According to the British Coffee Association,  Britons drink 98 million cups of coffee every day. And although 80% of UK households buy instant coffee for in-home consumption (particularly those aged 65 and older), ground coffee and single-serve coffee pods are becoming increasingly popular, particularly among Gen Zers and millennials (aged 16 – 34), who account for 16% of all buyers. Furthermore, the consumption of cold brew coffee is also rapidly expanding. Similar to ground coffee and single serve, cold brew is preferred by younger consumers and has untapped potential throughout the UK. (For more information see T&CTJ’s feature: Cold brew experiences growth in the UK market).

In terms of out-of-home consumption, the café culture is booming. The BCA reports that 80% of those who visit coffee shops do so once a week and 16% of the population visit once a day.

Given that that the café culture is surging, Germany-based coffee blog Coffeeness researched the best UK cities for coffee lovers, taking a variety of factors into account, including the number of coffee shops and coffee roasters as well as coffee pricing, search trends and annual coffee festivals and events. Interestingly, the top 25 cities are in England. Coffeeness found that the top ten best cities in the UK for coffee enthusiasts, in order are:

1. Salford
2. London
3. Preston
4. Bath
5. Brighton & Hove
6. Liverpool
7. Durham
8. Peterborough
9. Wells
10. Leicester

According to Coffeeness, which used Yelp as its main source for calculating the number of cafés, cake shops and coffee roasters in any given city, Salford is by far, the best UK city for coffee lovers in terms of accessibility to good quality coffee. It’s also one of the most affordable cities for coffee. Conversely, London is one of the cities in which the average cost for a cup of coffee is highest (topped by only Ely in Cambridgeshire).

Other ‘most affordable coffee cities’ include the cathedral city of Durham – where a cup of coffee is £2.81 on average – followed by Peterborough, Chelmsford, and Salford.

The research finds that London’s café culture is really thriving. The city – which now boasts more than 4,100 coffee shops – ranks highest overall when it comes to coffee festivals and events.

Per Coffeeness, Sunderland, located in North East England, ranks as the least favourable UK city for coffee lovers. And while Bristol ranks fairly low in terms of coffee accessibility and quality, it comes in second for coffee culture and interest.

For the full report on the best cities in the UK for coffee lovers, click here.

Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Despite cutting back on grocery spending, Chris Costagli, vp/food insights lead, Nielsen IQ, in his “Mastering Omnichannel Sales in the Coffee Industry” webinar for the National Coffee Association (NCA), said that foodservice excluding alcohol sales are expected to approach USD $1 trillion this year, adding that foodservice and drinking places are recapturing share of U.S. food sales. “The trend change was dramatic in 2020; driven by more frequent at-home cooking and panic-induced stockpiling. Foodservice and drinking place sales are recovering and projected to recapture the lead in 2026,” he said. (Costagli noted that inflation and high menu prices have contributed to large growth in foodservice; however, these macroeconomic conditions are causing the growth rate to slow.)

It seems that in today’s stressful climate, away-from-home consumption plays an important role in consumers’ mental wellbeing. Despite inflation, Costagli said that most consumers are going out to eat/drink as least as often as usual. Only a quarter of those who eat/drink out have scaled back on the frequency of visits. There are more consumers visiting more often than usual than there are scaling back. “They are more than places to eat and drink,” he explained, “they are vital gathering spots that foster friendship and connection.”

Nielsen IQ (NIQ) found that one-in-five consumers said they would be lost without bars or restaurants. As such, going out weekly is the norm. Per NIQ’s CGA May 2024 US On Premise Impact Report:

• 63% restaurant/bar visitors make at least one trip a week
• 77% plan to go out to eat in the next month
• 47% plan to go out for a drink in the next month

According to Costagli, ‘treating’ is the main reason for going out more. Of the 29% going out more often, treating and variety seeking are leading motivators:

• I have been treating myself 44%
• There are new places that I have wanted to try 35%
• There have been more events than usual 25%
• I want to support local business 23%
• I have been able to save money recently 21%
• I am visiting while I have enough disposable income 19%

‘Away-from-home coffee’ is already considered an ‘affordable indulgence’ so these latest dining out trends bode well for coffee shops and cafés. At one of his NCA Convention presentations (it may have been the virtual convention in 2022 or the 2023 one in Tampa) Matthew Barry, senior beverages insights manager, at Euromonitor International, spoke about the emergence of two types of coffee shops following the Covid-19 pandemic: those offering convenience (speed, mobile orders, etc.) and those offering an experience.

