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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Coffee: Still King of the College Dorm

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New market research takes a closer look at the most popular late-night study aid (and early morning eye-opener) on campus.

By Brian Sudano, Managing Partner, Beverage Marketing Corporation

It’s been a scorcher on the East Coast so far this summer. But September is approaching soon – which means cooler weather and back-to-school season.

College students are a growing demographic: U.S. enrollment for  public or private colleges is estimated to reach nearly 20 million in 2018. And their consumption habits offer some interesting insight into the next generation of trends.

In our recent BMC report, “U.S. College Student Beverage Consumption and Attitudes,” we took a deep dive into college student beverage consumption behavior, which we think is a great way to peer into the crystal ball of the future of the industry. We took an especially close look at student attitudes toward coffee, everyone’s favorite early eye-opener and late-night study aid.

Here’s what we found.

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Cold Brew & Food Safety

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The NCA Cold Brew Toolkit draft will be open for coffee industry comment through the end of May

An edited version of the following article was originally published in the May 2018 issue of Tea & Coffee Trade Journal

 

Cold brew has taken off – and it’s changing the way we drink coffee.

Total retail sales of refrigerated cold brew grew by about 460 percent from 2015 to 2017, reaching an estimated $38.1 million in sales this year, according to research from Mintel.

And, unlike avocado lattes, cold brew is more than a passing trend. About 10% of coffee drinkers reported having cold brew daily in 2017, according to the NCA National Coffee Drinking Trends report – up from only 1% in 2015. Experts predict that this category will continue to drive coffee market growth.

But despite of – or perhaps due to – this sudden popularity, there are still a lot of questions and misconceptions around cold brew.  This is especially true for coffee companies that are considering making, serving, or selling cold brew.

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Convenience and Function Will Drive Coffee Market Trends

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The Growing Desire for Functional Coffee

By Vanessa Facenda, Editor, Tea and Coffee Trade Trade Journal

The following post originally appeared on the Tea & Coffee Editor’s Blog

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.

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Year in Review: Our Top 5 Coffee Posts of 2017

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2017 was a big year for coffee.

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?).

To reflect how these changes are reshaping our industry, the NCA even added a new “gourmet” category to our National Coffee Drinking Trends report.

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.

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Trends and Prospects for RTD Coffee in the US

By Eric Penicka, Research Analyst, Euromonitor International

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In recent years, RTD coffee has been dramatically redefined by beverage manufacturers through the advent of cold brew coffee. Cold brew coffee is coffee brewed without heat, with coffee grounds steeped for several hours to extract flavor and caffeine. The end coffee is one which is naturally sweeter, less acidic, more caffeinated and ultimately more artisanal. This kind of coffee is different from traditional iced coffee, which is hot brewed coffee, iced or chilled, and in most cases sweetened and mixed with dairy.

While currently cold brew coffee is typically offered in on-trade establishments (which Euromonitor International would capture under fresh coffee beans consumed in the on-trade), coffee beverage manufacturers have been quick to identify the trend and produce cold brew coffee for RTD consumption. While still nascent, the dust surrounding RTD cold brew’s explosion has slowly begun to settle, with brands such as Stumptown, Califia, and High Brew emerging to define this new niche.

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From Brew Boomers to the Gourmet Generation: National Coffee Drinking Trends 2017

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By Kyra Auffermann, NCA

Today’s “typical” cup of coffee is anything but – it may not even be a cup.

Innovation is fueling growth across the gourmet coffee segment (aka specialty coffee), according to the new NCA National Coffee Drinking Trends Report 2017, released at the NCA 2017 Annual Convention in Austin on March 25, presented by Michael Edwards, Dig Insights.

The latest data shows a market shift toward high-quality, premium beverages, with younger demographics driving this change.

So what does this mean for the coffee industry? Here are the top consumption trends, based on the latest market data.

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Data Snapshot: Coffee Brews Success in Asia

The global coffee market continues to brew up a storm, and Asia is playing a key role in its growth.

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New research from Mintel reveals that three out of the five fastest growing retail coffee markets are in Asia. Indonesia is currently the fastest growing packaged retail coffee market with a CAGR of 19.6% over the past five years, while India has had a CAGR of 15.1%, and Vietnam 14.9%.

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