No 30

Coffee Consumption Tends towards Increasingly Personalized & Differentiated Experiences

December, 2014

TRENDS

Coffee Consumption Tends towards Increasingly Personalized & Differentiated Experiences

Consumers are increasingly demanding for gourmet coffees and they also seek to replicate that experience at home; hence presentations such as a single-cup and online sales channels are also gaining strength.

Coffee consumption in the global market tends towards personalized experiences and consumers are increasingly willing to pay premium prices for products that give them customization options.

To illustrate this one can see the phenomenon of birth of third-wave coffee shops in markets such as the US. In this type of stores, the sensory experience for each coffee, its origin, roasting, threshing and brewing method are paramount. Also, as showed in a recent trend analysis published by Datamonitor, consumers seek to replicate quality and variety offered by specialized coffee shops at home;image this trend arises from the increasing willingness of consumers to save without sacrificing quality of their drinking experience.


The   significant growth in the share of single-cup coffees arises as an alternative consumption fully compatible with the two trends mentioned above, showing that the spectrum of competition variables of coffee brands has extended and created space for new competitors with innovative business models.

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According to the Datamonitor study, 58% of individualistic consumers believe that the possibility to customize a product is a very important feature in luxury brands. Coffees are entering the luxury categories because the most involved consumers are aware that all the variables in the coffee production process can affect taste, while the least involved consumers are looking for different options that meet their expectations to have new sensory experiences. This has allowed for a considerably broader coffee and coffee-based products supply that therefore can provide a unique experience for each consumer.

These new consumer trends do not come alone: sales channels are adapting to meet expectations of the different types of global consumers. The   National Coffee Association (NCA) report on consumption trends for 2014 shows that, this year, online coffee sales are the fourth most common channel for buying coffee in the United States; during 2014 there was more coffee sold over the Internet than in coffee shops (see Figure 1).

 

Figure 1. % of sales by store type – USA

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Online sales are one of channels that are gaining quite strength in the coffee market; an example of changing dynamics of coffee sales are the subscription strategies: customers subscribe to a program that sends them a different coffee type every month. These systems are commonly used by the so-called third wave stores and seek to reinforce what customers learn at the stores by offering them different sensory experiences for home.

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In line with these trends, the 100% Program, with its new Facebook app, offers a novel alternative to potentiate online sales of the 100% brands, providing an additional showcase for it.

 

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