Sales of coffee are expected to grow by a compounded rate of 6.9 percent from 2005-2010, reaching $48.2 billion by 2010, according to The U.S. Market for Coffee and Ready-to-Drink Coffee, a new report from market research publisher Packaged Facts, a division of MarketResearch.com.

Packaged Facts estimates that the 2005 U.S. coffee market grew to $34.5 billion, an 8.7 percent jump over 2004. Foodservice is the largest sales channel, accounting for 87.9 percent of the market. Half of the coffee drunk "out" consists of "regular" coffee, while 42 percent is a specialty blend. Retail outlets account for the remaining 12.1 percent of sales, with ground coffee garnering the bulk of those sales. While actual consumption of coffee is down, the price paid per cup is up significantly as consumer tastes have migrated toward higher-end, novelty brews.

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