BEVERAGE TRENDS
More than Traditional Coffee
Coffee Preferences Through the Generations
Youth’s Appeal to Beverage Variety
Rise of Specialty Coffee in Foodservice
Major Coffee Occasions
A World of Coffee Flavours
Plant-Based Beverages
Functional Beverages
Moderation Movement
Digital Ordering Intensifies
© Ipsos. FSM FOODSERVICE MONITOR | SYNDICATED
BEVERAGE TRENDS1. MORE THAN TRADITIONAL COFFEE
Traditional brewed coffee is losing its prominence as consumers show a growing interest in espresso-based, iced/frozen, and other specialty coffees.
There has been a 2% decline in year-on-year share in 2023 compared to 2022. On the other hand, iced coffee is experiencing a rise in popularity, with a 3.2% increase in share year-on-year.
So, what does this mean for the coffee industry? It signifies a shift in consumer preferences towards more unique and refreshing coffee options.
Offers a variety of coffee flavours or options
Has sustainability claims
Requires limited labour
Has a recognized brand
Programs such as the ‘We Proudly Serve Starbucks’ coffee program allow you to offer your customers a variety of coffee beverages beyond brewed coffee that can drive footfall to your business.
BEVERAGE TRENDS2. COFFEE PREFERENCES THROUGH GENERATIONS
Coffee preferences vary significantly across different generations. Younger individuals, particularly those under the age of 32, have a strong preference for iced or cold beverages.
Approximately 15% of their overall beverage orders consist of iced or frozen coffee.
Additionally, fruit juice is gaining popularity among this demographic, accounting for 7.3% of Gen Z beverage orders.
In contrast, Canadians over the age of 57 exhibit a different preference. For this age group, over 47% of their beverage orders are hot coffee, indicating a strong preference for warm and comforting beverages.
This highlights the importance of understanding and catering to the specific preferences of different generations.
BEVERAGE TRENDS3. YOUTH’S APPEAL TO BEVERAGE VARIETY
The beverage repertoire of younger generations reflects their preferences for variety and uniqueness. Gen Z'ers, in particular, have developed a staggering 15 beverage categories, while Millennials have 7. This indicates a strong desire for diverse options among these age groups. This emphasizes the importance of offering a wide range of choices to cater to the preferences of younger generations.
By providing a diverse selection of beverages, establishments can meet the demand for variety and uniqueness, capturing the attention and loyalty of these consumers.
Bubble tea is set to experience exponential growth, with the market projected to double in size by 2032. This surge is fueled by the rising consumer interest in Asian cuisine and beverages
Bubble tea market projected to double in size by 2032.
BEVERAGE TRENDS4. RISE OF SPECIALTY COFFEE IN FOODSERVICE
The rise of specialty and cold coffee sourced from foodservice establishments is driven by the unique experience it offers, which cannot be easily replicated at home. This appeal lies in the ability to enjoy expertly crafted coffee creations that go beyond what can be prepared quickly or conveniently in a home setting.
This highlights the desire for a more personalized and authentic coffee experience among this demographic. They seek out the charm and character that local establishments can provide, further fueling the demand for specialty coffee in foodservice.
1 in 3 Gen Z coffee drinkers express a preference for local, independent restaurants over chain establishments.
BEVERAGE TRENDS5. MAJOR COFFEE OCCASIONS
In a world filled with uncertainty, the routine of an everyday coffee occasion at foodservice provides a sense of emotional comfort and mental uplift.
Ipsos research reveals that the top developed need state triggering coffee occasions in 2023 was the need for a craveable reward, accounting for 61% of total visits. This highlights the profound emotional impact that a coffee break holds for Canadians. The second most developed need state was the need for a mental uplift, at 46%.
Major drivers behind these needs include statements such as "coffee gets me through the day," "I needed to take a break," and "coffee helps me focus/think." These drivers demonstrate the role that coffee plays in providing a much-needed respite, a moment of relaxation, and a boost in mental clarity and productivity.
Seeking a craveable reward
Seeking comfort in a cup
Purchasing out of routine habit
Craving a thirst quencher
Looking for a mental uplift
FOOD TRENDS6. A WORLD OF COFFEE FLAVOURS
Of all coffee flavours, vanilla still remains at the top, with over 43.8% of coffee flavoured orders being vanilla.
However, caramel is on the rise, at 24.7% and with a 1.7% YoY growth.
While Vanilla and Mocha reign the hot coffees, caramel is king in iced/frozen coffee category. Other notable coffee flavours on the rise are oat with a 1.5% YoY growth and pumpkin spice, with a 1.8%.
BEVERAGE TRENDS7. PLANT-BASED BEVERAGES
The demand for sustainable plant-based beverages and creamers is being driven by younger Canadians, who are increasingly seeking environmentally friendly options.
While the proportion sourced from restaurants is small, it is notable and growing. The global non-dairy creamer market is experiencing exponential growth as consumers demand vegan and lactose-free alternatives for their beverages.
Gen Z and Millennials are 4 times more likely than boomers to avoid animal products for ethical or environmental reasons. This highlights the shifting preferences of younger generations towards plant-based choices, driven by concerns for animal welfare and the environment.
BEVERAGE TRENDS8. FUNCTIONAL BEVERAGES
Consumers are seeking more than just refreshment and basic nutrition from their beverages. They now desire beverages that offer functionality and support their specific needs.
Canadians are no longer solely focused on meeting nutritional requirements; they are expanding their expectations to include emotional well-being and physical benefits.
Some of the top-ranked nutritional drivers for functional beverages include weight control, digestive health assistance, immunity support, and bone health improvement. These benefits reflect the growing awareness and desire among consumers to proactively manage their overall well-being through the beverages they consume.
Incorporating low-sugar juices or beverages into your menu can effectively cater to your customers' desire for weight-loss-friendly options.
BEVERAGE TRENDS9. MODERATION MOVEMENT
There is a noticeable change in the way Canadian drinkers approach alcohol consumption. They are now focusing on reducing the amount consumed per occasion and drinking less frequently, resulting in a significant 4.8% decrease in the overall drinking rate over the past 5 years.
This shift presents an opportunity for food and beverage establishments to cater to the changing preferences of consumers.
By expanding their selection of non-alcoholic beverages, establishments can meet the demand for healthier and more moderate drinking choices, while still providing enjoyable and refreshing alternatives for customers.
Consider adding mocktail options to your beverage menu. Vitality Juices and Flavoured Waters are excellent choices that offer versatility and efficiency, making it effortless to incorporate delicious mocktail into your menu.
BEVERAGE TRENDS10. DIGITAL ORDERING INTENSIFIES
The growth of digital ordering presents a significant opportunity for beverage sales to flourish. Factors such as inflation and post-pandemic sourcing dynamics have contributed to the increasing importance of digital ordering in beverage choices. Currently, digital orders generate an impressive $10 billion in sales.
While certain channels like delivery may be experiencing a slight softening, digital ordering as a whole remains a profitable and substantial practice within the foodservice industry. Notably, digital ordering for coffee has expanded 2.1 times larger than pre-pandemic levels.
