Retail Reboot: Away-from-Home Coffee’s Post-Pandemic Future

By William “Bill” Murray, NCA President & CEO


What does the post-pandemic future hold for the hundreds of thousands of retail outlets that provide coffee to Americans away-from-home?

The Spring ’21 NCDT showed a pandemic-induced dip in away-from-home coffee preparation, but there is reason to be optimistic.

The most recent study we conducted, the National Coffee Association’s National Coffee Data Trends report, offers many reasons for optimism for all segments of the coffee sector – including away-from-home.

Unlike some industries – travel, tourism, live entertainment – the coffee industry, as a whole, has fared reasonably well.  Coffee drinking is not only safe, no matter where you enjoy it, but is connected to numerous health benefits.  In fact, a large group of independent studies associates coffee drinking with lower levels of depression – important to know during a horrific pandemic.

All of which supports America’s continuing love affair with coffee, right through the pandemic.  In January of this year, 58% of Americans reported drinking coffee “yesterday,” down from 62% a year ago, a modest change – especially when considering the study’s 2.5% margin of error.

But while coffee continues to be America’s favorite beverage, it is true that the away-from-home segment has been impacted by the pandemic.  This impact, though, is temporary – a direct result of the pandemic – and is already reversing.

We know this because of what the data tells us about the recent past – and consumer attitudes – towards coffee.

First, one reason the away-from-home coffee segment has suffered is because of the rolling, random lockdowns the country has experienced.  These are coming to an end.

Second, the slight decrease in overall coffee consumption is linked to the economic impact of the pandemic.  24% of Americans told us in January of 2021 that their financial situation was “much or somewhat worse” than a year ago, up from 13% who told us the same thing in January 2020.  Stimulus checks are in the mail, and shortages of workers are growing.  Recent reports confirmed a surge in retail sales in March and dropping unemployment.  The economy is poised for a comeback – the worry now is actually over an “overheated” economy, and the inflation that could ensue.

Third, coffee drinking during the pandemic has been up marginally in the morning and at breakfast – but down marginally in the afternoon.  24% of Americans reported having an afternoon coffee in January ’20, down to 20% this past January.  That afternoon coffee is closely associated with socializing, work, or being out and about, and will reverse as America reopens.

Fourth, contrary to the headlines, away-from-home coffee never disappeared.  In fact, over two-thirds of respondents told us in January ’21 that they were already back in their coffee shops, or anticipating a return in the near future.  First responders, truckers, delivery service workers, skilled tradespeople, grocery store employees, public sector employees – those in the “Essential” parts of the economy (including many coffee suppliers, by the way) have been there all along.  About 11% of coffee drinkers drank their coffee during their commute – right through the pandemic.

Fifth, away-from-home coffee has pivoted quickly to adapt to the new reality, and coffee drinkers have responded.  By September of last year, 39% of away-from-home coffee drinkers had ordered through an app, up from 24% in January ’20.

But there’s more.  Turning from what has been happening to what coffee drinkers want to happen, the optimism grows even stronger.

The sixth reason for optimism is that coffee drinkers miss their away-from-home coffee.  In January, 2021, 35% of respondents either agreed strongly or somewhat agreed that they “miss the social aspect” of going out to coffee shops, cafes, and restaurants, 34% said that they miss their “regular” away-from-home venues, and 33% said that they miss treating themselves by going out. 

Some social psychologists have speculated that the post-lockdown period could be like the Roaring 20’s – a country ready to let loose.  Indulging in a favorite coffee beverage prepared by a favorite barista would be one way to do that!

Seventh, the steps that away-from-home venues can take to encourage customers’ return – while requiring some investment – are straightforward.  43% of respondents told us that having workers wear masks and gloves – and having other customers wear masks – were steps that venues can take to “encourage (me) to visit them more often.”  Practicing visible sanitation protocols, and limiting capacity/crowd control also scored highly.  (See our free NCA guide to safely reopening your coffee business for more on this topic.)

Bottom line?  Vaccines are rolling out, even with hiccups.  The economy is improving.  America has not lost its love for, its need for, and its relationship with coffee. America misses its favorite coffee shop, restaurant, and café – and for the one-third of Americans who are cautious about resuming their old routines, there are more reasons every day to feel reassured.

We’ve been through the worst we ever could have imagined – but today, and tomorrow, are better for all of us in coffee – especially the men and women around the world who grow the coffee we love.

Consumer Insights: Coffee Claims [Video]

From sourcing to roasting, coffee companies can have a lot to say about their product. These messages can majorly influence consumer perception and behavior – but not necessarily in the ways you’d expect.

A new NCA Consumer Insights report (based on NCDT data) takes a closer look at coffee claims – which include general statements, perceptions, or things that people find motivating about coffee.

For example, said Cheryl Hung, VP of Research at Dig Insights, during a recent webinar: “What kind of equity does coffee have with consumers? Are there positive and negative associations with coffee among different demographics? Who perceives coffee in a negative light? And what can we say to persuade them from a marketing perspective, or via point of sale?”

