A pound of wholesale arabica coffee beans has been selling for under $1 since March, the lowest price point in more than a decade. One pound of ground coffee will make about 48 cups.
But experts say consumers will still be paying the same price for a cup of coffee or latte in stores and cafes. While wholesale coffee prices have been dropping, coffee prices for consumers have actually been going up.
As spring rolls in, consumers start thinking about “form and function.” While this usually means getting “winter bodies” into shape, functionality is playing a greater role in beverages.
Earlier this year, NCA held a webinar entitled, “US Coffee Outlook 2018: Latest Market Trends and Future Market Growth.” Eric Penicka, senior research analyst with global market intelligence firm, Euromonitor International, who was the webinar presenter, noted that the key ingredients for the future are convenience and function. Both will lead to value growth.
What – and where – we drink is changing. Specialty trends moved into the mainstream, from the cold brew craze to the rise of RTD. Today, consumers have unprecedented control to customize their beverage, from unique flavors to nutrition-driven additives (oat milk, anyone?).
Yet at the same time, the fundamentals of coffee remain as relevant as ever. Whether you’re a brewing beginner or a brilliant barista, understanding the basics of what makes a quality cup is still crucial to developing and refining new brew methods and flavors. For instance: Extraction will always be a factor, and your equipment needs to be clean.
We’re looking forward to what the next year will bring – we’re seeing a lot of exciting new research on coffee and health, opportunities to improve industry best practices, and critical developments in sustainability.
But the New Year is also an opportunity to reflect on where we’ve been. Here are the most popular NCA blog posts in 2017, highlighting the importance of both innovation and tradition in the world of coffee.
New market research from the NPD Group shows that coffee shops are popping up across the country to meet this increasing demand. In addition to coffee served at restaurants and other foodservice outlets, there are now 33,129 gourmet coffee shops in the U.S., a 2% increase in units from last year.
Additional highlights from NPD’s Spring 2017 ReCount restaurant census include:
For roasters and producers, cold brew can lead to more bean sales at a time of year when demand traditionally slackens. The need to soak up extra supply is especially important with the price of arabica coffee futures in New York dropping as much as 21% in the past year, and the pace of demand growth in the U.S. forecast to slow.
The benefit of cold brew is twofold: it uses more than twice the amount of ground beans, and it does battle against the efficient single-serve pods that have whittled coffee use and waste.
In the 12 months ended in February, sales of cold brew in the U.S. were up about 80% over the prior year, according to estimates from Cedarhurst, New York-based researcher StudyLogic. Sales of hot coffee fell 3% over the same period. Americans drank 105 billion cups in the 12 months ended in May, StudyLogic Chief Operating Officer Samuel Nahmias said.