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The US Speci cialty y Coffee Marke rket
Yannis Apostolopoulos
The US Speci cialty y Coffee Marke rket Yannis Apostolopoulos - - PowerPoint PPT Presentation
The US Speci cialty y Coffee Marke rket Yannis Apostolopoulos - - PowerPoint PPT Presentation
The US Speci cialty y Coffee Marke rket Yannis Apostolopoulos Global Macro View of Coffee Supply & Demand Supply & Demand Pressures Specialty Coffee Market Potential U.S. Focus Indicators we look at 70 countries
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Global Macro View of Coffee Supply & Demand
- Supply & Demand
Pressures
Specialty Coffee Market Potential
- U.S. Focus
- Indicators we look at
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2019 World Coffee Production=168.7 million bags (60kg / 132lb bags)
Photo credit: Google Image
Source: International Coffee Organization
70 countries
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114 112 139 163 110 117 132 163
Historical Global Coffee Production & Consumption
Production Consumption
Source: International Coffee Organization
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Source: International Coffee Organization
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139
130 140 150 160 170 180 2012 14 16 18 20 22 24 26 28 30 32
Low (1.5% Growth) Mid (2% Growth) High (2.5% Growth)
150 179
Consu sump mption Foreca cast st-2012
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23 6 7 6 6 3
U.S. Germany Japan Italy France Spain
Top Consuming Countries Millions of Bags
Source: International Coffee Organization
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Spec ecial alty ty Coffe fee e Market et Poten tenti tial
- U.S. Focus
- Indicators we look at?
- Consumption
- Market Size
- Consumer Behavior
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0.0 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 2005 2012 2019
$17.4 billion $28.2 billion $11.2 billion
U.S. Specialist Coffee Shops Retail Sales
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0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2000 2006 2013 2018
15% 24% 40%
Specialty Coffee Daily Consumption
Source: National Coffee Association
9%
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54% 55% 62% 9% 14% 40% 2000 2006 2012 2018
Total Coffee vs. Specialty Coffee Consumption
Source: National Coffee Association
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40% 51% 59% 0% 10% 20% 30% 40% 50% 60% 70% 2010 2014 2017
Market Share of Specialty Cups
Source: National Coffee Association
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5,000 10,000 15,000 20,000 25,000 30,000 2005 2012 2019
23,020 27,301 18,024
U.S. Specialist Coffee Shops # of outlets
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The Specialty Coffee Consumer Deeper Dive
Photo Credit: Google Images
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Photo Credit: SCA
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Photo Credit: SCA
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Photo Credit: SCA
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Focus Group Top Findings
- Deeply emotional
- Not price sensitive
- 2 subsets within specialty
coffee consumers
- Didn’t understand the terms
“specialty coffee”
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Coffee Lovers Coffee Connoisseurs
“Adopters” “Supers”
Photo credit: SCA & Google Image
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“I enjoy the taste
- f coffee &
experiencing new flavors.” “Coffee is a sensory experience to be savored and refined.”
“Adopters” “Supers”
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Drinking Coffee Locations Adopters & Supers
Home Coffee Shop
Source: Google Images
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Adopters rs Supers rs
What influenced their choices along the way?
- 1. Friends & Family
- 2. Taste & Flavor attributes
- 3. Explanations of coffee
- 4. Experiential qualities
- 1. Baristas
- 2. Explanations of coffee
- 3. Secondary descriptors
- 4. Experiential qualities
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Ground coffee $12-$15 Whole Bean $16+
“Adopters” “Supers”
Coffee at the coffee shop taste better because of the brew method Coffee at home tastes better because of the brew method
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Coffee Shop Spend, Beverage
15% 27% 52% 5% 5% 20% 51% 24% 0% 10% 20% 30% 40% 50% 60% More than $7 $6- $7 $4-$5 $2-$3 Adopter Super
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1.
- 1. Flav
avor
- r
2.
- 2. Roas
ast t Level el 3.
- 3. Coffe
ffee e Origi gin
- 4. Recommendation
- 5. Sustainability
Factors s in Choosi sing Coffee
1.
- 1. Flav
avor
- r
2.
- 2. Roas
ast t Level el 3.
- 3. Coffe
ffee e Origi gin
- 4. Organic Practices
- 5. Fair Trade
Adopters Supers
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Yannis Apostolopoulos Chief Executive Officer Specialty Coffee Association