{"id":10138,"date":"2019-12-06T08:00:59","date_gmt":"2019-12-06T14:00:59","guid":{"rendered":"https:\/\/www.ulprospector.com\/knowledge\/?p=10138"},"modified":"2022-05-31T14:21:45","modified_gmt":"2022-05-31T20:21:45","slug":"fb-coffee-industry-trends-breaking-out-of-the-daily-grind","status":"publish","type":"post","link":"https:\/\/ulprospector.ul.com\/10138\/fb-coffee-industry-trends-breaking-out-of-the-daily-grind\/","title":{"rendered":"Coffee Industry Trends: Breaking Out of the Daily Grind"},"content":{"rendered":"

\"PhotoCoffee has taken root and staked its claim as a priority in the lives of many. And the coffee industry continues to grow. So what is changing that is driving the coffee industry toward growth? It\u2019s not just<\/em> an almost comical international caffeine addiction. What\u2019s changing are coffee industry trends: what people expect in what their coffee provides, how their coffee is prepared and delivered, and the impact their coffee consumption has on others and on the planet.4<\/sup><\/p>\n

In 2018, Americans spent $9.37 billion on dry coffee alone, not to mention liquid and ready-to-drink coffee products.1<\/sup> Even while having such a stronghold in the economy, the coffee market is expected to have a 5.5% compound annual growth rate (CAGR) from 2019 to 2024.2<\/sup> Coffee exports represent a $20 billion industry for developing countries, which are typically the producers of coffee who then export to industrialized countries.3<\/sup><\/p>\n

Coffee industry trend #1: What people expect from their coffee<\/strong><\/h3>\n

Consumers are increasingly seeking coffee that has additional health benefits beyond the jolt of energy they feel with caffeine. Many consumers look for coffee that is \u201cpure\u201d and \u201cnatural,\u201d and they also are exploring additives that lend additional functional nutrition.<\/p>\n

There are many additives that coffee enthusiasts encourage using to fortify coffee, such as cinnamon, cocoa, coconut oil, cardamom, collagen, butter, cayenne pepper, and protein.5,6<\/sup> These ingredients have gained a following as functional foods in other arenas, and ready-to-drink coffee is primed as the next area for growth.<\/p>\n

Coffee industry trend #2: How coffee is prepared<\/strong><\/h3>\n

Ready-to-drink (RTD) coffee is not only uniquely positioned for success with meeting consumer expectations for extra-healthy coffee; RTD coffee is also on the rise as a preferred coffee product. Younger consumers, in particular, are most likely to purchase RTD coffee and prefer this as their coffee delivery method.4<\/sup><\/p>\n

In part, this is due to the fact that younger coffee consumers are less comfortable brewing coffee, and this trend is likely susceptible to economic changes. Should there be changes in the economy that drive consumers away from RTD coffee, manufacturers may need to meet consumers\u2019 needs with a new delivery method for coffee. Currently, many consumers feel favorably about single-serve coffee, and that is shifting as people think about the impact of the packaging on the environment.4<\/sup><\/p>\n

Coffee industry trend #3: Sustainable coffee practices<\/strong><\/h3>\n

Sustainability and the longer-term impact of coffee consumption habits on the planet is another driving factor in the expected growth of the coffee industry. Consumers are interested in choosing coffee that is ethically sourced, knowing that the boom of the coffee industry in some developing countries led to slavery.7<\/sup> Consumers also consider the amount of waste and packaging produced by the coffee they consume, and think about how to decrease that waste.<\/p>\n

As coffee manufacturers innovate coffee preparation and delivery systems, this will be a key consideration for them, as well. Manufacturers have an opportunity to think creatively about how to meet the needs of the substantial demographic of young consumers. They prefer RTD coffee and want to avoid brewing their own, yet may have changing needs in the future should their or the national economy shift and no longer permit RTD coffee as the main coffee source.<\/p>\n

Coffee industry trend #4: Transparency in labeling<\/strong><\/h3>\n

A few other considerations for manufacturers lie in the risks of overstating the perks of their product. First, avoiding false health claims on the labeling of fortified coffee products is important. This will help avoid future difficulties with the Fair Trade Commission by adhering to labeling requirements.8<\/sup><\/p>\n

Next, manufacturers need to keep in mind to take care to not overstate the sustainability of their product and the sources and production of the product, as this violates consumer trust and puts the manufacturer at a disadvantage for sales, should the consumer perceive them as dishonest.<\/p>\n

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