ALEXANDRIA, Va.—Sixty-six percent of consumers in the U.S. are drinking coffee daily, which is the most in five years, according to the National Coffee Association. Bloomberg BNN reports that consumers age 40 and older are driving the increase in consumption. In 2021, 58% of Americans enjoyed a daily cup of Joe and 63% did so in 2020.
More people are drinking their coffee at home, and they are recreating their favorite beverages that coffee shop baristas regularly served them, according to Cheryl Hung of DIG Insights Inc. This trend should continue, says Hung, since it’s seen as a way to save money.
Datassential reports that foodservice sales are still 70% of pre-pandemic levels, and sales may recover to 2019 levels this year, but they won’t exceed them until next year.
McDonald’s is attempting to capture a younger coffee-drinking generation with its latest McCafé marketing campaign, “For Every Beat of the Day,” based on insight that young coffee drinkers feel “invincible” with a paper cup in hand, reports AdWeek.
The campaign is for the Gulf region of the Middle East and explores real moments in the 24-hour coffee culture, and it will run across TV and digital.
“Our customers’ expectations and coffee drinking habits are changing—we recognized that Gen Z in particular need a good cup of coffee that matches their on-the-go lifestyle,” said Tarek El-Kady, senior director of marketing at McDonald’s for the Middle East and Africa.
AdWeek reports on new research that shows only 8% of the Gen Z demographic believe brands understand them. This generation may be hard to please, but a recent NACS Magazine article finds that Gen Zs are accustomed to instant gratification—they have different expectations, and that attitude causes many retailers to complain that younger shoppers aren’t loyal to a brand.
“Younger consumers 18 to 24 are loyal to themselves,” said Jeff Ulrich, strategic account manager, BUNN. “They’ve never known anything but customization. They like innovation and being at the forefront. They like cold coffee and convenience stores, and 40% of 18 to 24 year-olds wish their local c-stores had more cold coffee offerings.”
Though Americans lean toward homebrewed coffee, there are some coffee drinks that can’t be replicated at home. Here’s how convenience retailers offer the kind of coffee drinks that will make consumers leave their kitchen.
See how the hot dispensed beverages subcategory and the entire foodservice category performed last year in convenience stores at the NACS State of the Industry Summit, set for April 12-14 in Chicago. Matt High, category sales manager, senior made to order, Sheetz, will present the foodservice category deep dive. Registration is open.