Consumer Trends Archives - Perfect Daily Grind https://perfectdailygrind.com/category/consumer-trends/ Coffee News: from Seed to Cup Sat, 16 Dec 2023 01:02:51 +0000 en-GB hourly 1 https://wordpress.org/?v=6.4.2 https://perfectdailygrind.com/wp-content/uploads/2020/02/cropped-pdg-icon-32x32.png Consumer Trends Archives - Perfect Daily Grind https://perfectdailygrind.com/category/consumer-trends/ 32 32 The US loves filter coffee – and it isn’t going anywhere https://perfectdailygrind.com/2023/12/us-loves-filter-coffee/ Mon, 18 Dec 2023 06:38:00 +0000 https://perfectdailygrind.com/?p=110503 The US’ love for filter coffee has been well-documented over the years. Research from the National Coffee Association (NCA) in 2023 ranked filter coffee as the number-one preparation method in the country, with 41% of “past-day” consumers using filter coffee brewers. Also known as drip coffee in the US, filter coffee has a longstanding history […]

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The US’ love for filter coffee has been well-documented over the years. Research from the National Coffee Association (NCA) in 2023 ranked filter coffee as the number-one preparation method in the country, with 41% of “past-day” consumers using filter coffee brewers.

Also known as drip coffee in the US, filter coffee has a longstanding history in the country and is vastly popular both in and out of the home. This sets it apart from many other majority coffee-consuming countries, where espresso-based beverages tend to hold top spot for out-of-home (OOH) consumption.

Furthermore, with the evolution of specialty coffee in recent years, filter coffee has been in the spotlight – and has become increasingly prominent in a number of major consuming markets. But how did it get here? And what happens next for filter coffee in the US? Read on to find out.

You may also like our article on which filter brewing method is best for you.

Various vintage tins on a shelf.

A history of coffee in the US

Robert Thurston is the Managing Director of Oxford Coffee Company and Emeritus Professor of History at Miami University. He is also the author of Coffee: From the Bean to the Barista.

Robert explains that while filter coffee as we know it might not have been popular decades ago, a percolation brewing method was still standard midway as early as midway through the 19th century.

“The old way of making coffee in the US was with the percolator,” Robert explains. “It definitely wasn’t using filter methods.” 

James Nason patented the first percolator in the US in 1865. Conversely, through the late 19th and early 20th century, espresso technology began to arrive in Europe – leading the two markets on two completely different paths.

Where does filter coffee come from?

Filter or drip coffee as we know it today can largely be traced back to Germany. Melitta Bentz launched a brewer in 1908. Within decades, stovetop percolators and filter coffee brewing became the two most prominent brewing methods in the country. 

They were so prominent, in fact, that GIs in Italy during the Second World War were forced to dilute espresso with water – the americano – to create a beverage more to their tastes.

This trend continued with automatic coffee brewers through the 1970s. The first home drip coffee brewer, Mr. Coffee, was launched in 1972, and famously promoted by baseball player Joe DiMaggio for decades.

“[Filter coffee’s popularity] is because of machines like Mr. Coffee on one hand, and on the other because coffee drinkers like the taste better than other brewing methods,” Robert explains. He adds that pretty much everywhere a coffee drinker would go in the US, they’d get filter coffee, “even at convenience stores”.

Fast forward to today, and while espresso-based beverages have gathered speed thanks to the rise of chain coffee shops like Starbucks, filter coffee still retains the top spot

“Drip coffee machines comprised 43% of all machines sold in the US in 2019,” Robert adds.

Black coffee stays warm on a heating element.

How did drip coffee become so popular?

So, we know how prominent filter coffee is in the US – but why?

To find out more, we spoke to Peter Giuliano, Executive Director at the SCA’s Coffee Science Foundation.

“It’s always tricky to speculate on why something is popular,” Peter explains. “However, coffee drinking became popular in the US during the 19th century, when many immigrants were coming to the US from places like Germany and Scandinavia. These cultures preferred relatively dilute cups of coffee.”

Peter adds that after this, the practice of filtering coffee became more prominent both in and out of home.

“With the launch of the paper filter in the early 20th century, it was popular among Americans making coffee at home,” he explains. “This was mainly thanks to its convenience during cleanup.

“Soon, large format paper filter machines were developed for restaurants, and the filtered cup of coffee became the standard both in the home and when ‘eating out’.”

Differences compared to other countries

Other historic and cultural factors also become apparent when we compare the evolution of coffee consumption in the US to other major markets. For example, coffee came to Europe as early as the 17th century, thanks to colonial influence overseas. This led to centuries of evolution in consumption, which saw coffee intermittently become a luxury and the centrepiece of debate in coffee houses. Coffee’s arrival in the US, meanwhile, was fundamentally different – which is perhaps linked to differences in how it has been consumed over the years.

There are also cultural differences in how consumers drink coffee today. Filter coffee – which can be brewed ahead of time in large quantities to be kept warm – caters perfectly to a growing focus on convenience and service speed in the coffee industry. And while this is a global trend, it is especially prominent in the US market. We only have to look at the growth of drive-thru coffee in the country as one major example.

Furthermore, while some European countries – such as the UK – exhibit the same focus on speed and convenience, others have a fundamentally different relationship with coffee consumption. In countries such as France and Italy, cafés and restaurants tend to be less predisposed to providing coffee to-go, for example. Sweden is another example, with its longstanding tradition of fika – a leisurely coffee break.

A barista prepares drinks in a café.

What happens next for filter coffee?

In view of filter coffee’s seemingly impenetrable status as the US’ favourite brewing method, it’s important to ask what happens next.

Peter explains that while espresso did broadly start to appear midway through the 20th century, its presence hasn’t grown tremendously in the last few years.

“Espresso began to make its broad appearance in the 1960s,” he says. “However, it really took off during the coffee bar ‘boom’ of the 1980s and 1990s.

“Since 2017, espresso and espresso-based beverages have kept a relatively stable market share – about 25% of all coffee drinks consumed.” 

What’s the future for espresso in the US?

Peter acknowledges that as the decades pass, filter coffee’s dominance may come into question. 

“For many consumers in the US, filter coffee is the default style of coffee brewing, while others are more ‘special’,” Peter says. “Many consumers drink filter coffee on a daily basis and other types as a treat.

“However, there is a stark age difference; younger consumers are more likely to favour espresso-based drinks over traditional filter coffee.”

Brewing pour over coffee at a café.

Altogether, this shows that the short and medium term future for filter coffee is likely to be reasonably stable – with innovation in pour over brewing driven by third wave coffee. 

Furthermore, while in the long term, younger generations’ relationship with espresso-based drinks may prove to be more disruptive, it’s likely that filter coffee will still retain a solid presence at the top of the market. Espresso’s market share hasn’t grown significantly for the last few years, and it would be an incredible surprise if it was to dethrone filter coffee across the board.

Ultimately, all the evidence shows that the US’ fundamentally unique relationship with drip coffee will dictate its future. Beyond the next few decades, this could change, but at least for now – it’s not going anywhere.

Enjoyed this? Then read our article on batch brew vs pour over: how long you should wait for filter coffee.

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Ultra-premium coffees: Does demand drop during economic downturns? https://perfectdailygrind.com/2023/11/ultra-premium-coffees-demand-covid-inflation/ Wed, 22 Nov 2023 06:29:00 +0000 https://perfectdailygrind.com/?p=109951 It’s fair to say that many countries across the world have been – and are still – experiencing various levels of economic downturn over the last few years. According to the World Bank, Covid-19 “triggered the largest global economic crisis in more than a century”, and that recovery from this will be “as uneven as […]

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It’s fair to say that many countries across the world have been – and are still – experiencing various levels of economic downturn over the last few years. According to the World Bank, Covid-19 “triggered the largest global economic crisis in more than a century”, and that recovery from this will be “as uneven as its initial economic impacts”.

Following the pandemic – and as the result of conflict in Ukraine – inflation rates have been rising around the world, driven largely by increases in the cost of food and energy. In turn, both businesses and consumers have been hit hard by a sharp increase in prices.

Despite these challenges, the coffee industry has preserved. During lockdowns, at-home consumption soared, while coffee shops and roasters found new ways to adapt to uncertain conditions. Producers, meanwhile, seemingly struggled the most as a result of shipping delays, late payments, and volatile coffee prices.

Given that consumer demand for coffee has remained stable since the start of the pandemic, we must also consider how different market segments have been affected – including ultra-premium coffees which fetch much higher prices.

To learn more, I spoke to Charles Fleer, founder of La Boheme Café, Darrin Daniel, Partnership Manager at Enveritas, and Ryan Noh, CEO of Ryans Coffee Roasters.

You may also like our article on premiumisation in the East Asian coffee market.

People prepare cupping bowls for a coffee sensory analysis session.

How big is the demand for ultra-premium coffee in the first place?

The global coffee market is huge. In its 2021/22 annual review, the International Coffee Organisation found that global coffee consumption increased by 3.3% to 170.3 million 60kg bags.

In simple terms, we can split the overall coffee market into commodity and specialty grades. Looking at specialty coffee specifically, although it has a much smaller market share than commodity-grade coffee, it’s clear that the sector is growing.

As just one example, in 2022, the National Coffee Association announced that US consumption of specialty coffee had reached an all-time high. Across the world, meanwhile, sales of roasted coffee are likely to reach over US $192 billion by the end of 2023 – with 52% of this growth attributed to premiumisation.

This is the process by which roasters sell more exclusive, rare, and superior quality coffee to drive brand appeal and increase prices. Ultimately, this adds a greater sense of value for the buyer, and makes them more willing to pay higher prices. This type of growth typically occurs in more mature markets – such as Western Europe, the US, Australia, and East Asia.

Undoubtedly, this has pushed more and more roasters to start sourcing specialty-grade coffee – which also includes more high-end premium beans like micro lots and competition coffees.

Ryan Noh is the CEO of Ryans Coffee Roasters in Seoul, Korea. As well as roasting coffee, the company also imports and sells green coffee.

He tells me that while the market for these ultra-premium or rare coffees remains small – even within the specialty coffee sector – these coffees have become unique selling points for certain roasters.

“Selling super-exclusive coffees is one of the marketing methods roasters use to promote themselves,” he says.

The influence of competitions and auctions

There are many competitions and auctions in the coffee industry. But when it comes to green coffee, none are quite as influential as Cup of Excellence and Best of Panama, which both showcase some of the best coffees in their respective countries.

Ryan believes that green coffee competitions and auctions have helped to transform the specialty coffee industry – highlighting unique varieties and allowing these coffees to become more accessible to consumers.

