Nearly half of global coffee launches in 2020 were sustainable: Mintel
This was close to double from 2012.
More consumers around the world are drinking coffee “with a conscience”, with new research from Mintel revealing 48% of all new coffee product launches in 2020 carried an ethical or environmental claim.
This was close to double the number from almost a decade ago (2012) when just 25% or one in four coffee launches were sustainable.
On pods or capsules, Mintel said only two in five pods (39%) globally carry a recyclable claim. Currently, one in ten pods/capsules uses a biodegradable claim (11%) and/or a compostable claim (10%).
Overall, coffee fares well in the sustainability front compared to the total food and drink market where just 35% of new product launches carry a sustainable claim in Europe - in comparison to 64% of coffee launches in the region.
“Undoubtedly, sustainability will be the defining issue for the coffee industry over the next 20 years. Consumer expectations of coffee brands will rise dramatically as eco-anxiety replaces pandemic paranoia. Consumers are becoming more aware of carbon emissions and coffee is one of the worst offenders,” Mintel Food & Drink associate director Jonny Forsyth said.
“The more activist-minded younger generation will show less tolerance for waste, especially pods that are recyclable but rarely recycled, with launches of ‘greener’ pods expected to grow fast.
“COVID-19 has made consumers more sensitive to inequalities, and most farmers are poorly paid despite coffee's huge profits and use of fair trade claims. Brands will need to help farmers navigate global warming to avoid the loss of supply and livelihoods. Brands will need to be much more 'hands on' and put their sustainable values and actions at the heart of their brand message,” he added.
COVID-19 also brought about a 8% rise in total global packaged coffee launches during 2020, compared to 2019. Fresh varieties including pods (24%), ground (23%), and beans (15%) now account for almost two thirds of global coffee innovation collectively, Mintel said.
The ‘in-home barista’ trend is far more developed in North America, Europe and Australasia, where pods, beans, and ground coffee account for 77% of all coffee launches, compared to just 44% in Asia, Latin America, the Middle East, and Africa - where mixes (20%), instant (18%) and ready-to-drink (RTD) (19%) varieties dominate.
Ground coffee also experienced a jump in innovation in the said Western markets, accounting for 24% of new product launches in 2020 compared to 19% in 2019.
In the UK, retail coffee sales also increased by 13% in 2020 compared to 2019, versus a 38% decline in revenue for coffee shops.
