The Power of Personalization in Coffee

pexels-photo-374780 (2)

This post originally appeared on Restaurant Business via S&D Coffee and Tea

Decaf with two raw sugars, half-caf with almond milk and agave, iced Americano with two pumps of caramel syrup: Coffee orders can be as varied and unique as the consumers ordering them.

One consistent aspect, however, is that customization is now an essential part of the coffee experience — a fundamental or basic need and no longer an enhanced need, as confirmed by research from S&D Coffee & Tea and Datassential.

According to their survey of regular coffee drinkers that purchase coffee away from home from a commercial operator or convenience store, the ability to customize is statistically tied with speed/convenience and variety of options as the third most important factor when consumers choose a venue from which to buy coffee. Only price and quality are deemed more important than the ability to add to one’s coffee.

Continue reading

Coffee Shops Are on the Rise

pexels-photo-292427

When it comes to coffee, convenience is crucial. Fortunately, a cup of coffee is never far from reach for the majority of U.S. consumers.

More people are drinking coffee out-of-home than ever, reaching a high of reaching a high of 46% in 2017, according to the NCA National Coffee Drinking Trends report. And they’re also opting for more specialty and gourmet beverages.

New market research from the NPD Group shows that coffee shops are popping up across the country to meet this increasing demand. In addition to coffee served at restaurants and other foodservice outlets, there are now 33,129 gourmet coffee shops in the U.S., a 2% increase in units from last year.

Additional highlights from NPD’s  Spring 2017 ReCount restaurant census include:

Continue reading

Coffee Through the Ages [Infographic]

Taking-selfies-520544006_5616x3744.jpeg

Younger coffee drinkers are changing the market – from specialty brews to coffee shop culture. To stay competitive, companies will need to keep up with their customers.

The NCA Generational Report: Coffee Through the Ages takes a look at key consumption preferences and patterns, highlighting emerging trends and opportunities.

(And, to reflect the reality of how we’re drinking coffee today, this is the first NCA report to release teenage coffee consumption data.)

Here’s a quick look at some of the highlights from the research:

Continue reading

Swipe Right For Market Research

hands-coffee-smartphone-technology.jpg

What Upsiide Tells Us About Beverage Rankings

Snip20170927_3

Upsiide is a new idea screening app that is inspired by Tinder. Designed by Dig Insights (the experts behind the NCA’s National Coffee Drinking Trends Report and new Generational Report), the mobile platform connects companies to real-time consumer feedback and powerful analytics.

The concept sounds complicated, but it’s simple to use. Here’s how it works:

Consumers using the app will be shown an idea (a new beverage idea, a potential claim, a packaging idea, a branding idea a positioning idea, etc.). The idea can be expressed with any combination of text / images / video. The consumer can either like or dislike the idea (by swiping), or request more information. Once two ideas are liked, they are paired head-to-head and the consumer tells us which is best. The winner moves on to the next round.

So what does Upsiide tell us about beverages?

Continue reading

Trends and Prospects for RTD Coffee in the US

By Eric Penicka, Research Analyst, Euromonitor International

stocksnap_nhux06wsb3-2

In recent years, RTD coffee has been dramatically redefined by beverage manufacturers through the advent of cold brew coffee. Cold brew coffee is coffee brewed without heat, with coffee grounds steeped for several hours to extract flavor and caffeine. The end coffee is one which is naturally sweeter, less acidic, more caffeinated and ultimately more artisanal. This kind of coffee is different from traditional iced coffee, which is hot brewed coffee, iced or chilled, and in most cases sweetened and mixed with dairy.

While currently cold brew coffee is typically offered in on-trade establishments (which Euromonitor International would capture under fresh coffee beans consumed in the on-trade), coffee beverage manufacturers have been quick to identify the trend and produce cold brew coffee for RTD consumption. While still nascent, the dust surrounding RTD cold brew’s explosion has slowly begun to settle, with brands such as Stumptown, Califia, and High Brew emerging to define this new niche.

Continue reading

Coffee-To-Go By Country [Infographic]

NCA_Web_Social_coffee-to-go-country

Coffee on-the-go is on the rise. In the U.S. alone, it accounts for 45% of total coffee consumption (second only to Japan, a nation once dominated by tea).

Younger coffee drinkers with increasingly mobile lifestyles are are fueling this trend: About one-third of daily coffee drinkers from 13-24 years old get their java exclusively out-of-home, according to the NCA Generational Report 2017.

However, the popularity of coffee-to-go can vary wildly by country. As the specialty coffee movement gains international momentum, more countries are drinking coffee away from home.

But the practice isn’t popular everywhere — yet.

Continue reading

Can Cold Brew Perk Up the Coffee Market?

[Editor’s note: To learn more about this major market trend, join John Buckner, S&D Coffee & Tea, for the NCA webinar, Cold Brew Coffee: Why is it “Hot”?, July 25, 1-2 pm EDT]

Glass-jar-of-chocolate-milk-with-ice-on-table-521013608_4000x2667.jpeg

The following article was originally published by Bloomberg Markets

By Marvin G. Perez

For roasters and producers, cold brew can lead to more bean sales at a time of year when demand traditionally slackens. The need to soak up extra supply is especially important with the price of arabica coffee futures in New York dropping as much as 21% in the past year, and the pace of demand growth in the U.S. forecast to slow.

The benefit of cold brew is twofold: it uses more than twice the amount of ground beans, and it does battle against the efficient single-serve pods that have whittled coffee use and waste.

In the 12 months ended in February, sales of cold brew in the U.S. were up about 80% over the prior year, according to estimates from Cedarhurst, New York-based researcher StudyLogic. Sales of hot coffee fell 3% over the same period. Americans drank 105 billion cups in the 12 months ended in May, StudyLogic Chief Operating Officer Samuel Nahmias said.

Continue reading

Infographic: The Millennial Coffee Market Is Lit

* [Ed. note: Millennial translation gifs available here]

NCA_Web_banner_generationsblogpost

Millennials are really into their coffee. (It’s no coincidence that BuzzFeed recently launched their own roast … sold through a personality quiz.)

But not all cups are created equal.

Just like the cloud, “coffee” often means something different for the 19-35 year old demographic than it does for previous generations. In fact, Millennial behavior and attitudes are transforming the coffee market. (For starters, they really love espresso.)

But what do these changing consumption trends mean for the future of the coffee industry?

Continue reading

From Brew Boomers to the Gourmet Generation: National Coffee Drinking Trends 2017

NCDT2017_blog.png

By Kyra Auffermann, NCA

Today’s “typical” cup of coffee is anything but – it may not even be a cup.

Innovation is fueling growth across the gourmet coffee segment (aka specialty coffee), according to the new NCA National Coffee Drinking Trends Report 2017, released at the NCA 2017 Annual Convention in Austin on March 25, presented by Michael Edwards, Dig Insights.

The latest data shows a market shift toward high-quality, premium beverages, with younger demographics driving this change.

So what does this mean for the coffee industry? Here are the top consumption trends, based on the latest market data.

Continue reading