With this rapid innovation in processing, however, has also been a much broader discussion about transparency – especially regarding how producers create new flavours in coffee. That brings us to a hot topic among many industry professionals and enthusiasts: flavoured and infused coffees. This is when producers purposefully introduce other ingredients when processing coffee so the green beans absorb or take on certain sensory attributes.

While some prefer the terms “flavoured” or “infused”, others opt for “co-fermented” – making it seem as though they are interchangeable, which can only add to confusion in some cases. So what are the differences, if any?

To find out, I spoke to Rodrigo Sánchez Valencia, owner of Aromas del Sur, and Vicente Mejia, founder of Clearpath Coffee – who both have extensive experience with infused and co-fermented coffees.

You may also like our article exploring whether there’s a difference between infused and flavoured specialty coffee.

Flavoured vs infused vs co-fermented coffee

Understanding the distinction between flavoured and infused coffees can be challenging, largely because there are no formal definitions. We therefore have to rely on the perspectives and opinions of coffee professionals. 

In a previous article published in March 2023, Perfect Daily Grind interviewed Saša Šestić, founder of ONA Coffee and Project Origin, and Steven Restrepo, Head of Coffee at Café de Colita, to gain their insight.

Steven asserts that flavoured coffees are typically created through fermentation, as well as the addition of yeasts, bacteria, and artificial flavours. And while Saša believes that infusion can occur at any point along the supply chain, Steven disagrees – and states that he thinks you can only infuse coffees with artificial flavours after roasting.

So what about co-fermentation?

Looking at other resources, in a recent article, Ally Coffee explains that coffee is co-fermented in one of two ways: either by adding ingredients to the “mother culture” before processing, or by incorporating them directly with the coffee during fermentation. By this definition, co-fermented could be the same as flavoured or infused.

But it’s clear that not everyone agrees. 

Rodrigo Sánchez Valencia is a third-generation producer and owner of Aromas del Sur in Huila, Colombia. He tells me he avoids using the term “infused” to describe co-fermented coffees altogether. From Rodrigo’s perspective, co-fermented coffees are more natural, and are therefore more preferable in comparison to infused coffees. 

This is largely because he believes the term “infused” can imply artificial additives and flavours. Conversely, the flavours in co-fermented coffees are usually created during fermentation using exclusively natural ingredients, such as fruits or other microorganisms.

How do you co-ferment coffee?

Given the growing conversations around infused and flavoured coffees, let’s look more closely at the co-fermentation process.

Before experimenting with co-fermentation, Rodrigo says he explored the beer, wine, and dairy industries to learn more about fermentation and using certain microorganisms to create new flavours.

He tells me he soon realised how all three industries use the same basic microorganisms. For example, when fermenting beer and wine, manufacturers commonly use saccharomyces microbes. 

Rodrigo says initial trials involved co-fermenting coffee with wheat and various fruits. He adjusted variables like total fermentation time, sugar content, and acidity to find the best possible balance. Over time, he was happy with the results.

“We chose the term ‘co-fermentation’ to transparently convey the unique combination of flavours created and the more natural process behind it,” he explains.

Essentially, the process involves several steps:

• Firstly, Rodrigo ferments the “mother culture” for 190 hours. This mixture includes various microorganisms derived from coffee plants on his farm
• Next, he feeds the mother culture a mixture of fruit juices, fruit, and a sweetener (such as molasses)
  • This mixture enhances inherent flavours in the coffee and increases the total sugar content – fuelling the fermentation process
• Rodrigo then measures the sugar (or Brix) content of the cherries before adding them to a floatation tank to identify and remove lower-density beans
• The cherries are then pulped and placed in a sealed tank with the mother culture for 180 hours
• Following this co-fermentation period, the cherries are dried in direct sunlight for a few days, and then under shaded canopies until they reach a humidity level of 10% to 11%

Is there a market for these coffees?

While industry professionals and enthusiasts alike may not agree on how to formally define infused, flavoured, and co-fermented coffees, Rodrigo says there is increasing demand for them.

“We’re here to meet that demand and give our customers the one-of-a-kind coffee experiences they’re looking for,” he says.

However, producers still face certain challenges regarding these processing methods, including convincing roasters to try these coffees. Rodrigo explains that some roasters are hesitant to buy co-fermented and infused coffees, while others are more curious.

Vicente Mejia is the founder of Clearpath Coffee – a specialty coffee exporter in Colombia. He explains that even in an increasingly innovative specialty coffee sector, some believe that infusing or co-fermenting coffees isn’t always a good thing.

“Some refuse to even try the coffee or don’t want to offer it to their clients,” he says. “They argue that it doesn’t meet their standards of authenticity.”

He adds that Q graders and roasters – who often have years of training and well-developed palates – can sometimes feel that infused and co-fermented coffees lack depth.

“However, some seem to forget that it’s not them who will ultimately purchase and consume the coffee, but rather the everyday drinker who might enjoy trying coffee with flavour profiles that are easier to taste,” he explains.

Acknowledging the positive reception to these coffees

Consumers seem to be increasingly embracing co-fermented and infused coffees. Rodrigo says that buyers in Asian markets like Japan, Taiwan, China, Singapore, and Malaysia are showing the most interest. Additionally, co-fermented coffees have been well received in Arab markets like the United Arab Emirates, Kuwait, Qatar, and Saudi Arabia. 

Vicente, meanwhile, says he’s received positive feedback from roasters who have taken the “leap of faith”.

“Co-fermented coffees can provide a fun tasting experience for end consumers, allowing them to appreciate the nuances of flavour and learn about the fermentation process,” he says. “This is especially beneficial for those who may not have extensive training or knowledge in coffee, as it offers a more accessible option for trying something new and special.”

How can transparency contribute to success?

Following growing positive reception, infused and co-fermented coffees are certainly one way to drive innovation at the heart of specialty coffee. 

Vicente, however, emphasises that if producers and roasters want to be successful selling these coffees, the process must be transparent. For example, issues can arise if producers and roasters fail to disclose how the coffees are processed.

“They might say they are achieving these flavour profiles with more traditional processing techniques and new technologies,” he argues. “This is dishonest and creates a number of problems.”

Ultimately, transparency and traceability – two factors that are more important to specialty coffee consumers than ever before – are essential to marketing and selling infused and co-fermented coffees.

What’s more, inconsistencies in how we as an industry describe these coffees can further complicate matters – causing confusion or even misinterpretation. And although we’re still not close to formally defining infused or co-fermented coffees, being careful and mindful about the language we use is important.

In summary, there are differences between infused and co-fermented coffees. However, it all still seems subjective and very much based on different opinions, albeit from qualified professionals.

Establishing universal terminology is one way to dispel any confusion about the differences between flavoured, infused, and co-fermented coffees. But who gets to define these terms in the first place? That is the ultimate question – and it’s essential that we prioritise producers’ perspectives.

Enjoyed this? Then read our article answering some common questions about infused coffee.

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North America and Western Europe have long been the largest markets for specialty coffee. At the same time, however, consumers in less established markets – like Eastern Europe and South and Southeast Asia – are becoming increasingly interested in specialty coffee.

While many people in these countries still favour commodity-grade and instant coffee products, consumer preferences are shifting. With more and more chains and smaller independent coffee businesses expanding into these markets, specialty coffee is becoming more popular.

