According to recent Mintel research, 17% of coffee drinkers say they prefer their coffee one cup at a time. Not surprisingly, the most popular draw for single-cup coffee lovers is convenience. Seventy-nine percent of those who enjoy single-cup coffee agree that they drink it because it’s convenient to brew. Meanwhile, 60% cite the ability to brew a hot cup every time instead of reheating a full pot and 55% say they like the variety available in pods.
According to a new report from Jefferies & Company Inc., the coffeehouse segment is poised for a banner year due to rising same-store sales, more stable coffee prices and a boom in consumer packaged goods revenue led by price increases and “K‑Cup” individual-brewing sales. As supermarket sales of ground coffee continue to grow, analysts also predict a sales growth of between 8% and 10% for the coffeehouse segment in 2012.
Drinking coffee is a well-established habit for millions of U.S. consumers. The problem is that consumers with the highest rates of daily coffee drinking are older than 45. Will younger consumers turn to coffee for a daily jolt as they age? Marketers shouldn’t take any chances and can start looking at ways to increase the consumption rates among younger age groups now.
Positioned as a relatively inexpensive luxury, upscale coffee sales continue to thrive even as many other industries suffer from consumer cutbacks on nonessential purchases, according to new research from Packaged Facts. Packaged Facts estimates that total coffee market sales, including foodservice and retail, rose to $48 billion in 2009, with annual growth of 4% in 2008 and 2009. Sales in foodservice-everything from Dunkin' Donuts' select blends to McDonald's medley of McCafé mochas, lattes, and cappuccinos-reached $42 billion, accounting for 87% of the coffee market. Instead of settling for cheap ground coffee, consumers and their growing "coffee connoisseurship" have been willing to make difficult tradeoffs to stay within their means while indulging in premium beverages that provide many with a source of comfort during stressful times.