A New Generation of Products Is Shaping the Future of Coffee

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Younger coffee drinkers want to recreate the customized coffeehouse experience at home, according to new research from Packaged Facts.

The U.S. market for packaged and ready-to-drink coffee sold at retail was estimated at $13.5 billion in 2015, up almost 10% from the year before. By 2020, sales of packaged and ready-to-drink coffee in the U.S. are expected to close in on $18 billion.

Retail dollar sales continue to grow largely because of continued reinvention across the coffee industry, from k-cups to cold brew.

According to Packaged Facts, growth in the coffee industry can largely be attributed to three segments: Continue reading

4 New Ways To Connect With Millennial Coffee Consumers

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Millennials have a lot of feelings about their coffee.

Coffee consumption and purchase decisions among the youths are driven by emotions, according to new research from NCA member S&D Coffee and Tea and research firm Datassential.

“For them, coffee is not just a drink, it’s an experience, so descriptors that are solely focused on the bean (such as “bold” or “Arabica”) or basic needs (such as “fresh” or “convenient”) only address one component of the picture,” S&D reports. [Read the full study PDF.]

A big part of this picture is consuming sustainable coffee: 45% of participants say that they think more positively of purveyors who sell a sustainably sourced product, and a quarter claim that they would go “out of their way” to get it.

Yet data from the 2016 NCA National Coffee Drinking Trends shows that 28% of coffee drinkers don’t know if coffee is grown in a sustainable way. (Don’t try to trick them, though – Millennial customers are savvy and suspicious of unsupported claims.)

The market is changing fast, and many companies face unprecedented challenges. But this is also an exciting time for the coffee industry to tap into our potential. We have new opportunities to reach consumers through communication, passion, and innovation.

So how can you connect with the next generation of coffee lovers? Here’s what the latest market research says.  Continue reading

What Are We Drinking? Understanding Coffee Consumption Trends

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America’s love affair with coffee is more complicated than ever before.

Millennials are changing the world of coffee – one purchase (or app) at a time. And it’s more than just the mason jars in the local coffee house, as shown by the data in the National Coffee Association’s 2016 National Coffee Drinking Trends (NCDT) report, which has followed America’s evolving relationship with the beverage for the past 67 years.

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NCA Webinar: New Opportunities in Foodservice Coffee

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74% of coffee consumed in the U.S. is consumed at home, according to the 2015 NCA National Coffee Drinking Trends report.

But changing consumer behavior may create new opportunities in the foodservice coffee market. Out-of-home coffee consumption skews younger: 26% of coffee drinkers aged 18-24 say that they drink their coffee exclusively out of home.

Coffee sales in foodservice establishments should increase steadily through 2018, according to  reported in Packaged Facts’ Foodservice Coffee Market Trends in the U.S. (December 2015).

The market will be driven by incremental growth in foodservice establishment visits, breakfast build outs, premium coffee preferences – in addition to other critical factors.

What does this mean for your business?  Continue reading

Five Coffee Mega Trends

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By William (Bill) Murray, President & CEO, NCA
Twitter: @Bill_CoffeeAssn

Our NCA offices are located just a few blocks from Wall Street in New York City, where stockbrokers are quick to warn their clients that “past performance is no guarantee of similar results in the future.” Despite this ominous caveat, every analyst studies the historical returns of various investments in an effort to anticipate what to do next.

This is true in many areas, from weather patterns to sports. We look at the record of a team or a race horse as a measure of how strong a contender each may be. By learning that a team does better in a home stadium, or that a horse runs faster on a muddy track, we hope to get a glimpse of the future.

Last week I had a couple of speaking engagements on behalf of the NCA, addressing both the Tea Association, where we discussed opportunities to work together and market trends, and a separate event in New York.

In preparation I spent a couple of weeks poring over our National Coffee Drinking Trends Report (NCDT) and just released Single Serve report. As with sports teams, or stocks, the past cannot predict the future.

But if you look beyond the surface, the richness of the historical coffee-drinking data reveals itself in very interesting ways. And so the NCDT and Single Serve data revealed five mega trends driving today’s coffee market, and while one or two may be obvious, taken as a group they create an interesting picture.  Continue reading

Behind the Hype: Just Clean Your Machine

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Single-serve brewing systems have seen exponential gains in market share since they were initially released. As of 2015, 27% of daily coffee drinkers in the U.S. use single-cup brewers, making it the second most common preparation method after traditional drip machines, according the NCA’s National Coffee Drinking Trends report. And their popularity is still growing, both in home and at work.

(To learn more about this market, check out the new NCA Single Cup market research report)

However, recent headlines have generated new concerns among consumers with dramatic warnings about unclean machines that could make people sick. Of course, health and safety should always be a top priority for handling and preparing any food or beverage. But we also know that in today’s media landscape, the page view is paramount, and a scary headline is a lot more likely to generate those clicks – regardless of whether or not it’s scientifically valid.

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Infographic: What is Sustainability Worth?

Sustainability is crucial to the future of coffee. Not only is it necessary to protect our environment, but new research shows that socially responsible practices will also benefit your bottom line.

According to the NCA’s National Coffee Drinking Trends report, 16% of consumers limit their coffee consumption because they are concerned about the waste it creates, and 17% are concerned about the carbon footprint of the java they drink.

Consumers Are Willing to Pay a Price for Sustainability Infographic

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