To learn more, I spoke to Laurynas Arlauskas, Events Coordinator at the Lithuanian SCA Chapter, Matija Hrkać, CEO and Operations Director at Cogito Coffee in Croatia, and Binny Varghese, a Q processing professional and consultant in India.

You may also like our article on how coffee businesses can expand into new markets.

What’s driving the growth of specialty coffee?

Specialty coffee consumption is increasing around the world for a number of reasons. One of the biggest is the expansion of multinational coffee chains – notably Starbucks – into different markets. As these chains enter or expand into new markets, consumers are introduced to different coffees, brewing methods, and types of beverages.

Similarly, passionate coffee professionals and enthusiasts often move abroad for some time and then return home, and bring their specialty coffee knowledge back with them. This then helps to drive the proliferation of smaller independent coffee shops in previously untapped markets, and increases consumer interest in specialty coffee.

The growth of specialty coffee in these regions is also the result of the habits of younger generations who have increasingly higher amounts of disposable income. For instance, Forbes estimates that Gen Z alone currently has around US $360 billion in disposable income – a large majority of which these consumers enjoy spending on higher-quality food and beverage products like specialty coffee. 

Health and sustainability are also increasingly important considerations for many coffee consumers. Plant milks, for example, are often perceived as a healthier and more eco-conscious option instead of cow’s milk. Additionally, specialty coffee brands have started to develop convenient ready-to-drink (RTD) products with added health supplements.

The rise of at-home brewing – largely the result of Covid-19 – has also shaped specialty coffee consumption as well. With many coffee shops closed during the pandemic, coffee drinkers wanted to replicate café-quality drinks at home.

Eastern Europe: A blossoming specialty coffee market

In comparison to Western Europe, the specialty coffee market is much smaller in Eastern Europe. That doesn’t mean, however, that growth isn’t taking place – especially in countries like the Czech Republic, Hungary, Croatia, Poland, Romania, and the Baltics.

In Poland, for instance, the number of specialty coffee shops has increased significantly in recent years. Likewise, in Romania, the number of specialty coffee shops grew from just three in 2013 to more than 90 in 2019. Hungary’s specialty coffee scene has also exploded in recent years, with around 150 cafés open in the country as of 2019.

As specialty coffee becomes more popular in Eastern Europe, Specialty Coffee Association chapters have started to open in countries like Bulgaria, Czech Republic, Hungary, Lithuania, Poland, Slovakia, and Romania.

As well as volunteering for the Lithuanian SCA Chapter, Laurynas has worked in the coffee industry since 2016. He explains that the chapter started ten years ago, and initially aimed to change people’s perceptions about the barista role as a career choice.

“Specialty coffee ambassadors in the Baltics are doing a great job,” he says. “They have influenced both older and younger generations by changing the habits that a ‘typical’ coffee drinker would have. 

“Coffee shops in these countries have managed to create spaces that attract not only specialty coffee enthusiasts, but also people in general who enjoy higher-quality products,” he adds.

Industry events are playing a key role in growing the market

Every year, it seems there are more and more coffee events taking place across the globe. And while some markets may be saturated with industry events, the growing number of coffee festivals in Eastern European countries are indicative of the region’s increasing interest in specialty coffee. Some examples include:

• Prague Coffee Festival
• Warsaw Coffee Festival
• Bucharest Coffee Festival
• Vilnius Coffee Festival
• Zagreb Coffee Break

The Zagreb Coffee Break festival launched in 2018 as a way to connect the local coffee community with international roasters, baristas, and enthusiasts. 

Matija is the CEO and Operations Director of Cogito Coffee, a specialty coffee roastery and shop in Zagreb. Established in 2014, Cogito now has seven locations across Croatia, as well as one in Dubai and one in Philadelphia, US.

Matija admits that while the specialty coffee market in Croatia is still relatively small, things are changing rapidly.

“Croatia is a very popular tourist destination, and people that visit are looking for specialty coffee shops,” he explains. “This is a great opportunity for us to showcase coffee quality and new ways of thinking not just to tourists, but also to locals.”

He adds that younger Croatians are helping to encourage this.

“We see that younger people in particular are travelling more, so they are exposed to different cultures and ideas,” he tells me. “This is great for specialty coffee shops because it gives us a chance to build a loyal and educated customer base, and spread knowledge about quality coffee more than ever before.”

The Southeast Asian market

Looking even further east, specialty coffee is making waves in Southeast Asia. Industry analysts anticipate strong market growth in the Association of Southeast Asian Nations (ASEAN), which includes the following countries:

• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam

According to Euromonitor International, between 2014 and 2019, sales of specialty coffee in Southeast Asia grew at a compound annual rate of 6% – compared to a global average of 5%.

This growth can be attributed to a number of factors, including the rising popularity of specialty coffee among younger consumers and the increasing availability of premium coffee products. 

Thailand, for example, is now home to a large number of young, qualified coffee professionals. Its consumers also spend more than US $1 billion on coffee annually, with US $33 million of this total spent in the “premium coffee” market.

The popularity of cold coffee drinks has also skyrocketed, with high-quality RTD options available on many coffee shop menus.

Considering that Thailand and its neighbouring countries are traditionally tea-consuming, it’s clear that specialty coffee is having a huge impact.

Looking at South Asia: From production to consumption

As for South Asia, while the specialty coffee market is still in its relatively early stages of development, there is plenty of potential for growth. In India, for example, the number of coffee drinkers has increased rapidly over the past two decades.

This is the result of factors such as rising disposable incomes, changing consumption habits and preferences, and increasing exposure to global coffee culture.

Binny is a coffee professional and consultant in India. He is also the creator of C for Coffee, an upcoming documentary about specialty coffee culture in India.

“There is an increasing trend of specialty coffee shops and chains opening across the country,” he says. “Indian coffee producers are also pushing the boundaries with coffees, particularly when it comes to processing.”

Further afield, while specialty coffee markets in other South Asian countries like Pakistan and Sri Lanka are less developed, Nepal has grown significantly in recent years.

“Nepal is definitely making some noise,” Binny explains. “There are more barista training schools in Nepal than in India, while the tourist influx – especially in Kathmandu – has also helped shape its specialty coffee culture. 

“Plus, there are many events hosted by the local SCA community throughout the year, which helps to push innovation and growth,” he adds.

Improving coffee production

With countries like India, Nepal, and Sri Lanka also producing coffee, there is ample opportunity to improve quality across the entire supply chain.

As producers receive more support to improve farming practices, we can expect to see even more growth in the coming years. However, there are also significant challenges which farmers must face in these regions, including lack of infrastructure and skilled labour. 

“When it comes to countries like Nepal, Pakistan, and Sri Lanka, coffee is not main agenda because it’s not the biggest cash crop,” Binny explains. “Skilled knowledge is limited and climate change creates even more problems, like floods in Pakistan.”

It’s evident that specialty coffee is no longer confined to the most developed markets. The ASEAN market is already growing rapidly, while the future of the Eastern European and South Asian markets also look equally as promising.

With more and more consumers exposed to specialty coffee around the world, we can expect to see continuous growth – but the rate will largely be dependent on each individual country.

Enjoyed this? Then read our article on Dubai’s blossoming specialty coffee scene.

