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The Economic Impact of the Coffee Industry

Not only does coffee power your day, it also helps power the U.S. economy.

In a groundbreaking study, the National Coffee Association commissioned original research from the experts at Technomic to measure all the ways that coffee contributes to the U.S economy. The final report, which was produced in collaboration with the Specialty Coffee Association of America, has resulted in the first comprehensive study of the impact of coffee on the U.S. economy. 

And the results speak for themselves.

We already knew that coffee is the most commonly consumed beverage in the U.S. (even more than tap water). And the SCAA 2014 Economics of the Coffee Supply Chain report gave us a glimpse into the complexity of the coffee supply chain. 

But it turns out that coffee touches communities across the country in amazing ways, from generating tax dollars to creating jobs, from the supermarket to the dairy farm. 

Highlights include:

  • The total economic impact of the coffee industry in the United States in 2015 was $225.2 billion
  • Coffee-related economic activity comprises approximately 1.6% of the total U.S. gross domestic product
  • Consumers spent $74.2 billion on coffee in 2015
  • The coffee industry is responsible for 1,694,710 jobs in the US economy 
  • The coffee industry generates nearly $28 billion in taxes (including ancillary goods)

About These Numbers

These numbers reflect all economic activity in the U.S. coffee economy, the majority of which is created in the foodservice sector, where coffee is prepared for consumers – a reflection of the investment in equipment, labor, and materials needed for service.

Elements of the coffee economy include:

  • Importers
  • Transportation, including shipping and trucking
  • Roasters and packaging
  • Whiteners, including milk and creamers
  • Sweeteners
  • Flavorings
  • Disposable products
  • Maintenance
  • Equipment sold, both to consumers and for commercial coffee service
  • Indirect services such as accounting, marketing, and promotion
  • Wages and taxes
  • Induced spending by those working in the coffee economy

This report was commissioned by NCA with support from the SCAA, and was produced by Technomic, Inc., a leading food and beverage industry consulting organization. Technomic's experts drew upon a wide variety of primary and secondary sources including interviews with industry experts, U.S. government statistics, published corporate reports, their own internal databases on the beverage industry and related sectors, and IMPLAN modeling software.

The report reflects data for the economic impact of the coffee sector in calendar year 2015, a year for which 76% of adult Americans reported that they drank coffee based upon the NCA National Coffee Drinking Trends study. 

NCA Coffee Market Research

The Power of Coffee is part of the NCA Market Research Series, which includes the annual National Coffee Drinking Trends (NCDT) report

For more information, please contact us.

 

Infographic

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