If one of the primary reasons consumers are drinking and dining out is because these places help “foster friendship and connection,” then those coffee shops favouring ‘experience’ over ‘convenience’ have a real opportunity to solidify their establishment as a ‘go to gathering place’ and attract more consumers by elevating or enhancing their in-store experience, through ambiance, menu options, and of course, customer service.

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In a recent webinar entitled, “The Private Label Revolution: Is CPG having a Netflix Moment?”, Nik Modi, global co-head of consumer/retail equity research and HBC, beverage and packaged food analyst, RBC Capital Markets, LLC, and Hunter Thurman, founder/president, of consumer psychology and behaviour consultancy, Alpha Diver, discussed the growth of private label products within consumer packaged goods (CPG) and the impact they are having on branded CPG products.

Historically PL products have been used by lower income consumers and by higher income consumers when times were tough so they would ‘trade down’, but the latter would ‘trade up’ again when the situation improved. But, Nik Modi, said this time it’s different. “The percentage household penetration for private label products has increased over the past few quarters and has surpassed pre-Covid levels,” he said, noting that PL has experienced broad market share gains.

Modi said that a 2023 study showed that about USD $1.5 billion worth of sales shifted away from national brands and sales have also shifted from the grocery channel to the rest of food channels (discount, mass, club) where PL brands sales growth notably outpaced national brand sales growth. “The percentage price gap between PL and branded players has been volatile but is recently on a downward trend approaching the lowest levels seen since 2019,” he said, adding that while this should be good for brands, the problem is that the branded price is still really high. For consumers today, Modi explained, it’s not about trending down, about trending out.

Furthermore, the percentage of household penetration of PL CPG is correlated with age cohort, with higher penetration in households of older individuals, but currently, noted Modi, Gen X consumers have the highest buy rate. He also shared that baby boomers are also heavily involved in PL product. “Companies do not market to them anymore but baby boomers have the most disposable income because they have no one they need to spend money on but themselves. Brands tend to forget about them but baby boomers will big chunk of spending over next few years,” said Modi. (Sidenote, Modi said it is because of Japan’s large baby boomer population that the country is the biggest luxury market in the world.)

Over the long term, PL is projected to gain 5 pts of dollar share by 2030. And although beverages have historically had low PL participation, it is gaining market share as branded beverages continue to see comps loss.

Retailer initiatives are ramping up and becoming more sophisticated and AI is being overlaid to help them make better decisions. “There is a major shift happening in PL — perception changing, the market, category and industry is changing. Backward looking isn’t going to help,” said Hunter Thurman, president and founder of Alpha Diver.

Thurman said what happened with Netflix 20 years ago is happening with PL brands today. “Netflix used to offer knock DVD rentals, cheap, & convenient. Pl in the past offered knock-off products, cheaper. Then Netflix began to offer a new kind of entertainment: on-demand which elevated the frame of reference to cable TV. PL products introduced a new kind of brand: cross category and attractive prices that engaged a new kind of shopper. And while Netflix started offering original, exclusive content, PL brands are offering innovative exclusive products,” he said, adding that “no one saw the ‘Netflix disruptor’ coming when it first emerged.”

“Private label/store brands are the new disruptors—they can innovate faster than the national [multinational] brands, said Thurman. “We need to banish the ‘trade down to store brand’ mentality. Modern store brands are far from knockoffs, and it’s changing shopper psychology and decision-making. A new type of shopper is being engaged and it’s changing the marketplace. Realty is that a new type of shopper is being engaged via these store brands.”

Gone are the days of ‘national vs store brand’, today, Thurman says there are three types of brands: national, owned brands and value brands. To consumers, there is little difference between ‘national’ and ‘owned brands’.

