The coffee and tea industries are hoping to kick start the recovery of “away from home” (AFH) coffee sales in the post-pandemic world in the same manner that people kick start their days.
Caleb Bryant, Associate Director of Food and Drink Reports at Mintel, a global market research firm, said, “The COVID-19 pandemic dramatically affected work commutes and purchase habits, and the coffee sector is no exception.” “The percentage of customers who buy coffee drinks away from home on a daily basis has declined from 51% to 36%.”
Smaller coffee shops that rely on walk-in traffic rather than drive-through traffic have an even greater sales difficulty. While the epidemic no longer has the same impact on daily life as it once did, the environment has altered for the better.
Work and coffee have become the “new normal.”
According to Mintel, 40% of employees expect to work from home exclusively or primarily in the second half of 2021. Furthermore, several companies are implementing long-term hybrid models to give their employees additional flexibility.
Furthermore, those who claim they will buy AFH coffee less frequently cite factors such as creating their own beverages, saving money, and commuting less frequently as reasons for their decision. To improve their coffee-making talents, 13% of respondents have gone so far as to purchase a new coffee appliance for their houses.
In a new generation, there is hope. Despite this difficult adjustment, the coffee business can find optimism in Gen Z and Millennials.
“Flavor is the most important factor for Gen Z when buying coffee, so it’s important to think about the different flavour profiles that might work best in each coffee application,” said Nick Viriyasiri, a flavour scientist at Beck Flavors, an innovative flavour developer specialising in the coffee and tea markets.
Bryant also mentioned how Gen Z and Millennials are increasingly turning to coffee shops for drinks they can’t make at home, with a preference for richer, more decadent flavours. Limited time offers (LTOs) are a specialised technique that might ignite the attention of younger consumers to make a special trip to try something new. Bryant uses the Starbucks Funnel Cake Frappuccino as an example.
Viriyasiri further mentions that “Younger coffee users continue to choose cold brew coffee. It is the fastest-growing coffee beverage, with a year-over-year increase of 4.6 percent “”This is the year.” According to Mintel’s research, 62 percent of millennials believe that spending more for cold brew is worth it when compared to iced coffee.