Image credits: Blue Tokai Coffee, Quick Brown Fox Coffee Roasters

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Over the years, we’ve seen many competitors opt for additions like cryodessicated milk and lacto-fermented fruits. While it’s true that such ingredients have helped to elevate the signature beverage round, many aren’t sourced from coffee-producing countries.

But considering that competitors focus so heavily on coffee origin and processing methods, there is an argument they should also extend the same level of attention to detail to their signature beverage ingredients. Moreover, should WBC participants also try to incorporate more ingredients from producing countries in their routines?

To discuss this further, I spoke to 2023 Brazilian Coffee in Good Spirits Champion Daniel Munari from Royalty Café, and Morgan Eckroth, content creator and 2022 US Barista Champion. Read on for more of their insight.

You may also like our article on whether the World Barista Championship should also be held in Spanish.

When have WBC competitors used ingredients from producing countries?

The World Barista Championship offers competitors the chance to shine on a global stage, especially during the signature beverage round. In addition to choosing a certain coffee for this round, some WBC participants have also made the decision to use ingredients sourced from origin countries.

During the 2016 WBC in Dublin, Ireland, Mauricio Romero – the Colombian Barista Champion – used cacao and honey in his signature drink. During his speech, Mauricio explained he included cacao grown in Apartadó, Colombia to highlight the hard work of the 51 local families who produce it.

Fast forward to the 2022 World Barista Championship in Melbourne, Australia, and runner-up Morgan Eckroth used lulo juice and anise tea in their signature beverage. Otherwise known as naranjilla, lulo is a fruit which is native to northwestern South America. It’s described to have flavours similar to rhubarb and lime.

Morgan says they used anise tea to emulate the flavour of aguardiente. This is a traditional Colombian liquor made with alcohol, sugar, anise, and water.

“Using these ingredients definitely helped me to receive a higher score,” they say. “When assessing a signature beverage, the judges are looking for synergy between the coffee, the theme of your routine, and ingredients.

“By choosing ingredients that can be directly tied back to a coffee farm, there’s an opportunity to score more points,” Morgan adds. “It’s all about intention, as well as the explanation behind developing your drink, and flavour, of course.”

Why use these ingredients?

Daniel Munari is the 2023 Brazil Coffee in Good Spirits Champion. Coffee in Good Spirits has a very similar format to the signature beverage category at the WBC. During the final round, all WCIGS competitors must prepare two Irish coffees and two coffee-and-alcohol-based “designer” drinks. 

Daniel tells me he has used ingredients sourced from South American countries during several of his competition routines.

“Using ingredients sourced from origin is about showcasing more of what our countries have to offer,” he tells me. “Incorporating Brazil’s native flavours in my performances is a way of expressing my country’s culture, and showing more reasons for people to fall in love with Brazil.”

No matter which ingredients are used in the signature beverage round, competitors need to consider the balance between aroma, flavour, and texture. In turn, they can create a complex and layered signature drink – and ideally score higher in that round.

Using ingredients from producing countries, however, can help to better represent the types of cuisine common in these regions – as well as the more expansive range of flavours and textures. In many cases, these flavours are often complementary to coffee tasting notes. Additionally, some of these ingredients even grown alongside coffee plants, such as different kinds of native fruits.

How can coffee competitors use more ingredients from producing countries?

For many competitors from non-producing countries, having access to different produce and goods from origin countries is difficult. While fruits like bananas, mangoes, and pineapple are easily available, produce like dragon fruit, durian, and cherimoya (also known as sweetsop or custard apple) is much harder to come by.

Naturally, this means WBC competitors from majority-consuming countries are more inclined to use ingredients which are readily available to them. And considering that training can be stressful, time-consuming, and expensive, there’s ultimately nothing wrong with choosing more familiar ingredients. 

In fact, this can even be a positive experience. Competitors can include ingredients which represent their home countries, as well as their cultures and traditions.

But for competitors from non-producing countries who visit coffee farms, they may be able to source other local food and beverages. It’s important to note, however, that competitors should always remain intentional and mindful of how to use these ingredients in their signature beverages.

For example, Morgan says their signature drink ingredients were heavily inspired by their time spent at Finca Inmaculada in Colombia.

“Lulo is a Colombian fruit that has a really bright acidity,” they explain. “I would describe the flavour as a cross between an orange and a lemon. Aguardiente is made with anise, which is a spice that balances out bright acidity really well.

“Together, these two ingredients added more dimension to the signature beverage,” Morgan adds. “We were trying to recreate a coffee cream soda. The addition of intense acidity and aromatic spices really elevated the drink to something that was uniquely delicious. It was most definitely my favourite signature beverage I’ve ever made.”

Remaining mindful

Ultimately, any ingredients included in the signature drink round at the WBC (and other competitions) need to complement the coffee used, as well as the overall theme of the routine. 

By incorporating local ingredients from producing countries, competitors can develop a truly unique beverage. However, they must make a connection between the ingredients and their concept.

“Ask yourself what the ingredient adds to the drink – why are you using it over something else?” Morgan says. “Signature beverages are the showstopping element of your performance, which means they have to encapsulate the essence of your routine.

“So everything that goes into developing them matters – from physical preparation to the ingredients themselves,” they add.

For example, Daniel explains how he used certain Brazilian ingredients in his World Coffee in Good Spirits routine to not only showcase South American flavours, but to also add complexity and body to his drinks.

“For my hot beverage, I infused fava tonka (or Amazonian vanilla) with an aged rum so it would taste sweeter and more complex. The drink also had notes of vanilla and banana molasses.

“Meanwhile, for my cold drink, I used a cordial made from a Brazilian fruit called atemóia,” he adds. “It’s a white fruit and it tastes sweet, so it brought out some white flower notes in my drink.”

Using localised Coffee Taster’s Flavor Wheels to develop signature drinks

For coffee professionals and competitors alike, the Specialty Coffee Association Coffee Taster’s Flavor Wheel is one of the most useful tools to understand and explain flavours in coffee.

It has, however, been met with some criticism in recent years. This is largely because most of the flavours listed are more relevant and specific to non-producing countries. As a result, some of the flavours industry professionals and consumers in origin countries are more familiar with are excluded.

This also means coffee competitors from producing countries can struggle to use these resources as effectively as possible. 

For instance, panela (unrefined whole cane sugar) is popular in many Latin American countries. However, it isn’t present on the SCA Coffee Taster’s Flavor Wheel. If Central and South American (or any, for that matter) WBC competitors were looking to use panela in their signature beverages, it could be challenging to find similar sweet flavours.

“I understand why the Flavor Wheel needs to be universal, but it often means coffee professionals in producing countries don’t relate to the flavours as much,” Daniel explains. “For instance, some berries on the Flavor Wheel aren’t commonly available in Brazil.”

This has led some organisations and companies to launch their own localised flavour wheels, including in Taiwan and Indonesia. These include sensory descriptors which are native to these countries – and thereby create a more accessible resource for producers and other industry professionals.

Benefiting the wider specialty coffee sector

It goes without saying that we need to include a more diverse range of sensory descriptors on the SCA’s Flavor Wheel, as well as other relevant tools and resources. By doing so, coffee competitors can better develop signature drinks using ingredients from producing countries – and more accurately describe the flavours to the judges.

“Taste perception and flavour notes are interesting because they are, to many extents, subjective,” Morgan says. “They are derived from our own experiences, and the more experiences we can make room for, the better.”