Target Stores (favorite day) and Amazon (Aplenty) launched PL brands in spring that are on-point with current trends. Walmart launched bettergoods in April — a new PL brand focused on quality, unique, chef-inspired food items at an affordable price. “This brand does more than just compete on price. This is very different than what we’ve seen at Walmart because it is not entirely a price-based proposition,” said Modi. “bettergoods is offering trendier, unique products, not just about higher prices, different foods and flavours that even national brands are not offering.”

bettergoods is competing in categories such as coffee, dairy, non-dairy (almond milk), beverages, snacks, chocolate, etc. Interestingly, Modi noted that from an income point of view, those in the USD $125K+ income bracket are showing the highest household penetration by a wide margin thus far in the launch of bettergoods. “Walmart has recruited a lot of higher income households into their stores over the last couple of years. This is a way for them to keep these types of consumers.”

Both Modi and Thurman noted that with their unique, on-trend offerings, PL/store brands are engaging the growing, ever-important, ethnically diverse Gen Z consumer.

“Consumers today are not buying PL/’owned brands’ because they are cheaper, they are interested in them,” said Thurman. “Owned brands are creating more excitement so attracting the coveted shoppers, not about trading down on price. We must stop thinking about national vs PL/owned brand in such a binary way.”

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In his presentation, Carman Allison, NielsenIQ, said that optimism around the consumers’ personal financial situation is lagging, especially in North America and EU markets, despite the rate of inflation slowing across the globe. He explained that this has created financial polarization, noting, “it’s about the haves and the haves less.”

Allison said that in a recent consumer survey (conducted over the summer), Nielsen observed a shift from cautious to conscious consumption. “Heading into 2025, the state of consumers is determined, with three types of consumers [emerging]: resilient, vigilante and intentional. Consumers are spending in a more strategic way — they prioritize at-home, planning and waste-avoidant spending.”

This behaviour, Allison said, has ‘redefined discount’. “Consumers have embraced (and expect) a broader value from the concept of ‘discount’,” which is impacting buying behaviour across the board, not just in food, beverage (coffee and tea included) and other CPG products.

In their presentations, both Shabnam Weber, president of the Tea and Herbal Association of Canada (THAC), which organized and hosted this year’s NATC, and Peter Goggi, president of the Tea Association of the USA, discussed how health and wellness are driving components for consumers’ purchases.

“Consumers are searching for authenticity and community. People are disillusioned, particularly those ages 16-25,” said Weber, “but what’s hot is wellness and it spans all demographics.”

And while this should greatly benefit tea, it has competition from other ‘healthy beverages’. “Humans don’t ‘drink more’ during day, that is, they do not increase the number of beverages they drink in a day,” said Goggi, “they are swapping out one beverage for another, not adding.”

One strong opportunity for tea is in foodservice. “Globally, tea as an away-from-home beverage has a significant share,” said Margot Swindall of Technomic, but tea has an opportunity to further expand its share. She said cold/iced/frozen teas are growing in both Canada and US. “Hot tea is more often used as a pick-me-up while iced tea tends to serve as a meal companion and thirst-quencher (especially in the US).”

Swindall highlighted the top global foodservice consumer markets for tea for both hot and cold/iced tea in her presentation:

Hot Tea

1. Russia (47%)
2. India (43%)
3. Chile (37%)
4. Indonesia (37%)
5. Malaysia (36%)

Cold Tea

1. Philippines (52%)
2. Indonesia (45%)
3. Malaysia (44%)
4. S. (41%)
5. Thailand (39%)

Swindall said that tea meets other beverages head on in creativity and format extension on the global foodservice stage (in terms of functionality, healthy indulgence, etc.), and consumers are willing to experiment with tea (flavours and formats) — all of which enhances tea’s ability to grow its share in the foodservice channel.

“Foodservice is the playground for tea trial, experimentation and innovation,” Swindall stressed. So not taking advantage of this ‘under tapped’ market would be quite a missed opportunity.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The Camellia sinensis plant, from which matcha originates, was first cultivated for use in tea in China in the 3rd century BCE, but it wasn’t until the 7th to 10th centuries that the practice of consuming the leaves in the form of matcha was first documented. Matcha, unlike the infusion process of its black and green tea sisters, is made by finely grinding the tea leaves into a powder that is mixed with hot water and consumed in its entirety. It is thought that a Japanese Buddhist monk brought matcha to Japan
sometime around the 12th century, where it was considered highly valuable and coveted and therefore necessitated a careful preparation method, and so its consumption and preparation developed into a spiritual practice by the 16th century, the whisking of powdered green tea into hot water a meditative ritual. Since matcha began as a rare and premium product, the ceremony of its preparation became
entrenched in its consumption. In modern day Japan, matcha tea ceremonies are still widely practiced, and while it is no longer reserved for the elite or ‘ruling class’, it is still deeply ritualistic with specific implements such as the bowl and bamboo whisk, and even particular whisking motions or patterns.
Meanwhile, elsewhere in Japan, the matcha latte has become extremely popular, commercialised
and readily available, and co-existing alongside its traditional consumption in the country.