Charles Fleer is the founder of La Boheme Café – a specialty coffee roaster with a number of coffee shops in Prague, Czech Republic. He explains how competitions and auctions like CoE and BoP serve a dual purpose.

“Auction organisers were not only successful in accomplishing what they initially intended to do – which is to reward farmers for their dedication to produce excellent coffee – but now also offer a sense of continuity, stability, and security to both producers and roasters,” he says.

“As for consumers and connoisseurs who buy these coffees, it’s more about an opportunity to appreciate something really special,” he adds.

A barista prepares premium coffees at a café in Portland, Oregon.

Looking at the impact of Covid-19 and rising inflation

It’s been hard for many of us to ignore the sharp price increases for a number of goods and services over the past few years – especially for food and fuel. While the reasons are somewhat complicated, we can largely attribute them to the lingering effects of the pandemic and Russia’s invasion of Ukraine, which began in February 2022.

As a result of this increased pressure, coffee shops and roasters have been dealing with a sharp rise in prices. While some try to absorb as much of the costs as possible, it’s inevitable that a portion needs to be passed onto the end consumer.

“Across the supply chain, the impact of the pandemic and its associated challenges were hard to swallow,” Charles tells me. “Then came sudden frosts in Brazil in July 2021 which massively increased coffee prices regardless of quality.” 

Over the ensuing months, the unprecedented weather in Brazil caused the C price to reach a ten-year high – although it has since stabilised. 

Did demand for high-scoring coffees shift?

So given that ultra-premium coffees already fetched higher prices, has demand for these lots dropped due to economic downturns?

Darrin Daniel is the former Executive Director of the Alliance for Coffee Excellence and Cup of Excellence. He weighs in on how the pandemic impacted the market.

“In 2018, we definitely saw more and more auctions starting, with more producers coming to us to say they were ready for their own platform,” he says. “By 2019, it was evident that the market for these coffees was growing. But growth and sales are not necessarily the same thing. 

“So I think what we saw happen in 2020, and then throughout the pandemic, was that there was more demand for coffee of that quality – to the surprise of many industry professionals,” he adds. “There were, however, limitations on what buyers could do to source micro-lots, so auctions became another way for buyers to safely cup samples and buy coffee.”

A customer holds a small cup with their left hand.

So are some consumers still willing to pay high prices?

The market for ultra-premium coffees is likely to remain small for decades to come. But with rising rates of inflation, are more consumers starting to shift towards more affordable options?

Charles doesn’t necessarily think so. He tells me that when the pandemic hit, many of his wholesale customers closed. In order to support both the producers and his business, he bid for the first time on a coffee at the 2020 Cup of Excellence Ethiopia auction. In collaboration with Geoff Watts at Intelligentsia Coffee in the US, La Boheme bid US $108/lb for the second highest-scoring coffee – a 90.98 washed lot from Sidamo produced by Rumudamo Coffee Industry Trade PLC.

“It definitely sold slower than other coffees, but our customers loved it,” he says. “For our customers who had the financial means to buy it, they brewed it at home. For those who didn’t, they enjoyed a cup in one of our coffee shops.”

Limitations associated with certain markets

It goes without saying that not all roasters and consumers can afford to buy ultra-premium and rare coffees – and not all of them even want to. But for those that do, evidence seems to suggest that economic downturns haven’t deterred them from spending more money on high-scoring coffees.

“Some coffee consumers still seem willing to pay for the experience,” Ryan tells me – adding that he believes consumption of these coffees will continue to grow in the future.

This growth, however, is likely to remain confined within particular regions – especially in East Asia, the US, Western Europe, and Australasia where the market for these coffees is already more developed.

A barista brews coffee for café customers using the pour over method.

While Covid-19 and rising inflation rates have changed coffee consumer behaviour, they don’t appear to have halted the growth of the market. In fact, specialty coffee consumption has never been higher in some of the more established markets – and this includes the ultra-premium coffee sector.

We must bear in mind, however, that the market for high-scoring and rare micro lots will always remain small – and that those who can afford these coffees will continue to buy them for the experience.

Enjoyed this? Then read our article on whether consumers will keep paying higher prices for coffee.

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Is specialty coffee becoming more popular in Thailand? https://perfectdailygrind.com/2023/09/specialty-coffee-thailand/ Wed, 20 Sep 2023 05:33:00 +0000 https://perfectdailygrind.com/?p=107259 Located on the Indochinese Peninsula, Thailand is one of the top 25 coffee producing countries in the world – and the third-largest in Southeast Asia. Historically known for growing commercial-grade robusta, in recent years, the country has been producing more and more arabica and fine robusta. Alongside improving coffee production, there is also a burgeoning […]

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Located on the Indochinese Peninsula, Thailand is one of the top 25 coffee producing countries in the world – and the third-largest in Southeast Asia. Historically known for growing commercial-grade robusta, in recent years, the country has been producing more and more arabica and fine robusta.

Alongside improving coffee production, there is also a burgeoning specialty coffee scene in Thailand. In larger cities like Bangkok and Chiang Mai, there is a growing number of high-end coffee shops and roasters. Additionally, interest in coffee education, competitions, and auctions is also increasing – solidifying Thailand as an emerging specialty coffee market we should pay attention to.

To learn more, I spoke to five industry professionals – including four Thai coffee experts. Read on to find out what they had to say about the country’s growing specialty coffee sector.

You may also like our article on how South Korean coffee culture is evolving.

A Thai coffee farmer harvests ripe coffee cherries.

Specialty coffee production in Thailand

Compared to other producing countries in Asia, Thailand is relatively new to growing coffee. Although arabica plants were first introduced to the country in 1849, commercial coffee production didn’t take off until the 1970s. 

During this period, in partnership with the United Nations, King Bhumibol Adulyadej launched a series of initiatives to support local communities in northern regions to grow alternative cash crops to opium poppies. By 1976, Thailand had started to export coffee – albeit mostly lower-quality robusta.

Most robusta is grown in southern Thailand, while the tropical climate in the northern regions is more suited to producing arabica. The country has always produced more robusta, but rising demand for high-quality Thai-grown coffee means more farmers are planting arabica.

Anuwat Kbnampetch is the founder and director of the Ministry of Roasters and SOCOF Lab in Bangkok, Thailand. He explains that the ratio of land used to grow arabica and robusta has changed over the years.

“Between 2017 and 2019, around 65% of coffee-growing land was for robusta, and 35% for arabica,” he says. “However, between 2020 and 2022, this changed to around 59% and 41%, respectively”.

Chartree Treelertkul is the Director of Peaberry Thai Co. Ltd. in Bangkok. He tells me how the Thai coffee sector has developed in recent years.

“Thailand grows significantly more robusta than arabica,” he says. “This means there often isn’t enough arabica for domestic consumption [so most of it is exported].

“Some seven years ago, however, arabica farmers started to improve farming practices,” he adds. “They focused more on using different processing methods (including fermentation) and drying methods, as well as planting new varieties such as Gesha, Bourbon, Caturra, and Typica.”

A barista works in a café in Thailand.

How has Thai coffee culture evolved?

Traditionally, Thailand is a tea-drinking country. However, alongside instant coffee, certain coffee drinks are also popular among consumers – including the Café Boran (or Kafae Boran). First created during the 1940s as a more affordable beverage for the masses, the drink includes dark roast robusta combined with a number of other roasted grains, such as:

  • Corn
  • Brown rice
  • Sesame
  • Soy beans
  • Tamarind seeds

The mixture is placed inside a cotton cloth and steeped in hot water. Most people then add condensed or evaporated milk to add sweetness and counteract some of the more bitter flavours. 

Oliang (or Thai iced coffee) is also popular in the country. Often sold by street vendors, the drink can be customised in a number of ways, including adding fresh or condensed milk.

As Chartree tells me, it’s clear that Thailand’s coffee culture has changed significantly over the past several decades.

“One of the main turning points for Thai coffee culture was around 20 to 30 years ago when big hotel chains started to import roasted coffee,” he explains. Following this, multinational coffee brands like Starbucks launched in the country, with smaller independent coffee shops also opening some years later.

What about specialty coffee?

Nattawat “Natt” Muangsiri is the Managing Director of Espresso Academy Thailand – a Specialty Coffee Association-accredited training facility in Bangkok. Natt is also a commercial airline pilot, which has taken him to many countries around the world where specialty coffee is also popular.

“Since 2014 when I started flying to Europe and Scandinavia – as well as countries like South Korea, Japan, Australia, and New Zealand – I have become more aware of specialty coffee,” he says. “There are some third wave coffee shops in cities like Bangkok, but in comparison to cities in the countries mentioned, there are certainly fewer.”

Anuwat, meanwhile, explains that Thailand’s specialty coffee scene started to develop more between 2013 and 2016, with more coffee shops opening in big cities like Bangkok, Chiang Mai, Khonkaen, Udornthani, Ubolrachatanai, and Korat. The pandemic also helped to accelerate the popularity of specialty coffee, he tells me.

In specialty coffee shops, Chartree explains that filter coffee, lattes, iced drinks, and pour overs are some of the most ordered menu items. 

“The number of smaller roasters is also increasing – the market growth is around 15% to 20% every year,” he adds.

Alongside a growing preference for high-quality arabica, there is also more demand for fine robusta – which must adhere to a strict set of standards and protocols, including no primary defects. As part of rising interest in high-quality robusta, Thailand has started to host more events and competitions.

“We hosted the first-ever Siam Coffea Canephora Symposium in 2019,” Natt says. “Two years later, the Department of Agriculture started to allow national coffee competitors to use robusta in their routines.”

A coffee professional attends a cupping session in Thailand.

An increasing focus on education, competitions & auctions

In many specialty coffee markets around the world, industry professionals and consumers alike are showing more and more interest in education and events – and Thailand is no exception. 

Piyarat Prakobvanichkul is the Managing Director of Coffee Therapy in Thailand. 

“Specialty coffee has been around for almost ten years in Thailand, but it became more prominent some seven years ago,” she says. “People are now interested to learn more about specialty coffee – not only in Bangkok, but across the country. 

A growing number of people want to learn more about processing methods and specialty coffee standards, including how to taste and score coffee,” she adds.

Prior to 2016, Nat tells me coffee education wasn’t accessible to most people in Thailand.

“Now, there is a lot of interest in SCA and Coffee Quality Institute-accredited courses and classes,” he adds.

