Coffee lovers and market players, this blog post is for you!
Coffee, one of the world’s favorite beverages and a daily staple for many, is constantly reinventing itself! The coffee market is dynamic, but currently facing a significant challenge: Robusta prices have increased by 200% in the last two years. This is due to climate change, including a lack of rain and significant temperature variations.
This situation invites us to look at new market trends, influenced by consumers who are budget-conscious, environmentally aware, and seeking new experiences.
$108.4 billion by 2029
With the rising cost of coffee, at-home coffee consumption continues to grow. The global at-home coffee market, which includes whole bean coffee, ground coffee, pods, and instant coffee, is expected to reach $108.4 billion by 2029 (Stylus).
Making coffee at home is significantly cheaper than purchasing it to go or enjoying it at a café. In Canada, 94% of coffee drinkers think that brewing coffee at home is an effective way to save money (Mintel, The Future of Coffee: 2024).
Similarly, in the United States, 83% of consumers believe that good coffee can be affordable.
Beyond cost, time is a factor influencing at-home coffee consumption. Preparing coffee, whether using capsules or ground beans, remains a quick and easy process. However, this convenience isn’t the only driver. While speed is a key consideration for many, the desire to replicate the coffee shop experience at home and play barista holds significant weight. The ability to customize drinks to suit dietary needs and preferences is both appealing and reassuring.
This ‘Barista Experience’ trend is driving coffee brands to develop innovative product lines. Nescafé is a good example with its Expresso Concentrate range. A liquid coffee concentrate that allows consumers to prepare iced coffees and replicate the barista experience at home.
A great example of a brand that specializes in the ‘Barista Experience’ is Califia Farms, a California-based company known for its plant-based milks, creamers, and ready-to-drink coffees and teas.Their innovative approach, highlighted by the “Barista Blend” for crafting café-quality drinks at home and the ready-to-drink “Cold Brew Coffee,” creates a unique barista experience. The brand aims to appeal to a broad audience, from dedicated coffee enthusiasts to those simply seeking original and delicious plant-based beverages, with options like Peppermint Mocha milk and Sugar Cookie Almond Creamer.
Credits: Califia Farms
A great example of a brand that specializes in the ‘Barista Experience’ is Califia Farms, a California-based company known for its plant-based milks, creamers, and ready-to-drink coffees and teas.Their innovative approach, highlighted by the “Barista Blend” for crafting café-quality drinks at home and the ready-to-drink “Cold Brew Coffee,” creates a unique barista experience. The brand aims to appeal to a broad audience, from dedicated coffee enthusiasts to those simply seeking original and delicious plant-based beverages, with options like Peppermint Mocha milk and Sugar Cookie Almond Creamer.
Under-30s, shunning alcohol and traditional cafes, embrace the coffee shop culture.
Many people are looking for taste experiences, translating into a demand for quality coffee, exploring different aromatic profiles, and discovering various coffee origins. Coffee shops are attracting a younger target audience, those under 30, who consume less alcohol, frequent traditional cafes and brasseries less often, and are looking for a welcoming environment offering a wide range of beverages (lattes, cappuccinos, matcha, flat whites, etc.).
Many players, especially luxury brands, have recognized this strong demand as a significant opportunity. By creating new retail spaces, brands aim to immerse customers in their unique worlds, enhance their brand image, and attract a wider audience. These spaces are designed to generate buzz on social media, with the intention of making them go viral through user-generated content.
While some brands are satisfied with temporary pop-ups, others, like Ralph Lauren, choose to create sustainable concepts. Since 2014, Ralph Lauren has opened cafés around the world to expand its broaden its customer base.
These spaces serve as real assets for the brand: in addition to expanding its customer base, they enable experimentation with more accessible concepts. Ralph Lauren has created an exclusive yet affordable collection, sold in its cafés, featuring mugs, plates, key rings, clutches, beanies …
Credit: Ralph Lauren
The coffee market, exciting and full of opportunities, is constantly evolving in line with consumer behavior.
While coffee brands are striving to reconcile affordable prices with consumer values, luxury brands are focusing on innovation with new concepts to extend the customer experience and reinvent themselves.
This question of sustainability is crucial for brands that are considered like icons. How can they remain true to their essence while preserving their iconic status? How can smaller brands can become icons?