Matcha Migrates West

Western countries have long since been discovering and adopting Japanese culture and cuisine, and matcha is no different, with it seeing a marked rise, particularly in the US. Future Market Insights (FMI) reports that the matcha market in 2023 was worth USD $2.7 billion and is expected to reach $7.1 billion by 2033 — a CAGR of 10.2 percent. FMI attributes this growth to the interest in its health benefits, use in skincare and culinary applications such as confectionery. The latter of which is driving
its popularity in the Indian market, according to Fact MR , while the health benefits are driving the market in the US.

Japanese tea company, Ippodo, was founded in 1717, “when the [matcha] tea ceremony had begun to be enjoyed by other elites like warrior families and high-class townsfolk,” said Tomoko Honda, head of global operations, Ippodo. In 2001,Ippodo began selling its matcha overseas as the number of international visitors to its Kyoto shop had begun to increase.

The growing interest in matcha was also noted by Germany-based tea supplier, Wollenhaupt, which had previously only been including matcha in its catalogue as a ‘marginal phenomenon’, said Marco Sinram, head of tea trading and sustainability, Wollenhaupt, but recognised that demand was developing ‘dynamically’, and therefore now offer three different types of matcha to its customers.

“Ten years ago, very few people had heard of matcha and now the market is absolutely exploding. So many new matcha brands have popped up in the last couple of years and you can find matcha on menus in more cafés and restaurants. The UK is now following in the steps of places like New York and Los Angeles with matcha bars popping up across the country,” said Katherine Swift, founder and CEO
of OMGTea, a UK-based specialist matcha green tea company.

One such place is Blank Street coffee chain, which began in Brooklyn, New York, in August 2020, and now has locations across New York; Boston, Massachusetts; Washington, DC; and in 2022 debuted in London. While Blank Street serves an array of café and coffee shop offerings, some of its most distinguishable and popular products are its matcha beverages.

When Blank Street launched in London in Summer 2022 ,matcha wasn’t a widely accessible drink. There were limited places to get matcha on the high street, but most of those places offered either expensive or low-quality matcha. We wanted to disrupt the market by launching exciting flavour combinations that made a niche category into one that is more fun and accessible for everyone,” explained Ignacio Llado, UK managing director at Blank Street. “In Spring of 2023 we launched our Blueberry Matcha, joining the classic Matcha Latte on our menu. This drink was the first of its kind in London, and […] immediately caused a huge buzz, with TikTok and word of mouth helping it to quickly climb to become a Blank Street best seller.”

Matcha’s vibrant green colour affords it a social-media-ready aesthetic for consumers, fuelling its popularity among influencers and the younger generation. Blank Street has recognised this in its marketing strategy, making use of clear cups and contrasting colours to bring its matcha drinks to life.

While many of the high-street iterations of matcha lattes and frappés may be heavy on sugar or cream, matcha itself is considered a remarkable health food, with this being another, perhaps the largest, draw to the product for consumers. “Matcha aligns well with overall wellness trends and appeals to those looking for more specific benefits such as a healthier alternative to coffee or energy drinks, detox,
increased antioxidant intake, weight management, etc,” said Swift.

A Healthy Shade of Green

The way in which the Camellia sinensis plant is grown in order to produce matcha, allows for the accumulation of catechins, (−)-epigallocatechin-3 -gallate (EGCG) in particular is most abundant in matcha. It is these catechins that provide high antioxidant properties and give matcha its reputation as a health drink. It has been found that “regular consumption of matcha may have a positive effect on both physical and mental health,” according to the report Health Benefits and Chemical Composition of Matcha and Green Tea: A Review by Joanna Kochman, Karolina Jakubczyk, Justyna Antoniewicz, Honorata Mruk, and Katarzyna Janda, published on PubMed Central.