Events also play a vital role in boosting the Thai specialty coffee sector. For instance, every year, the Specialty Coffee Association of Thailand (SCATH) hosts the Thailand Coffee Fest, which typically attracts more than 10,000 visitors. 

The SCATH also organises the Thai Specialty Coffee Awards competition and auction. The 2023 event, which was held in July, included 268 samples representing a range of processing methods. Some 53 coffees received 85 points or higher, with auction bids also totalling over THB 3.27 million (US $93,500).

Thai specialty coffee on the international market

It’s clear that the global specialty coffee market is showing more interest in Thai-grown coffee. This was especially apparent in 2022 when Alliance for Coffee Excellence (ACE) and Cup of Excellence (CoE) hosted the pilot Best of Thailand competition and auction project.

Darrin Daniel is the former ACE and CoE Executive Director, and is now a partnership manager at Enveritas

“It’s not to say that there isn’t a specialty coffee market in Thailand, but there’s a lot of Thai coffee that isn’t sold on the global market,” he says.

In 2019, CoE conducted its first Sensory Educational Training (SET) course in Thailand to train coffee professionals on how to use its cupping form. Fast forward to this year and ACE held the first-ever CoE Thailand competition and auction. With the highest-scoring coffee receiving 91.13 points and a top bid of US $73.30, it’s certainly evident that Thai farmers are successfully investing in coffee production.

Alongside arabica, Anuwat believes the market for Thai-grown fine robusta will grow in the next five to ten years – especially with a new generation of farmers improving best practices, farm management, and post-harvest processing.

“Many people around the world love Thai food and our local fruits,” Piyarat says. “But now it’s time for Thai coffee.”

Thai baristas work in a café.

With the country producing higher-quality arabica and robusta – and its flourishing specialty coffee scene – the future looks promising for Thailand. 

“It would be great to see more coffee from Thailand on the international market – and also used at competitions,” Natt concludes.

Enjoyed this? Then read our article on whether Nepal will produce more specialty coffee in the future.

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What does specialty coffee mean to different people around the world? https://perfectdailygrind.com/2023/09/specialty-coffee-around-the-world/ Tue, 19 Sep 2023 05:23:00 +0000 https://perfectdailygrind.com/?p=107212 In recent years, we have clearly seen that specialty coffee is becoming more and more popular around the world. While the US and Europe remain two of the biggest markets, specialty coffee consumption is also significantly increasing in the Asia-Pacific region. Additionally, there is some steady market growth in Latin America and Africa, too. Objectively, […]

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In recent years, we have clearly seen that specialty coffee is becoming more and more popular around the world. While the US and Europe remain two of the biggest markets, specialty coffee consumption is also significantly increasing in the Asia-Pacific region. Additionally, there is some steady market growth in Latin America and Africa, too.

Objectively, we define “specialty coffee” by a score of 80 points or above on the Specialty Coffee Association’s 100-point scale. Alongside quality, there are a number of more holistic defining characteristics of specialty coffee, such as sustainability, traceability, transparency.

But given that consumption is increasing across the globe, it’s also fair to assume that the definition of specialty coffee is evolving. Now influenced by many different social and cultural factors, industry professionals and consumers alike have started to develop their own personal relationship with specialty coffee.

To find out what specialty coffee means to different people around the world, I spoke to three industry professionals. Read on to learn more.

You may also like our article on whether Nordic specialty coffee roasters are still as innovative as they once were.

A shot of espresso demonstrating specialty coffee around the world.

Despite its smaller market share, it’s undeniable that the global specialty coffee sector is growing. But by far the most obvious growth is in the US, Europe, and Asia-Pacific.

Let’s look at the US first. In 2022, research from the National Coffee Association found that domestic consumption of coffee had reached a 20-year high. At the same time, 43% of surveyed consumers reported drinking a specialty coffee beverage in the past day. This represents a 20% increase on January 2021.

Moreover, some figures predict that the North American specialty coffee market will grow by 20% year-on-year until 2030. This would make it the fastest-growing market in the world.

According to Research and Markets, the Asia-Pacific specialty coffee sector will experience a 15.3% annual growth rate from now until 2030. The research agency also found that premiumisation is a significant driver of this growth.

Europe, meanwhile, is one of the world’s most important consuming markets. The continent currently has the largest share of the global specialty coffee market at around 46.2%. Its market growth is expected to increase by 9% over the next three years, too.

Breaking down regional specialty coffee consumption

Although it’s one of the most important markets, considering there are dozens of culturally-different countries in Europe, the popularity of specialty coffee in this region is incredibly difficult to generalise. 

Scandinavia is a global pioneer of specialty coffee culture, for example. Thanks to leading industry professionals in countries like Norway, Denmark, Sweden, and Finland in the late 1990s and early 2000s, light roast single origin coffee has become popular in more and more countries around the world.

What’s more, year after year, Nordic countries often top lists for the highest coffee consumption per capita. With more than an estimated 80 roasteries in a country of around 5.4 million people, it’s evident that specialty coffee is a prevalent part of Norwegian culture.

Joanne Berry is the Head of Procurement for green specialty coffee trader Tropiq in Oslo, Norway.

“I think there are very few places in the world that drink coffee like Norwegians,” she says. “Of course, Norwegians drink coffee in different ways, but the majority of them prepare coffee at home.

“At any kind of family or social event, Norwegians always serve brewed coffee – and people drink it black,” she adds. “In Norway, it’s so normal to drink black coffee, which means you can taste more of the coffee’s inherent characteristics.”

What about in producing countries? 

For the most part, when compared to consuming countries, specialty coffee consumption is overall lower in producing countries. This is the result of the historical structure of the global coffee trade, as well as the fact that most marketing takes place in consuming countries.

However, in recent years, domestic coffee consumption has been growing in a number of key producing countries. Some examples include:

Patrick O’Malley is the founder of the International Barista and Coffee Academy in the US. He explains throughout his travels to Latin America over the years, he has noticed that specialty coffee culture has become more prevalent in the region.

“Now, if you go to countries like Honduras, Colombia, Brazil, Mexico, you will find more and more high-end specialty coffee shops,” he tells me.

Fabrizio Sención is the owner of PalReal in Guadalajara, Mexico. He also co-founded 5PM – Guadalajara’s first specialty coffee shop – in 2004, and is a 2015 World Barista Championship finalist. 

He explains how roasters at origin are changing their buying practices to accommodate for increasing demand for specialty coffee.

“Previously, all the highest-scoring coffees grown in Mexico were earmarked for export,” he says. “But now, more locally-grown coffees are purchased domestically.”

A barista prepares to brew espresso.

Industry standards vs cultural differences

The specialty coffee industry is often defined by benchmarks set by countries like Norway, Japan, Denmark, Australia, South Korea, and New Zealand. With specialty coffee becoming more popular the world over, however, it’s clear that definitions can change according to where you are.

For example, in North America and certain Asian countries, some consumers prefer medium (or even darker) roast profiles. 

“Some people want the traditional ‘strong’ coffee taste because it’s what they are used to,” Joanne says.

As one of the ten-largest importing countries in the world, roasters in Japan tend to roast slightly darker. Traditional Japanese coffee shops (or kissatens) also favour filter coffee over espresso.

“There are a lot of specialty coffee shops in the US,” Patrick tells me. “But many people still choose to add milk and sweeteners in their coffees.”

Ultimately, this means that while specialty coffee marketing and branding strategies largely appear to be the same around the world, cultural differences still influence consumer behaviour. 

At the same time, however, the SCA’s standards and protocols also impact how we define specialty coffee. Updated earlier this year to mitigate the “intersubjectivity” of cupping, these processes are used to grade and assess the quality of green coffee.

“Objective scoring is necessary and important to the specialty coffee sector,” Joanne explains. “It helps to communicate quality to both roasters and producers, as well as consumers.”

With that said, it can be difficult to contextualise industry standards within different specialty coffee cultures around the world. 

One of the most prominent examples is criticism of the SCA Coffee Taster’s Flavor Wheel. This resource is largely geared towards Western palates. In turn, local coffee professionals in countries like Taiwan and Indonesia have started to develop their own resources.

An example of specialty coffee around the world.

How can we account for cultural differences?

Objective definitions of specialty coffee will always remain important. However, for traders and roasters, Joanne explains that there are many factors which influence purchasing decisions.

“It has a lot to do with the relationship that already exists with the producer,” she says. “It’s also about coffee that is interesting, and establishing partnerships which provide value to us and our partners in producing countries.” 

Patrick, meanwhile, points out that some quantifiable characteristics of specialty coffee don’t often benefit industry professionals in producing countries as much.

“The term ‘speciality’ can be skewed in so many different ways,” he says. “If you look at green grading, it’s difficult to find coffees that have zero primary defects in a 350g sample.

“When looking at the SCA’s standards for roasting and brewing, there are no concrete guidelines,” he adds. Moreover, cultural preferences for different roast profiles also change personal definitions of specialty coffee.

“If you roast coffee to a darker roast profile, is that coffee speciality? Personally, I beg to differ,” Patrick says – assumedly because darker roast profiles don’t always allow the coffee’s inherent characteristics to shine through.

New ways to define specialty coffee

If we are to combine both objective and subjective standards, we could consider other ways to define specialty coffee.

Patrick suggests introducing a Michelin star guide system for roasteries and coffee shops, which could more consistently inform consumers of which businesses serve specialty coffee – and also maintain quality throughout the supply chain.

However, approaches like this could add to the already prevalent exclusivity of specialty coffee, and potentially push certain consumers further away.

“We have to allow space for other market preferences and different kinds of palates, so we can also define what specialty coffee means to different people,” Joanne says.

Brewing coffee using a pour over brewer.

Quantifiable and verifiable industry-wide standards are vital to the growth of specialty coffee – as well as our expectations of the industry.

But considering that specialty coffee is becoming more popular around the world, we need to remain agile and flexible with our definitions – and understand how standards are changing.

Enjoyed this? Then read our article on breaking down the differences between coffee consumption in the US and Europe.

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Why are digital coffee printers becoming more popular? https://perfectdailygrind.com/2023/09/digital-coffee-beverage-printers-latte-art/ Mon, 04 Sep 2023 05:18:00 +0000 https://perfectdailygrind.com/?p=106858 It’s fair to say that most customers expect baristas to pour latte art for their milk-based coffee drinks – and rightly so. Not only do crisp, high-contrast latte art designs add to a beverage’s aesthetic appeal, they also showcase the barista’s skills and passion for specialty coffee. In line with this, latte art will always […]

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It’s fair to say that most customers expect baristas to pour latte art for their milk-based coffee drinks – and rightly so. Not only do crisp, high-contrast latte art designs add to a beverage’s aesthetic appeal, they also showcase the barista’s skills and passion for specialty coffee.

