COFFEE AND TEA ON PREMISE - US - JULY 2018

COFFEE AND TEA ON PREMISE - US - JULY 2018

Jul 2018 Mintel BeveragesN/A Price :
$ 4395

The foodservice coffee market is highly competitive and many large coffee brands are starting to experience a slowdown in sales due to saturation. However, the incidence of consumers buying coffee away from home has grown, with increased consumption coming from new drink trial. The future of the foodservice market will be characterized by the continued growth of third wave coffee and innovation surrounding cold coffee drinks.

Table of contents
OVERVIEW
What you need to know
Definition
Coffee wave definitions
EXECUTIVE SUMMARY
The issues
Major coffee players experience a slowdown
Lapsed consumers unlikely to start buying more coffee
Figure 1: Reasons for buying coffee AFH less often, May 2018
The opportunities
Consumers are experimenting with new coffee drinks
Figure 2: Reasons for buying coffee AFH more often, May 2018
Build lasting brand loyalty among iGens through cold drinks
Figure 3: AFH coffee consumption: most ordered, by generation, May 2018
Make third wave coffee a treat for Millennial parents
Figure 4: AFH coffee attitudes, by Millennial parent breaks, May 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Consumers have a few extra dollars for coffee
Coffee shops go green
MARKET PERSPECTIVE
RTD coffee: friend or foe?
Figure 5: RTD coffee interest, May 2018
Energy drinks compete with iced coffee for afternoon occasion
Figure 6: Reasons for usage of energy drinks/energy shots, March 2017
Figure 7: Top five energy drinks with highest purchase intent score; T2B-five point scale
MARKET FACTORS
Coffee, it prevents Parkinson’s, heart attacks, and causes cancer?
Starbucks puts a lid on straws; Dunkin’ shifts to paper
Strong economy benefits coffee shops
Figure 8: Consumer sentiment index, January 2007-May 2018
Figure 9: Unemployment and underemployment, January 2007-April 2018
Healthy bean harvest in Brazil and Colombia
KEY PLAYERS – WHAT YOU NEED TO KNOW
Competition causes slowdown for coffee chains
The future of coffee is cold, functional, and colorful
WHAT’S WORKING?
JAB continues to build its coffee empire
Figure 10: US coffee and foodservice companies owned by JAB
Coffee shops become high tech
Starbucks Rewards 2.0?
Starbucks launches its credit card
Figure 11: Starbucks email, “Earn 2,500 Bonus Stars”, sent 2/16/2018
Figure 12: Starbucks email, “Introducing the Starbucks Rewards Visa Card”, sent 2/7/2018
Non-dairy milks gain penetration in coffee shops
Figure 13: Coffee and tea additions, non-dairy milk, by generation, March 2018
Figure 14: Change in incidence of non-dairy milk as an ingredient in coffee drinks, Q1 2015 – Q1 2018
Figure 15: Change in incidence of non-dairy milk as an ingredient in tea drinks, Q1 2015-Q1 2018
Coffee and tea gets boozy
Figure 16: coffee and tea used in alcoholic beverages, Q1 2018
WHAT’S STRUGGLING?
Starbucks’s US growth slows
Frappuccino falls victim to consumer health concerns
Dunkin’ focuses on its strengths
WHAT’S NEXT?
Cold drinks and the afternoon become key battlegrounds
Figure 17: AFH coffee consumption by daypart, among drinkers, September 2016
Starbucks’ three prong approach to the afternoon
Figure 18: Online Ad, “Afternoon Made at Starbucks”
Dunkin’ releases nitro, focuses on flavor
Dunkin’ drops the donuts with new unit design
Juice/coffee blends gain wider acceptance
Drinks with shades of functionality
No more room for independent third wave coffee?
MMI ANALYSIS
Cold coffee drinks experience strong growth
Figure 19: Change in incidence of coffee drinks on menus, Q1 2015-Q1 2018
Figure 20: Change in incidence of coffee drinks on menus, by segment, Q1 2015-Q1 2018
Figure 21: incidence of iced coffee/cold brew coffee on menus, by segment, Q1 2015-Q1 2018
Figure 22: Incidence of cold brewed coffee on menus, Q1 2015-Q1 2018
Coffee flavor trends
Figure 23: Coffee flavors with strong directional growth, Q1 2015-Q1 2018
Specialty tea drinks gain a presence on menus
Figure 24: Change in incidence of top 20 tea types on menus, Q1 2015-Q1 2018
Figure 25: Change in incidence of tea drinks on menus, by segment, Q1 2015-Q1 2018
Tea flavor trends
Figure 26: tea flavors with strong directional growth, Q1 2015-Q1 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Primary coffee drinks vary among consumers
Capture Gen X with third wave coffee
Consumers are experimenting with new drinks
Bring consumers in the door with new flavors
