Coffee preferences vary significantly between Europe and the USA, with Switzerland and Luxembourg leading in consumption. While Americans average 1.22 cups daily, they favor larger servings compared to Europeans. The U.S. coffee market is shifting towards espresso, benefiting companies like Jura, which anticipates revenue growth despite challenges from tariffs and economic downturns in Europe. Jura is exploring establishing a U.S. assembly line to lower costs, while maintaining production in Switzerland and Portugal.
The Coffee Culture Across Europe and the USA
When it comes to coffee preferences, there’s a distinct divide between Switzerland and Italy. The Swiss savor their café crème, while the Italians enjoy espresso at the bar. Interestingly, Luxembourg tops the charts as the world champions of coffee consumption, averaging an impressive 5.31 cups per day, according to research by Cafely.
In contrast, Americans appear to be lagging behind in coffee consumption, with an average of just 1.22 cups per day, placing them 24th globally. However, this statistic doesn’t necessarily reflect a disdain for coffee; rather, it highlights a cultural difference in portion sizes. While Europeans tend to enjoy their coffee in smaller servings, many Americans prefer larger cups.
Shifts in the American Coffee Market
For Jura, the American market has become increasingly significant, ranking as their second-largest market. Traditional filter coffee, which is often served in larger quantities, is losing its appeal as more Americans venture into espresso-based options. Emanuel Probst, the managing director of Jura Elektroapparate, notes, “The idea that coffee is only a thirst quencher is fading. More Americans are embracing espresso.” This shift has also influenced pricing, with a cup of coffee in the U.S. costing around $4.69, comparable to prices in Switzerland.
Jura has seen considerable growth in the U.S. market, particularly with its fully automatic coffee machines that deliver freshly ground coffee at the touch of a button. The company anticipates a revenue increase from nearly 100 million to 130 million francs in the U.S. market this year, driven by a growing demand for coffee variety, including cold brew options. However, Probst expresses concerns over the impact of aggressive tariffs from the new U.S. administration, which could hinder their ambitious growth targets.
Beyond the U.S., Jura has been grappling with declining revenues in Europe, where it generates 85% of its income from household sales. The economic downturn in Germany poses a significant risk, especially if job losses in the automotive sector occur. Many of Jura’s customers are skilled workers, and a contraction in the middle class could adversely affect sales.
With a focus on the mid to upper price segment, Jura’s coffee machines start at 600 euros. The company has relied on the East Swiss contract manufacturer Eugster/Frismag for production since its inception over 30 years ago. While they have a plant in China for budget machines, the bulk of their high-quality products is manufactured in Switzerland and Portugal.
Despite the challenges posed by tariffs and economic fluctuations, Jura is considering establishing an assembly line in the U.S. to mitigate costs. Probst has identified a potential site in Lancaster, Pennsylvania, where they are investing in a service center to facilitate repairs and possibly assembly of new machines in the future.