By Andrés Padilla, Senior Analyst, Rabobank
This post originally appeared on RaboResearch
Retail Slows as Foodservice Remains Hot
Over the past five years, coffee retail sales in the US have grown at a healthy rate. Continue reading
Bonding with co-workers over bad office coffee may soon become another obsolete workplace ritual (like voicemail).
Today, more companies are looking to get into the $2.6 billion office coffee service industry by promising many of the same trends percolating in third-wave cafes — think single origin beans and specialty espresso beverages.
A unique culture around coffee is growing across America.
According to the 2016 National Coffee Drinking Trends (NCDT) report, more people are consuming coffee out of home. As a result, the number of coffeehouses and cafes are increasing in neighborhoods across the United States.
But not all cities are as coffee-crazed as others. The financial experts at SmartAsset looked through the data to see which American cities are the best for coffee fanatics. (Good news for NCA Convention 2017 attendees – Austin, TX is ranked high on the list!)
Here are the full rankings:
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
McDonalds’ recent pledge to change how they source all of their coffee by 2020 is the latest sign of growing consumer demand for more sustainable products – especially in the coffee industry.
Coffee is the second most traded commodity in the world, after oil – so you can say it’s kind of a big deal. As a result, there’s a lot of interesting research available about who’s drinking what (including our annual National Drinking Trends report).
Here are some facts and stats about America’s favorite beverage: Continue reading
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
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.
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