U.S. Hot Drinks Market Summary

The U.S. hot drinks market size was valued at USD 20.0 billion in 2023 and is projected to grow at a CAGR of 4.7% from 2024 to 2030. The hot drinks sector in the U.S. is dynamic, diverse, and evolving, catering to a wide spectrum of consumer preferences. The market offers a rich mix of traditional staples such as coffee and tea alongside emerging categories like specialty hot chocolates and herbal infusions. Increasing consumer focus on health and wellness has further fueled demand for functional beverages, including turmeric lattes, matcha teas, and adaptogenic herbal blends, signaling a shift toward hot drinks that provide both indulgence and nutritional value.

The market has also experienced notable growth in premium and artisanal offerings, reflecting consumers’ growing appreciation for quality, authenticity, and craftsmanship. Artisanal coffee roasters, specialty tea blenders, and craft hot chocolate producers are gaining popularity as they offer carefully curated, unique beverages. These products go beyond fulfilling a basic need and instead deliver distinctive sensory experiences, aligning with consumer desires for sophistication, storytelling, and indulgence in their beverage choices.

Key Market Trends & Insights

  • Coffee remained the dominant product category, accounting for a revenue share of 75.6% in 2023. Coffee’s central role in American culture spans centuries, and its demand remains consistently high. According to a 2023 survey by OnePoll, commissioned by BUNN, over 80% of the 2,000 American respondents reported drinking coffee, with an average annual consumption of 460 cups per person. This continued popularity highlights coffee’s deeply embedded cultural significance and its enduring position as a staple hot beverage across demographics.
  • In terms of distribution channels, the café segment accounted for the largest revenue share in 2023. Cafés remain popular gathering spots for consumers, offering a wide range of coffee, tea, and specialty hot beverages in environments that emphasize ambiance, convenience, and social interaction. These establishments cater to the growing demand for both variety and experience, solidifying their role as important retail outlets for hot drinks in the U.S.
  • Hotels and restaurants are also projected to experience significant growth over the forecast period. Increasingly, these establishments are integrating sustainability into their offerings by promoting ethically sourced and responsibly traded coffee and tea products. This trend aligns with consumer expectations around environmental and social responsibility, positioning hotels and restaurants as important advocates for sustainable hot drink practices.

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Market Size & Forecast

  • 2023 Market Size: USD 20.0 billion
  • 2030 Projected Market Size: USD 27.4 billion
  • CAGR (2024 - 2030): 4.7%

Key Companies & Market Share Insights

Several leading players drive competition in the U.S. hot drinks market, including Starbucks Coffee Company, PEET'S COFFEE, Caribou Coffee, The Coffee Bean & Tea Leaf, Tim Hortons Inc., Dutch Bros Coffee, Dunn Brothers Coffee, Argo Tea, Baxter's Coffee, and Dunkin Donuts. Companies are expanding their customer base and competitive edge through strategic initiatives such as partnerships, collaborations, mergers, and acquisitions. Starbucks Coffee Company, for example, offers a diverse range of hot drinks, from micro-ground instant coffee and whole-bean varieties to seasonal, locally tailored beverages, as well as an extensive selection of espresso-based drinks and teas. Similarly, Peet’s Coffee provides customers with a curated selection of premium medium roasts, including Big Bang, Café Domingo, and Organic Alameda Morning Blend, further enriching the hot beverage landscape.

Key Players

  • Starbucks Coffee Company
  • PEET'S COFFEE
  • Caribou Coffee
  • The Coffee Bean & Tea Leaf
  • Tim Hortons Inc.
  • Dutch Bros Coffee
  • Dunn Brothers Coffee
  • Argo Tea
  • Baxter's Coffee
  • Dunkin Donuts

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Conclusion

The U.S. hot drinks market continues to thrive, driven by strong cultural traditions, evolving health-conscious preferences, and a growing appetite for premium and artisanal products. Coffee remains the dominant force, supported by consistent demand and café culture, while specialty teas, functional blends, and ethical sourcing practices are reshaping consumer choices. Hotels, restaurants, and online platforms are also contributing to growth by integrating sustainability and convenience into their offerings. With established players like Starbucks and Peet’s Coffee leading innovation and diversification, the industry is expected to sustain steady expansion through 2030, reflecting its ability to adapt to changing consumer lifestyles.