- Coffee is one of the most widely consumed beverage both at home and in the office. Coffee helps to improve energy levels. In the work place, a cup of coffee can energize the employee and increase productivity.
Global Office OCS Market: Dynamics
Rise in demand for OCS across U.S. and Europe
Rise in economic growth across the U.S. is leading to increase in businesses and industries which subsequently increases the spending on employee satisfaction services such as office coffee. Revenues are increasing for the OCS industry in the U.S. OCS revenue increased from US$ 5.40 billion in 2017-18 to US$ 5.71 billion in FY 2018. In the U.S., millennial have different needs, tastes, preferences, and expectation and are health-conscious, tech-savvy, ambitious, and seek a better work-life balance. They are increasingly opting for coffee compared to other hot drinks. According to the European Vending & Coffee Service Association (EVA), a dominant portion of coffee machines are located in workplaces. Thus, rise in preference for coffee among the millennial in the U.S. and Europe is increasing the market size of office coffee service.
Rise in online promotions by OCS providers across the U.S.
In the U.S., online marketing by OCS market players has increased their revenue. All OCS providers in the U.S. have a website from the FY 2017-18. Presently, OCS providers also enable their customers to order coffee through online channels.
Decrease in price of green coffee helping OCS providers to offset cost
The International Coffee Organization (ICO) has indicated a gradual decrease in price of green coffee since August 2017 which has continued except for October 2018, and June and July 2019. As per ICO, average green coffee price is lowest in the past five years. OCS providers have seen an increase in operation cost but are able to maintain coffee prices due to decrease in price of green coffee. This is helping OCS providers to increase business but keeping price of coffee under check.
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Global Office OCS Market: Regional Analysis
North America and Europe prominent OCS markets in the world
- Geographically, the global OCS market can be divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America
- The market in North America is broken down and analyzed at country-level, which includes the U.S., Canada, and Rest of North America. Similarly, the OCS market in Europe can be bifurcated into country level, covering Germany, France, the U.K., and Rest of Europe. The OCS market in Asia Pacific includes China, India, Japan, and Rest of Asia Pacific. The analysis of the OCS market in Middle East & Africa includes GCC countries, South Africa, and Rest of Middle East & Africa. The OCS market in South America can be divided into Brazil and Rest of South America.
- Globally, North America and Europe are leading OCS markets.
Global Office OCS Market: Competitive Landscape
The global OCS market consists of large and innumerable small and medium sized players. Large market players operate in more than one country/ region. Competition is intense among global and regional players operating in the office coffee service market. A few key players operating in the market are:
- Compass Group
- Farmer Bros. Co.
- Keurig Dr Pepper Inc.
- Peet’s Coffee Berkeley
- Royal Cup Coffee
- Van Houtte Coffee Services (A division of Keurig Canada Inc.)
- American Vending Services