In line with this, latte art will always serve an important role in coffee shops. However, in recent years, the industry’s growing reliance on automation and push for innovation have led to the development of more unique beverage technology. This includes digital printers – also known as latte art printers.

These machines are able to print a wide range of high-resolution images and designs directly onto beverages, such as milk-based coffee drinks, cocktails, and beer. 

Considering the need to stand out more than ever before, more and more coffee shops around the world are investing in digital printers to differentiate themselves.

So how do these systems work and what are the benefits of using them? To find out, I spoke to Yossi Meshulam, co-founder and CEO of Ripples. Read on for more of his insight.

You may also like our article on the history of latte art.

A customer carries a digitally printed coffee beverage.

What is digital beverage printing?

Before exploring digital beverage printing, we need to acknowledge the importance of latte art.

Latte art is prevalent in many coffee shops around the world. Baristas skillfully pour latte art by hand to create a variety of patterns, including: 

  • Hearts
  • Tulips
  • Rosettas (or florettes)
  • Swans

However, there are some design limitations when free pouring latte art. Although baristas can use etching tools, toothpicks, or other similar utensils to draw more complicated latte art (as made popular by competitions like the World Latte Art Championship), this often takes years of practice to get right.

Digital beverage printing, meanwhile, is one of the most effective and scalable solutions to diversify drinks designs. The process involves printing personalised images, designs, and text onto foam-topped drinks. These can include milk-based coffee beverages, beer, cocktails, and mocktails.

“‘Bev-Top Media’, as Ripples refers to it, can transform drinks into a marketing tool for food service businesses like coffee shops,” Yossi says. “By printing on the surface of a drink, you’re not just serving a beverage. It’s an immersive experience that people feel more compelled to share on social media.”

Ultimately, it’s also important to recognise that latte art and digital beverage printing both serve crucial roles in the coffee industry. While latte art can demonstrate baristas’ skills and talents, digital printing systems use designs created in advance by graphic designers and illustrators, which can result in more unique experiences for customers. This means one can never fully replace the other.

Latte art created using a coffee printer.

Why is digital beverage printing becoming more popular?

Although latte art certainly enhances the customer experience, digital beverage printing can be more personalised. And this is becoming increasingly important to customers. Recent research from McKinsey found that up to 80% of surveyed customers are looking for personalised, meaningful experiences from companies.

“Today’s consumers, especially younger generations, are looking for more than just a product – they want an experience, too,” Yossi says. “When they receive a drink with a unique design or message on it, it elevates the overall experience.”

Ultimately, this can leave more of a lasting impression on customers by providing a customised, tailor-made experience that they may not be able to receive at other coffee shops.

“These printing solutions allow coffee shops and other foodservice businesses to differentiate themselves in an ever-growing competitive market, both in terms of aesthetics and the quality of their products,” Yossi explains.

Social media has been a key driver in developing more visually-appealing drinks, as people are much more willing to post these photos on their platforms. In fact, since 2015, the number of “photogenic coffee” posts has risen by 4500% on Instagram alone.

Given the broad reach of social media, digital beverage printing is used by coffee shops and other hospitality businesses around the world – including companies like Nespresso and Guinness.

Ripples works with businesses in large cities like New York, London, Tokyo, Tel Aviv, Las Vegas, and Los Angeles,” Yossi tells me. “We’re also seeing growing interest from foodservice companies in smaller cities and towns.”

Various inks used for digital coffee printing.

How does it work?

Digital beverage printing solutions use a combination of technologies and specialist ingredients to print designs on foam-topped drinks.

Yossi explains that the Ripples Bev-Top Media printers use dedicated Pods, which function similarly to ink cartridges. However, they are tasteless, odourless, and include natural plant-based ingredients that are safe for consumption. 

“Our Pods are filled with extracts and stored in specialised food-safe containers that fit into the Ripple Maker machine,” he says.

He adds that there are several types of Ripples Pods available depending on the desired colour. For instance, Yossi explains that the Coffee and Malt Pods produce a brown colour. This makes them ideal for milk-based coffee drinks and beer.

The Black Carrot Pod, meanwhile, produces a red colour, while the Chameleon Pod includes cabbage extracts – creating purple colours. With the Chameleon Plus Pod, Yossi explains that you can print in a range of colours for a single design.

No matter which Ripples Pod is used, printing with odourless and flavourless extracts is essential to preserve the quality and integrity of the drink. At the same time, all extracts used need to meet food safety regulations.

Choosing & printing designs

Most digital beverage printers come with designated software. This allows the user to select and customise different designs, text, and images. 

“The Ripple Maker is connected to a cloud-based platform so users can choose or upload designs in real-time,” Yossi explains. “Additionally, we use AI and machine learning to optimise designs so they look high-quality every time – no matter which beverage is printed on.”

Baristas, bartenders, and other hospitality staff are able to create and save designs, images, and texts – including logos, branded content, promotions, and greetings – to digital printers through apps or dedicated platforms. Customers can then choose from these designs, or even submit their own through a mobile app – although this needs to be approved by staff.

Additionally, solutions like the Ripple Maker include a dynamic content feed for each individual customer. This regularly updates available designs – including any trending or seasonal options – designed by Ripples’ artistic department. 

When it comes to printing designs, Yossi explains that the ideal beverage “canvas” is a light-coloured, smooth foam which completely fills the circumference of the cup. Moreover, there should be no large bubbles on the surface, as this could lower the quality of the design.

A person holds a coffee with a digitally printed design.

The benefits of digital beverage printing

For hospitality businesses looking to offer a more personalised experience to their customers, there are several advantages to investing in digital beverage printers.

“When a customer receives their coffee with a personalised or unique design printed on top, it adds an element of surprise to their visit,” Yossi explains.

Moreover, digital beverage printing can be a useful branding and marketing tool for foodservice businesses, including coffee shops, and thereby help them to stand out.

Printing promotions or event ads on beverages is a direct and memorable way to communicate and engage with your customers,” Yossi says.

This can be a scalable and efficient way to drive organic social media engagement and brand awareness. With more customers open to posting photos of their personalised drinks on social media platforms, Yossi tells me this helps to amplify a brand and attract new customers.

Sustainability & efficiency

Before investing in a digital beverage printer, coffee shops need to make sure it aligns with their branding and values. For example, Ripples’ Pods are made from natural ingredients without using artificial colours. They’re also free from common allergens such as dairy, gluten, soy, and nuts. 

Efficiency and speed are also key. Most digital beverage printing solutions require minimal effort and time to operate. For instance, the Ripple Maker takes ten seconds to fully print one design. This means baristas should be able to focus on other tasks, while still creating a unique and memorable experience for customers.

For coffee shops and hospitality businesses interested in digital beverage printing, choosing the right solution is key. On top of this, baristas and bartenders need to be creative when choosing designs, images, and text to be printed.

Printed macarons next to the Ripple Maker Bev-Top Media printing solution.

As customers demand more immersive and unique beverage experiences, coffee shops need to continue finding new ways to cater to these needs. Digital beverage printing is certainly one of many solutions, and comes with a number of benefits for foodservice businesses.

However, at the same time, it’s clear that hand-poured latte art will always have its purpose in coffee culture.

Enjoyed this? Then read our article on which milk is best for latte art.

Photo credits: Ripples

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How have specialty coffee consumers changed in recent years? https://perfectdailygrind.com/2023/08/specialty-coffee-consumer-trends/ Tue, 15 Aug 2023 05:27:00 +0000 https://perfectdailygrind.com/?p=106342 In many countries around the world, despite its smaller market size, consumption of specialty coffee is increasing at pace.  According to the National Coffee Association’s 2023 National Coffee Data Trends Specialty Coffee Breakout Report, 52% of US consumers aged 18 or above reported drinking specialty coffee in the previous week. This increased to 62% for […]

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In many countries around the world, despite its smaller market size, consumption of specialty coffee is increasing at pace. 

According to the National Coffee Association’s 2023 National Coffee Data Trends Specialty Coffee Breakout Report, 52% of US consumers aged 18 or above reported drinking specialty coffee in the previous week. This increased to 62% for those aged between 25 and 39. As a result, specialty coffee consumption reached over a five-year high in the US this year.

Alongside this growth, we have also seen specialty coffee consumer behaviour change significantly. While convenience has always remained important to consumers, demand for higher-quality coffee and more innovative beverages are also key drivers of rapid change in the sector.

As out-of-home coffee consumption recovers in many major consuming markets following the pandemic, coffee businesses need to ensure they meet the ever-changing needs and demands of consumers.

To understand more, I spoke to Vanúsia Nogueira, William “Bill” Murray, and Anne-Marie Roorda. Read on to find out what they had to say.

You may also like our article on whether specialty coffee is growing faster than global coffee consumption.

A customer holds a latte in a coffee shop.

How many people drink specialty coffee?

Looking at the wider coffee market, global consumption is on the rise. According to figures from the International Coffee Organisation, the world’s coffee consumption is expected to grow by 1.7% to 178.5 million 60kg bags in 2022/23.

Although the global specialty coffee market is much smaller in comparison, data shows that it’s growing at a faster rate than consumption of commodity-grade coffee. This is especially apparent in more mature markets like North America, Western Europe, Australia, and East Asia.

Let’s look specifically at the US, for example. In 2022, research from the National Coffee Association found that consumption of coffee had reached a 20-year high. At the same time, 43% of surveyed consumers reported drinking a specialty coffee beverage in the past day. This represents a 20% increase from January 2021.

Moreover, some figures predict that the North American specialty coffee market will grow by 20% year-on-year until 2030. This would make it the fastest-growing market in the world.

Along with the US, Europe is one of the world’s most important consuming markets because of the ever-growing number of specialty coffee shops and roasters. Europe currently has the largest share of the global specialty coffee market at around 46.2%. Furthermore, its market growth is expected to increase by 9% by 2026

The Asia-Pacific specialty coffee market, meanwhile, is also growing rapidly. According to Research and Markets, the region’s specialty coffee sector will experience a 15.3% annual growth rate from now until 2030.

Growth in producing countries

Generally speaking, in comparison to consuming countries, specialty coffee consumption is significantly lower in producing countries. This is partly because the structure of the global coffee industry has largely remained the same since its establishment in the 1600s and 1700s. 

As European colonial powers exported coffee to countries outside of the Bean Belt, coffee became much more accessible to more people across the world. In turn, marketing became more consumer-focused as it was largely driven by majority consuming countries in the Global North.

