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 rising trend in the coffee industry is its transformation into a functional beverage. Coffee is increasingly seen as a functional beverage, particularly among Gen Z and Millennials who are integrating it into their health lifestyles.
In the UK, 38% of Millennial coffee drinkers express interest in coffee with added health benefits, while 26% of US consumers are drawn to functional innovation in this category (Mintel). This growing trend has sparked a wave of innovation, especially in what goes into the coffee itself.
Creamers, originally added for flavor, are now being enriched with nutrients and supplements that promote wellness, many containing probiotics or ingredients like collagen, which have a range of health benefits.
26% of US consumers
are drawn to functional innovation in this category
Among the leading brands, Vital Proteins stands out with its Collagen Creamer, designed to deliver a wellness boost by supporting healthy hair, skin, nails, and joints.
A trend further reinforced by the brand recent innovation launch of a limited edition Ice Pop Collagen Peptides, specially formulated to be enjoyed on ice.
Across the Atlantic, Aime, a French brand specializing in dietary supplements, has introduced a collagen powder designed to be mixed into beverages, including coffee. Available in different flavors (Cacao, Mocca, Matcha), this collagen-enhanced creamer helps firm skin and strengthens nails and hair, making it a perfect addition to a wellness routine.
Credits: Aime
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.).
Credits: @gardenclubcafe
This welcoming environment goes beyond just serving coffee. These places are becoming meeting places and true experiential spaces.
Garden Club Cafe, a community pop-up located in Seattle, organizes unique experiences mixing speciality coffee with house music. Recent event have included a DJ set to celebrate Pride Month and another event to raise donations, showcasing a mix of culture and purpose over a cup of coffee.
This coffee shop trend extends to many other forms of gathering from running clubs to creative workshops, turning the café into a true community space.
This trend is also reflecting into bigger brands. 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.
From barista style at home routines to immersive cafe experiences and luxury brand innovation, the coffee market is exciting and full of opportunities
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.
