Let’s review the most recent coffee trends as reported in the National Coffee Association’s Coffee Drinking Trends Report for 2008. Daily penetration of total coffee has peaked and is holding steady from 2007 with 55% of the U.S. population over 18 drinking coffee yesterday (recent consumption). The same consistent trend can be seen in those consumers reporting drinking coffee over the past week and past year. The big news is a decline in the 18-24 year old coffee consumption which is a function of the overall economic slowdown.
Cups per day among daily coffee drinkers have remained the same from 2007 to 2008. While total coffee showed a slight decline, gourmet coffee beverages (defined as premium whole bean or ground varieties) have increased. Another key growth segment is in the iced beverage segment, defined as iced or cold coffee or frozen blended coffee. These are the two areas to focus on when presenting coffee to your customers. While most consumption of traditional coffee occurs during breakfast, gourmet and specialty coffee consumption, while still skewed towards breakfast, is also consumed during other dayparts, particularly in the afternoon. This is another reason to focus on these categories to increase sales.
The most recent NPD/CREST data on coffee also shows strong growth in the specialty coffee category with gourmet coffee & tea shops and hamburger chains driving the trend. This trend will continue in hamburger chains as espresso and other programs are launched.
Varied menu restaurants, the stronghold of traditional coffee, declined double digits over the past year. This is the main contributing factor in the decline of traditional coffee.
General factors that influence coffee consumption include convenience (especially drive-through with QSR chains) and c-stores. The experience factor also comes into play with consumers opting for gourmet coffee and branded coffee offerings. The service mode (self-serve, traditional wait staff-served) is also important when reviewing coffee trends.
Focusing on the key growth trends in all segments will help you stay current with consumer demands and sell more of this important beverage category to your customer segment.
