U.S. Market Share Drops to 48% for Second Consecutive Year
New Brands and Low-Priced Chinese Coffee Disrupt the Market
Coffee consumption is increasing in the United States, but the market share of the leading brand, Starbucks, has decreased for two consecutive years. Analysts attribute this to new brands entering the market and eroding Starbucks' share through competitive pricing and menu innovation.
Coffee consumption is increasing in the United States, but the market share of the leading brand, Starbucks, has decreased for two consecutive years. Photo by AP Yonhap News
On January 30 (local time), the Associated Press, citing data from restaurant industry analytics firm Technomic, reported that Starbucks' share of U.S. coffee shop sales for 2024-2025 was calculated at 48%. This figure is down 4 percentage points from 52% in 2023.
According to a survey by the National Coffee Association, the percentage of people who reported drinking coffee daily increased from 59% in 2020 to 66% in 2025, indicating that overall coffee consumption has risen. However, Starbucks' market share has declined. This is interpreted as a result of intensified competition in the coffee chain market.
Number of Chain Stores Up 19% in Six Years, Intensifying Competition
In fact, the number of chain coffee shops in the United States has increased by 19% over the past six years, surpassing 34,500 locations. Dunkin' recently opened its 10,000th store in the U.S., while emerging brands such as Dutch Bros and Scooter's Coffee, which focus on drive-thru service, are rapidly expanding. Chinese brands Luckin Coffee and Mixue are also aggressively increasing their market share in the U.S.
Chris Kess, Professor at George Washington University School of Business, explained, "Consumers have not completely abandoned Starbucks, but there is a clear trend toward experiencing a variety of brands rather than remaining loyal to just one."
This trend is also evident in price competition. In 2024, the average order amount at Starbucks was $9.34, higher than Dutch Bros ($8.44) and Dunkin' ($4.68). In particular, Luckin Coffee, which emphasizes cost-effectiveness, is attracting customers by focusing on discount coupons and promotions at smaller stores.
Starbucks has also been criticized for lagging behind in menu innovation. Dutch Bros has been praised for successfully targeting Generation Z by proactively launching products such as protein coffee and energy drinks that appeal to younger consumers. In contrast, Starbucks only introduced similar menu items two years after these trends had already taken hold.
Starbucks Prepares to Fight Back by Expanding Stores and Seating
To regain market share, Starbucks maintains its policy of not raising prices and is aiming for a turnaround by expanding its stores and diversifying its menu. The company plans to open more than 575 new stores in the U.S. over the next three years and announced that it will add 25,000 seats to its stores by this fall. Additionally, Starbucks intends to strengthen its lineup of beverages high in protein and products emphasizing dietary fiber.
However, there are projections that it will not be easy for Starbucks to win back lost customers in the already saturated U.S. coffee market. The Associated Press analyzed, "Starbucks remains the largest coffee chain in the United States, but as competitors offer a wider range of prices and products, the customer base is becoming more dispersed. It will take time to win back consumers who have left."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
