EXCLUSIVE: How the coffee trend has been evolving, according to Euromonitor
Coffee is being consumed in various occasions, a role that is previously served by carbonated drinks.
Coffee is said to be transforming as a beverage as coffee trends and consumer demands continue to change. This is according to a webinar by Euromonitor, “Coffee in 2018: The New Age of Coffee Everywhere”.
Michael Schaefer, global lead for food and beverage at Euromonitor International, stressed that global coffee sales will surpass the growth of packaged coffee through 2022. Driven by the premiumisation trend, consumers have been adventurous as they are shifting from their low-priced instant coffee to other types such as espresso, cappuccino, and cold brew.
Having this said, he also mentioned that even foodservice operators are adding coffee to their offerings that serve “as a high-margin addition to the menu and as a means of building and reinforcing a premium brand”.
“There is already talk of a fourth wave, one where the boundaries between foodservice and retail, hot and cold become increasingly blurred, with good coffee in demand through every channel,” Schaefer said.
“More broadly, coffee shops and other foodservice environments, by providing a strong service element, a craft element, have been able to tap into growing consumer demands for quality. Coffee away from home is social, artisanal, fun in a way that packaged coffee producers have found difficult to duplicate at home,” he added.
Packaged food and beverage players will continue to invest in coffee shops to have a more direct presence in foodservice. Events related that took place this year include Nestle’s partnership with Starbucks as well as Coca-Cola acquiring Costa Coffee.
“In much the same way that bars and restaurants have long served as a key point of discovery for alcoholic beverages, coffee shops drive new beverage innovation—cold brew coffee, kombucha, etc. While packaged beverage manufacturers still vast resources for retail distribution, too many brands are being generated away-from-home to ignore. I would expect more investment to come, as still more operators look to build out their presence.”
Coffee has also been evolving in terms of why people are consuming it. Some drink coffee for indulgence, a way to replenish energy or for social purposes.
“Coffee is also a potent traffic driver in markets with high levels of per capita consumption because it can drive daily trips to coffee shops and other outlets, generally as part of the morning commute,” Schaefer said.
“More generally, coffee benefits from a degree of versatility—it can contain high levels of sugar or none at all, hot or cold, and has continued to move into a range of new occasions previously served by carbonated soft drinks, energy drinks, and others.”
