The company laid out some trends, which appear to be segmented between the iced and hot coffee markets.
Innova Market Insights, a consumer research company specializing in the food, beverage, and dietary supplements industries, called attention to the role that storytelling, one of the top ten commercial trends the company named for this year, is having a profound impact in the European coffee market.
“There is value in detail, whether it be in the coffee’s souce, method of production, taste profile, or intensity,” Innova reports.
While taste remains the single most important factor in purchasing decisions for both hot and iced coffee, Innova reports that consumers’ priorities tend to diverge, such as whether consumers consider coffee to be more suitable for energizing or relaxing purposes. 32% of consumers Innova surveyed said that they drink coffee to keep themselves going, while 25% say that it is to relax and wind down, in spite of its high caffeine content.
Meanwhile, in iced coffee “happiness” and “treating” were the most important attributes, with low sugar and dairy-free claims gaining fast ground in Europe.
Many companies appear to be focusing on premium angles, with over half of all hot coffee launches in 2019 being represented by capsules for in-home machines. “Premium technology is also adding value in this market,” Lu Ann Williams, director of insights and innovation at Innova Market Insights, said. “For example, use of the term ‘barista’ in coffee product names increased five-fold between 2015 and 2019, while the share of ‘cold brew’ products in the iced coffee arena alone increased from 1% of launches in 2015 to 19% in 2019.”
Innova predicts that ethical issues will continue to generate greater impact, particularly on hot coffee, with the capsules category working hard to offer more eco-friendly technology. Meanwhile, the lines between the out-of-home and in-home coffee markets are blurring. This could be important for the wider category at a time when COVID-19 is restricting the global out-of-home coffee market.
Source: Nutraceuticals World