Get more highlights in the video below – and to learn more, check out the webinar (on-demand playback free for members) or NCA market research:

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Infographic: What’s Brewing in 2019

Highlights from NCA market research on coffee consumption trends in the US

NCA National Coffee Data Trends (NCDT) Consumer Insights at a Glance

via Dig Insights

For yet another brew-tiful year, Dig Insights has partnered with the NCA to create five new consumer insight reports, to supplement the annual NCDT market tracking research:

  • Single-Cup Brewing
  • Coffee and Gen Z
  • In and Out of Home Coffee Consumption
  • Understanding Attitudes Towards Coffee
  • Cold Brew and Ready-to-Drink

Explore some highlighted insights from each of the mini reports below – and NCA members can check out the on-demand webinar, Single Cup & Consumer Insight Reports, featuring Cheryl Hung, Dig Insights VP.

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NCA National Coffee Data Trends 2019

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The Behaviors & Perceptions of U.S. Coffee Drinkers

63% of American adults drink coffee daily, according to new market research announced at the 2019 NCA Annual Convention in Atlanta.


The National Coffee Association USA (NCA) offered a first look at the redesigned and rebranded 2019 National Coffee Data Trends (NCDT) today at the 2019 NCA Annual Convention in the Westin Peachtree Plaza Hotel in Atlanta, GA. The NCDT report has tracked consumer behaviors and perceptions shaping coffee trends in the US for almost 70 years.

63% of American adults drink coffee daily, according to the NCDT, steady with 2018 consumption.

“Coffee is America’s most beloved beverage – and for good reason,” said William (Bill) Murray, NCA President & CEO. “New consumer values have changed the game for coffee. But the industry is adapting – and thriving – by embracing innovation and transparency.”

From sustainability to wellness, these realigned priorities mean that consumers are paying more attention to what’s in their cup than ever before.

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Infographic: Coffee Brands See Stellar Growth in Amazon Sales

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Amazon’s food and beverage category has posted $4.75 billion in sales so far in 2018, making it the online retailer’s fastest growing segment, according to Automatic Vending watch.

And coffee continues to lead category. According to Edge Market Share, coffee sales on Amazon have totaled more than $140 million so far this year – and are expected to increase.

If the first wave of coffee was defined as having packaged coffee available in the home in packaged formats, the fourth wave may be the idea of having premium coffee available everywhere, all the time.

“It all begins with the coffee shop,” says Michael Schaefer, Euromonitor, in Food Navigator USA.

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Infographic: 2018 Specialty Coffee Consumption Stats

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Learn more about US coffee consumption trends:  For a limited time only,  we’re taking 25% off all of the NCA 2018 Coffee Snapshot Reports


via Square

The data geeks over at Square and the SCA recently released some interesting statistics about how and when Americans are getting their caffeine fix.

From the iced coffee vs. cold-brew debate to the new alt milk, here’s a breakdown of what Americans are ordering at their local coffee shops each day:

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For RTD Coffee, Cold is Hot

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Generation Z and young millennial consumers are driving RTD market trends

Top industry trends to watch, according to the latest market research.

US cold brew has emerged as a vibrant growth segment for the global coffee market.


Related Resources: RTD & Cold Brew

The NCA Cold Brew Toolkit & FAQ
Science-based guidance for the coffee industry

NCA Coffee Market Snapshot Reports
25% discount extended for a limited time only!

Webinar: What’s Brewing in RTD Coffee
Featuring Mintel


The following post is adapted from the Tea & Coffee Trade Journal Editor’s Blog 

The weather is turning cooler — but RTD coffee does not seem to need hot weather to entice consumers. The appeal is already there and growing.

According to research from the Mintel Global New Products Database (GNPD), in 2017 approximately one in five (19%) global new coffee launches was iced, ready-to-drink (RTD), up from 16% in 2015.

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New Seasonal Flavors Spice Up Fall Coffee Menus

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4 in 5 consumers say they look forward to fall seasonal items the most

Is this the end of pumpkin spice?

By Amanda Topper, Mintel

The following is an edited excerpt from the Mintel Blog. Read the full post 


Wake up and smell the coffee: Pumpkin spice’s reign as top autumn coffee beverage may be coming to an end.

Menu mentions of pumpkin-flavored coffees declined 30% from Fall 2015-Fall 2017, according to Mintel Menu Insights. This decline was driven mainly by a few quick-service restaurants (QSRs).

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Video: New NCA Market Research Breakout Reports

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The new series of NCA market research breakout reports offers targeted, in-depth insight into key issues shaping today’s coffee market, in partnership with Dig Insights.

These data snapshots offer deeper insight into some of the most dynamic categories covered in our flagship National Coffee Drinking Trends report – at a price point that’s accessible for everyone.

Watch the video below to learn more: 

 

Key highlights from the report include:

  • 45% of past-day coffee drinkers drank coffee prepared with a drip machine
  • The gourmet coffee beverages category remains strong in 2018 with a past-day penetration sitting at 41%
  • In-home coffee preparation sees a rebound to 2016 levels: 79% consumed a coffee prepared at-home
  • In 2018, 36% consumed a coffee that was prepared out-of-home

Visit the NCA website for more information.