5 Coffee Industry Trends You Can’t Miss in 2017

By Tyler Hubbell
This post originally appeared on the Repsly blog

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In one form or another, chances are almost everyone you know starts their day with coffee – be it home-brewed, bottled, or purchased hot or iced from a coffee shop. As longstanding as its popularity may be, the coffee industry is in the midst of a rapid change.

As millennials’ fast-paced lifestyle becomes ubiquitous, consumers are preferring to get their caffeine on the go. In turn, retailers are experimenting with novel ways to speed up ordering and get busy shoppers back in their stores.

Here are the five coffee industry trends that will dominate 2017:  Continue reading

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

Wake Up and Smell the Coffee Creamer

By David Sprinkle, Research Director, Packaged Facts (@packaged_facts)

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If you haven’t paid attention to the sales success of coffee creamers, you are missing a sign of the times in the coffee market.

Packaged Facts estimates that U.S. retail sales of coffee creamer products will grow by $400 million between 2011 and 2016, to exceed $2.5 billion. This sales spurt in a niche product segment is not wholly surprising, given the current landscape of consumer food priorities and concerns.

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.

Continue reading

It’s Time to See Millennials Differently

By Kyra Auffermann, Digital Content Manager, NCA

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They’re narcissistic, delusional, and entitled.

Yet Millennials are also “increasingly acting as the agents of change in society … providing the energy, creative ideas and determination to drive reform,” according to a 2012 report from the United Nations.

…Wait – what?

“We should all be a little more like Millennials,” said Todd Metrokin, Ogilvy’s vice president of creative strategy, during his presentation “The Millennial Mind: Insights for a Smarter Brand Strategy” at the National Coffee Association’s 2014 Coffee Summit in Boston on October 30.

And he may be on to something.

This coveted 18 to 32 demographic controls 21 percent of discretionary spending in the US, which could present an exciting opportunity for the coffee industry.

According the NCA’s report, “Coffee Across Generations,” 78 percent of millennials said that they have consumed coffee within the last year – a number likely to rise as the demographic matures. Specialty coffee drinks are especially popular with this demographic, a trend supported both through market research data and the overwhelming popularity of latte art on Instagram.

So how can your brand reach the Millennial market?

The first thing to do is get out of the way.

Traditionally, brands sought to retain control over their messages, but Metrokin says that Millennials want more opportunities to engage. This requires genuine conversations versus blasting out one-way marketing messages.

Remember that the group is driven by creative ideas and the opportunity to drive change. “Millennials believe that organizations do not listen to them [and] don’t provide an opportunity to make an impact,” Metrokin explains.

The key factor in overcoming this key cultural tension is authenticity, which Metrokin defines as “people talking to people.” You need to convey a consistent set of core values while responding in a way that is relevant and speaks directly to your audience.

That means that you have to communicate with Millennials as individuals, rather than one homogenous herd.

It may seem terrifying at first. But by meeting Millennials where they are and embracing their new culture of innovation, you can position your organization to lead change and transform the future of the coffee industry.