Staying ahead of evolving trends is key to keeping your menu fresh and exciting for your customers. In 2024, the coffee market is seeing notable shifts, from the rise of iced coffee and plant-based milk to the increasing demand for health-focused options and thoughtful food pairings. By adapting to these trends, you can offer a range of choices that cater to traditional preferences and emerging tastes, giving you the broadest appeal.
COFFEE TRENDS: HOT COFFEE V ICED COFFEE
Coffee is consumed in many ways, from espressos and americanos to lattes and flat whites. But while hot coffee is still the most popular way to enjoy it, iced coffee has shown the most growth, 5.2% on last year, according to the latest market trends report by Lumina Intelligence. Iced coffee may only account for 6.7% of the coffee market, but if you want to move with the trends, it’s important to have an iced coffee option on your menu.
Another style of coffee that has gained popularity recently is Vietnamese coffee, a strong drip coffee mixed with sweet condensed milk. Some baristas also add a drop of vanilla, and it is often consumed cold or iced.
COFFEE TRENDS: PLANT-BASED MILK
Despite the growth of plant-based milk over the years, we have seen the biggest increase in dairy milk. It is still the most popular choice, accounting for 83% of the market, a growth of 3.1% YOY. The report suggests this is because dairy is cheaper than plant-based alternatives.
Of all the plant-based options (oat, soy, almond, and coconut), oat is the most popular (6.1%). Moreover, plant-based milk is the most popular milk of choice when ordering an iced coffee, and the most likely consumer to order this is a female aged 25-34.
While some people choose plant-based milk because of lactose intolerance or dairy allergies, others do it because they believe it to be healthier than dairy milk. This creates a space to educate customers on the benefits of plant-based milk, resulting in them trading up to these options.
COFFEE TRENDS: HEALTH-KICK
42.6% of coffee consumers are very health conscious, which spikes the trend of health-led coffees in the market.
Functional drinks such as turmeric and matcha latte are still trendy, as is a brand new ‘health’ drink, the blue algae latte, which is popular in Australia. According to Lumina, menu expansion and NPD are key to tapping into new opportunities.
COFFEE TRENDS: COFFEE AND FOOD
Coffee and food go hand in hand. They are two purchases often made together, whether it’s a snack, sandwich or the common pairing, a sweet treat. The number of sweet treats on menus has grown 22% over the last two years, and now the average number of sweet treats on a cafe menu is 44.
Having a food or snack offering alongside your coffee is a great way to get customers to trade up. Just look at Costa Coffee and Bad Moon Cafe, which have now added pizza to their food offerings.
IN SUMMARY
Coffee still proves to be an important offering to have in your venue, whether you’re a cafe, restaurant or pub. While older consumers drink the most coffee, younger consumers like to enjoy coffee as an alternative to alcohol. Finally, coffee forms part of many consumers’ routines but also as part of an experience. And if you want to get customers to trade up, plant-based milk and a variety of food options is the way to go!
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