However, in recent years, a growing middle class and targeted, policy-driven initiatives have helped to increase domestic specialty coffee consumption in a number of producing countries.

For example, following the launch of the Coffee Quality Programme by the Brazilian Coffee Industry Association (ABIC) in 2004, it’s estimated that around 98% of Brazilian households drink coffee. What’s more, research from the Specialty Coffee Association found that Brazil’s specialty coffee market share doubled between 2016 and 2018 from 6% to 12%. It’s safe to assume this has increased in the years since.

The same study also found that in 2018, the estimated value of the Colombian specialty coffee market was around US $1.52 billion – indicating steady growth, too. 

Moreover, given that the 2021 and 2023 World Barista Champions are from Colombia and Brazil, respectively, it’s likely that interest in specialty coffee will continue to grow in these countries.

Comparatively, growth in other South American countries – as well as across Central America – is significantly slower. The same goes for countries in Africa, where domestic coffee consumption rates are increasing, but at a much steadier pace.

A barista hands a nitro coffee to a customer.

Key trends in consumer behaviour

There have been many changes to the global specialty coffee sector over the past decade or so. In line with this, consumer behaviour has also shifted.

William “Bill” Murray is the President and CEO of the National Coffee Association. He tells me that one of the most significant factors to influence coffee consumer behaviour by far was the pandemic. 

“Covid-19 didn’t necessarily change how much coffee Americans consumed, but more so where and how,” he says.

At the height of the pandemic, around 95% of global OOH coffee businesses were forced to temporarily close their doors. Naturally, consumers started to prepare more coffee at home.

“While there have been slight shifts following the pandemic, US consumption has remained relatively steady since 2018,” Bill says. “Coffee has been America’s most popular beverage for more than two decades now.”

Although more people started to brew coffee at home as a result of Covid-19, OOH consumption has recovered to pre-pandemic levels in many major consuming markets. This is largely driven by demand for espresso-based beverages, which are typically more challenging to prepare at home.

Anne-Marie Roorda is the programme manager at the Centre for the Promotion of Imports from Developing Countries (CBI).

“One of the most notable changes in the last five years has been the growing demand for high-quality coffees,” she explains. “Direct trade, traceability, and flavour profile have all become more important to specialty coffee consumers.”

Despite recent rising food and energy costs, as well as higher rates of inflation, some consumers are willing to pay higher prices for coffee – as long as it meets the required quality and sustainability standards.

Convenience is everything

Even with these key changes in specialty coffee consumer behaviour, convenience has remained one of the most important purchasing factors. The difference over the past decade or so, however, is that demand for quality convenient coffee products has never been higher.

This has been especially noticeable with coffee capsules and pods

“Demand for single-serve coffee products, such as capsules, has experienced strong growth in the European markets,” Anne-Marie tells me. “One key trend has been the development of specialty coffee capsules. 

“Although it’s still a relatively small market, it’s growing at pace,” she adds. “More and more specialty coffee roasters have started to manufacture and sell their own capsules.”

Furthermore, in response to consumer concerns over waste produced from single-serve coffee products, more and more coffee businesses are using recyclable, compostable, or biodegradable materials for their capsules and pods.

A barista prepares a Chemex in a coffee shop.

So what’s changing?

With quality and convenience remaining at the forefront of coffee consumers’ purchasing decisions, there have also been other key emerging trends in the specialty coffee sector.

Cold coffee and RTD

Now more than ever, there is an increasingly diverse range of beverages available in coffee shops – especially cold coffee drinks.

“Cold brew, which was a virtually unknown brewing method when it was first added to our National Coffee Data Trends Reports ten years ago, is now the third most popular way to prepare coffee in the US,” Bill says.

Similarly, ready-to-drink (RTD) coffee beverages have proved particularly popular with younger consumers. Moreover, RTD products have also helped to drive all-day consumption of coffee.

Within this market segment, there has been significant innovation, too. One example is La Colombe’s draft lattes, which were first launched in 2016. Each can contains an “Innovalve” which injects nitrous oxide directly into the liquid. This creates a smooth and foamy texture similar to nitro coffee.

At the same time, we have also seen other RTD coffee products become popular, such as: 

  • Flavoured options
  • Drinks with functional ingredients
  • Plant-based beverages

Health & sustainability

Vanúsia Nogueira is the Executive Director of the International Coffee Organisation. She explains how an increasing number of consumers are accounting for health and sustainability when purchasing coffee products.

“More than ever before, consumer behaviour has been driven by health and nutrition,” she says. “This has created a need to develop tailor-made solutions which are both convenient and high-quality, yet also affordable and functional.

“As a result, consumers not only expect coffee products that are easy to prepare or ready to be consumed immediately, they also demand that these products are sustainable,” she adds. 

For example, plant milks are now immensely popular in coffee shops for many reasons. These include health, ethical values, and the environment. According to a 2021 World Coffee Portal survey of 50,000 UK consumers, 16% of respondents had tried oat milk in the previous 12 months – making it the most popular plant milk nationwide.

An increasing focus on precision

As part of a growing appreciation for the craft and skill of roasting and brewing coffee, more and more consumers have started to take an interest in coffee education.

Ultimately, a growing number of consumers want to know more about where their coffee comes from and the different flavours and aromas they can experience from coffee, as well as how they can get the best results when preparing it at home.

“With better and more precise brewing methods, the ‘science’ of coffee has become more prominent,” Anne-Marie says. “Consumers want to understand more about coffee’s intrinsic characteristics, and how these influence different brewing methods.”

Two cappuccinos next to a MacBook laptop.

How could consumer behaviour evolve in the coming years?

Given the diverse range of emerging trends in the specialty coffee industry, it will be interesting to see how consumer behaviour will change over the next decade or so.

“One of the biggest drivers could be an increasing awareness of the health benefits of coffee,” Bill suggests. “Many independent scientific studies carried out over the past few decades show that drinking coffee can be beneficial to your health.”

Anne-Marie agrees, saying: “European consumers are increasingly concerned about the impact of food on their health and wellbeing. According to the Institute for Scientific Information on Coffee (ISIC), global online searches for ‘health benefits of drinking coffee’ increased by 650% in 2021.

“Now, there is a growing range of coffee products which contain no dairy or no added sugar, or include functional ingredients,” she adds. “Consumers are also more concerned about the negative side effects of drinking too much caffeine, so the consumption of high-quality decaffeinated coffee in both the US and Western Europe has grown year-on-year since 2017.”

Growth of RTD to remain strong

As expected, Anne-Marie says the RTD coffee market will continue to expand and diversify.

“It’s still a relatively niche market, but RTD coffee is one of the fastest-growing market segments in Europe, and is anticipated to grow by 4.8% between 2023 and 2027,” she tells me.

Vanúsia, meanwhile, points out that both coffee businesses and producers need to respond to growing demand for these products.

“Health, convenience, and sustainability are three key trends that will prevail, so coffee producers and companies need to meet these demands to remain competitive,” she says. “Consumers will not only continue to focus on quality and convenience, but also on traceability and transparency.

“Coffee consumers are an integral part of the value chain, and will heavily influence the future of sustainability in the industry,” she concludes.

Two customers hold mugs of filter coffee.

Many things have changed in the specialty coffee industry over the past few decades, including consumer behaviour. And as new consumer trends emerge, they will have significant influence over the future of the sector.

But no matter how consumers’ purchasing decisions shift and evolve, coffee businesses who want to remain successful need to cater to these changing demands accordingly.

Enjoyed this? Then read our article on whether consumers will keep paying higher prices for specialty coffee.

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Europe vs the US: Breaking down differences in coffee consumption https://perfectdailygrind.com/2023/06/europe-vs-us-coffee-consumption-trends/ Mon, 19 Jun 2023 05:26:00 +0000 https://perfectdailygrind.com/?p=105263 The US and Europe are two of the biggest coffee-consuming markets in the world. According to the International Coffee Organisation, Europe consumed 54,065 60kg bags of coffee in 2021 – making it the world’s biggest consuming market that year.  North America, meanwhile, consumed almost 31,000 60kg bags in the same year – making it the […]

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The US and Europe are two of the biggest coffee-consuming markets in the world. According to the International Coffee Organisation, Europe consumed 54,065 60kg bags of coffee in 2021 – making it the world’s biggest consuming market that year

North America, meanwhile, consumed almost 31,000 60kg bags in the same year – making it the third-largest market after Asia and Oceania in 2021.

For a long time, we have largely considered the European and US coffee markets to be very different from one another for a number of reasons. However, as specialty coffee becomes more and more popular in both regions – and given that specialty coffee brands tend to market themselves quite similarly – an important question emerges: how different are they?

To find out, I spoke with two coffee professionals. Read on to find out what they had to say about coffee consumption trends in Europe and the US.

You may also like our article on whether specialty coffee culture is dominated by the US.

A customer in a coffee shop holds a single shot of espresso.

Comparing European and US coffee consumption

Before we break down the differences between the European and US coffee markets, let’s first examine how much coffee they consume.

Let’s start with the US. Across the country, coffee consumption has been growing over the past few years. According to data from the National Coffee Association, between January 2021 and March 2022, the country’s coffee consumption increased by 14%. This represented the largest increase since the NCA began collecting data on US coffee consumption – marking a 20-year high.

As per the NCA’s Spring 2023 National Coffee Data Trends report, 65% of US Americans reported drinking coffee in the previous day. This amounts to around 491 million cups of coffee every day. 

Similarly, the NCA and Specialty Coffee Association’s latest joint 2023 National Coffee Data Trends Specialty Coffee Report concluded that 59% of US Americans had consumed specialty coffee in the past day. This represents a 2% increase on July 2022 – despite rising inflation rates.

Europe, meanwhile, accounts for around one-third of global coffee consumption. According to data from CBI, the European Union has one of the world’s highest average annual per capita coffee consumption rates: an estimated 5kg of coffee per person per year.

Importing & roasting coffee

Alongside consumption, Europe is also the largest coffee importer in the world. In 2021, Europe collectively imported more than 3.62 million tonnes of green coffee – representing an average annual increase of 1.6% between 2017 and 2021. Germany in particular is Europe’s biggest green coffee importer, accounting for around 34% of total annual imports.

Both Europe and the US are major coffee roasting markets. In Europe specifically, Italy and Germany are the two largest coffee roasting markets, followed by France, the Netherlands, Spain, and Sweden.

As for the US, the value of the coffee roasting market is expected to grow by 6.6% over the next seven years.

