In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America's sector will reach saturation levels within 5 year (Data monitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens consumption and a shift in consumption away from home.
There has been a significant increase in the consumption of dual drinkers (NCA, 2004). Dual drinkers are people who drink both traditional coffee and gourmet coffee. According to NCA, 54% of America's coffee drinkers are dual drinkers. Gourmet coffee is experiencing substantial growth with senior citizens. According to NCA, senior citizens coffee consumption leaped from 9% to 13%.Another trend is coffee consumption is moving outside the home.
A key strength of Starbucks is being a disciplined innovator. Frappuccino blended beverages and iced refreshments were new innovations and helped the growth of Starbucks. Starbucks should continue coming up with new kinds of beverages, as that is its core product. Perhaps a vegetable drink that is geared more toward the healthier population like a low calorie, low fat, and low sugar carrot drink that is actually providing the body with good vitamins and minerals.
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