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Decline in coffee consumption speaks to shifting habits: NPD


March 5, 2015
By Canadian Vending

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March 5, 2015, Toronto – Canadians
consume 2.1 billion servings of coffee annually, but
changing preferences and the popularity of in-home
brewing devices such as single-serve machines have led to a decline in
out-of-home consumption, according to The NPD Group.

March 5, 2015, Toronto – Canadians
consume 2.1 billion servings of coffee annually, but
changing preferences and the popularity of in-home
brewing devices such as single-serve machines have led to a decline in
out-of-home consumption, according to The NPD Group.

Ongoing foodservice market research from NPD’s Consumer Reports on Eating Share Trends suggests out-of-home coffee servings have declined year-over-year by more than three per cent.

“Consumers are constantly looking for ways to save money and spend
less,” said Robert Carter, executive director at The NPD Group, in a news release.
“Furthermore, brewing at home is becoming more convenient and more cost
effective as single-serve devices become more popular.”

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When Canadians do make out-of-home purchases they are most likely to
reach for a cup of traditional hot brewed coffee (77 per cent of
servings), in comparison to hot specialty coffee (14 per cent of
servings) or iced specialty coffee (nine per cent of servings). However,
coffee-craving Canadians are beginning to become more adventurous when
it comes to their purchases. Over the last four years, hot brewed coffee
servings have declined at a rate of two per cent whereas hot specialty
coffee servings have grown by four per cent and iced specialty coffee
servings have surged by eight per cent, according to NPD’s CREST foodservice market research.

Interestingly, while the number of annual servings of hot brewed
coffee has declined, the number of annual visits to coffee shops has
remained relatively unchanged. This suggests that consumers are
beginning to alter their purchasing habits – a trend that has influenced
some operators to begin experimenting with wine, beer, and non-coffee alternatives.

“While we are certainly seeing a shift away from out-of-home
consumption of traditional hot brewed coffee, it’s also clear that
consumer preferences are changing as servings of hot specialty coffee
and iced specialty coffee have increased,” Carter said. “And while
consumers can easily brew traditional coffee products in their homes,
coffeehouses definitely have an advantage when it comes to specialty
coffees and iced coffees. Not to mention coffee shops also provide an
enticing, social atmosphere that is attractive to many people looking
for more of an experience when enjoying a cup of Joe.”

While baby boomers remain the biggest consumers of hot brewed coffee (37
per cent of servings) millennials increased their consumption by six per
cent in 2014. The data also suggests that millennials consume one of every three servings of hot specialty coffee, while females reign supreme when it
comes to consumption of hot specialty coffee (65 per cent of all
servings) and iced specialty coffee (71 per cent of total servings).