Coffee is our hero. We’re not kidding. From the moment we stumble out of bed to late-night espresso martinis, coffee is increasingly the beverage of choice for Americans (65% drink it every day!). And, as more brands enter the chat, there’s a growing need to innovate, stand out, and build long-term loyalty through authentic brand-consumer relationships. But, before we begin to brew an integrated marketing strategy, we first need to have a strong understanding of the coffee market and the coffee-drinking consumer. Ready to pour over the facts? (All coffee-related puns intended)
The Coffee Market in 2024
Coffee consumption has been growing for years in the US. In 2024, retail sales in the coffee and ready-to-drink coffee category reached $19.7B which Mintel estimates grew 1.4% since 2023. Although modest growth is expected, there’s some concern that the category shows some signs of future stagnation. Brands can limit their exposure by amplifying key messages around convenience and quality.
The coffee cream and creamer market is also growing, with 2024 retail sales estimated to reach almost $9.5B. The growth in this segment is expected to be in seasonal flavors (think Pumpkin Spice and Cinnamon for the winter holidays) to add spice to typical routines.
Lingering inflationary effects mean that that consumers are stretched. Coffee occasions at home can be a growth area with quality, comfort, and value at the center of messaging and new content devoted to evolving coffee rituals. For best results, consider focusing on ease and speed of preparation and how to customize your drink to achieve professional results.
Coffee drinkers are getting younger! The average age Gen Z starts drinking coffee is 15, compared to 17 for Millennials, and 19 for GenX. As Gen Z discovers coffee and coffee-based beverages, expect new trends and opportunities (remember the viral Dalgona coffee trend?). Specifically, new needs and occasions – likely featuring cold and iced coffee.
Coffee Trends in 2024: What Consumers Want
Younger generations are seeking variety that satisfies cravings and meets needs throughout the week as work and lifestyles evolve. As a result, the morning coffee routine is shifting. Convenience in the form of cold brew, RTDs, and, surprisingly, instant coffee trends, are winning with a combination of ease, value, and convenience.
Functionality is another key consideration for consumers. Almost half of Gen Z, Millennials, and Gen X say it’s their go-to source for energy. Trendy coffee-based RTD energy drinks could see a surge in popularity. Similarly, functional benefits such as coffee enriched with mushrooms, cannabidiol, superfruits, antioxidants, and more. Although the benefits are yet to be clinically proven, functional coffee is expected to enjoy growth of almost 6% between 2022 and 2027.
Drip, pour over, or pop a can? Coffee preparation methods continue to evolve. While auto drip coffee makers are still the go-to method for most consumers (33%), single cup brewers (27%), cold brew (18%), premade can/bottle (15%), and espresso machines (14%) continue to rise in popularity.
The more consumers learn about coffee, the more they want to know. According to Mintel, one-in-three Gen Z, Millennials, and Gen X consider themselves coffee enthusiasts. To continue building out their knowledge, consider adding education to your content strategy.
Integrated Marketing Strategies Give Your Brand Buzz
Whether your sampling new ready-to-drink cappuccinos or imagining a creative integrated marketing strategy for your latest flavored creamer drop, Inspira can make the daily grind that much easier. Contact us today to learn more about our integrated marketing capabilities.
Sources:
Cafely: Coffee Statistics, Trends & Consumer Key Takeaways 2024
Mintel/ Coffee and RTD Coffee US – 2024