For years, says Mintel, coffee shops have taken shares from retail coffee (Mintel, ‘The future of coffee: 2021’, April 2021). Covid-19, however, forced drinkers to make more coffee in-home and to replicate the quality they were accustomed to.
According to Mintel, throughout the peak of the pandemic there were more launches as brands capitalised on demand and coffee shops pivoted into retail. Consumers, though, desired trusted brands over the “new and exciting”, while the “explosive growth” of iced coffee was checked by the decline of on-the-go drinking occasions.
Post-pandemic, Mintel says brands will need to provide value-for-money or a premium difference rather than get “stuck in the middle”. Healthier coffee will grow, especially if brands can navigate the path of “permissibly indulgent”. Brands are also expected to be held to higher sustainable standards amidst a rising tide of “eco-anxiety”.
Looking to the next five years and beyond, Mintel says online coffee sales will rise “significantly”, with coffee brands selling direct to consumers and offering more personalisation, choice and convenience. E-commerce, adds Mintel, will allow coffee brands to extend into personalised nutrition, and lab-grown coffee will become normalised.
Read about how coffee brands are addressing the ‘new norm’ and a better future in the August issue of Retail World.