Pandemic hasn’t tempered coffee’s popularity

Published in Vending Times on April 19, 2021

Coffee is an essential part of the convenience services industry, especially considering the number of Americans who drink coffee every day has increased by 5% over the past five years, according to The National Coffee Association. In a recent report, NCA highlighted how the average American coffee drinker drinks over three cups of coffee per day. The coffee and beverage industry has seen a lot of changes over the last few years, and even more so due to the coronavirus pandemic.

Luckily for the coffee industry, 75% of coffee drinkers say the pandemic has not changed their coffee consumption. Check out the trends below to better target potential business prospects and consumers.

Specialty Beverages Popular

One trend on the rise is specialty beverages.

Nitro coffee is a cold brew with a splash of seltzer water to carbonate it. This trend descends from the increase in popularity of hard seltzers in the alcohol industry.

Another innovation is the use of non-dairy milk in coffee, with options like coconut milk, oat milk and rice milk becoming more widely used.

There are also healthy beverage blends like mushroom coffee, maca lattes and collagen creamers being added to coffee shops’ menus. Many employees will travel to local coffee shops in search of these specialty beverages.

Espresso-Based Drinks Challenged

Unfortunately, due to the coronavirus pandemic, espresso-based beverages most commonly bought at cafes and coffee shops are amongst the most impacted by COVID-19. In a study of recent consumption, espresso consumption is down 20%, cappuccino 19%, and latte 18%. In-person consumption of these drinks has seriously declined, perhaps due to the inability to go to coffee shops, or because those working at home feel less of a need to leave the house.

On the plus side, nearly 50% of coffee consumers feel comfortable visiting coffee shops or plan to in the next month, highlighting how coffee consumption may be on the track to normalcy in the next few months.

Additionally, consider coffee beyond the mug. According to Whole Foods, 2021 offers opportunities to get coffee flavored bars and granolas, smoothie boosters, alcohol and even yogurt. Coffee drinkers are obsessed with the taste, and major corporations like Whole Foods are trying to maximize the audience they can reach with their specialty coffee-flavored snacks. If Whole Foods is on to something, convenience services operators can also capitalize on this trend by providing these products in their machines or micro markets.

Healthier Options

As touched on above, consumers are looking for healthier options and are willing to go elsewhere to find them. At the end of 2019, NAMA announced its Public Health Commitment “to substantially increase the percentage of ‘better for you’ offerings to 33% in the nation’s vending machines.”

David Smaltz, vice president of vending at Celsius, talks about consumers looking for trends that meet expectations, such as low sugar, gluten free, non GMO, vegan friendly and no additives. 2021 is showing how Elmhurt’s plant-based creamer, a healthier take on milk that is beneficial to our global environment, is taking over the industry.

It is estimated that the plant-based milk market is estimated to rise at a combined annual growth rate of 4.5% by the end of 2030.

These plant-based milks and creamers are evolving as the perfect substitutes for animal-based products since they contain the relevant nutritional composition. Additionally, major corporations, such as Nestlé and Starbucks, are hopping on the plant-based bandwagon and are releasing a nationwide launch of non-dairy creamers.

These trends are dominating office spaces, so it is imperative for breakroom providers to keep up with the demand for healthier options.

Sustainable Sourcing

There is an abundance of sourcing trends. For example, companies using fair trade, sustainably grown ingredients and sustainable packaging.

With consumers getting more involved with social justice in the last few years, consumers are interested in fair trade coffee. Fair trade focuses on improving the lives of coffee producers by ensuring that they get fair pay and ethical treatment.

Consumers will also be looking for products with sustainably grown ingredients due to the increase in awareness of climate change. The coffee industry may be dramatically affected by climate change by forcing roasters to shift their focus towards more sustainable growing practices, as well as fair trade manufacturing of single-source products.

Climate change awareness involves growing coffee trees organically without triggering land erosion, water erosion or deforestation.

As a result of the COVID-19 pandemic, less car emissions have been released into the world’s atmosphere. The significant increase is making coffee at home correlated with using less harmful products, such as plastic or cardboard cups, which are normally offered at coffee shops.

81% of coffee consumers drank their coffee at home during the pandemic, resulting in a 50% decrease in coffee consumption at full-service restaurants, a 22% decrease in the workplace, a 20% decrease at gas stations and a13% decrease in a shop or café, according to the National Coffee Association.

Lastly, consumers will be interested in sustainably packaged goods. Coffee manufacturers have already begun to look for ways to cut non-recyclable plastic use in products, such as single-use coffee pods, and coffee shops (once the pandemic is behind us) will continue to get involved with initiatives like offering discounts for customers using reusable cups.

Consumers will become increasingly concerned about the well-being of the environment and as a result, operators need to appeal to these environmentally-friendly trends.

Overall, it’s important for convenience services suppliers and operators to keep up with current coffee and beverage trends. The last thing you want is for employees to go to a close-by coffee shop rather than take advantage of the in-office vending machine or micro market. If your company strives to implement specialty coffee, healthier beverage options and sustainable sourcing, you are guaranteed to be more successful in selling your services.

Overall, it’s important for vending suppliers and operators to keep up with current coffee and beverage trends. The last thing you want is for employees to go to a close-by coffee shop rather than take advantage of the in-office vending machine or micro-market set-up! If your company strives to implement specialty coffee, healthier beverage options, and sustainable sourcing into your products, you are guaranteed to be more successful in selling your services. MarketReach specializes in B2B Telemarketing & Appointment setting for the Coffee, Vending and Micro-Market industry that will produce impactful results. Reach us at 609-448-6364.