CPG Industry News

5 Coffee Industry Trends You Can't Miss in 2017

5 Coffee Industry Trends You Can't Miss in 2017

In one form or another, chances are almost everyone you know starts their day with coffee - be it home-brewed, bottled, or purchased hot or iced from a coffee shop. As longstanding as its popularity may be, the coffee industry is in the midst of a rapid change. As millennials' fast-paced lifestyle becomes ubiquitous, consumers are preferring to get their caffeine on the go. In turn, retailers are experimenting with novel ways to speed up ordering and get busy shoppers back in their stores. 

Here are the five coffee industry trends that will dominate 2017: 

 

 

 

1. New Generation, New Measure of Value

As of last spring, Millennials have unseated Baby Boomers as the largest living generation, according to U.S. Census data. This younger generation is more social and mobile than any other to date. As a result, coffee consumption has moved from the privacy of consumers' homes to more public venues, and is then compounded by social media. 

With that in mind, millennials have come to value different aspects of their coffee than their parents. Since many older generations drank their coffee in the comfort of their own homes, they focused on the price of the coffee they were drinking. Millennials, on the other hand, are more focused on experience rather than price.

Here's how to capitalize on this trend:

  • Invest in eye-catching packaging and labels people will want to share photos of. 
  • Showcase your brand's committment to sustainability. 
  • Experiment with new packaging and delivery systems. La Colombe's new draft latte, for example, uses a proprietary "Innovalve" system to deliver a smooth nitrous-infused pour out of its cans. 
  • Highlight your leadership team. Consumers might be able to connect with your founding team, and hearing their message straight from the source can be more powerful than reading the words on a label.  

 

2. Ready-to-Drink Coffee Takes Off

It is no secret that we live in a fast-paced world, or that it's getting even faster. That means that people want to have their coffee ready to drink as soon as possible. In this environment, the canned and bottled ready-to-drink coffee market reached $2.4 billion in 2015 and has only continued to climb, Bloomberg reported. 

One reason RTD coffee may be taking off in 2017? The falling popularity of soft drinks in the U.S. and beyond. "It is probably not a coincidence that canned or bottled ready-to-drink cold coffee is catching on at a time when fewer are drinking carbonated soft drinks, including the caffeinated colas," said Karen Bundy, V.P. of Food & Beverage Marketing at Multi-sponsor Surveys in a press release.

This movement has inspired some of the coffee industry's biggest players jump in to the RTD arena. In September 2016, Dunkin Brands announced it would be partnering with Coca Cola to bring a new line of cold coffee beverages to retail in 2017. 

 

3. Morning Coffee on Tap

With ready-to-drink coffee making it easier for consumers to get their caffeine fix on the go, some retailers are trying to get coffee drinkers back in the store with nitrogen infused coffee. Nitro coffee is poured from a tap and provides a similar mouthfeel as a beer (think Guinness). The foamy and creamy texture allows brewers to rely less on sugar and milk to cut coffee's bitter taste, which is appealing to the more health conscious coffee drinker. Plus, the texture is incredibly difficult to replicate in an RTD format, giving coffee shops something to offer millennial consumers looking for unique drinking experiences.  

Cold brew coffee has emerged as one of the fastest-growing coffee industry trands of 2017.

 

4. Out With Iced Coffee, in With Cold Brew

Iced coffee has long been the go-to for consumers looking for a refreshing pick me up in the summer months or even just an extra kick of caffeine, but this is starting to change. Cold brew coffee has exploded in popularity over the last several years, and 2017 should be no different. Cold brew sales jumped up 580% between 2011 and 2016, according to a Mintel report. While a large part of these sales has been at coffee shops themselves, plenty of retail brands are also adding cold brew products to their lineups.

Here's what separates cold brew from the more traditional iced coffee: Iced coffee brews just like standard hot coffee - it uses heat to extact flavor, sugar, oils and caffeine from the coffee beans. Then, that coffee is chilled and served over ice. The cold brewing process uses time, rather than heat - soaking beans in water for 12 hours or more in order to turn water into coffee.  

 

5. A Shift Toward Specialty

Overall, as shoppers prioritize experience over price, consumption of gourmet and specialty coffee beverages is on the rise. Out of the $48 billion U.S. retail coffee market, about 55% of spend will go toward specialty coffee next year, the Specialty Coffee Assoc. of America found. Even for brands that have not traditionally operated in the specialty space, opening up a luxury line could pay off in 2017. 

 

Download the 2024 Outlook Report

As the retail landscape continues to evolve, it’s more important than ever to stay on top of the latest trends and challenges. Download our report today to see how more than 160+ CG executives and field leaders are strategizing for 2024.

Tyler Hubbell

Tyler Hubbell is a content marketing specialist at Repsly. His expertise is in creating useful content related to customer satisfaction and building relationships. Tyler enjoys golfing and reading.

Latest Posts

1 Min Read
Infographic: Optimizing In-Store Retail Strategies in 2024

Insights and Studies

Infographic: Optimizing In-Store Retail Strategies in 2024

Luciana Marzilli Lord

In our recently unveiled 2024 Outlook Report, a significant shift in the priorities of CPG and Retail Services leaders has come to light. Notably, a whopping 90% of those with access to budget..

3 Min Read
Enhancing Retail Execution: The Power of Streamlined Data

Merchandising

Enhancing Retail Execution: The Power of Streamlined Data

Luciana Marzilli Lord

In the era of data-driven decision-making, we understand the significant impact that organized data can have on your retail execution strategies. Yet, the pains associated with disorganized and..

3 Min Read
Why are CPGs Doubling Down on Tech Investments This Year? Let’s Get Into It.

Insights and Studies

Why are CPGs Doubling Down on Tech Investments This Year? Let’s Get Into It.

Cait Will

Our team at Repsly is excited to announce the launch of our highly anticipated 2024 Retail Outlook Report. At Repsly, our mission is to help CPG brands thrive in the retail landscape, and our annual..