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 Photo credit: Google Image 2019 World Coffee Production=168.7 million bags (60kg / 132lb bags) Source: International Coffee Organization

Historical Global Coffee Production & Consumption 163 139 163 117 114 132 112 110 Production Consumption Source: International Coffee Organization

Source: International Coffee Organization

Consu sump mption Foreca cast st-2012 179 180 170 160 Low (1.5% Growth) Mid (2% Growth) 150 High (2.5% Growth) 150 139 140 130 2012 14 16 18 20 22 24 26 28 30 32

Top Consuming Countries Millions of Bags 23 7 6 6 6 3 U.S. Germany Japan Italy France Spain Source: International Coffee Organization

 Spec ecial alty ty Coffe fee e Market et Poten tenti tial • U.S. Focus • Indicators we look at? • Consumption • Market Size • Consumer Behavior

U.S. Specialist Coffee Shops Retail Sales $28.2 billion 30,000.0 $17.4 billion 25,000.0 $11.2 billion 20,000.0 15,000.0 10,000.0 5,000.0 0.0 2005 2012 2019

Specialty Coffee 40% 45% Daily Consumption 40% 24% 35% 30% 25% 15% 20% 9% 15% 10% 5% 0% 2000 2006 2013 2018 Source: National Coffee Association

Total Coffee vs. Specialty Coffee Consumption 62% 54% 55% 40% 14% 9% 2000 2006 2012 2018 Source: National Coffee Association

Market Share of Specialty Cups 70% 59% 60% 51% 50% 40% 40% 30% 20% 10% 0% 2010 2014 2017 Source: National Coffee Association

U.S. Specialist Coffee Shops # of outlets 27,301 30,000 23,020 18,024 25,000 20,000 15,000 10,000 5,000 0 2005 2012 2019

The Specialty Coffee Consumer Deeper Dive Photo Credit: Google Images

Photo Credit: SCA

Photo Credit: SCA

Photo Credit: SCA

Focus Group Top Findings Deeply emotional • Not price sensitive • 2 subsets within specialty • coffee consumers Didn’t understand the terms • “specialty coffee”

“Adopters” “Supers” Coffee Coffee Connoisseurs Lovers Photo credit: SCA & Google Image

“Adopters” “Supers” “I enjoy the taste “Coffee is a sensory of coffee & experience to be experiencing new savored and flavors.” refined.”

Drinking Coffee Locations Adopters & Supers Coffee Shop Home Source: Google Images

What influenced their choices along the way? Adopters rs Supers rs 1. Friends & Family 1. Baristas 2. Taste & Flavor attributes 2. Explanations of coffee 3. Explanations of coffee 3. Secondary descriptors 4. Experiential qualities 4. Experiential qualities

“Adopters” “Supers” Ground coffee Whole Bean $12-$15 $16+ Coffee at the coffee Coffee at home shop taste better tastes better because of the brew because of the method brew method

Coffee Shop Spend, Beverage 24% $2-$3 5% 51% $4-$5 52% 20% $6- $7 27% 5% More than $7 15% 0% 10% 20% 30% 40% 50% 60% Adopter Super

Factors s in Choosi sing Coffee Adopters Supers 1. 1. Flav avor or 1. Flav 1. avor or 2. Roas 2. ast t Level el 2. 2. Roas ast t Level el 3. 3. Coffe ffee e Origi gin 3. Coffe 3. ffee e Origi gin 4. Recommendation 4. Organic Practices 5. Sustainability 5. Fair Trade

Yannis Apostolopoulos Chief Executive Officer Specialty Coffee Association