It is the health benefits of these antioxidants found in matcha that encouraged Swift to establish OMGTea. She began researching its benefits after her mother was diagnosed with breast cancer, then both she and her mother began routinely drinking matcha green tea. Five years later, Swift launched OMGTea, and a year after that she founded The Healthy Life Foundation, a charity that funds research into age-related diseases, including cancer.

Swift emphasised, however, that the quality of the matcha consumed is essential to reaping its health
benefits. While matcha is generally considered a premium product, there are more affordable blends
available; these are the kind often used as ingredients in confectionery or desserts where the matcha taste need not be so refined. Matcha can be tested for its quality by examining the colour and texture, as well as the taste. She explained that they quality check their matcha regularly using the ‘finger/stroke test’, whereby matcha powder is placed on a white piece of paper and, using a finger, is pulled across the page to observe its colour and texture alongside others. The brighter the green colour, the higher quality the matcha, also the particle size of high-grade matcha ought to be between five and ten microns, as fine as baby powder, said Swift.

This essential colour and texture gauge all comes from the farming process, which has specific methods to ensure these attributes. “For around three weeks before harvest, shades are put over the tea fields to block out the sunlight, which increases the amount of flavourful, umami-rich components in the tea leaves. After the leaves are harvested in the beginning of May, the leaves are steamed, cooled and dried, baked, and sorted. […] The leaves are then ground with stone mills to produce the fine powder called matcha,” explained Honda. Shading the tea leaves is a traditional characteristic of matcha production, and is a method invented centuries ago in Kyoto, Uji, Japan, and is now widespread, she noted.

It is the shading that boosts the leaves nutrient levels, causing an overproduction of chlorophyll, contributing to its bright green colour, added Swift. The stone mills are also what produce the silky, fine texture of quality matcha, whereas lower grades are cut and blended using steel, which, she noted, reduces the flavour and bio availability of the matcha’s nutrients.

The location where the matcha is grown is also crucial to its quality and flavour. There are specific areas that are known for their matcha production, such Uji, Japan, “one of the most renowned regions for matcha growing in the world,” said Llado, and it is around this area that Wollenhaupt, Blank Street and Ippodo source their matcha. The region of Kagoshima, Japan, is also particularly suited to matcha production, benefitting from its volcanic soil and climate, commented Swift, and is where OMGTea sources its products.

Sustaining Production

With such specific regions and fastidious productions techniques, are matcha’s producers prepared to meet the surging global demand from the product, not just domestically in Japan, but as far away as the US and UK? Sinram explained that, while Wollenhaupt believes that the highest and most authentic quality of matcha can be found only in Japan, it is possible to source it from other producing countries,
depending on the requirements of the customer.

Meanwhile, Swift noted that in the Kagoshima region, practices are being undertaken to increase production in order to meet demand, “Farmers in Kagoshima have been adopting advanced agricultural techniques to enhance matcha. These innovations help increase yield and improve the quality of the tea leaves. Some tea farms are converting or expanding their fields specifically for the cultivation of tencha, the raw material used to make matcha. Local government initiatives and support for the tea industry have also played a role in encouraging the growth of matcha production in the region.”

Honda added that as global climates change, areas that are suitable for production are shifting and will continue to shift. “Areas where tea can be grown will likely change or expand as well, whether inside or outside of Japan. We are not sure what the future will bring, but it is key to plan for and adapt to changes.”

This growth in demand has created a broad market for matcha with varying requirements and uses. Where it has historically and traditionally been an exceptionally premium and ceremony-bound product, it is now a commercialised and accessible product for many consumers, posing the question of how far it can be removed from its origins and cultural significance? “While it’s great that matcha is going more mainstream, we want to make sure that it still feels special and comes with the holistic experience that has been central to Blank Street since we first launched,” noted Llado.

So where perhaps the ceremonial aspect of matcha may no longer be a necessity, it still can add something to the experience of consumers, if they engage with it, encouraging more mindful consumption, said Swift.

Honda added that, while consumers may not know of its ceremonial or spiritual origins, “during the tea ceremony and in Japanese society in general, when drinking matcha it is considered important to feel gratitude for the person who made the matcha for you and for those who produced it. We think it would be wonderful if that sentiment grew alongside the increasing popularity of matcha worldwide.” Therefore, its marketing is crucial, to not only offer consumers a brightly coloured health drink, but also a moment of reflection on both the beverage and the process that went into every sip.

