Millennials push record coffee demand
Bloomberg is reporting that the coffee craze in the United States is being driven by millennial consumption. Global demand, especially in the U.S., is at an all-time high even though supplies are shrinking.
The coffee consumption trend is being spurred especially by two major factors: 1) Americans begin drinking coffee at earlier ages, due to less of a stigma around it and marketing efforts, and 2) These 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.
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% a year until 2020 in the U.S., the world’s largest national coffee market, while other countries are seeing a decline due to lagging economic growth. The U.S. accounted for 16% of global coffee consumption in 2015-16. Many believe that the promotion of coffee for its health benefits has been primarily responsible for its upswing in growth.
This is good news for bakeries and cafes that receive a major boost for coffee sales. Millennials’ buying power continues to increase just as they have begun to account for over a quarter of the U.S. population, and businesses that can tailor themselves to that segment’s tastes will be set up to succeed.