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Coffee & Snack Shops in the US Industry Market Research Report Now Available from IBISWorld
Date:12/31/2012

Los Angeles, CA (PRWEB) December 31, 2012

After surging over the past decade, the Coffee and Snack Shops industry experienced a major slowdown in 2009 due to a struggling economy and, to a lesser extent, changing consumer tastes. Over the five years to 2012, IBISWorld estimates revenue will grow at an average annual rate of 1.2% to $27.8 billion, says IBISWorld industry analyst Nima Samadi. After revenue declined 6.6% to $25.3 billion in 2009, it resumed its upward climb in 2010 and 2011, with growth of 3.0% and 3.1%, respectively. In 2012, industry revenue is expected to continue its rebound with an increase of 3.4%.
During the recession, consumers spent less on luxuries like eating out, and they purchased lower-priced items when they did spend. This caused high-priced coffee drinks and other nonessential snacks to lose the battle over people's shrinking budgets. Consumers have also become increasingly health-conscious over the five years to 2012, continues Samadi. Many retailers, such as Jamba Juice, have responded by expanding their healthy options and, therefore, have experienced growth due to the health benefits of their products. Still, the general trend toward healthy eating has hurt the industry's unhealthier segments, such as donut and ice cream shops. Furthermore, in response to weak market conditions, the number of establishments is expected to increase more slowly than in the past, at an annualized rate of 2.8% to 56,041. IBISWorld estimates that in 2012, the top players in the Coffee and Snack Shops industry are Starbucks Corporation and Dunkin’ Brands Inc., which gives them considerable
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