They also believe that using local and native ingredients from origin countries can better represent the different terroirs of these regions.

“With terroir and agricultural practices playing such a major part in coffee production, it’s impossible to ignore the impact on other crops in these countries,” they conclude.

Every WBC (or WCIGS) competitor will decide which ingredients they want to use in their signature beverage course. And they can certainly choose whichever ingredients they wish to – as long as the flavours complement their coffee.

But by using ingredients from producing countries, coffee competitors can develop more unique signature beverages – and potentially explore new ways to express flavour.

Enjoyed this? Then read our article on whether WBC competitors always need to practise with official equipment.

Photo credits: Specialty Coffee Association, World Coffee Events, Daniel Munari

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Although canned lattes and cold brew are popular options in this market sector, demand for functional RTD coffees is also growing – including coffee leaf seltzer. As the name suggests, these drinks are made using leaves from coffee plants, which means they contain no caffeine.

So how is coffee leaf seltzer made and what does it taste like? And more importantly, can it help coffee producers diversify their income? To find out more, I spoke to Josh Tarlo, founder of Headstand, and Carlos Pola, a producer in El Salvador. Read on to find out what they had to say.

You may also like our article on coffee leaf tea.

How do you make coffee leaf seltzer?

Before explaining coffee leaf seltzer, it’s important to acknowledge the cultural significance of coffee leaf tea. In countries like Sumatra, Ethiopia, Jamaica, India, Java, and Sudan, people have been preparing coffee leaf tea for hundreds of years.

In Ethiopia, for example, coffee leaf tea (referred to as kuti by local Harari communities) is made by boiling coffee leaves in water for around 30 minutes. People also add sugar or salt to taste, too.

Josh Tarlo is the 2018 UK Barista Champion and 2013 Canadian Brewers Cup Champion. He tells me how he started Headstand – a UK coffee leaf seltzer brand.

“I had heard about coffee leaves being brewed like tea and I was interested,” he says. “In 2018, I spoke to Carlos Pola, who I was buying coffee from, and asked him about making coffee leaf tea so I could use it as part of my signature drink round at the World Barista Championship.

“When I tasted it I knew I needed to use it, it was delicious,” he adds.

However, he explains that it wasn’t until the pandemic that he decided to add coffee leaf tea extract to carbonated water. 

“One day it clicked that coffee leaf tea would make a delicious no added sugar seltzer,” Josh says. “I then realised that we can develop a market for it and help diversify producers’ income. 

“I spoke to Carlos again and we came up with different ways to process the leaves,” he adds. “After some trial and error, we created a method and I developed Headstand as a brand.”

Josh explains how Headstand makes its coffee leaf seltzer.

“We import vacuum-packed leaves and steep them in cold water for 24 hours,” he says. “From there, we strain the leaves and mix the leaf extract with flavourings, and then carbonate and pasteurise the drinks.”

What does it taste like?

There are some comparisons between coffee leaf tea and green tea. Coffee leaf tea generally tastes sweeter than green tea, contains less caffeine, and has a higher level of antioxidants – which can have a number of health benefits.

When added to a seltzer – a carbonated beverage made by adding carbon dioxide to water – coffee leaf tea can work as a natural sweetener. In turn, coffee leaf seltzers can be a refreshing low-calorie beverage option.

Coffee leaf seltzers can also be flavoured. Headstand, for instance, sells yuzu and ginger flavoured drinks, which also includes other natural ingredients such as chamomile, ginseng, and L-theanine. The brand also recently launched three loose coffee leaf blends which are brewed similarly to tea.

“Because coffee leaf tea is a new concept for many consumers, we need to educate them about what it is and what it tastes like, as well as its health benefits and how it can benefit coffee producers,” Josh tells me.

How big is the market for coffee leaf seltzer?

As the craft RTD coffee market grows and diversifies, it’s likely that coffee leaf seltzer will become more popular in the coming years. 

Carlos believes there is a lot of market potential for coffee leaf seltzer. 

“Josh and I have been carrying out experiments with processing methods for a long time now, and some of them have been great successes,” he explains. “Coffee leaf tea was a new and different experience for us.

“It’s a refreshing and healthy drink, as well as a way for coffee producers to diversify their revenue,” he adds.

That’s not to say however, that there aren’t challenges when exporting coffee leaves. Carlos stresses the importance of understanding the different regulations and permits needed to export them to different countries. 

“The biggest issues we face are knowing which permits to apply for, monitoring any regulation changes, and paying higher costs for air freight,” he says. “Overall, it’s been a big learning curve.”

Despite these obstacles, it’s clear there is space in the RTD market for coffee leaf seltzer. Consumers – particularly younger generations – are continuously demanding more convenient coffee products. Moreover, they are increasingly placing more importance on health and wellness when purchasing RTD coffee drinks.

“Whether it’s plant milks or functional drinks, what we consume and how it affects the wider supply chain matters to a lot of people,” Josh explains. “I see coffee leaf seltzer as part of a movement that is changing our food systems for the better.”

How can producers benefit?

Although coffee (and potentially other cash crops) is usually the biggest income generator for the majority of coffee producers, selling coffee leaves can be a boost in revenue for some – as long as they have the right level of support and resources.

As all coffee plants produce plenty of leaves, farmers are already able to start selling a new product and diversify their income. There are, however, still some challenges which producers would need to overcome to sell their coffee leaves effectively, including:

• Knowing how to process and dry leaves correctly for export
• Understanding the logistics of exporting coffee leaves to different countries
• Knowing when and how to remove leaves from branches without damaging the plants (similar to coffee flowers which can also be upcycled)

A way to better support the coffee industry?

Josh believes that selling coffee leaves could be a viable way for more producers to increase their income.

“In terms of popularity, coffee leaf seltzer could become the next kombucha or CBD-infused coffee drink,” he says. “But more importantly, it presents an opportunity to help increase the standard of living for coffee producers around the world. 

“What’s more, selling coffee leaf seltzer is a way for coffee shops to express their values around sustainability and create a more ethical supply chain,” he adds. “Covid-19 showed us how fragile our supply chain system can be, and so many coffee producers experienced a very challenging time. 

“Ultimately, it means we need to create new ways of strengthening and adding value to the whole supply chain – from producers to consumers,” he concludes.

Demand for RTD coffee beverages has never been so high, and is only going to increase in the coming years. And with health and wellness becoming a bigger focus in this market segment, it’s inevitable that consumers will want more options.

Coffee leaf seltzer certainly has potential to become more popular, especially in the specialty coffee sector. But with the numerous logistical hurdles associated with exporting coffee leaves, it may take some time.

Enjoyed this? Then read our article on how specialty coffee can push for a circular economy model.

Photo credits: Josh Tarlo, Headstand

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It’s clear that specialty coffee sees plenty of potential with the quality of these varieties. In turn, the market for high-quality low-caf coffee is slowly but steadily growing. 

Another coffee variety which is naturally low in caffeine is AC1. First discovered in Ethiopia, the Instituto Agronômico de Campinas (IAC) has carried out extensive research on this coffee to better understand its market potential. And there have been some promising results, too.

To learn more about AC1, I spoke to Dr. Julio Mistro, a researcher at IAC, and Kenean Dukamo, head of coffee at Ethiopian exporter Daye Bensa. Read on for more of their insight.

You may also like our article on Laurina coffee.

Where does AC1 come from?

