June 4, 2024
(press release)
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CLEVELAND OH May 29, 2024 – According to Packaged Facts’ new report Office Coffee Service in the US: Market Trends & Opportunities, the $2.49 billion office coffee service market is poised for average growth of 17.2% annually through 2028 as recovery of lost revenues continues from a still-low 2023 base of sales. Historically, the office coffee service (OCS) market grew steadily, fueled by job growth and a focus on employee perks. However, the COVID-19 pandemic triggered a sharp decline as remote work surged and offices were closed or operating at a limited capacity. While essential businesses with on-site workers such as hospitals and manufacturing plants kept OCS afloat, overall revenue plummeted in the latter half of 2020 and continued to dive in early 2021. This forced OCS suppliers to adapt and consider new markets for sales and rethink distribution occasions. Recovery in OCS revenues began as some offices began to reopen, mostly starting in late 2021 or in 2022. Particularly in 2023, consumers and companies alike were no longer considering the pandemic a primary driver of decision-making. This led to more offices re-opening for full-time work or for hybrid work schedules with some in-office days. Consequently, the OCS market has experienced surging growth in the last few years. Nonetheless, the market hasn't fully bounced back. Remote work is part of the “new normal” for many white-collar workers. A large number of fully remote jobs and hybrid schedules with less in-person work remain a major hurdle for OCS suppliers. Some companies have even closed offices permanently if they have found their employees work well from home. These trends have led to a smaller base of sales for on-site office coffee services. The “new normal” for office work will require continued adjustments for OCS suppliers. Because remote work is not going away, OCS providers will need to change their business models to target the remote worker market for continued sales. Opportunities for growth in the challenging OCS market include: offering coffee subscriptions directly to remote workers to prevent them from running out of their favorite beverages targeting companies with coffee subscriptions that can be sent directly to employee homes on a regular basis as an employment perk offering expanded services such as water, snack services, and micro-markets to non-office work locations that need coffee service such as hospitals, manufacturing sites, warehouses, and schools/campuses intensifying focus on OCS sales to non-traditional clients, such as grocery stores, restaurants, and other retailers partnering with co-working spaces to supply coffee and equipment to shared office environments adding more services such as catering to be flexible in supplying items for events and inconsistent/surging needs supplying higher value coffee and snack products to win on dollar sales offering equipment for single-serve coffee, which is better suited to workplaces with smaller or more variable attendance This Packaged Facts report analyzes the dynamics of the current landscape of the office coffee service market. Consumer demographics, perceptions, motivations, and behavior are examined as pertaining to coffee consumption, work habits, and diet choice. Overall food and health habits and attitudes are also surveyed. For more information, see the Office Coffee Service in the US: Market Trends & Opportunities report page. Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, the food and beverage market, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased on our website.
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