No 30

US Consumers Confirm Relevance of Origin When Buying Coffee

April, 2016

TRENDS

US Consumers Confirm Relevance of Origin When Buying Coffee

Sophistication of coffee consumption in the United States confirms the leading role of origin in this decision. Meanwhile Colombia remains the most recognized and valued origin for American consumers.

Evolution of coffee as product in the last 30 years has been obvious: from a simple commodity to a product of indulgence or luxury that has become part of consumers’ everyday life, which implies a greater involvement in the purchase process.

This change has transformed the attributes that are important when choosing a coffee brand: in addition to quality, consumers are looking for products aligned with their values. Regarding these attributes, the last trends report by the US National Coffee Association (NCA) revealed that consumers recognize and buy single-origin coffee more than any certification in the market: while 32% say they know and buy brands of single-origin coffee, the closer certification to this percentage was organic, with 26% of consumers.

Origin is not only preferred by consumers against other certifications. According to the same study, origin is the second information provided by the package that most influences the purchase decision after roasting level, according to 61% of consumers. This same question of the study revealed that the statements about sustainable farming and fair trade practices also have an important effect, because about 50% of consumers said that it is a factor taken into account.

Communication effect on purchase interests

image

Source: NCA National Coffee Drinking Trends 2016


In this sense, members of the 100% Program have significant competitive advantages, not only for the possibility of ensuring single origin of coffee, but for Café de Colombia’s sound responsibility and sustainability commitments.


The 100% Program and Advantages of Origin
The most recognized coffee origin in the United States remains Colombia: 81% of people associate the country with coffee production and among these, 96% associate it with good quality according to the NCA trend report of 2016.

In 2015 Colombian coffee brands accounted for 9.32% of total volume in the US market according to figures from reports of points of sale by Information Resources, Inc., showing the importance of this reference for coffee brands. In addition, by analyzing behavior of sales of the Program members with highest sales in the United States, the Program brands showed greater stability in the period.

image

Note: This is an example of average variation for the brand reference of highest sales against its reference of the 100% Program. The exercise was reproduced with three brands with the highest sales in the Program; sales of the 100% Colombian coffee reference always had a more positive average variation.


Members of the 100% Program have the advantage of being able to communicate origin of their products with the certainty of conveying quality, and if the brands manage to combine these elements in their value proposition, they will have a big advantage in the market and in consumer’s mind.

The range of variables that enable to identify and measure a market trend is very broad, but it is gratifying to confirm that Café de Colombia is always tuned with the most relevant trends, for the benefit not only of its allied 100% Program brands, but of Colombian coffee growers.


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