September_2021 - 11

CHART 3A: Composite green coffee prices, 2015 to August 2021
200
150
100
50
2015
CHART 3B: How rising
costs are being handled
2.7%
8.1%
45.1%
● Raising prices
● Absorbing
● Combination
● Adjusting product mix
● Selling additional services
● Changing workforce
● Divesting business
● Other
6.8%
2.7%
28.4%
23%
33.8%
2016/17
64.9%
16.7%
21.4%
23.8%
2017/18
2018/19
*Other includes customer service, marketing, technology, business practices, etc.
No matter what you call it - virtual
or online work, remote or at-home
job, distributed teams, or telecommuting
- a new flexible work culture
is taking hold and has changed OCS,
perhaps lastingly.
Looking back, OCS had enjoyed
consistent annual growth between
2010 and 2019. Moderate increases
in white-collar workplace populations,
greater ranges of refreshment
products, new brewing and pure water
technologies, and improved operating
efficiencies collaborated to expand the
OCS market through those years.
And while the U.S. unemployment
rate was historically high in April
2020 (almost 15%), a month into the
officially called COVID-19 pandemic,
it was the immediate swing to at-home
work that dealt the severe blow to the
OCS industry.
CHART 4A: Revenue per cup in cents per cup,
Fraction pack automatic/pourover coffee, 5-year review
2016/17
11.7¢
Revenue
2017/18
12.5¢
2018/19
11¢
*Previous numbers have been adjusted based on additional data
CHART 4B: Revenue per cup, single-cup coffee, 5-year review
2016/17
Revenue
Single-Cup
Capsule
Bean-ToCup
per cup
cost
36.2¢
2017/18
-
47¢
41¢
2018/19
-
46¢
43¢
*Previous numbers have been adjusted based on additional data
In the early stages of the pandemic,
some 35% of all Americans worked
from home, nearly 50 million employees,
according to the U.S. Bureau of
Labor Statistics. However, at the end
of 2020, studies conducted by the Pew
Research Center found that 71% of
office workers were doing their jobs at
home all or most of the time.
As a result of the vast reduction
of location staff and restrictions on
access to shared breakroom amenities,
90% of operators taking part in this
survey reported a decrease in sales last
September 2021 * VendingMarketWatch.com 11
-
46¢
36¢
2019/20
2020/21
7.1%
11.9%
57.1%
2016
2017
Source: The International Coffee Organization, London, U.K.
2018
2019
2020
2021
4.8%
5.8%
2.4%
3.9%
1.9%
29.4%
31.4%
33.3%
17.7%
15%
37.5%
52.9%
50%
25.5%
51%
7.5%
27.5%
30%
3.6%
9%
34.6%
27.3%
25.5%
25.4%
2019/20 2020/21
10.6¢
11.4¢
2019/20 2020/21
-
49.4¢
44.8¢
CENTS PER POUND
Jun
May
Apr
Mar
Feb
Jan
Jul
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Oct
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Aug
Jun
May
Apr
Mar
Feb
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http://www.VendingMarketWatch.com
September_2021

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