The coffee industry is a hot commodity right now. This year’s projected coffee sales revenue is an incredible $95.58 billion. Furthermore, the market is expected to see a compound annual growth rate (CAGR) of 3.51% from now until 2025, with most of the industry’s sales happening right here the U.S. If you’re considering investing in a coffee franchise, this is the ideal time to make the jump.
Wondering which coffee trends are brewing hot right now? Here’s what’s driving coffee shop sales, who’s buying, and which trends you should pay attention to.
According to the National Coffee Association (NCA), 62% of all coffee drinks consumed last year were specialty coffee beverages. This figure was a jump from January of 2021 when specialty coffee only made up 56% of all the cups consumed.
At the onset of the pandemic, specialty coffee saw a slight drop in consumption. However, the market has begun to pick back up. In January of last year, 43% of NCA survey respondents said they had consumed one specialty coffee the day before. 53% of Americans aged 18+ who took the survey stated they had one specialty coffee beverage in the last week. According to the NCA, both of these figures are increases from July of 2021.
When analyzing the demographics of coffee shop consumers, the NCA found that those between the ages of 25-39 were driving the sale of espresso-based beverages. This group showed to favor coffee options like Cappuccinos, Espressos, and Flat Whites, along with creamier coffees like Lattes. However, the NCA also noticed an even younger age group – 18-24 year-olds – who were more inclined to order Lattes opposed to other lighter milk drinks.
It’s projected that by 2025, 89% of coffee industry sales will be made out-of-home, or within coffee shops. However, more coffee enthusiasts are taking advantage of the convenience to brew their coffee at home. According to the NCA’s National Coffee Data Trends Report, 77% of specialty coffee drinkers admitted that at least one coffee they’d had in the last day was brewed at home.
And while it may seem like a deterrent for coffee establishments, having retail coffee products can actually help drive coffee shop sales. Offering prepackaged coffee grounds – or even whole coffee beans if customers would rather grind beans themselves – allows you to build an additional revenue stream while simultaneously providing customers with a product they know and love. Plus, when they eventually run out of their home supply, they’ll have to come back to you to purchase more.
Sustainability is still a driving force for coffee consumers. Sensormatic Solutions, a retail inventory technology company, conducted a survey regarding brands and their promotion of their sustainability efforts. They found that 81% of respondents said they were “concerned” or “very concerned” about the future of the planet and sustainability.
The study also showed that 54% of consumers take the time to research a brand’s sustainability initiatives when considering making a purchase. Therefore, coffee shops that put forth the effort to use eco-friendly business practices may see a more loyal consumer in 2023.
Two trends that are still experiencing growth within the coffee industry are plant-based milks and alternative caffeine options. As more consumers understand the health benefits and reduced carbon footprint of plant-based milks, the demand for these types of products has only increased. The plant milk market was valued at more than $12 billion in 2019 and is expected to grow at a CAGR of 11% through 2026.
Equally substantial, alternative caffeine sources like matcha have been growing in popularity. The global matcha tea market is set to increase at a CAGR of 4.7% from now until 2025 – ending at a value of $2.26 billion at that time. Prevalent among the health and wellness industry, matcha tea is rich with vitamins and antioxidants – allowing consumers to get their caffeine fix without the jitters of coffee.
According to specialty coffee statistics, consumption is increasing. According to the NCA, 43% of coffee lovers chose a specialty coffee beverage in the last day. Scooter’s Coffee is one of the leading drive-thru specialty coffee franchises in the U.S. With more than 600 locations and many in development, our brand is rapidly taking the booming coffee industry by storm.
Ahead of the latest coffee trends, Scooter’s Coffee has been committed to fostering strong partnerships with our coffee bean farmers. We truly believe the best coffee comes from responsibility sourced beans. That’s why we’ve planted and nourished relationships with farms all over the globe to grow our high-grade coffee beans.
Our locations also offer caffeine alternatives and plant-based milks. We serve some of the most popular tea varieties including black, white, green, herbal, chai, and matcha teas. Additionally, our drinks can be customized with coconut, almond, or oat milks to appease all of our customers.
Get started with a coffee franchise that’s embracing the new trends in coffee. To learn more about our franchise opportunity, fill out this form, and one of our representatives will be in touch.