• Kathryn Brand is an associate editor with T&CTJ, while still writing for several of Bell’s
  other magazines. She joined Bell Publishing at the beginning of 2022 after graduating from
  the University of East Anglia with a degree in English Literature and Creative Writing.

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But what about the food and beverage category? Can ‘digital tastemakers’ (aka influencers) actually shape attitudes and purchasing decisions around new F&B products? The short answer is, absolutely. Market research firm Packaged Facts reports that food brands cannot ignore digital tastemakers in the innovation process.

According to the September-October 2023 edition of the Packaged Facts National Online Consumer Survey and subsequent report, Food Market Outlook 2024: Opportunities & Challenges With Pricing, Convenience, Sustainability & More, the impact of social media and so called digital tastemakers is highest among younger consumers, which is unsurprising. Overall, consumers report many factors affecting their decision to try new foods and beverages. Recommendations from family and friends and sales or promotions are the most impactful factors influencing consumers to try new foods. Additionally, many consumers may be enticed to try a new food if it is a new version of something they already like or if the item is seasonal or limited time offering (consider the enormous popularity of pumpkin spice lattes and teas in the fall and peppermint mochas and teas during the holidays, while the winter months brings turmeric and cardamom coffees and teas to foodservice menus).

Social media posts rank in the top five factors enticing the Gen Z generation to try a new food. In fact, per Packaged Facts’ survey, 30% of adult Gen Z respondents reported that social media posts – whether from food brands, chefs, restaurants, influencers, or friends – strongly impact decisions to try new foods. Food bloggers/influencers in general weren’t far behind with 24% of adult Gen Z respondents saying they strongly impact new food decisions.

Also not surprising is that the influence of these factors drops off dramatically beyond millennials. Younger consumers, of course, spend more time online (especially on social media) and are, therefore, more likely to watch videos and cooking programmes via these channels, especially TikTok and Instagram. Thus, they tend to consume more content of this type that influences their food purchases. (See How TikTok is driving the at-home coffee and tea revolution by Sían Edwards on our website for further examples.)

We have only to look back at the Dalgona coffee craze during Covid lockdowns as an example — it started on TikTok by a South Korea-based influencer and moved to Instagram with users competing to show their most aesthetically pleasing whipped coffee results.(See Is Dalgona coffee just a quarantine craze? on our website for more information.) Furthermore, Starbucks introduced its Pumpkin Spice Chai Latte in autumn 2023 in response to consumer demands for the beverage after seeing it created on social media posts in the prior year.

I recently spoke with baristas about the sudden popularity of “lavender” coffee and tea beverages, and they said that while there are both lavender lattes and lavender matchas that appeal to a variety of consumers, the latter is doing incredibly well because of its ‘Instagramability’ (and the same rings true for TikTok). The purple on top of the green is much more visually appealing than the lavender latte, which is still brown. Either way, consumers are curious about both beverages and are heading to coffee shops to try them, leading many to believe that lavender could be spring’s answer to autumn’s pumpkin spice.

Another example is the sudden popularity and growth of bubble tea, which is not actually a new creation (it originated in Taiwan in the 1980s). In the West, for many years bubble tea was a fad that would come and go every several years — before social media. Enter the Instagram and TikTok era, and Gen Zers like the sweet drinks that can be customised and are ‘postable’ because of their visual appeal. (See the Bubbles on the Rise feature by Kathryn Brand in our March 2023 issue for more information.) Hence, bubble tea is no longer a fad but a fast-growing category in both foodservice and retail channels.

However, Gen Z and millennials are not the only consumers online. Therefore, Packaged Facts notes that there is potential to use social media to better understand or to reach Gen X and Baby Boomer consumers as well. Of course, not all food influencers resonate equally across age groups. An influencer’s ability to affect changes in consumer interest, and drive awareness and purchase intent does tend to be stronger when demographics align. For instance, older consumers report that they are more enticed to try new foods based on recommendations from health professionals and chefs than from social media overall. However, even chefs and health advocates appear on social media, discussing food, power ingredients, and new cooking techniques and recipes. This creates an opportunity to address food concerns among Gen X who are less attracted to more general influencers or home cook food bloggers.

More and more food brands are mining social media for trends, ideas and new flavour combinations, and are tapping into digital influencer strategies. And as Packaged Facts notes, those that don’t are missing a crucial piece of the modern product development and marketing puzzle.

