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Coffee Business Trends

What's Brewing in Your Future?

The consumption of specialty coffees has become remarkably relevant and contemporary. Coffee houses and coffee bars are now an everyday part of the national landscape and an essential ingredient in many social gatherings. The trend toward gourmet coffee (espresso-based cappuccino, latte, etc.) reflects a continued shift in preferences, as coffee drinkers are now seeking higher quality and a greater variety in the coffee they drink.

The sale of gourmet coffee began in the United States in 1960 and grew to an annual retail volume of just under 45 million dollars by 1970. This volume exceeded 1.5 billion dollars by 1989. Growth continued throughout the 1990's when annual sales jumped to over 5 billion dollars of specialty coffees sold per year by the beginning of this millennium, with no slowing down in sight.

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After petroleum, coffee beans is the second largest commodity in the world employing over 20 million people. Coffee continues to be the largest single contributor to the food-service economy, accounting for nearly 30 percent of all available food-service dollars.

"Consumers are responding to the wider variety of coffee options now readily available to them," said Robert F. Nelson, president and CEO of the National Coffee Association (NCA). "Coffee has become a treat as well as a staple, and Americans are enjoying this happy duality."

According to NCA, in their 2004 survey 'National Coffee Drinking Trends', nearly eight out of 10 Americans drink coffee, with over half of the population drinking coffee daily. More importantly, daily specialty coffee consumption spiked from 12 percent to 16 percent this year.

This year has also shown the first noteworthy spike in seniors' specialty coffee consumption. Coffee drinkers age 60 and older appear for the first time to have shifted consumption toward gourmet coffes, up from 9 percent to 13 percent. This finding signals a significant new shift in the attitude of older Americans toward a variety of coffee options.

Among all age groups, the convention uncovered an increase in out-of-home consumption, a shift from recent trending toward in-home consumption. Among coffee drinkers aged 25 to 29, out-of-home consumption jumped from 42 percent to 66 percent, and among those aged 30 to 59, from 33 percent to 46 percent.
 
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The increase in specialty coffees consumption appears to be driven for the first time by espresso-based beverages, with a jump among daily drinkers from 4 percent to 7 percent. This trend appears to align with the new increase in out-of-home consumption, reported NCA.

The convention also uncovered a major increase in coffee drinkers who drink both traditional and specialty coffee beverages, up from 38 percent in 2003 to 54 percent in 2004, as reflected in the pie-graphs above. This is a shift from drinking primarily ordinary coffee to now including more specialty coffees.

More NCA Survey Results:
• 52 percent of the population of the U.S. over 18 years of age drink coffee every day, representing over 107 million daily drinkers.

• Of these, nearly 30 million Americans drink gourmet coffee beverages every day - specialty coffee and espresso-based beverages (latte, espresso, cafe mocha, cappuccino).

• Another 28 percent of the population, or 57 million adults, drink coffee at least occasionally.

• Coffee drinkers consume on average 3.3 cups of coffee per day (the average coffee cup size is nine ounces).

• 64 percent of all coffee is consumed in the morning, 28 percent between meals, and eight percent at all other meals.

• On a per capita basis, men and women drink similar amounts of coffee each day.

• Women indicate that drinking coffee is a good way to relax, and tend to be more price-conscious than men.

• Men more readily attest that coffee helps them 'get things done' and don't pay as much attention to price.

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Coffee Business Trends


 


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