Like other low-caf varieties, AC1 is naturally low in caffeine. Comparatively, AC1 contains around 0.76mg of caffeine per gram of coffee, while arabica contains an average 8 to 12 mg/g.

So where does AC1 come from?

Around 60 years ago, a group of agronomists and researchers from the UN Food and Agriculture Organisation travelled to Ethiopia. The group collected 621 variations of arabica seeds, which were shared with research institutes around the world. These included the Tropical Agricultural Research and Higher Education Center (CATIE) in Costa Rica.

Dr. Alcides Carvalho – a researcher at the IAC at the time – requested some of the seeds sent to CATIE, which were planted at Fazenda Santa Elisa in Campinas, Brazil in 1973. Some 26 years later, IAC researcher Maria Bernadete Silvarolla identified three arabica plants which produced coffee with very low caffeine content. These were the AC1, AC2, and AC3 varieties.

Dr. Julio Mistro leads the research project on Fazenda Santa Elisa. 

“AC1 is a tall plant with less angular branches [than other coffee plants], and produces relatively low yields,” he says. “The variety is moderately tolerant to coffee leaf rust, but is very sensitive to higher temperatures and dry conditions.”

Research on the AC1 variety

In a 2011 study titled Characterisation of AC1: A naturally decaffeinated coffee, IAC researchers compared AC1 to Mundo Novo. This variety is a natural cross between Bourbon and Typica which is popular in Brazil. Researchers chose Mundo Novo because of its relatively low caffeine content (between 1% and 1.2%).

Researchers compared a number of factors between the two varieties, including the development of:

• Cherry growth
• Sugars
• Organic acids
• Amino acids
• Phenolic compounds

Although AC1 cherries are smaller than Mundo Novo, there are many similarities in chemical composition between both varieties. Ultimately, this has led researchers to conclude there is potential for the AC1 variety in the global coffee market.

Is there a place in the market for low-caf varieties?

While naturally low-caffeine varieties are a relatively new discovery in the global coffee industry, decaffeinated coffee is immensely popular. According to research firm SkyQuest, the value of the global decaf coffee market will reach US $28.86 billion by 2030.

Although moderate caffeine consumption is safe for most consumers, there are many reasons why people choose to drink decaffeinated coffee. These include allergies and health concerns – especially about the processes used to remove caffeine from green coffee.

These concerns largely stem from past processes which used chemical solvent methyl chloride to remove caffeine. When consumed in high amounts, methyl chloride can potentially be toxic – which has led many companies to stop using this chemical solvent altogether.

Different decaf processes

Today, there are a number of safe ways to decaffeinate coffee, with each one having its own impact on coffee flavour and quality. The most common method is the Swiss Water process, which has been in commercial use since the 1970s.

The Swiss Water process uses fresh water containing soluble compounds from green coffee (apart from caffeine, which is removed using a carbon filter). This mixture is referred to as green coffee extract (GCE).

Green coffee is then soaked in this mixture for up to ten hours, which allows the caffeine compounds to transfer from the green beans to the GCE. This leaves around 0.01% caffeine content.

For many specialty coffee professionals, the Swiss Water decaf method preserves most of the coffee’s inherent characteristics. Moreover, it’s one of the safest and most natural ways of removing caffeine from green coffee.

Other methods include:

• The Mountain Water Process, developed by Descamex
• Carbon dioxide method
• Descafecol’s sugarcane method

Given that the various decaffeination processes can affect coffee quality and flavour profile in different ways, there is certainly more market potential for low-caf varieties. As these coffees are naturally low in caffeine, they don’t need to be chemically treated or modified. This means there is potential to preserve quality and flavour as much as possible.

Could AC1 become more popular?

With interest in low-caf varieties like Laurina and Aramosa growing in the specialty coffee sector, is there the same potential for AC1?

Although more research is needed to answer more definitively, it’s clear that low caffeine levels can be detrimental to the growth of AC1 and other low-caf coffees. This is because caffeine acts as a natural repellent against insects and pests, so coffee plants which contain less caffeine can die more quickly. In turn, despite growing interest from specialty coffee roasters and consumers, there is little incentive for producers to plant low-caf varieties.

“The IAC doesn’t recommend commercial production of AC1, and we have never distributed seeds for commercial planting,” Julio tells me. “AC1 needs different treatment compared to other varieties in Brazil, including more fertiliser application and irrigation, as well as more intensive weed, pest, and disease control methods.

“Even with these strict measures, which also cost more money, yields would still be low,” he adds. “We would need to carry out more complex studies to better understand how to scale AC1 production sustainably.”

Using low-caf varieties to diversify production

In light of the challenges associated with growing AC1 and low-caf varieties, agronomists are using these coffees to determine future market potential.

“The IAC has cross pollinated AC1 with other prominent Brazilian arabica varieties, including Catuaí, Mundo Novo, Obatã, and Ouro Verde,” Julio explains. “We then developed new cultivars with not only high yield potential, but with caffeine levels between 0.03% and 0.10%.”

Julio adds that the IAC is carrying out regional trials to select which plants could be best for commercial production.

“It will take around six or seven years to conduct these tests successfully,” he says. “We are open to collaborating with companies that are willing to invest in the final phase of the programme.”

In June 2023, the IAC reported it had planted several of these low-caf varieties on farms across Brazil, with results already seeming promising.

“The aim of the programme is to develop varieties that are more productive than Laurina, but have even lower levels of caffeine,” he tells me. “On average, Laurina contains about 0.6% caffeine, but produces very low yields and is highly susceptible to several diseases.”

Kenean Dukamo, who placed second at the 2022 Cup of Excellence Ethiopia competition, tells me that while he doesn’t grow AC1 or other low-caf varieties, there is certainly interest in doing so.

“We would be open to growing a coffee variety that is naturally low in caffeine, so we could sell it as an alternative to decaf,” he says.

Innovation is rampant in specialty coffee, and this includes expanding and diversifying the market for low-caf varieties like AC1. While it’s clear that more research is needed to better understand how to scale production of these coffees, roasters and consumers alike are increasingly showing interest.

But ultimately, for producers to grow more naturally low-caffeine varieties as sustainably as possible, it’s important they receive the right level of support and guidance.

Enjoyed this? Then read our article on whether low caffeine varieties could replace decaf.

Photo credits: Julio Mistro, Kenean Dukamo

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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.

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.

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.

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.

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.

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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At the same time, consumers’ interest in coffee education has also increased over the past few years – helping to bridge the knowledge gap in specialty coffee.

It’s fair to say that more informed consumers are a big part of achieving true sustainability in the supply chain. However, it’s also understandable to question just how interested consumers actually are in specialty coffee education. In turn, we also need to ask whether coffee shops and roasters should be focusing their efforts elsewhere.

To find out, I spoke to coffee educators Silvia Graham and Dani Bordiniuc. Read on to find out more.

You may also like our article on whether coffee consumers’ focus on education will continue beyond Covid-19.

Understanding specialty coffee’s relationship with education

The overarching aim of coffee consumer education is to inform consumers about what specialty coffee actually is, as well as how to prepare it to a high standard using a number of different brewing methods.

Simply put, specialty coffee scores 80 points or higher on the 100-point Specialty Coffee Association (SCA) scale. This score is determined by a certified Q grader. It’s based on several factors such as acidity, sweetness, bitterness, body, and uniformity, as well as whether any defects are present.

