TEA AND COFFEE

TC April 2016

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24 Tea & Coffee Trade Journal | www.teaandcoffee.net facts, figures & findings Choosing Espresso-Based Options Daily consumption of espresso-based beverages has nearly tripled since 2008, said the National Coffee Association's 2016 National Coffee Drinking Trends (NCDT), released at the NCA Annual Convention. At 18 percent of U.S. adult consumers in 2016, it signals a promising category shift, supported by younger consumer tastes, that outpaces flat overall consumption. And it's Millennials who are driving the increase. Between 2008 and 2016, past-day consumption of gourmet coffee beverag- es soared from 13 percent to 36 percent among 18-24 year olds and from 19 percent to 41 percent for those 25-39. For espres- so-based beverages alone, the jumps become 9 percent to 22 percent for the 18-24 group and 8 percent to 29 percent for those 25-39. "Consumption trends and generation- al patterns seem to be syncing up in prom- ising ways," said Bill Murray, NCA pres- ident and CEO. "As younger consumers enter the category in larger numbers, their tastes are supporting broader trends in consumer behavior." Overall, consumption of past-day gourmet coffee beverages remains strong at 31 percent, on par with last year, but up from 24 percent in 2008. Similarly, past-day espresso-based beverage drinking is up by two percentage points over last year, coming in at 18 percent, nearly three times 2008's 7 percent. The influx of younger consumers into the category is part of a larger pattern. Daily coffee consumption among 18-24 year olds nearly doubled between 2000 and 2016, jumping from 25 percent to 48 percent, and among those 25-39 it rose by 18 percent, from 42 percent to 60 percent. Other data from the 2016 NCDT show that older Millennials (ages 25-39) are the most likely to drink gourmet coffee beverages weekly, along with spe- cific options including cappuccino, latte, café mocha, espresso, macchiato, flat white and cold-brew coffee. Younger Millennials, however, edge them out in frozen blended coffee. Overall, Millennials outstrip consumption of all gourmet coffee beverage varieties among the 40-59 and 60+ age groups. Single-Cup Brewing Over the last five years, single-cup brew- er ownership has more than quadrupled, reaching 29 percent of American consum- ers, While the growth pace has slowed, with a two percent increase over 2015, the category remains strong, doubling over the last two years alone, Single-cup brewing is also quickly gain- ing on the drip method in coffee prepara- tion. In 2016, 28 percent of daily coffee drinkers used a single-cup brewer, up from 25 percent from last year and just 9 per- cent five years ago. At the same time, drip preparation has fallen to 50 percent from 54 percent last year and 70 percent in 2011. Millennials Continue to Drive Growth of Gourmet Coffee Consumption

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