A carafe of coffee next to a white ceramic mug.

Filter first: Coffee consumption in the US

As it’s only several hundred years old, the US has a much less historic relationship with coffee than most European countries. Although coffee was technically introduced to the US in the 17th century, it wasn’t until the mid-1940s that coffee culture really started to develop.

However, that’s not to say that the US doesn’t have a diverse and vibrant coffee culture today. 

Findings from the Spring 2023 NCDT report state that 41% of US consumers prefer to use automated filter brewers to make coffee at home. This makes it the most popular preparation method, preceding both capsule (or pod) machines and cold brew, respectively.

In terms of espresso-based drinks, lattes are the most popular beverages, followed by cappuccinos. Surprisingly, espresso also holds second place with the cappuccino, with 16% of US consumers choosing to drink espresso – a beverage traditionally associated more with European countries.  

Specific to the US market, flavoured coffee drinks are popular among consumers – with 32% of people drinking them in the past week according to the NCDT report. In order of popularity, some of these flavours include:

  • Vanilla
  • Mocha
  • Caramel, toffee, butterscotch, and hazelnut
  • Irish cream
  • Pumpkin spice

More reliance on technology

Generally speaking, the US market is much faster at adopting new coffee trends and technologies compared to other countries and regions, including Europe.

Bill Murray is the President and CEO of the National Coffee Association

“The US coffee market has almost recovered from the impact of Covid-19, which changed where Americans drank coffee, but not how much they drank,” he says. “In some cases, the pandemic even cemented new trends, like the new popularity of drive-thru and delivery services, as well as the use of apps.”

The 2023 Spring NCDT report found that use of drive-thru and app-based pick-up and delivery services remain higher than pre-pandemic levels. For instance, around 59% of past-day coffee drinkers who purchased beverages from a coffee shop, convenience store, or service station used a drive-thru service. Compared to January 2020, this represents an 11% increase.

Similarly, 29% of people who consumed coffee the previous day used an app to order their beverages – amounting to a 5% increase on January 2020.

A man drinks espresso at a coffee shop.

The diversity of European coffee culture

There are dozens of countries in Europe, all of which have vast cultural differences. The continent’s coffee culture is incredibly difficult to generalise, giving it a rich diversity and plenty of unique coffee consumption trends which vary heavily from country to country.

As with the US, merchants and traders brought coffee to Europe in the 17th century. However, following this, many coffee houses started to open across the continent. They served as important social and cultural meeting places – and continue to do so today in certain countries.

European coffee culture has had a huge impact on the global coffee sector. Arguably one of the most significant events is when Italian Angelo Moriondo filed a patent for the first-ever espresso machine in 1884. Following this, the espresso machine became immensely popular throughout Italy, as well as the rest of Europe – and can now be found in almost any coffee shop in the world.

In comparison, the US has historically favoured filter coffee (although espresso-based drinks are clearly becoming more popular). With that in mind, however, filter coffee is also immensely popular in Nordic countries – which have helped to drive innovation in the global specialty coffee sector for years now.

Looking at different European coffee markets

Thanks to its diverse range of countries, it’s difficult to generalise coffee consumption trends in Europe.

Looking at Greece specifically, the country is home to around 34.3 coffee shops per 10,000 people – which is the second-highest number in western Europe. 

Petros Malousis is the Development & Operations Manager at CoffeeLab in Greece. He tells me more about Greek coffee culture.

“The coffee-drinking habits of Greek consumers are completely different in relation to other markets,” he says. “For example, Greeks love freddos, and I don’t think that will ever change.”

Alongside a thriving specialty coffee scene, Greece also has a more traditional coffee culture. Kafeneia (traditional Greek coffee houses) are still popular, with many people preferring to drink Greek ibrik coffee – also known as ellinikó. Ibrik, or cezve, coffee is also popular in countries like Croatia, Serbia, Cyprus, and Turkey – although the latter is only partly located in Europe.

“We have seen many larger multinational chains try establishing themselves in Greece, but not many have succeeded,” Petros adds.

In comparison, Switzerland consumes more coffee than Greece, but only has about 2.5 coffee shops per 10,000 people. Norway, meanwhile, spends the most money on coffee per capita per year.

Other European countries like Spain, Italy, Austria, Germany, and France are also renowned for their individual coffee cultures. In Italy, for instance, espresso is so culturally significant that the country has applied for UNESCO heritage status more than once over a period of several years. 

Moreover, most espresso bars in Italy charge around €1 (US $1.07) for a single espresso. This is largely due to price regulations, but also because specialty coffee shops and roasters have struggled to establish themselves in Italy.

A barista pulls a double shot of espresso.

Do coffee trends in Europe and the US cross over?

So, espresso has been more prominent in Europe for some time. Filter coffee, meanwhile, has been more associated with the US – both in and out of the home.

Historically, in recent years, coffee consumption trends between the US and Europe have been converging.

For example, many consumers in both markets are becoming increasingly focused on convenience. The pandemic certainly accelerated this trend, with many coffee shops in both the US and Europe adopting cashless payment and automated ordering systems.

At the same time, demand for ready-to-drink (RTD) coffee is also becoming more popular in both markets, particularly among younger generations who favour both convenience and quality. Additionally, cold brew has also become a mainstay in the US and Europe – although notably more in the former.

The rise of specialty coffee

Perhaps the biggest change over the last decade or so, however, has been the growing demand for higher-quality and more sustainable coffee in both Europe and the US. 

“The demand for 100% arabica coffee and single origins has grown a lot in recent years in Greece [as well as other European markets],” Petros says. “Specialty coffee is here to stay, with consumers aged between 18 and 34-years old becoming increasingly interested.”

In the US, Bill doesn’t expect growth of the market to slow down any time soon either.

“Consumers have access to a wide array of coffees and beverages to meet their changing tastes and needs,” he explains. “We also expect that more health-conscious consumers will become more interested in coffee and its unique health benefits.

“These factors will only continue to drive the already record-high consumption of coffee in the US,” Bill concludes.

Three milk-based coffee drinks on a wooden board in a café.

Despite the fact there are distinct cultural differences in coffee consumption between the US and Europe, convergence in some areas appears to be universal. A growing demand for convenience and higher-quality coffee is shared across the two markets.

Despite this, it still seems that espresso retains its crown in much of Europe – while the US’ filter coffee culture persists. However, whether or not this will continue to be the case remains to be seen – as does how both markets will evolve.

Enjoyed this? Then read our article on filter vs espresso in the US and Europe.

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Do specialty coffee consumers actually want to be more connected to farmers? https://perfectdailygrind.com/2023/04/do-specialty-coffee-consumers-want-to-connect-with-farmers/ Wed, 05 Apr 2023 05:23:00 +0000 https://perfectdailygrind.com/?p=103141 It’s fair to say that many specialty coffee brands base their marketing strategies around the idea that coffee consumers want to be more connected to farmers. These branding techniques largely revolve around disseminating more information about where coffee comes from, including the farmers who grow it. The majority of specialty coffee professionals want to know […]

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It’s fair to say that many specialty coffee brands base their marketing strategies around the idea that coffee consumers want to be more connected to farmers. These branding techniques largely revolve around disseminating more information about where coffee comes from, including the farmers who grow it.

The majority of specialty coffee professionals want to know as much information about origin as possible. This includes processing method, variety, altitude, and terroir. And while many coffee businesses believe that consumers also want to know the same information, is this really an accurate assumption?

To learn more, I spoke to Kosta Kallivrousis of Algrano, Marianella Baez Jost of Café con Amor, and Pedro Miguel Echavarría of Pergamino Coffee. Read on to learn their insights on whether consumers want to be more connected to origin.

You may also like our article on why more producers don’t market their own coffee.

A Brazilian coffee worker winnows coffee cherries to remove debris.

The role of farmers in specialty coffee marketing

If you walk into almost any specialty coffee shop in any country around the world, you’re likely to see some kind of recognition of or homage to coffee farmers. This can range from photos of pickers on farms on the walls to detailed information about producers and co-operatives on coffee packaging.

In light of this, it certainly rings true that specialty coffee shops and roasters want to make sure that their products are connected to producers in some way. But why is this?

Forging connection to origin: a specialty “special”

One of the main selling points of specialty coffee is that it is more sustainable, traceable, and transparent than commodity-grade coffee. Therefore, it’s essential that roasters and coffee shops are able to bridge the gap between producers and consumers in order to communicate these attributes more effectively.

Kosta Kallivrousis is the Sales Manager at Algrano in the US. He tells me when specialty coffee brands seek to set themselves apart from competitors, marketing plays an instrumental role.

“A lot of specialty coffee branding and marketing is about showcasing what makes you distinctive,” he says. “It’s an industry that was born from marketing, rather than consumer demand.”

Marianella is the co-founder of Farmers Project Specialty Coffee and a producer at Café con Amor in Costa Rica. She agrees, saying that specialty coffee brands tell the stories of producers as a way of differentiating themselves from commodity-grade coffee companies.

“It demonstrates that you have a direct relationship with suppliers, which means as a brand you have more knowledge and your coffee is more traceable,” she tells me. “This helps to elevate the quality perception of your coffee, and shows that you’re going the extra mile [when sourcing].”

Demonstrating sustainable practices effectively

Displaying photos of coffee farms in shops or on websites, as well as providing information about a coffee’s origin, allows roasters and other coffee businesses to indicate that they have good relationships with their producers.

Pedro is the General Manager at Pergamino Coffee in Colombia. He explains that most specialty coffee brands want to demonstrate that they source and purchase their products fairly and sustainably. 

“Translating the complexities associated with this into a simple marketing tactic is incredibly difficult – even for the most knowledgeable and educated consumers,” he says.

In recent years, a growing number of specialty coffee consumers do want to be reassured that the brands they buy from are complying with good environmental and ethical practices. At the same time, however, it’s fair to assume that some of these consumers aren’t familiar with what these practices really entail so communicating them effectively can be a challenge.

Romanticism and fetishisation 

There’s no doubt that providing consumers with more information about origin is a valuable way for farmers to receive worthy credit for their hard work. However, it can quickly turn into “romanticism” if not carried out effectively. This leads some consumers to have idealised views of coffee farmers. Ultimately, a coffee farm is a business, and consumers should view them that way, too.

“Marketing can present a very blurry picture of the reality which producers face,” Marianella explains. “It’s difficult for consumers to discern between what is real and what is smoke and mirrors.”

She tells me that she once saw pictures of her farm on a brand’s website. However, she had never worked with them, and wasn’t even aware of them. Marianella explains that when she emailed them, they stated that they didn’t always know where their photos came from.