Other less quantifiable aspects of specialty coffee include more traceable and transparent supply chains, as well as more ethical and sustainable business practices – including direct trade. Moreover, especially with roasting and brewing coffee, there tends to be more emphasis on craft and skill in specialty coffee.

Silvia Graham is a co-owner of the Barista School in Romania. She is also the National Coordinator at the SCA Romania Chapter. 

She explains that some consumers may not be fully aware of broader definitions of specialty coffee.

“I can be surprised by the lack of knowledge, confusion, and misunderstanding that surround specialty coffee, thus decreasing its value,” she says. “Roasters and coffee shops both need to play their part in educating consumers more.”

Looking specifically at those who work in specialty coffee, there are a number of more formal training programmes and opportunities. Some of these include:

• Professional barista training, such as latte art classes
• Sensory analysis training, including Q grader qualifications
• Roasting workshops

What are the different types of specialty coffee consumer education?

There are many different forms of coffee consumer education. For example, coffee drinkers can pay to attend courses, workshops, and seminars, and can also take part in cupping sessions (which are usually free). Although these platforms are typically more expensive and time-consuming than other educational resources, they are usually more effective.

Other educational resources, meanwhile, include social media posts, blogs, and articles. While these are free, and therefore more accessible, they are less hands-on than classes and workshops. This can mean their effectiveness varies somewhat.

Dani Bordiniuc is a barista, coffee content creator, and coffee consultant. He is also the creator of Brewing With Dani, an educational platform designed for home baristas and coffee enthusiasts.

He tells me that one of the most effective ways to educate coffee consumers is through direct interactions. At the most basic level, this can simply involve a barista engaging with a customer in a coffee shop.

Essentially, this type of communication allows for a two-way exchange of information, while creating a more personal connection at the same time.

From his experience, Dani explains he usually begins his one-on-one educational sessions with a few questions. He says this helps to gauge the level of knowledge of the consumers, as well as the type of equipment they use at home. 

“The first priority of specialty coffee consumer education should be getting the fundamentals right,” he tells me. “For example, consumers need to understand the importance of using fresh coffee, as well as water quality and grind size uniformity, before diving into the specifics.”

By starting with the more basic aspects of brewing coffee, Dani says consumers can develop a stronger foundation on which to build their coffee knowledge.

The importance of informative and relatable education

As a means of increasing its effectiveness, both Silvia and Dani agree that consumers need to relate to the information they receive from specialty coffee educational resources. This can be done through a number of ways, such as providing analogies, alluding to personal experiences, and telling stories.

“Based on my experience as a barista and coffee shop manager, sensory experiences and curiosity play significant roles in educating consumers,” Dani says. “The approachability of specialty coffee educators is also key – language used should be simple and relatable.

“By slowly exposing consumers to different flavours and types of drinks, they will become more curious, inquisitive, and open to trying things outside of their comfort zone,” he adds. “It’s a pull rather than a push.”

However, there is also the danger of overwhelming consumers with too much information at one time. In line with this, it’s important to provide the appropriate amount of information to pique their interest, while answering all the necessary questions at the same time.

Furthermore, feeling intimidated can also be a big part of why some consumers aren’t open to knowing more about specialty coffee. In turn, industry professionals and educators need to make sure that consumers feel welcome and comfortable when taking part in classes or cupping sessions.

“Any change takes time,” Silvia says. “A consumer won’t change their mind if they are dictated to, but if you provide information in a relatable way that grants them the space to make their own decisions, you will be able to make a difference. 

“A habit is very hard to change, and as the last link in a long supply chain – baristas should remember this when educating consumers,” she adds.

What are the benefits of providing coffee consumer education?

Ultimately, there are many benefits to consumer education – both for consumers themselves and for specialty coffee overall. 

For consumers specifically, having access to high-quality and more formal educational opportunities broadens and deepens their knowledge of the coffee they drink. In theory, this enables them to make more informed choices – and potentially buy higher-quality, more sustainable coffee. 

Moreover, it also increases the chances that they will keep buying specialty coffee in the future.

Naturally, this only serves to support the specialty coffee sector in the long term. By focusing more on coffee consumer education, coffee shops and roasters can generate more sales and continue to grow. At the same time, they can build more trust between themselves and the consumer. In theory, this will also lead to repeat custom, too.

How much do consumers actually want to be educated about specialty coffee?

Many customers value convenience and speed of service over other factors – such as coffee quality – as well. This could mean their interest in specialty coffee education is somewhat limited.

In turn, many specialty coffee shops and roasters may need to target more niche demographics – including millennials and Gen Z. The latter, in particular, has an estimated US $360 billion in disposable income. Moreover, they are more likely to spend on sustainable and ethical purchases, as well as investing in education.

However, we also need to acknowledge that there are limits to the growth of the global specialty coffee industry, and thereby specialty coffee consumer education. In order to remain sustainable and pay higher prices to producers, specialty coffee needs to be marketed as a premium product which comes with a higher price tag.

Inevitably, this ostracises many consumers who may not be willing to pay more for (or can’t afford to buy) specialty coffee. What’s more, we also need to be realistic about quality standards for specialty coffee, and account for the fact that not everyone is interested in drinking higher-quality coffee. 

In turn, it’s highly unlikely that these people would be open to paying for or taking part in specialty coffee consumer education, too.

Is specialty coffee education accessible enough?

Investing in coffee consumer education can be a successful business venture for some coffee shops and roasters. However, there are important factors to consider when it comes to the accessibility of specialty coffee.

As roasters and cafés pay more money for higher-quality coffee, they also need to charge customers higher prices. Naturally, this can exclude some people who simply can’t afford to buy specialty coffee.

Moreover, given the recent economic downturn and rising inflation in many countries around the world, it’s fair to assume that many people who are interested in specialty coffee have less disposable income to spend on premium products. Similarly, they may have even less money to invest in coffee education.

Looking beyond traditional markets

It’s fair to say that in some countries around the world, the specialty coffee market is much more developed. For example, places like North America, Western Europe, Japan, and Scandinavia all have prominent specialty coffee culture. 

As a result, coffee consumer education in these countries is relatively well developed, too. However, in other parts of the world, the focus on specialty coffee education is noticeably smaller. But that’s not to say that their respective specialty coffee markets aren’t growing at pace.

Across Latin America, for instance, consumption of specialty coffee is increasing in certain countries. Using Brazil as an example, research from the SCA states that Brazil’s specialty coffee market share doubled between 2016 and 2018 from 6% to 12%. 

Similarly, the specialty coffee markets in Colombia and Mexico have also grown in recent years – indicating potential to improve coffee consumer education.

Elsewhere, in India, while the market is relatively young, specialty coffee is growing rapidly. Younger generations are now more likely to drink coffee than their predecessors, and there are many emerging specialty coffee brands in the country, too.

Eastern Europe and Baltic countries are also starting to see a rise in specialty coffee consumption. While they currently may not be predominantly specialty coffee-consuming markets, the potential for growth is certainly there.

Is there too much of a focus on traditional markets still?

At the same time, however, it’s important to acknowledge that the general format and structure of specialty coffee education is largely focused on more “traditional” consuming markets. These are mostly countries in Europe and North America, as well as Australia, and New Zealand.

Ultimately, this means that in less traditional markets, unless consumer coffee education is catered more towards market trends in the specific country, it may not be as effective and informative.