RESTAURANTS VISITED FOR COFFEE: MOST VISITED VS ALSO VISIT
Starbucks leads the AFH coffee market
Figure 27: restaurants visited for coffee: most vs also visit, May 2018
Figure 28: restaurants visited for coffee, number of restaurants visited, May 2018
Strong cross-visitation among the big three coffee chains
Figure 29: Locations also visited for coffee, among chains visited for coffee (most often), May 2018
iGens/Millennials visit multiple locations for coffee
Figure 30: restaurants visited for coffee, any visitation, by generation, May 2018
Figure 31: restaurants visited for coffee, number of restaurants visited, three or more locations, by generation, May 2018
Venue preferences of multicultural consumers
Figure 32: restaurants visited for coffee, most visited, by race/ethnicity indexed against all consumers, Top five locations, May 2018
AFH COFFEE CONSUMPTION: MOST ORDERED VS ALSO ORDER
Cold coffee drinks are an “also” beverage
Figure 33: AFH coffee consumption: most vs also order, May 2018
Figure 34: AFH coffee consumption, number of different drinks ordered, May 2018
iGens enter the coffee market through flavored cold drinks
Figure 35: AFH coffee consumption: most ordered, by generation, May 2018
Figure 36: AFH coffee consumption, number of different drinks ordered, four or more drink types, by generation, May 2018
Starbucks consumers love specialty drinks
Figure 37: AFH coffee consumption: most ordered, by chain visitors (most visited), May 2018
Flavored cold drinks appeal to Hispanic consumers
Figure 38: AFH coffee consumption: most ordered, by race and ethnicity, May 2018
CHANGES IN AFH COFFEE CONSUMPTION
Consumers drinking coffee AFH more often
Figure 39: Changes in AFH coffee consumption, May 2018
Figure 40: Changes in AFH coffee consumption, by select demographics, May 2018
REASONS FOR DRINKING COFFEE AFH MORE
Innovative cold drinks drive increased consumption
Figure 41: Reasons for buying coffee AFH more often, May 2018
Increased cold coffee consumption among Gen X
Figure 42: Reasons for buying coffee AFH more often, by age, May 2018
REASONS FOR DRINKING COFFEE AFH LESS
Coffee shops will have difficulty reengaging lapsed consumers
Figure 43: Reasons for buying coffee AFH less often, May 2018
COFFEE AND TEA TRACKER
Strong growth in AFH iced tea consumption
Figure 44: Change in coffee/tea drinks consumed AFH, April 2017-March 2018
Figure 45: Change in coffee/tea drinks consumed AFH, by generation, April 2017-March 2018
AFH COFFEE ATTITUDES
There’s a diverse set of coffee drinkers
Figure 46: AFH coffee attitudes, May 2018
Third wave coffee can’t ignore Gen X
Figure 47: AFH coffee attitudes, by generation, May 2018
Make coffee a treat for parents
Figure 48: AFH coffee attitudes, by Millennial parent breaks, May 2018
Dunkin’ can keep the flavors rolling
Figure 49: AFH coffee attitudes, by chain visitors (most visited), May 2018
PREMIUM COFFEE PERCEPTION
Third wave coffee will continue to grow
Figure 50: AFH premium coffee perception, May 2018
Figure 51: Premium coffee definition, May 2018
Target Millennial and Gen X coffee lovers
Figure 52: AFH premium coffee perception, by generation, May 2018
Convince older consumers premium coffee is worth the price
Figure 53: AFH premium coffee perception, by food and drink shopper segmentation, May 2018
COFFEE SHOP VISITATION MOTIVATORS
Opportunity for increased flavor innovation
Figure 54: Coffee shop visitation motivators, May 2018
Improvements may not attract lapsed consumers
Figure 55: Coffee shop visitation motivators, by changes in AFH coffee consumption, May 2018
Function and color appeal to iGens
Figure 56: Coffee shop visitation motivators, by generation, May 2018
Figure 57: CHAID analysis – Coffee shop visitation motivators
Third wave fits with Starbucks
Figure 58: Coffee shop visitation motivators, by chain visitors (most visited), May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Mintel Menu Insights
Purchase Intelligence
Mintel Food and Drink Shopper Segmentation
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER
Figure 59: TURF analysis – Coffee shop visitation motivators

Ask for discount before buying this report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Country :
  • Your Requirement
  • Security Code *
* denotes fields which must be completed

Buy This Report


Select License Type :

$ 4395
$ 4395

Do you wish to check sample of this report?

Have Query?


Research Assistance

For Enquiries, Call :

+1-800-998-4852US Toll Free

Email : sales@marketresearchhub.com

Back To Top