“This means some companies can make false claims by telling a story, but they have never even visited that country,” she adds.

Moreover, the use of certain images can perpetuate the idea of the “impoverished” or “exotic” coffee farmer. While some smallholders across the Bean Belt certainly live below the poverty line, this isn’t the case for all producers. Pushing narratives like this, as well as the idea that Western consumers are “saviours”, often creates widespread false perceptions about coffee producers –resulting in their fetishisation

“The majority of people in the specialty coffee industry want to make a difference and do some good,” Kosta says. “However, the ways of doing so can be complicated.

“Is there consent from farmers to use their images and stories?” he posits. “They need to actually add value to producers, so they should be compensated, or at the very least, they should create these marketing strategies in partnership with farmers.”

A barista prepares pour over coffee in a café.

What do specialty coffee consumers really want?

In line with being more connected to origin, there are a number of purchasing factors which specialty coffee consumers tend to value the most.

First quality, then sustainability

The National Coffee Association’s 2022 National Coffee Data Trends Specialty Coffee Report report states that:

  • Around 69% of specialty coffee consumers say they are more likely to buy coffee because it’s fresh
  • An estimated 64% of respondents stated that paying farmers a fair price is important
  • Some 57% said proper treatment of farm workers influences their purchasing decisions

Kosta, meanwhile, tells me that he thinks consumers’ interest in paying producers a higher price could be inherently linked to alleviating guilt regarding economic and social inequity between themselves and producers. 

“Maybe buying some coffee to address that, even in a small way, helps to absolve some of that guilt,” he says.

Building trust

Pedro believes that rather than explaining complex issues, such as the volatility of the C price, consumers want reassurance that the brands they buy from have ethical business practices. 

Ultimately, this widens the gap between consumers and producers, rather than closing it. Consumers aren’t able to know the full extent of challenges which producers face in origin countries. And given the geographical distance between the two – and potential wide economic disparity – this is understandable.

“I don’t think that coffee consumers want to be more connected to farmers, per say,” Marianella says. “However, they do want to be more knowledgeable about the product: where it comes from, how it’s produced, and whether it was grown and sourced ethically.”

She tells me that Café con Amor runs a number of initiatives which directly benefit the local farming community. Marianella explains that she uses social media to show her customers how the programmes are impacting communities. She says this helps to build more trust with the consumer.

Smaller roasters with shorter supply chains tend to be able to do this more effectively than larger brands. Generally speaking, this is because they are in direct contact with producers. In turn, this can create more of a connection with consumers.

Traceability

In recent years, it’s become increasingly apparent that more and more consumers want to know where their coffee comes from.

“We need real traceability,” Marianella says. “Customers don’t need certifications and seals that tell them their coffee is sustainable. They want more concrete information that’s practical, honest, and specific.”

Pedro agrees saying: “There’s a big percentage of our loyal customers who really care, and ask about origin, farmers, our sourcing strategy, and how we pay premiums for certain coffees.

“Other people, however, may not have this level of knowledge about coffee, nor the time or interest to dig deeper,” he adds.

Pedro also points out that it’s presumptuous to believe that every consumer will have an in-depth knowledge of the coffee industry and how it operates. 

“If we’re going to measure every consumer by that standard, then we should also do the same with ourselves,” he says. “Do we also know everything about the coffees we source? It’s hypocritical in a way.”

Roasters and consumers visit a coffee farm in Costa Rica.

How can specialty coffee brands leverage consumer behaviour to create real impact for farmers?

There seems to be somewhat of a disconnect between what coffee consumers really want and what the specialty coffee sector would like them to want. 

I asked Kosta, Marianella, and Pedro how brands can create real impact at origin through their marketing strategies.

Commitment and accountability

“What the specialty coffee industry suffers from the most is the relentless search for innovation – the latest roast profile, variety, or processing technique, for instance,” Kosta says. “But the thing that’s missing is commitment.

“The reality is that the coffee industry steers the ship,” he adds. “So we have a big responsibility to remain accountable and stay true to our social and environmental commitments.”

Technology and traceability

Technology helps to resolve a lack of traceability by connecting roasters to origin,” Marianella explains. “For example, we can connect through mobile apps and connect from our farm with roasters all over the world.

“The possibilities of having face-to-face conversations, albeit online, add another layer of forging a direct relationship with origin,” she adds.

Pedro advises roasters to build their sourcing models around how they want to integrate sustainability into their business model. They can then create marketing strategies around that – not the other way round. 

He also urges consumers to make sure that the coffees they buy (particularly blends) are sourced ethically. 

“For example, there’s a lot more work that needs to be done in terms of transparency when it comes to blends than microlots,” he says.

Forging more trust 

“For any business, trust is one of the hardest things to achieve and one of the easiest things to lose,” Pedro says. “You add real value when consumers trust the brand they’re buying from. 

“Every roaster has to look within and ask themselves if they feel good about their buying practices – and communicate that,” he adds. “In an era of information, if there are any malpractices in your supply chain, this trust can be jeopardised.”

On a similar note, Kosta explains that portraying an “imaginary” connection with origin can be a form of fetishising. In turn, it can be a betrayal of consumers’ trust. 

“Ultimately, if a marketing strategy ends up benefiting the company and not the communities it promotes, it becomes false advertising and is an abuse of customer trust,” he says.

A coffee farmer holds a handful of ripe coffee cherries.

The issues are complex and difficult to break down. However, it remains unclear whether the specialty coffee industry’s social and environmental goals are a response to consumer demand, or whether they emerged to influence it.

Either way, it’s clear that the majority of specialty coffee drinkers do want to know where their coffee came from, who grew it, and if they are being treated fairly.

Moving forward, specialty coffee brands need to make sure that their marketing strategies remain honest, ethical, and fair. For consumers, demanding more traceability and transparency from brands is the best way to play a role.

Enjoyed this? Then read our article on how digitalisation can connect consumers to coffee farmers.

Photo credits: Annette McKeown

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Why are YouTube coffee brands becoming more popular? https://perfectdailygrind.com/2023/01/why-are-youtube-coffee-brands-becoming-more-popular/ Thu, 26 Jan 2023 06:25:00 +0000 https://perfectdailygrind.com/?p=101856 When you think of coffee and YouTube, a number of popular content creators – including James Hoffmann and Morgan Eckroth – may come to mind. In some cases, these channels can receive hundreds of thousands of subscribers – showing that there is rising consumer interest in learning more about coffee. However, correspondingly, we are also […]

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When you think of coffee and YouTube, a number of popular content creators – including James Hoffmann and Morgan Eckroth – may come to mind. In some cases, these channels can receive hundreds of thousands of subscribers – showing that there is rising consumer interest in learning more about coffee.

However, correspondingly, we are also seeing more and more YouTube content creators market and sell their own-branded coffee products, which range from signature blends to capsules to single-serve bags.

Celebrity endorsements, as well as partnerships between coffee brands and prominent figures in the entertainment industry, are not new to the coffee sector. However, the popularity of YouTube-branded coffee has noticeably been growing over the last few years. For instance, YouTube influencer Emma Chamberlain’s coffee brand raised US $7 million in Series A funding in August 2022, which was used to support brand expansion and product development.

To learn more about this growing market, I spoke with three industry professionals. Read on to find out more.

You may also like our article on whether coffee & sports partnerships are becoming more popular.

The YouTube app icon on a mobile phone screen.

An overview of the YouTube coffee market

YouTube is one of the world’s most popular video sharing and social media platforms. According to Statista, the site has over 2.5 billion active subscribers

Since it was launched in 2005, YouTube has become a popular platform for social media influencers – which Cambridge Dictionary defines as “someone who affects or changes the way that other people behave”. However, in the 21st century, it has increasingly come to refer to online content creators.

It’s common for some of these figures to gain large followings on social media platforms, which has led many of those who do to sell merchandise – including coffee products.

David Sievers is the CEO of Akira Coffee, a private label company which works with content creators to develop and market coffee products. David tells me that the company has partnered with several YouTube content creators including “GrayStillPlays”, “Jacksepticeye”, and Super Carlin Brothers.

“Different content creators want to try different approaches to [developing and selling] coffee,” he tells me. “Over the last couple of years, more and more creators have been building their own consumer product brands to increase revenue and diversify their income.”

David adds that it’s important for content creators to remain on brand when developing their coffee products.

“A coffee-specific content creator is likely to focus more on educating consumers,” he says. “Other creators who have built their audience in other topics may have to find more creative ways of developing their coffee products. 

“Either way, all creators have to capitalise on trust they have built with their audience over time,” he adds.

Jonathan and Benjamin Carlin run the movie-themed YouTube channel Super Carlin Brothers, which has over two million subscribers on the platform. 

They explain that marketing and selling coffee products allowed them to go beyond the standard range of merchandise that YouTubers typically sell.

“Our audience resonated well with our coffee products,” Jonathan and Benjamin tell me. “The branding is in line with the kind of content we produce, which focuses on Disney, Pixar, Star Wars, Harry Potter, and Marvel.”

A printed Nespresso advert featuring US actor George Clooney in a magazine, with a brewed Nespresso capsule in a glass mug.

A wider view: Why are more celebrities becoming prominent in the coffee industry?

Marketing is a huge part of the coffee industry, and for a long time now, celebrities have formed a part of this.

One of the most well-known examples is George Clooney’s brand ambassador role at Nespresso. Clooney first partnered with the Swiss capsule manufacturer in 2006, which helped to drive the brand’s growth immensely. 

It’s estimated that Nespresso alone manufactures 14 billion capsules per year – largely a result of its “luxurious” marketing which is in line with Clooney’s public image. In fact, Nespresso launched a new television ad campaign which features the American actor in November 2022.

However, Clooney is not the only famous figure partnering with coffee brands. In September 2021, De’Longhi launched the Perfetto campaign with US actor Brad Pitt. At the same time, we’ve also seen more and more big names in entertainment and sports launch their own coffee brands.

One example is National Basketball Association player Jimmy Butler, who launched his own coffee company in partnership with Shopify in September 2021. Butler started selling US $20 cups of coffee to his NBA teammates during the pandemic, which then led to him officially launching the BIGFACE coffee brand the following year.

BIGFACE also purchased more than 1,000lbs of the highest-scoring coffee at Cup of Excellence El Salvador in 2021 – showing that some of these brands also have a growing interest in sourcing higher-quality coffee.

YouTube content creator Jonathan Carlin holds a bag of Nimbus Bike Blend coffee.

How do YouTubers sell coffee?

