Bringing the coffeehouse vibe to consumers
Coffee consumption is expected to grow at 2 percent a year until 2020 in the U.S.
Beverage manufacturers are working hard to bring the coffeehouse vibe home and consumers are responding. The market research firm Packaged Facts estimates the market for packaged and ready-to-drink coffee sold at retail was $13.5 billion in 2015. By 2020, sales are expected to be nearing $18 billion.
“The coffeehouse revolution created a new generation of consumers who appreciate premium and specialty coffee,” says David Sprinkle, research director for Packaged Facts.
According to Java Master, nearly all pre‐packaged coffee is marketed as “fresh‐roasted,” and the majority of coffee drinkers buy into the message. The traditional, drum‐roasting method (usually gas‐powered) can result in scorched beans, and a bitter taste. Coffee does not have to be bitter. It is all about the roasting process.
In contrast, the Java Master Roaster uses convection technology to assure a uniform roast that allows consumers to enjoy a fresh brew. The company’s patented roasting process removes the chaff from the beans—automatically and immediately, which yields an exceptionally clean, fresh taste.
Coffee consumption is being spurred especially by two major factors: Americans begin drinking coffee at earlier ages, due to less of a stigma around it, and younger adults are more than making up for the decline in the older population in daily consumption.
According to Chicago-based researcher Dataessential, young people aged 19 to 34 account for roughly 44 percent of the U.S. coffee demand. Americans born after 1995, on average, began drinking coffee between the ages of 14-15, while those born after 1982 began at 17.
Aiming to spur growth with seasonal flavors, Community Coffee Company announced its recent introduction of Community® Mardi Gras King Cake, now available in select stores across the South. This Limited Time Offer King Cake flavor features a balanced combination of cinnamon and vanilla. Available in both 12-ounce bags and single-serve K-Cup® boxes, this blend provides a subtly sweet flavor that exemplifies the fun and spirit of the carnival season.
Image courtesy of Community Coffee Company
“Mardi Gras King Cake has become our most anticipated blend around this time of year,” says Jodi Conachen, general manager of communication at Community Coffee Company.
The National Coffee Association reports that daily coffee consumption among 18- to 24-years-olds rose to 48 percent from 34 percent in the last eight years, while it climbed to 60 percent from 51 percent among those aged 25 to 39. Meanwhile, those 60 and older see a sharp decrease in coffee drinking, as it fell to 64 percent from 76 percent in that same time span.
Coffee consumption is expected to grow at 2 percent a year until 2020 in the U.S., the world’s largest national coffee market,
Growth in the industry may be attributed to three segments — single-cup coffee, cappuccino/iced coffee and refrigerated ready-to-drink coffee, according to Packaged Facts’ “Coffee and ready-to-drink coffee: U.S. retail market, 9th edition” report. At the same time, traditional coffee products such as ground coffee and instant coffee have seen declines. Ground coffee is still the largest contributing segment to the category, although single-cup has been quickly closing the gap.
Yet the retail revolution is not without its complications. Many older and more traditional consumers are still purchasing ground coffee in cans. Another large consumer segment came of age being exposed to specialty coffee, and that group views canned coffee as outdated and unpalatable. The retailer’s consumer base is now highly polarized.