Coffee in the US

2021 DEVELOPMENTS

Slow return to normality creates disturbance within coffee

While many areas of the US were fully reopened by early 2021, much of the white-collar workforce remained remote, with a significant number of companies making hybrid or even full-time remote working options permanent. This is radically reshaping how coffee will be consumed in the US in the years ahead, given how many cups of coffee are traditionally consumed either in offices or during commutes on the way to work.

Fresh ground coffee pods remain popular during troubled times

Fresh ground coffee pods have been the most consistently growing segment of US coffee for a decade, and they continued to be the standout area of the category during the pandemic. While pods are considerably more expensive than other formats of retail coffee, they are much less expensive than coffee through foodservice, a fact that has maintained strong demand even as consumers tightened their belts due to pandemic uncertainty.

Consumers search for brands with purpose

Coffee brands have for some time tried to tell stories as part of their marketing as a way of both demonstrating quality as well as speaking to the personal values of the consumer. There has been no brand in recent years that has done so more effectively than Black Rifle, which focuses on supporting military veterans.

PROSPECTS AND OPPORTUNITIES

A cold future for American coffee

Generation Z’s taste habits show an unprecedented preference for cold forms of coffee, a habit they do not appear to be changing as they age. This suggests that the long-term future of coffee consumption will be significantly more focused on cold options than it has been before.

Rising caffeine levels create tensions but remain prevalent

Americans were already battling high levels of anxiety, stress, and insomnia in 2019. The multitude of stress factors of 2020 only served to exacerbate this scenario.

Polarisation between digital and in-person experiences

All consumer goods industries stand at a crossroads when it comes to digitalisation. Moving the process of shopping online creates a fast, efficient, and customisable experience but it also removes the human aspect from the process.