David tells me some common ways for content creators to market their coffee on YouTube.

“Creators need to talk about their coffee products in a way that makes sense to their audience,” he says. “Since the creator has built their own community, they know what type of content is important to their audience. 

“One important decision to make is how in-depth they need to be about coffee,” he adds. “Not all of their audience wants to watch content about the details of coffee, [including how to brew it in different ways or where it came from].”

Jonathan and Benjamin, meanwhile, explain that they often include a few key details when marketing their coffee products to subscribers.

“We emphasise the differences between how our beans are roasted and how the coffee you buy in the supermarket is roasted,” they say. “We also emphasise that our coffee is sustainably and responsibly sourced.” 

Sustainability and responsibility is a key focus for marketing in the coffee industry, too. According to Global Data, 43% of global consumers choose their coffee based on environmental and social sustainability factors. This is especially apparent among millennial and Gen Z consumers, who often place more value on these purchasing factors.

David, meanwhile, adds that the language which YouTube coffee brands use often needs to be more accessible.

“Most creators who sell coffee products don’t explain the nuances of Q grading and the coffee flavour wheel, or what small batch roasting and ethical sourcing are,” he says. “However, many content creators sell specialty-grade coffees because they want to protect the trust they have built with their audience.

“By saying that you only sell specialty-grade coffee, it’s an indication that quality matters to your brand,” he adds.

Roasted coffee beans in a cooling tray.

What about sourcing and roasting coffee?

When it comes to sourcing and roasting coffee, there’s a clear indication that most YouTubers and other influencers are moving to work closely with private label companies, thereby leveraging their experience and infrastructure. These partners can also assist with the packaging, marketing, and sales of these coffee products – sometimes through integrating ecommerce sites on existing platforms or creating new ones altogether.

“Most content creators work with an established coffee roaster,” David says. “It’s very rare for a creator to want to invest in setting up their own in-house coffee operation.

“Almost all YouTube-branded coffee is sold online, and then the coffee is shipped to the customer,” he adds. “Darker roast profiles tend to sell the most, but more experienced customers are interested in lighter roasts with more unique flavours.”

A growing number of content creators are also expressing interest in certifications for their coffee products. These include USDA Organic and Fair Trade. 

“Some content creators express interest in certifications to ensure that the products meet consumer expectations for quality and sustainability,” David says. “However, YouTube coffee brands mainly need to focus on marketing their products as high quality.”

Bags of YouTube content creators The Carlin Brothers' roasted coffee beans next to a black and yellow ceramic mug.

Although YouTube by no means makes up a huge percentage of all specialty coffee sales, it is clearly growing, and it is an intriguing segment with the potential to drive awareness on a colossal scale. Alongside this, we’re also seeing signs of an emphasis on quality, sustainability, and product diversification.

Ultimately, while YouTubers might not sell the highest-quality coffees or really hone in on the scientific side of coffee extraction, they could certainly introduce more people to specialty coffee.

Enjoyed this? Then read our article on why themed coffees are becoming popular.

Photo credits: Carlin Brothers Coffee

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Specialty coffee must remember that convenience is everything https://perfectdailygrind.com/2023/01/how-important-is-convenience-to-the-coffee-industry/ Thu, 05 Jan 2023 06:36:00 +0000 https://perfectdailygrind.com/?p=101404 For centuries, convenience has been cited as one of the biggest drivers of growth and innovation across the global coffee industry. As far back as the late 1800s, European consumers began to value convenience more and more as people started to expect their coffee to be roasted for them, rather than doing it themselves. In […]

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For centuries, convenience has been cited as one of the biggest drivers of growth and innovation across the global coffee industry. As far back as the late 1800s, European consumers began to value convenience more and more as people started to expect their coffee to be roasted for them, rather than doing it themselves.

In the years since, the definition of convenience within coffee has arguably changed. We’ve seen innovation after innovation, from the rise of instant coffee products in the 20th century to the growth of ready-to-drink (RTD) beverages and capsules. Ultimately, all the evidence shows that convenience has only continued to increase.

So this leads us to a pertinent question: what impact does this have on the coffee industry overall? To find out more, I spoke with the Vice President of Coffee Enterprises Spencer Turer.

You may also like our article on the evolution of convenience store coffee.

A tap in a coffee shop for pouring nitro cold brew and cold brew.

Convenience in the coffee sector today

Although convenience has been important to coffee drinkers for centuries (albeit in different forms), consumer demand for convenience has arguably never been as high as it is now.

“Historically, the launch of pods like the K Cup [and Nespresso], as well as single-cup brewers, led to a significant change in the coffee industry,” Spencer tells me. “Consumer demand shifted from brewing a pot of coffee to preparing it by the cup in a more convenient manner.

“More recently, the explosive popularity of ready-to-drink (RTD) coffee packaged in bottles and cans means consumers can drink high-quality beverages without the need for a barista to prepare them,” he adds.

In recent years, there has been a growing number of RTD coffee beverages available on the market including cold brew, as well as milk-based drinks. In fact, research from Food and Beverage Insider found that in 2017, 19% of new global coffee product launches were RTD beverages.

And there’s no doubt that this figure has increased in the years since as more and more coffee brands launch their own RTD products. For example, Lavazza released an organic RTD coffee range in early 2022, and Tims China is set to launch its RTD products in convenience stores across the country.

“As well as this, the number of coffee shops offering on-tap beverages has increased, which provides businesses with new ways to quickly serve high-quality drinks,” Spencer says. 

These products include cold brew, as well as nitro cold brew and nitro lattes, which are both infused with nitrogen to create a smoother and creamier texture.

Capsules and single-serve coffee products have also become more popular over the past few years. Although coffee capsules were first launched by Nespresso in the late 1980s, more and more competitor brands started to enter the market at the beginning of the 21st century as pods proliferated.

Furthermore, as part of this wider growth in demand for convenient coffee options, instant coffee consumption has stayed high, too. In the US, Statista estimates that the global instant coffee market will be worth around US $147.6 billion by 2025. Alongside this, we have seen more and more specialty coffee brands start to sell instant coffee options, with Blue Bottle – a pioneering name in specialty coffee – launching its own in early 2022.

A customer pays for a coffee and avocado toast using a digital paypoint.

Do people expect more convenient coffee options after the pandemic?

Despite the fact that convenience has been an important purchasing factor for coffee drinkers for many years now, the pandemic undoubtedly accelerated this shift.

A recent study by Deloitte found that in the months since the Covid-19 pandemic, as many as 80% of consumers value convenience more than ever. More than 80% of people surveyed also noted that they expected more flexible shipping and pick-up options – including at coffee shops.

In early 2020, the majority of out-of-home coffee businesses were forced to adapt to new ways of serving customers. In the same year, a UK survey from World Coffee Portal found that 70% of coffee shops in the country switched to takeaway service only, while 67% limited their trading hours, and 57% reduced their menus.

“Social distancing measures meant that coffee shops and roasters had to innovate and change how they operate,” Spencer explains. “We saw more of these businesses offer delivery and pick-up services during the pandemic.

“Some coffee shops also had to stay open with fewer employees, which ultimately forced them to reduce their menu options, as well as to increase their speed of service,” he adds. “In turn, customers started to expect smaller menus, less interaction with staff, limited opening hours, and slower services.

“However, within the specialty coffee sector, our goal was to counteract these potential issues by continuing to serve high-quality beverages,” Spencer continues.

As Covid-19 measures have eased in most countries around the world, there has largely been a return to “normal” standards of service – but demand for convenience remains high.

In line with this, many larger coffee chains have highlighted takeaway and delivery services as key components of their recovery following the pandemic, as well as drive-thru and mobile sales.

A barista uses an espresso machine in a coffee shop.

How are consumer expectations evolving?

It’s evident that coffee consumers certainly value convenience, but just how important is it to them?

A 2021 study from ecommerce platform Linnworks found that almost half of people surveyed said convenience is more important than price when deciding where to shop. In addition to this, following the pandemic, the same study found that 76% of people claimed that convenience was the biggest influencing factor for them when shopping online. 

“Instant gratification has become the norm as more people are trying to optimise their time and multi-task,” Spencer says. “But at the same time, people are now also scheduling in more time to rest and recharge.

“Coffee shops need to understand the needs of their customers, especially when it comes to speed of service, availability of products, and beverage quality and consistency,” he adds. “Consistency in coffee quality and service can make or break a coffee shop – if the quality of coffee changes from day to day, or even shift to shift, then there is a risk of serving lower-quality coffee to customers.”

However, Spencer emphasises that some aspects of the rise in demand for convenience could have a negative impact on coffee quality.

“Significant waiting times have become somewhat acceptable in most coffee shops,” he says. “However, with mobile and online ordering becoming more common, the quality of beverages could slip if the drink is sat on the counter for too long.”

A barista pours milk into coffee to create latte art.

Understanding the long-term implications for the coffee industry

It’s no understatement to say consumers’ focus on convenience has never been higher. In turn, this means more and more coffee businesses are now looking for ways to cater to this demand.

Whether this includes providing contactless pick-up services, using mobile ordering apps, or offering more RTD beverages, there are a number of ways in which coffee shops and roasters are adapting to the rise in demand for more convenience.

However, Spencer highlights that coffee quality is still important – and notes that it should never be an afterthought.

“Convenience is not always synonymous with high quality, and we as an industry are still working on how to improve the consistency of quality with convenient coffee beverages and products,” he says.

Spencer adds that the growing consumer demand for convenience can lead to more coffee shops relying on automation and technology.

“This can challenge the concept of hand-crafted beverages prepared by baristas, but I believe that each coffee shop has its own needs, and therefore its own solutions to adapt to rising demand for convenience,” he tells me. “But ultimately, people still want to go out to coffee shops and socialise, and enjoy being a customer.

“Convenience is a critical consideration for any coffee business, however, it needs to be factored in along with customer service, coffee quality, and the atmosphere and location of a coffee shop,” he adds. “Coffee businesses must understand the relationship between patience and value for each customer they serve, and then develop their brand accordingly.”

Customers in a coffee shop use their phones to pay for their orders.

For the majority of coffee consumers, convenience is one of the most important purchasing factors. Naturally, this means coffee businesses must adapt in order to remain competitive.

However, when it comes to adapting to these demands, there is no “one size fits all” approach for coffee shops and roasters. Finding a suitable solution to cater to this rise in demand – whether that’s selling capsules or offering mobile ordering services – ultimately depends on the needs of each individual business, too.

Enjoyed this? Then read our article on how coffee subscriptions have changed in recent years.

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