Americans Spend More On Coffee But Will Be Drinking Less Of It

WASHINGTON -- While Americans are spending more money on coffee drinks than ever before, they will be consuming less coffee for the first time in six years. The change is due in large part to the single-cup revolution, which has enabled consumers to brew a cup at a time rather than a whole pot, some of which gets thrown down the drain.

According to the U.S. Department of Agriculture's forecast in its biannual coffee report released last week, coffee consumption in the United States is expected to fall to 23.7 million 60kg. bags in the upcoming 2015-16 season, down from 24 million bags in the year that ends in September. It's the first drop since the 2009-2010 season.

The USDA says the nation will be the only one of the top eight global coffee-consuming countries to see a decline in use, with total worldwide demand expected to rise by some 2 million bags to 147.6 million bags.

However, Americans spent a record $11.9 billion on coffee in 2014, according to researcher Mintel, and they are expected to spend $12.8 billion in 2015 and $13.6 billion in 2016.

The USDA forecast is expected to upset traders and roasters as arabica coffee futures prices continue to fall amid plentiful supplies, a Reuter's story noted.

The report also confirms that the growing popularity of single-serve pods, dominated by Keurig Green Mountain's K-Cups, is having a material impact on U.S. demand for green coffee beans. According to a recent survey by the National Coffee Association, ownership of single-serve brewers skyrocketed in 2015, with more than a quarter of American households having one, up from just 15% in 2014.

Single-serve machines have yet to reach a similar level of popularity abroad.