No 30

Café de Colombia, the Most Recognized Origin in the USA

September, 2014

TRENDS

Café de Colombia, the Most Recognized Origin in the USA

Colombian coffee is the most recognized origin; 85% of population in the USA recognizes Colombia as a coffee-producing country. And even more important: of people recognizing it, around 96% says that it is a coffee of good flavor.

According to the most recent report by Euromonitor on hot drinks, North America is the second largest market in the world for this category, only surpassed by China. But undoubtedly in terms of coffee market, the USA is the most important market, as among consumption of hot drinks, coffee share is 70%, whereas the Chinese market is still dominated by tea. Euromonitor highlights that coffee market size in the USA by 2014 is estimated at about 12.8 billion dollars, a 5.1% increase compared to last year.

Now, the best way to make the most of this large market is to understand the new consumption dynamics. A clear example are the single-dose coffee brewing machines, which, according to studies by the NCA, in 2011 only accounted for 7% of the coffee brewing methods, whereas in 2014 they represent 30%.

General Trends

Coffee plays a very important role in the life of 61% of American consumers, who consume it usually. Consumption levels reached in the last 3 years had not been seen during almost the last 40 years.

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Source: NCA 2014


Besides high general consumption, for the 100% Program members it is important to know that during 2014 consumption of gourmet coffees has been higher than that of traditional coffee (51% vs. 49%), what shows that preferences of consumers have evolved towards espresso-based coffees and traditional coffees brewed with premium or specialty beans, a good news for Colombian coffee. Younger generations, some years ago less involved in coffee consumption, are choosing alternative or more sophisticated brewing methods. People between 19 and 25 years old prefer espresso-based drinks, including ready-to-drink (RTD) beverages.

 

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Source: NCA 2014


Consumers between 25 and 40 years old consume traditional gourmet coffees besides espresso-based beverages. Though involvement of younger consumers with coffee has increased, adult consumers are still the most important coffee consumers in the USA.

Because of these new consumption trends, brewing methods such as espresso and single-dose machines have significantly grown. Single-dose brewing has steadily increased in last three years and is the method with the highest growth expectation in the USA for 2014-18. Euromonitor forecasts that by 2018 there will be 130 single-dose machines per every 1,000 inhabitants.

Everything shows that coffee is increasingly becoming a luxury product and not only because of momentum that gourmet coffee market has gained. Even though financial situation of consumers affects quantity and quality of coffee consumed, in last years it has become a less determining factor. To illustrate this, while in 2012 the 40% of people feeling in a worse financial situation reduced their coffee consumption outside the home, during 2014 only 34% said to do so.

Origin is important for consumers

In terms of origin, Colombian coffee is still the most recognized one. The 85% of population in the USA recognizes Colombia as a coffee-producing country. And even more important: of people recognizing it, around 96% says it is a coffee of good flavor.

All this shows that current situation of market continues to be favorable for 100% Brands to continue growing and leveraging on the Colombian origin, which is recognized by consumers as a premium coffee of good flavor, also taking into account gourmet coffee consumption growth. In general, environment is propitious for 100% Program brands to continue growing!


You are invited to learn more about our coffee family and our products, visiting the BEAN & BEYOND sections on the top of this page.