We recently published a list of the 11 Best Coffee Stocks to Buy Now. In this article, we are going to take a look at where BRC Inc. (NYSE:BRCC) stands against the other best coffee stocks to buy now.
Overview of the Coffee Sector
According to the US National Coffee Association, the number of Americans who had coffee the past day rose by 37% between 2004 and 2024, placing past-day coffee consumption at its highest level in over two decades. Americans are thus increasingly consuming coffee, and its popularity is showing no signs of waning. Modern consumers have made coffee an integral part of their lives, as the National Coffee Association reported that around 66% of Americans now consume coffee daily. This number surpassed tap water consumption in 2021.
According to a report by Mordor Intelligence, the US coffee market is valued at $29.10 billion as of 2025. It is expected to grow at a compound annual growth rate (CAGR) of 3.69% between 2025 and 2030, reaching $34.87 billion at the end of the forecast period. Grand View Research shows that the global coffee market has a size of $223.78 billion as of 2023, and is expected to grow at a CAGR of 5.4% between 2024 and 2030.
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Specialty and Instant Coffee Trends In the US
The establishment of specialty coffee cafes and sophisticated coffee houses across urban centers is boosting the demand for coffee. The coffee market is experiencing a strong premiumization trend, as consumers are exhibiting an increasing inclination to invest in high-quality, premium coffee experiences. Statistics from the National Coffee Association show that 43% of American coffee drinkers prefer and choose specialty coffee, which reflects a notable 20% increase compared to January 2021. According to Grand View Research, the US specialty coffee market is valued at $47.8 billion as of 2024. It is expected to grow at a CAGR of 9.5% between 2025 and 2030.
Instant coffee is another significant factor in the coffee industry, as it is one of the primary drivers of the rise of coffee drinkers. According to Fortune Business Insights, the instant coffee market in the US was valued at $5.78 billion as of 2022. It is anticipated to grow at a CAGR of 4.28% between 2023 and 2030, reaching $8.06 billion at the end of the forecast period.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 coffee stocks. We then selected the top 11 with the highest number of hedge fund holders, as of Q4 2024, and ranked them in ascending order. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A cup of the company’s signature coffee being brewed in a state-of-the-art espresso machine.
BRC Inc. (NYSE:BRCC)
Number of Hedge Fund Holders: 17
BRC Inc. (NYSE:BRCC), the Black Rifle Coffee Company, is a premium beverage company that sources, processes, manufactures, packages, markets, and sells coffee and other beverage and food items.
In 2024, the company attained distribution growth, financial improvements, and adjacent category expansion. Adjusted EBITDA tripled, and gross margin improved by 9.5 points. BRC Inc. (NYSE:BRCC) also saw notable distribution growth in packaged coffee at grocery stores, with ACV increasing by 28 points to 45% over the year.
These improvements reflect the strength of the company’s business model. In 2025, BRC Inc. (NYSE:BRCC) is focused on driving brand awareness, expanding distribution, and deploying capital efficiently to maximize returns. Its median price target of $2.21 implies an upside of 35.75% from current levels. Riverwater Partners Small Cap Core Strategy is also bullish on the stock, and stated the following regarding BRC Inc. (NYSE:BRCC) in its Q3 2024 investor letter:
“BRC Inc. (NYSE:BRCC), a coffee company, was the largest detractor in the third quarter, primarily due to delays in product rollouts at new grocery locations, leading to a downward revision in full-year guidance. However, we remain confident in the brand’s potential, supported by its growing presence at Walmart and a promising new distribution partnership with Keurig Dr Pepper.”
Overall, BRCC ranks 7th on our list of the best coffee stocks to buy now. While we acknowledge the potential of BRCC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BRCC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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