As specialty coffee continues to grow and expand into new markets, it’s likely there will be an increasing need for consumer education.

However, equally as important, we also need to understand that not everyone shares the same interest in coffee consumer education. Therefore, specialty coffee brands need to know when and where it’s appropriate to offer educational resources, as well as to which demographics of consumers.

Moreover, given its relatively small market size, the growth of specialty coffee consumer education may also be somewhat limited. This is an important factor that specialty coffee businesses should keep in mind as they look to expand their reach, too.

Enjoyed this? Then read our article on online education in the coffee sector.

Photo credits: Dani Bordiniuc, Silvia Graham

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There are many reasons why building trust is essential, but perhaps the most crucial is that it increases brand loyalty. Customers who trust a company are far more likely to continue buying its products and recommend the brand to other people.

To understand why trust is so important for coffee businesses, I spoke with Christos Sotiros, Category Executive & Master Barista at Nestlé Professional, and Anthony Douglas, 2022 World Barista Champion and training manager at Axil Coffee Roasters. Read on for more of their insight.

You may also like our article on whether specialty coffee consumers actually want to be more connected to farmers.

What does “trust” really mean?

In PwC’s 2022 Consumer Intelligence Series Survey on Trust, the accounting firm found that a staggering 91% of US consumers would continue to buy products or use services from a company that gained their trust. Moreover, 14% of people surveyed said they would buy “significantly more” products from a brand that they trust.

The same study shows that a lack of trust can be a deal-breaker for many consumers. In fact, 44% of people surveyed stopped buying from companies that they don’t trust.

Another study conducted by Zeno in 2020 revealed that consumers were four to six times more likely to buy from companies with a “strong brand purpose”, as well as trust and champion them as brands.

However, what does “trust” really mean, especially in the context of the coffee industry?

In simple terms, trust is the belief that a customer has in a business to deliver on its purpose. Furthermore, when a consumer trusts a brand, they have faith that the company operates with their best interests in mind – including manufacturing and selling quality products or providing excellent service.

Christos explains for coffee shops and roasters, maintaining coffee quality and demonstrating care and attention to detail are an essential part of building trust.

“Along with great customer service, coffee businesses need to add value to their products,” he says. “Specialty coffee consumers are looking for high-quality coffees that are both traceable and sustainable.”

Forging trust between baristas and consumers

In many cases, building trust between a coffee brand and its customers is largely the responsibility of the business owner. 

However, during his winning 2022 World Barista Championship routine, Australian barista Anthony Douglas focused heavily on why building trust between baristas and customers is so important.

“A big part of trust is delivering on expectations,” Anthony explains. “The World Barista Championship is a great platform for coffee professionals to develop these skills.

“After all, a big part of the WBC score sheet is based on whether or not the judges experienced the same flavours and service as you said they would,” he adds.

In his routine, Anthony mentioned that in order for customers to understand and appreciate the full extent of specialty coffee, sensory experiences need to match the expectations that the industry sets.

“A customer’s experience in a coffee shop needs to be reflective of green coffee quality, processing techniques, roasting, and method of brewing,” he tells me. “The more that baristas can represent this level of quality, the easier and more motivating it is for customers to expand their knowledge of specialty coffee.

“At the core, consumers are looking for their expectations to be met,” he adds. “When their expectations are met or exceeded, it creates trust and comfort, and opens people up to be more curious and to explore.”

How can lack of trust have a negative impact on coffee businesses?

A lack of consumer trust can have a number of negative effects on a coffee company. Perhaps the most obvious is that a customer may decide to start buying from other competing brands.

If people don’t feel as though a coffee shop or roaster can meet certain standards and requirements, it’s likely that they will look for other alternatives.

Moreover, a lack of trust can also damage a coffee company’s reputation. Social media has made it easier than ever for customers to share details of their experiences with companies, whether good or bad.

If a coffee business loses the trust of customers, they’re more likely to post negative reviews or comments online, which can deter other people from purchasing their products.

Accounting for different needs and expectations

Anthony tells me that he has been working at Axil Coffee Roasters since 2013, and has seen just how important consumer trust is for a coffee business.

“When there is a lack of trust between customers and a coffee business, it closes people off,” he says. “It also makes it harder to deliver a great experience as the customer is already in a negative frame of mind, and it ultimately reduces the incentive to return to the coffee shop or roaster. 

“One of the best ways to build trust is to create sensory and customer experiences which accurately reflect the quality of the coffee you’re serving,” he adds.

Clear and concise communication between baristas and customers is key to creating a positive experience, and indicating to consumers what they can expect from their coffee in terms of flavour, quality, and mouthfeel.

However, baristas need to acknowledge that each customer is different, and will therefore have different needs and expectations. These are often informed by:

• Age
• Personal preferences
• Cultural background (for example, when it comes to customer service, Italian consumers are likely to have very different expectations to US coffee drinkers)
• Interest in and knowledge about specialty coffee

By accounting for these differences, baristas are able to gauge a customer’s needs more accurately and effectively.

“We have seen significant differences in coffee drinking habits between different countries, cities, and consumer lifestyles,” Christos tells me. “Targeting specific age groups with particular menu items could have a positive impact on coffee shops.”

For example, research has shown that younger demographics tend to value more premium and sustainable coffee products, while older consumers are more “traditional” coffee drinkers.  

Furthermore, convenience is also key for many consumers, so offering high-quality ready-to-drink beverage options can help to retain customer loyalty.

Building trust on expectations

As a coffee business owner, it’s important to understand that customers already have a set of expectations when they walk into a café or choose to purchase a product. It’s vital to meet these expectations, but it’s even more important to exceed them whenever possible.

First and foremost, however, it’s crucial that coffee business owners ensure that their employees are in agreement with the company values. According to a Harvard Business Review study, people working at “high-trust” companies reported 74% less stress, 50% higher productivity, and 29% more satisfaction with their lives overall.

Ultimately, creating an internal culture of trust helps to extend this to the customer experience. When baristas and other employees feel more valued and respected, they are likely to perform better at their job – meaning that they provide better customer service.

Price is another key point to consider when it comes to building trust. Generally speaking, customers expect to get what they pay for, so if a cup or bag of coffee has a more premium price, they will expect to receive a higher-quality product.

In line with this, specialty coffee shops and roasters need to make sure that their prices reflect the quality of the products they sell, as well as the quality of the experience they are providing.

The role of the barista

A large part of a barista’s job customer-facing. Anthony explains that this means the responsibility of building trust with the consumer largely lies with them.

“If the ultimate goal is to build trust and deliver on expectations, then more emphasis needs to be placed on moulding those expectations accurately in the first place,” he says. “For example, a barista can develop their skills to taste and describe coffee flavour and quality, so that they can better convey this information to other staff members.

“In turn, these staff members can then better educate consumers with informational cards and recommendations on how to drink certain coffee beverages,” he adds. “I see this being a much bigger focus in the years to come, and I look forward to seeing how creative coffee brands will be with these efforts.”

It may seem simple, but building trust with consumers is essential to any direct-to-consumer coffee business – whether they’re a coffee shop, roaster, or equipment manufacturer.

By taking the time to understand the unique expectations of different types of customers – and aiming to exceed these expectations – coffee companies have a much higher chance of improving brand loyalty and forming long, trusting purchasing relationships.

