Growth in the coffee industry is showing no signs of slowing in the United States and beyond. Consumption of the beverage is at and all time high according to recent research, and youths are the main force behind this growth.
From cold coffee beverages to gourmet coffee, millennials are shaping coffee trends and pushing growth to historic records. This article examines some key trends in the coffee industry and assesses the implications for coffee retailers and manufacturers.
Lastly, the article suggests that coffee retailers download inventory software as a means to keep track of these trends and to adjust their processes accordingly. When businesses download inventory software, managers can make the most of the current trends among coffee crazed consumers.
While research from the National Coffee Association’s 2017 National Coffee Drinking Trends report suggests that coffee consumption is increasing among coffee drinkers of all ages, it appears that younger groups are having the biggest influence. Bill Murray, National Coffee Association president and CEO suggests that “More of us are drinking coffee, and younger consumers appear to be leading the charge.”
According to the report, 50% of youth aged between 18-24 claimed to have consumed a coffee beverage within the past day, a 2% increase from 2016. Significantly, 63 percent of adults between the ages of 25-39 said they consumed coffee within the past day, a 3 percent increase from last year.
Cold brew coffee is gaining popularity among consumers, with sophisticated machines continually refining the process and enhancing the taste. Cold brew is more than simply adding ice to your regular cup of joe; the process involves brewing coffee with room temperature or cold water between 12 and 24 hours. The result is a cold cup of coffee with a more rounded taste and less acidity, and younger consumers are becoming increasingly fond of the gourmet variety.
Another increasingly popular way to drink coffee is what is known as “Nitro” coffee. While the beverage has existed in the market for the past few years in various third wave coffee shops, it is becoming increasingly mainstream and Starbucks has recently introduced it to their menu.
Nitro coffee consists of cold brew coffee with nitrogen added, resulting in a beverage with a creamy mouthfeel. Its increasing popularity among consumers will inevitably see it spread to other retailers, as millennials look for new and unique ways to get their morning kick.
Another trend that is dominating the coffee craze especially among the younger generations is organic coffee. Since millennials appear to be increasingly concerned with eco-sustainability, coffee products processed without using any artificial or chemical substances are becoming extremely trendy. Manufacturers and retailers need to be aware of this trend and adjust their processes to suit.
What Does This Mean for Coffee Retailers?
Obviously, increased demand for coffee products can be a welcome trend for coffee retailers. However, managers need to keep track of the types of trends that are driving consumption, to manage inventory control processes accordingly. Retailers may also benefit from adjusting marketing strategies to attract millennials looking for new and unique versions of the popular drink.
Businesses who download inventory software can help their managers track consumption trends and identify fast-moving products from slow-moving products. In doing so, retailers can adjust marketing strategies and stock types to take advantage of the various coffee trends. This type of software will also help retailers predict the waxing and waning of demand, helping businesses with stock and inventory control processes.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.