Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://www.e-digitaleditions.com/i/623506
By the Numbers Coffee, coffee substitutes, and cocoa comprise the second largest spe- cialty food category, with $3.5 billion in sales in 2014, a 21.5 percent increase from 2012, according to the 2015 "State of the Specialty Food Industry" report, published by the Specialty Food Association in cooperation with Mintel. The category ranked as the fourth most- purchased segment in the 2015 "Today's Specialty Food Consumer" report, also published by the Specialty Food Association and Mintel, and was ranked No. 1 among consumers ages 39 to 50. Further research from Mintel in its "Coffee, U.S. 2015" report estimates an 8.7 percent gain in all coffee retail sales in 2015, reach- ing approximately $13 billion. From 2010 to 2014, overall category sales grew 49.8 percent to $11.9 billion. Traditional roasted coffee has the highest penetration, with a 44-percent market share. But Mintel expects future growth will be fueled by single-cup and RTD coffee as well as alternative prepara- tion and functional options, as these segments provide opportuni- ties for innovation and category reinvention. The overall coffee category is forecast to see another 35.3 percent sales growth from 2015 to 2020, reaching nearly $17.5 billion. "Sales are expected to continue upward as coffee remains a popular drink in consumers' daily beverage repertoire, and segments continue to innovate with new f lavors, roasts, and brew methods," says Elizabeth Sisel, beverage analyst at Mintel. Still, the category has had its challenges. A drought impacting Brazilian arabica bean crop production has affected prices. Some people are limiting their caffeine intakes for personal health reasons while others aren't imbibing because of concerns about the impact single-cup packaging has on the state of the environment. "Specialty offerings such as lattes or cappuccinos are most often consumed away from home," says Sisel, with millennials fuel- ing many of those purchases. "But heavy at-home hot coffee con- sumption is strong, making overall in-home and out-of-home coffee consumption a neck-and-neck competition." The Trends While 82 percent of coffee drinkers nationwide report having at least one cup a day, according to Zagat's "Third Annual Coffee Drinking Survey," coffee culture and drinking protocol have changed. Some consumers are seeking out boutique coffee shops with painstaking preparation methods, while others are focused on expanding their coffee experiences—trying new brewing or dispensing methods. Consumers have become mindful about where their coffee comes from, and their attitudes toward sustainability and fair trade category spotlight Cold-brew coffee's mellow taste and low acidity have made it extremely popular. 88 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com