What’s Brewing? The Latest Coffee Trends to Embrace in 2019/2020

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The European Coffee Market is expected to grow at a CAGR of 7.8%, during the forecast period (2019 – 2024, according to Modor Intelligence). Convenience and health are driving this fast-growing category, in which innovative flavours and processes will be key to this category’s further growth. According to Fona Insights, “Caramel and hazelnut are two of the fastest-growing flavours from Q3 2016 to Q3 2017,” both recording an increase in 33%.

Hot Trends
According to Global Data, hot coffee is expected to record the fastest growth across all hot drink’s categories in Eastern Europe 2017 – 2022.

Keto coffee also known as bulletproof coffee is a high-fat ketogenic, paleo-friendly coffee is appearing on shelves and menus, in which blends coffee with butter or coconut oil to provide a richer taste and meet the demands of those on a high-fat, low-carb diet.

Since CBD doesn’t give the unwanted high, it can be found infused into coffee for consumers seeking additional health benefits. Fuelled by social media and the need to live longer, consumers are seeking functional benefits from the products they buy. Superfood coffees infused with maca and collagen are being added for their health appeal.

Gut health and sugar reduction are driving the demand for natural and organic products. According to Technavio, “The global fresh organic coffee market is expected to grow at a CAGR of 12.01%” (2017-2021), in which the market of organic tea and coffee in the US is projected to grow at a CAGR of over 13% (2017-22), as reported by TechSci Research, emphasising the growing demand for organic products.

There is also an increased demand for ethical and sustainable credentials driven by Generation Y, as consumers become more concerned over the environment. “41% of consumers globally look for on-pack ethical or sustainable logos when shopping,” according to Global Data.The volume of Fairtrade coffee sold grew by 15 percent reaching 214,106 metric tonnes between 2016-2017. In 2018, the US ranked as the third largest market for Fairtrade goods with retail sales over $1 billion. This demonstrates the growing desire for organic and natural products. The 2018 Beverage Industry product development outlook said, “62% of US consumers are looking for more natural beverage options.”

RTD Trends
The European RTD coffee market was valued at $1.67bn in 2017 and is expected to register a CAGR of 2.5% - 2018-2023. Germany is the largest consumer in this category, followed by Italy, France, Spain and the UK.

Cold coffees with milk alternatives are also becoming popular with the non-dairy market expanding to cater to all dietary needs and lifestyles, from pea milk to hazelnut milk. Data from Square Coffee Report 2018 reported that almond, soy, oat, coconut, hemp, macadamia nut and pea are the most popular non-dairy milks in the US, in which there has been a 425% increase in oat milk sales since June 2017, which shows the demand for alternatives.

According to the World Coffee Portal, their study revealed iced beverage sales grew 14.3% in 2018 to £395m, representing 5.8% of the UK specialist coffee shop segment’s £6.8bn sales revenue. However, according to Square inc, cold brew orders today is 42% higher than iced coffee orders.

Snapchilling is also a new technique founded to help preserve the aroma and flavour of coffee in a cold format. The process is a lot shorter than the cold brew process reducing times from around 24 hours to just a few minutes.

Nitro coffee (nitrogen-infused coffee) is expected to continue to grow as a premium option. Nitro coffee can also be served hot, in which the nitrogen gives the coffee a velvety and creamy texture. The appeal of sparkling coffee is also growing, replacing high-sugar drinks, such as sodas as well as becoming an acceptable replacement for synthetic caffeinated energy drinks.

Cross category beverages are also growing, with coffee cocktails are also appearing on menus from espresso martinis to black coffee lagers.

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