STiR coffee and tea magazine

34 STiR coffee and tea / Issue 2, 2017 (April/May) T By Anne-Marie Hardie o say that the US coffee landscape has shifted is putting it lightly. The preferences of two successive generations of coffee drinkers have led to a complete overhaul evidenced by the variety of choices on the nation's menu boards. In 2004, the National Coffee Association (NCA) excitedly reported that the specialty coffee industry had reinvigorated sales, expanding rapidly from 9% of the coffee market in 2000 to more than 16% in four years. Little did the industry know, that this was just the beginning of a new coffee era. Between 2008 and 2016, past-day consumption of gourmet coffee beverage rose from 13% to 36% among 18- to 24-year-olds, and from 19% to 41% for those aged 25-39. The percent- age of American's drinking coffee on a daily basis is now at 62%, and today more than half (59%) of all cups of coffee consumed in the past day were gourmet, according to NCA. This year's National Coffee Drinking Trends (NCDT) survey indicates "the most robust in- crease occurred among 13- to 18-year-olds, whose daily consumption rose to 37% in 2017 from 31% in 2016, capping a 14-point increase over 2014's 23%." The percentage of 18- to 24-year-olds drinking coffee daily increased to 50% and the 25-39 age bracket increased from 60% to 63%. Estimated at 131,000 outlets, the US coffee shop market showed significant growth in 2016 according to Allegra Project Coffee USA's 2017 Report, with the number of outlets in the branded coffee shop chain segment increasing by 3.1% on a 7.4% increase in revenue to reach $41 billion. Allegra Insights estimates the market will reach $85 billion by 2025. Millennials are the primary driver for sales of out-of-home coffee. They actively seek beverag- es customized to make them uniquely their own. At the same time, this value oriented, somewhat jaded generation seeks brands that not only feature the products they like but embody their values. These consumers wield great influence – sufficient to shift the type coffee served by virtually every retail foodservice segment. "Millennials are a very fluid society, coffee bars have become an integral part of their life," said Jeffrey Young, managing director, Allegra Strategies." Coffee has become part of their culture; it is the glue that helps keep everything together." Recognizing both the influence and spending power of this generation, almost every sec- tor that serves coffee has expanded their platform to include beverages that would appeal to Millennials: Coffee is the glue that helps keep everything together Youthful Surge Researchers say spike in consumption by Generation Z and Millennials is due to innovation and artisanal quality

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