April 11, 2024 – Wake up and smell the coffee, because the morning brew of millions is as popular as ever. Here, we will dive into the dynamic world of the global coffee market, providing valuable insights into the latest coffee trends, consumer preferences, and developments shaping the category.
Coffee Within the Hot Drinks Category
Coffee trend research shows that between 2018 and 2023, new coffee product development has gradually increased in share percentages within the hot drinks category, rising from 40% to 45%. However, coffee sales have gradually decreased between 2019 and 2023, taking up slightly less sale value in the global hot drinks market. Additionally, coffee is the top hot drinks subcategory in new product launches between April 2023 and September 2023.
More than one in two new hot drink product launches are coffee in North America and in Europe. The same two regions also have seen the largest increase in coffee new product development share from 2022 to 2023, compared to regions such as Latin America, the Middle East and Africa, and Asia Pacific. The final two regions listed saw a decrease in new product development share for coffee.
Top Coffee Brands
While coffee new product development share has risen between 2018 and 2023, it has fluctuated more heavily between April 2021 and September 2023. When comparing the growth of value and volume, the two stay largely in line, rising and falling at similar rates.
Nestlé stands as the most influential brand for coffee trends between April 2023 and September 2023. The brand holds 10.8% of share for coffee new product developments and is driven by its brands Starbucks (25%), Nescafé (24%), Nescafé Gold (16%) and Nescafé Dolce Gusto (14%). Additionally, Nestlé Nespresso is the second leading company for coffee launches during the period, with 10.6% of new product launches.
Regional Development
Regional coffee trends demonstrate Europe as the leading market for new product development between April 2023 and September 2023. The region leads with an average of 38% share for coffee product launches during this period. Lungo coffee capsules, roast and ground options from single origin selections, and whole beans prepared with indulgent flavors push new product development the most. Europe is also the largest region for coffee sales value, at an average of 34% share between 2019 and 2023.
North America, on the other hand, exhibits high innovation and value growth within the global coffee market, when compared to sales value. Vegan choices, plant-based versions, blend of nut flavors, launches promoting energy or alertness, free from ranges and persistence of clean label claims sustain the innovation and value growth in the region.
Positioning Coffee Trends
Indulgent and premium are the top claims between April 2023 and September 2023 for coffee products. These two claims are seen most often in North America, and Latin America. Claims of organic, halal, and vegetarian are also seen often, with claims of sugar-free, no added sugar, gluten free, vegan, and low or no fat growing in popularity.
Flavor Trends
Coffee trend research shows caramel as the most popular flavor, with an increase in share between April and September of 2023, rising to 3.6% of new coffee product launches. After caramel, the top five flavors for new coffee products are hazelnut, vanilla, milk chocolate, and chicory bean.
When looking at specific regions, in North America hazelnut is most popular, followed by caramel and vanilla. In Europe and the Middle East, caramel is most popular. In Asia Pacific, hazelnut is most popular, just slightly more than caramel. Interestingly, in Latin America, hazelnut is much less popular than the other top five flavors.
What’s Next in Coffee Trends?
Moving forward, there are some key coffee trends to look out for in the new coffee product subcategory.
Coffee value growth slightly outweighs volume growth in many regions; coffee sales volume growth at 6.5% exceeds 4.7% volume growth. North America is the only high innovation and value growth market in between 2021 and 2023, recording the highest CAGR of 9% during this time for coffee sales value.
The Middle East and Africa registered the highest CAGR for new product development among all regions. Between 2022 and 2023, the region increased new product launches by 20%, with coffee launches remaining stable at 8% between April 2022 and September 2023.
New coffee product development is more often including claims aimed at socially conscious consumers. Vegan, plant based, and natural positionings are all on the rise.
Finally, indulgent and spice-based flavors are growing. These include indulgent French vanilla in the Americas, crème brûlée in North America, and coconut in Asia Pacific. Spice and cinnamon flavors are also growing in the Americas, as well as cardamom in the Middle East and Africa.
This article is based on our report, “What’s Trending in Coffee – Global.”
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