Cream of the Crop: How Coffee Creamers Became a $5 Billion Phenomenon

As part of my ongoing exploration of successful business models, particularly in competitive, mature product segments, I’d like to highlight a remarkable case: the coffee creamers category. A recent headline from CNN Business captures this well: “From Flavored Foam to ‘Friends,’ How Coffee Creamer Became a $5 Billion Category. 

Coffee creamers are rapidly gaining traction. As the article suggests, “Stroll down the dairy aisle of your local grocer, and you’ll encounter an increasing array of coffee creamers with flavors that practically rival sweets and sodas.”

The facts are striking—sales have surged to $5 billion in 2024, according to Chicago-based market research firm Circana. Sales growth in the refrigerated coffee creamer category has jumped about 14% over the past two years, primarily driven by International Delight’s® diverse flavors and Chobani’s® oat-based creamers. Notably, Nestlé recently invested $675 million to open a new factory in Arizona dedicated to creamer production to meet this rising demand.

What is driving this demand? It appears to be a combination of America’s seemingly endless thirst for innovative flavors (Snickers, anyone?), sprayable foams, and even TV-themed options like “Friends” and “The White Lotus.” This trend caters to Generation Z customers who are increasingly making coffee at home, influenced by crazy coffee creations trending on TikTok under the #CoffeeTok hashtag. According to Olivia Sanchez, senior vice president of creamers for Danone® S.A., it's about providing consumers with “that coffee house experience at home.” 

How Are Companies Nurturing This Demand?

First, they’re doing this by establishing partnerships, such as International Delight’s® collaborations with popular TV shows and movies, including “Elf,” “Friends,” and “Bridgerton.” Their most recent partnership involves the Netflix® dating show “Love is Blind.” Similarly, Coffee-Mate has introduced a new creamer called “The White Lotus,” inspired by the recently popular television show. My previous articles have emphasized that partnerships are a strategic lever for strengthening brand positioning and scalability. In this instance, these brands have helped create unexpected creamers that resonate with consumers and generate buzz. 

Secondly, the creamer market is evolving beyond liquids to include foams. Danone S.A. and Nestlé have capitalized on this trend by introducing foam products. For instance, Nestlé aired a high-profile Super Bowl ad to promote its new Coffee-Mate® cold foam creamer. The appeal of these products is particularly strong among Gen Z consumers, inspired by homemade cappuccino-like beverages showcased on TikTok. Additionally, these foam cans are often cheaper than a single cappuccino from a coffee shop.

“People want that elevated coffee shop experience at home without spending $7 on a latte or investing in expensive equipment,” Sanchez noted in the CNN Business article.

What does this mean? In short, this arguable consumer staple (especially for coffee drinkers) is maturing in its product lifecycle. It has now evolved into a necessary component in many households, generating steady revenue as a $5 billion category. Instead of seeking growth solely through competition, this category aligns with strategic partners to broaden exposure, expand flavor and product offerings, and enhance the in-home coffee experience. As always, in these success stories, companies are listening to consumer demands and addressing unmet needs.

As the saying goes, “Everything old is new again.”

How Can We Create Your Next Creamer Craze?

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About the Author

Eric Rittenhouse works at BSM Partners as Business Development Manager. His areas of expertise include business development, sales and trade marketing while helping brand companies uncover and execute on opportunities to strategically dominate their niche in the consumer product space. He has completed the Blue Ocean Practical Introduction certificate by the Blue Ocean Academy and is Action Selling Master Certified by Action Selling and The Sales Board.