Enjoyed this? Then read our article on why specialty coffee must remember that convenience is everything.

Photo credits: Melbourne International Coffee Expo, World Coffee Events

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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.

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.

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.

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.”

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.”

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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Many are wondering if this market consolidation is the beginning of a wider change for the industry, and if specialty coffee may soon become dominated by a few holding companies, rather than being spread between a much broader range of brands.

However, it’s clear that Covid-19 shifted how coffee businesses operate, which ultimately influences the motives behind acquisitions. With more and more companies in the coffee industry now seeking guaranteed opportunities for growth, acquiring specialty brands could be a way forward.

To understand why coffee company acquisitions are becoming more prominent, and what this shift could mean for the global coffee sector, I spoke to several industry experts. Read on to find out what they had to say.

You may also like our article on opening & managing multiple coffee shops effectively.

What are mergers and acquisitions?

Mergers and acquisitions are commonly grouped together when talking about the transfer of business ownership or consolidation within the market. But what are the differences?

At its simplest level, a merger is an agreement between two companies to join together and form one company. This is done for a number of reasons, including establishing a broader market reach or gaining more market share.

Acquisitions, meanwhile, are when one company buys some (or even all) of another company’s shares. In this case, companies might retain their own names and branding, or the original operation might become absorbed and rebranded accordingly.

There are many reasons why companies choose to purchase shares in other businesses, or allow other companies to acquire stakes in their business. Similarly to mergers, the biggest reason is to expand or diversify their reach or customer base, or to enter new markets using another brand’s pre-existing expertise.

Alternatively, companies may acquire other brands to gain access to new technologies or intellectual properties. Not only can this help a business to keep up with competitors, it can also help them to quickly hire staff and access resources needed to launch new products and services.

Recent major acquisitions in the coffee sector

Over the past decade, there has been a run of significant acquisitions in the coffee industry – including both larger chains and smaller specialty coffee brands.

One of the most significant examples was in 2019 when Coca-Cola acquired UK coffee chain Costa Coffee for around US $5 billion. The acquisition was driven by a number of factors, but possibly because US consumption of carbonated soft drinks hit a 30-year low in 2017.

In 2021, Coca-Cola HBC (the world’s third-largest bottler of Coca-Cola products) purchased a 30% equity share in Caffè Vergnano – one of Italy’s oldest coffee roasters.

Another example is Nestlé, which purchased a majority stake in Blue Bottle Coffee in 2017 – a specialty coffee roaster in the US and Japan.

Corporate interest in specialty coffee brands has seemingly been increasing over the past decade.

In 2012, German conglomerate JAB Holding Company acquired San Francisco’s Peet’s Coffee – a pioneer of the specialty coffee industry. Subsequently, three years later, Peet’s purchased Stumptown Coffee Roasters – another prominent specialty roaster in Portland, Oregon. JAB Holding also acquired the coffee and food-to-go chain Pret A Manger in 2018.

Broadly speaking, these acquisitions of coffee brands are a means of expanding into new markets (such as specialty coffee) by leveraging existing expertise and established brands. For instance, Starbucks and Blue Bottle offer different products to two very different consumer bases, providing them with reach within two important (and profitable) market segments.

Acquisitions can also help existing brands move into new international markets, too. For example, international food and ingredients company ofi completed the acquisition of 116-year old Canadian coffee roasting and packaging company Club Coffee earlier this year. Ultimately, this gives the company the chance to expand in North America (one of the biggest global coffee markets) while retaining Club Coffee’s expertise and established brand image.

Has Covid-19 changed things?

While there has clearly been interest in acquiring coffee brands for well over a decade, Covid-19 has certainly influenced growth strategies for many companies.

Towards the beginning of the pandemic, a staggering 95% of out-of-home coffee businesses were forced to close operations for several months. Naturally, this resulted in a huge spike in home coffee consumption, as consumers started to prepare more café-quality beverages at home.

Undoubtedly, larger companies wanted to capitalise on this shift in coffee consumer behaviour, but doing so was by no means easy.

Umberto Doglioni Majer is President and Chief Executive Officer at Vea Ventures, a holding company  which owns several coffee machine brands, including Carimali, Elektra, and Bellezza. 

He explains that it can be difficult to scale a specialty coffee brand’s reach quickly because of the inherent challenges that come with it, such as sourcing high-quality and traceable coffee.

“[Specialty coffee companies] can be considered growth companies,” he says. “This term describes smaller brands which bigger companies can acquire as platforms to build on.

“However, returns on an investment like this don’t usually happen quickly,” he adds. “It can take years [to turn a profit].”

Umberto says that many larger companies are now seeking growth opportunities with a better chance of success. In his experience, he says this means acquiring shares in brands that are more established, with a proven record of profitability and a loyal customer base.

“Factors such as the pandemic, rising inflation, and crashes in the stock market have led to an increased interest in acquiring more established companies,” he tells me. “This is because these brands will already have better profit margins and larger consumer bases.”

Can specialty coffee brands remain competitive if the market consolidates?

The current economic climate for smaller coffee businesses is challenging to say the least. The C price recently reached a 10-year high, shipping is incredibly expensive, and profit margins for roasters have tightened in the past few months.

This has made it more difficult for smaller roasters and coffee shops to remain profitable, and less buying power means they may struggle to compete with more established brands which have been acquired by a multinational.

So what can they do to compete?

In some cases, smaller coffee companies can merge themselves. For example, Fairwave is a collective of specialty coffee brands who decided to merge following on from the pandemic. These companies include The Roasterie, Messenger Coffee Company, and Spyhouse Coffee Roasters.

However, the consolidation of brands doesn’t only happen through acquisitions and mergers – it can also take place through strategic partnerships and shared services initiatives. 

One example is The Curate Coffee Collective, which is a shared roasting facility in Portland, Oregon. Since 2020, the facility has been open to roasters of all sizes, and offers them access to equipment and office space, as well as educational resources. 

However, this model isn’t that common within the coffee industry – particularly in the specialty sector.

Spencer Turer is the Vice President of coffee consultancy Coffee Enterprises.

He points out that despite how difficult it can be for smaller coffee brands to remain profitable, mergers and acquisitions may not always be the best solution – especially with larger companies such as multinationals.

“The backbone of the specialty coffee industry is still largely formed of small regional companies,” he explains. “If these roasters and coffee shops have the skills, knowledge, and expertise – and are successful at what they do – then why should there be a reason for them to merge or be acquired by a bigger company?”

While mergers and acquisitions with larger brands can certainly help smaller coffee brands to grow and reach new consumer bases, there are also understandably concerns over how quality control can be scaled and maintained.

In the months and years that follow the Covid-19 pandemic, we will see just how prevalent mergers and acquisitions will be in specialty coffee – especially if the world moves towards a period defined by a global economic downturn. 

It’s clear that consolidation through acquisitions and mergers will nonetheless continue to be part of the conversation about how the industry evolves and scales into the future. This then raises questions about how smaller regional businesses can remain profitable.

Ultimately, for smaller coffee shops and roasters, the most important thing is understanding how you can continue to appeal to your customer base. In some cases, this might mean innovating in line with third wave coffee trends, but in others, it may mean just listening to what consumers want from you – and catering to that accordingly.

Enjoyed this? Then read our article on changing your business’ coffee strategy after Covid-19.

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