group (Maxwell House), roast and sell coffee beans, as do large coffee chains, such as Starbucks and Dunkin’ Donuts.
- Large coffee manufacturers include Farmer Brothers and Coffee Holding Co.
- Large tea manufacturers include Unilever, R.C. Bigelow, Hain Celestial, and Twinings. Major soft drink manufacturers like Coca-Cola and Pepsi 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 Colombia and Brazil.
Industry Forecast
Coffee and Tea Manufacturers Industry Growth
Recent Developments
Apr 20, 2025 - Tariff Trouble Brewing
- Coffee and tea prices are rising following President Trump’s imposition of a 10% tariff on US imports from all countries in April, World Tea News reports. The US ranks as the world’s second-largest importer of coffee and tea, according to the US Department of Agriculture. Indeed, the nation imports 90% of its coffee and about 80% of its tea, with major producers including Brazil, Colombia, Ethiopia, India, and China all subject to the universal 10% tariffs. Moreover, China was singled out for 145% "reciprocal" tariffs. Coffee and tea prices could rise even further when the 90-day pause on additional reciprocal tariffs that was put in place on April 9 expires and takes effect. Coffee and tea prices had already been rising as climate and geopolitical issues crimped supplies.
- For the first time in its history, the price of coffee futures on the commodities market topped $4 per pound in February, according to Business Insider. Year-to-date, coffee futures prices are up almost 35% and have more than doubled from the same time last year. Climate change, dwindling global stockpiles, and President Trump’s threat to impose a 25% tariff on all goods from Colombia, including coffee, are driving up coffee prices. Although the tariff threat to Columbia was ultimately removed, Trump’s affinity for tariffs and the possibility of a resultant trade war have added instability to commodity markets, including the coffee market. The price of tea is also subject to climate and geopolitics. Tea prices exhibited volatility in 2024 rising steeply in the first half of the year and then falling back to January 2024 levels at the start of 2025, according to data from Trading Economics.
- Coffee drinkers should prepare for surging prices amid global shortages in 2025, according to BBC News. The price of Arabica coffee beans surged to a record high of $3.44 per pound in December, up more than 80% for the year, due to bad weather in the top producing countries Brazil and Vietnam. Brazil suffered its worst drought in 70 years during August and September, followed by heavy rains, raising fears that the flowering crop could fail, Ole Hansen, Head of Commodity Strategy at Saxo Bank told the BBC. In Vietnam, Robusta crops are also threatened by droughts and heavy rains. While producers have been absorbing rising production costs, the increases are so severe they say they'll soon have to pass them on to consumers who will start to feel price increases as early as the beginning of 2025.
- Employment by makers of coffee, tea, and other food products contracted 3.1% in January compared to a year ago, amid declining sales and shipments for food companies, according to the latest data from the US Bureau of Labor Statistics. Quarterly sales for food companies fell 2.5% in the fourth quarter of 2024 versus Q4 2023 but were up 5.7% from Q3, Census Bureau figures show. Industry producer prices rose to record high levels in 2024 as climate change led to poor harvests in key growing areas and crimped supplies of coffee beans and tea leaves. Also, labor shortages are affecting tea production, which means fewer hands to help harvest the leaves, according to industry sources.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.