SupermarketNews Magazine | April 2022

Page 20


Home Coffee Market

All a Froth


s the global pandemic locked Kiwi consumers at home and away from their favourite cafés and coffee spots, the rise of the athome barista began. Kiwi coffee fans were unwilling to give up their morning java even as they changed many other aspects of their daily routines during COVID-19 restrictions. Unlike other changes, this is one that will continue to be a part of our ‘new normal’. Prior to the pandemic, consumers sourced approximately 73 percent of coffee servings from home and 27 percent from foodservice outlets, but that split shifted to 81 percent of coffee servings from home and 19 percent from foodservice outlets once the pandemic hit.



Sales of espresso machines, French presses and cold brew makers grew by double-digits in the year ending May 2021 compared to the same period one year ago. Coffee accessories, such as temperature-controlled mugs and milk frother wands, also experienced double-digit growth. This growth shouldn’t come as too much of a surprise. With the sheer amount of people who love to drink coffee, it was inevitable that a good number would eventually dabble into brewing at home. But what might have begun as experimenting at home has turned into a full-blown ritual for a lot of home brewers. “The COVID-19 pandemic created a fascinating time for coffee, especially as it saw the reversal of a long-term trend,” said Jonny Forsyth, associate director of food and drink at Mintel. “For years, coffee shops have taken share from retail coffee, but the pandemic forced drinkers to make more coffee at home and replicate the quality of fresh on-premises brews.” The growing diversity and sophistication of at-home coffee products also indicates a deeper shift in the way coffee is

perceived, sold, and consumed globally. “The boom in at-home coffee consumption had its genesis long before the Covid-19 pandemic forced us to cocoon in our homes. It is a trend that has at its core the underlying foundation on which the coffee industry is built: People love their coffee – coffee is often part of a daily ritual and deeply a personal moment,” noted Paul Accornero, Global CCO, De’Longhi Group. “The long-term coffee athome mega-trend is being driven by a combination of consumers’ search for the in-cup quality experience of the thirdwave coupled with new state-ofthe-art at-home machines that allow consumers to replicate beverages previously only available from a professional barista.” Together with the increase in purchasing coffee machines, another growing trend in 2021 was buying small batch roasted coffee. Just as consumers wanted more control over the brewing process, they also wanted more control over where their beans were coming from. Coffee drinkers have become more discerning about the source of their coffee and care more about

the human rights of the people growing their coffee beans. Here in New Zealand, one of the key characteristics of modern specialty coffee culture is a focus on education and awareness. For many coffee brands, the job is no longer about just selling coffee as a drink, but rather engaging the customer in a wider conversation about coffee. This has led to Kiwi consumers being far savvier about their coffee choices, choosing brands based on quality, the sustainability or environmental friendliness of the brand, and aesthetic appeal. "Consumers' palates are more sophisticated now when it comes to coffee. They've invested their time and money in bringing a gourmet coffee experience into their homes," explained Joe Derochowski, home industry advisor at The NPD Group. "Even when they're back to work or school, they'll continue to get a return on their investment. Manufacturers can benefit by offering great taste, which is always key, the ability to adjust the taste, and versatility in enabling consumers to get that coffee house experience at home." n