OCS sales grow despite persistent cost pressure

More operators increased revenue and customer locations in 2025 as single-cup and bean-to-cup demand strengthened, but rising coffee and product costs continued to shape pricing and account decisions.

Even as coffee prices and other operating costs pressured their bottom line, more office coffee service operators reported growth in 2025.

Eighty-two percent of respondents to Automatic Merchandiser’s 2026 State of the Office Coffee Service Industry survey reported an increase in OCS revenue during the 2025 reporting period, most in the 10 to 20% range. The remaining 18% reported no change. The data reflects the strongest in the survey’s five-year review.

Operators also remained confident about what comes next. Nearly 71% described their outlook for their OCS business over the next 12 months as very positive, while 24% were somewhat positive. The remaining 6% were neutral. No respondent selected a negative outlook.

More locations support revenue growth

Given the revenue growth, it is no surprise that 59% of respondents cited increased client locations as a driver of their growth. Overall, 76% of respondents increased their number of OCS locations, 18% reported no change and 6% reported a decrease.

Other key factors cited by respondents include employee attendance or return-to-office changes (41%) and changes in prices charged (35%). Many respondents also cited changes in consumption at existing locations, acquisitions or divestitures, and technology or equipment changes for their revenue gains.

Operators found many ways to handle higher costs

Cost pressure remained widespread. Seventy-six percent of respondents said they experienced cost increases large enough to affect pricing, purchasing or operations during 2025.

Among those operators, 85% raised customer prices. At the same time, 62% absorbed some or all of the increases. The overlap shows that pricing and cost absorption were not either-or decisions for many operators.

Thirty-one percent adjusted their product mix or package sizes. Twenty-three percent changed suppliers, added or expanded services or exited unprofitable accounts. None reported changing staffing in response to costs.

Green coffee prices help explain the pressure. The International Coffee Organization’s Composite Indicator Price reached 354.32 cents per pound in February 2025. It remained volatile during the survey period, falling to 259.31 cents in July before rising above 300 cents from September through December. The index stood at 273.70 cents in March 2026 and 287.34 cents in July.

Although the index moved below its early 2025 peak, the survey results show that operators were still managing significant cost increases through a combination of pricing, purchasing, product and account decisions.

Coffee remains the core, but the mix is changing

Coffee generated about three-quarters of the OCS revenue reported in the survey’s product and service mix. And, while revenue was primarily driven by frac-pack or bulk-brewed coffee for most respondents, strong demand for single-cup and bean-to-cup formats signals shifting consumer preferences in OCS.

Fraction-pack or bulk-brewed coffee represented 32% of the aggregate reported revenue mix, the largest individual category. Whole-bean or bean-to-cup coffee followed at 27%. Single-cup capsule or pod coffee accounted for 12%. Espresso-based beverages and cold brew, iced or ready-to-drink coffee together represented another 3%.

The brand mix also leaned toward names familiar to the operator and customer. Local or regional brands accounted for 37% of reported coffee revenue while private-label coffee represented 30%. National premium or specialty brands accounted for 17%, and national value brands represented 15%. Together, local or regional and private-label coffee accounted for 67% of the reported mix.

Demand data reinforced the shift toward single-cup and bean-to-cup formats. Overall, 73% of respondents said they experienced a noticeable increase in customer demand for at least one OCS offering in 2025.

Among that group, 64% identified single-cup capsule or pod coffee as one of the offerings with the strongest increase. Forty-five percent selected whole-bean or bean-to-cup coffee, 27% selected cold brew, iced or ready-to-drink coffee and 18% selected fraction-pack or bulk-brewed coffee.

Bean-to-cup was also the most common trend when OCS operators were asked, “What is the single most important trend you expect to shape OCS over the next 12 months?”

Installed equipment reflects demand shifts

Fresh-brew bean-to-cup machines represented 23% of the aggregate installed brewer base reported by respondents. Capsule, pod or pack-to-cup single-cup brewers accounted for 21%, followed by plumbed-in thermal-server or airpot brewers at 19%.

Manual-fill glass-pot brewers represented 16% of the reported base, and plumbed-in or automatic glass-pot brewers accounted for 11%. Other equipment represented smaller shares.

Placement direction was consistent with the demand findings. Sixty-nine percent of respondents with capsule or pod systems reported gaining placements in 2025 and 31% said placements remained about the same. For bean-to-cup, 67% reported gaining placements, 17% reported no change and 17% did not offer the format or could not estimate. No respondent reported losing capsule or pod or bean-to-cup placements.

Operators serve a range of accounts

Offices and professional workplaces remained the largest customer category, generating 40% of the aggregate revenue mix by location type. Manufacturing and industrial facilities followed at 16%, with multifamily and apartment communities at 13%. Retail and convenience stores represented 6%, with the remainder spread across healthcare, distribution, automotive, hospitality, government, education, foodservice and other accounts.

Taken together, locations outside offices and professional workplaces generated 60% of the aggregate revenue mix.

Typical accounts skewed smaller. Nearly three-quarters of respondents identified a typical customer location with fewer than 250 employees. The most common range was 20 to 49 employees, selected by 33%. Another 20% said location sizes varied too widely to identify a typical range.

Digital service and sustainability are not yet universal

Fifty-eight percent of respondents said they offered customers an online portal, mobile app or another digital self-service tool for ordering or service management. Among those operators, 71% offered a customer portal on their website and 29% offered a mobile app.

The same share, 58%, provided at least one environmental or sustainability-related offering. Across all respondents, 42% offered compostable products, 25% provided water filtration intended to reduce packaged-water use and 17% offered coffee with third-party sustainability certification. Equipment, pod or packaging recycling was also offered by 17%.

The 2025 results describe an OCS market that continued to grow while carrying substantial cost pressure. More operators added revenue and locations, single-cup and bean-to-cup demand strengthened, and most respondents remained positive about the year ahead. The next test will be whether operators can sustain that growth as they balance price increases, cost absorption and changing workplace demand.

Methodology

Automatic Merchandiser and VendingMarketWatch.com surveyed convenience services operators that provided OCS to external customer accounts. For this report, the 2025 reporting period ran from April 1, 2025, through March 31, 2026. Results are unweighted and represent participating operators.

About the Author

Linda Becker

Linda Becker

Head of Content

Linda Becker is head of content for Automatic Merchandiser and VendingMarketWatch.com, responsible for the brands’ overall content strategy, planning and performance. She oversees the creation and performance of editorial and multimedia content across platforms such as magazines, websites, webinars, podcasts, newsletters, videos, social media, events and eBooks.

Since joining Automatic Merchandiser and VendingMarketWatch.com, Linda has developed a new appreciation for the convenience services industry and its essential role. She is dedicated to serving readers by covering the latest news in the vending, office coffee service and micro market industry. She can be reached at 262-203-9924 or [email protected].

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