Friday, July 1, 2022

Coffee and tea from strength to strength

With many spending increased time at home throughout the pandemic, lifestyles and routines have changed. Among these altered daily rituals is coffee and tea consumption, which retail has benefited from.

Throughout Covid-19, the coffee category has attracted growth across most segments, “largely driven” by people drinking more at home, says Grinders Coffee General Manager Sally Byrne.

“We’ve seen coffee growth in all segments except instant, with a market value increase of $25 million or 1.9% [IRI Aztec MAT to 6/12/20 vs MAT to 5/12/21],” says Ms Byrne. “The biggest growth was driven by the beans segment, which lifted by 15.8%.”

Highlighting further changing habits, Ms Byrne says: “According to the data, categories such as capsules have been losing light buyers but retaining heavy buyers, while other categories like beans have seen a growing shopper base, with consumers seeking to replicate a cafe experience from the comfort of home [IRI Aztec MAT to 5/12/21].

“In fact, ‘cafe at home’ is normalising and becoming mainstream. There’s also been significant growth in beans within small-pack formats, these being a great entry level for consumers looking to elevate their at-home coffee experience.”

Similarly, Jack Murat Brand Manager Jemal Murat says: “The structural impacts caused by Covid-19 – working from home, and hospitality disruptions and closures – coupled with an improved consumer understanding of how to brew coffee across formats (espresso, filter, stovetop, and French press) is supporting strong home consumption.”

According to Madame Flavour founder and Managing Director Corinne Noyes, tea drinkers have also shifted their behaviour during the pandemic.

“Greater remote working has resulted in more tea purchased from supermarkets for at-home consumption, at the expense of foodservice tea sales, both corporate and cafe,” she says. “It’s been a great opportunity for trial of new blends as consumers have experimented to bring variety to their otherwise constrained lifestyles.”

With many consumers still working at home, Ms Noyes says the tea category has continued to attract “strong demand”.

Read more about coffee and tea in the May issue of Retail World.

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