The coffee market is steadily growing, and consumers are gravitating toward drinks they can customize, according to new research from T. Hasegawa USA. Additionally, at-home coffee and RTD beverages present opportunity, said the company: “At-home coffee can complement rather than compete with foodservice coffee by offering convenient, value-driven and customizable experiences. Emphasizing flavor pairings like creamers and syrups and ease of preparation can attract a wide range of consumers.”
T. Hasegawa also said that instant coffee and RTD options that offer convenience are especially appealing to consumers, and innovations in private-label products and high-caffeine coffees speak to their preferences.
“With more young people entering the coffee market earlier, mainly through cold coffee drinks, brands can cater to their evolving tastes by offering creative at-home options such as frappuccinos and cold foam. … Customizable coffee experiences are becoming more popular through seasonal flavors and add-ins like syrups and flavored beans. … The more routines and rituals change, coffee’s role as a customized, energizing beverage continues to be essential in the lives of younger consumers,” according to the research.
Notable flavors that are emerging with momentum include brown sugar, pecan, cinnamon bun, waffle and snickerdoodle; while growing ready-to-drink iced coffee flavors include brownie, donut, cookies and cream, cinnamon bun and waffle, according to the research.
While the coffee market has stabilized after recent volatility, segments like roasted and single-cup coffee lead the way, with instant coffee showing notable growth. Coffee brands must keep innovating as inflation declines to satisfy consumers’ modern demands, strike a balance between price and convenience, and deal with supply chain issues brought on by climate change, said T. Hasegawa.
New research from the Fall 2024 National Coffee Data Trends (NCDT) analysis, conducted by Dig Insights on behalf of the National Coffee Association (NCA), found that “out-of-home coffee consumption resumed its highest level since January 2020, and a majority of Americans believe coffee is good for their health.”