Single-serve coffee sales experienced surge in 2011, Packaged Facts report finds

NEW YORK — In its latest report on sales in the coffee and ready-to-drink coffee market, Packaged Facts found that the single-cup coffee format has captured more than 7% of retail coffee sales.

Retail sales of coffee reached $7.3 billion in 2011, an increase of nearly 17% over 2010, with single-serve coffee claiming 7.5% of retail coffee sales. Its surge, according to the "Coffee and Ready-to-Drink Coffee in the U.S." report, primarily comes at the expense of regular instant coffee. What's more, a Packaged Facts survey conducted in September found that 21% of households that make coffee (other than instant) at home own an electric single-cup coffeemaker (based on formats such as pods, K-Cups, or T-Discs), and 18% regularly use it.

Meanwhile, regular (caffeinated) ground coffee, the largest coffee category at retail, accounts for almost 60% of dollar sales of coffee through mass market channels.

The research firm also added that dollar sales growth in this market was driven by consumers paying higher prices for coffee products.

Click here for the full report.