Per Packaged Facts, “navigating social media trends and partnerships is complex but innovators who crack that code gain a powerful edge to more efficiently maximize awareness and adoption of new product releases. That differentiator could be the key to separating the passing food fads from the true disrupters and market movers of tomorrow.”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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More than half of respondents to Fairtrade’s biennial Fairtrade Consumer Insights report, conducted by GlobeScan, confirmed they have changed their purchasing choices within the past year to make a difference on economic, social, environmental or political issues, indicating people increasingly see their everyday shopping as an important way to make a difference.

Fairtrade America expects this consumer attitude will manifest in five key ways in 2022:

Consumers will continue to demand companies focus more on sustainability.

As climate change continues to worsen, consumers are looking to brands to provide sustainably sourced and produced products they can feel good about purchasing. Per the Insights report, more than a quarter of consumers say they always or usually base their purchases on sustainability, which is an increase of 11 points over the last 14 years and up 4 points from 2019.

Climate studies predict that by 2050 coffee, tea, cocoa, and cotton will be so severely affected that production in some areas will even disappear. While the world’s wealthiest 10% are responsible for 50% of global emissions, it is those disadvantaged by unfair trade systems who are enduring the extreme hardship caused by climate change. At this year’s COP26 summit in Glasgow, for example, more than 30,000 consumers the world over voiced their demand for businesses and governments to act on behalf of farmers facing the challenges of an unstable climate by signing Fairtrade’s “Be Fair With Your Climate Promise” petition.

Advocacy for human rights and fair wages will go global in scale.

In 2021, 73% of Fairtrade shoppers were willing to pay more for a product to ensure farmers and producers were paid a fair price; specifically, up to 35% more per pound for Fairtrade coffee and 30% more per bar for Fairtrade chocolate. About three quarters of consumers familiar with Fairtrade agree that when they buy certified products, they “feel part of a community standing up for fairness and justice.”

Large companies are taking note and re-examining their supply chains to ensure they are meeting these consumer demands. For instance, in 2020, Unilever announced a commitment to ensuring that workers who directly supply its goods and services across 190 countries will receive a living wage by 2030.

Shopping for everyday goods online will remain the new norm.

Covid-19 led more consumers to make purchases online — a trend that will continue into 2022. This digitalisation makes it easier for shoppers to compare products and learn whether a company’s sourcing and manufacturing practices align with their values. (Fairtrade – both International and America – is partnering with online retailers like Amazon to help shoppers find Fairtrade certified products through its Climate Pledge Friendly programme. Fairtrade America also launched a Product Finder with hundreds of certified goods sold in the US to help consumers easily identify and purchase Fairtrade certified products.)

Shoppers will seek out organisations and companies that promote gender equality.

Female producers in coffee, tea, cocoa, and other agricultural products worldwide are still fighting for equal rights and opportunities. A large proportion of the world’s food is farmed by women, yet there is a significant gender gap in agriculture leaving female farmers with less access than their male counterparts to resources like land, information, credit, training, and supplies. According to GlobeScan survey data, frequent Fairtrade shoppers care more than average about women’s causes.

More mission-focused brands + brand transparency.

There is a clear consumer desire to support brands that are not only taking care of their own teams and suppliers, but also contributing to making the world a better place. A study by Zeno Group found that consumers are up to six times more likely to buy from companies with a strong purpose. Additionally, 71% of consumers indicated that traceability is very important to them and that they are willing to pay a premium for brands that provide it, according to IBM Research Insights. Thus, companies have an opportunity to attract new customers and drive loyalty with existing shoppers by authentically developing a transparent supply chain and by celebrating how they work to benefit people and the planet.

This is of particular importance to Generation Z consumers, as the feature, “Recognising the Power and Potential of Generation Z” in T&CTJ’s January issue details.

Not quite pursuant to the sustainability trend, but more so serendipitously, T&CTJ, Firsd Tea and Crothers Consulting have collaborated to create what we believe is the ‘first of its kind’ tea survey to gauge perceptions of sustainability in the global tea industry among business leaders in the tea, coffee, cocoa, and wine sectors. The survey – which takes about 10 minutes to complete – launched in mid-December on our website and there is still time to respond.

For every completed response, a contribution will be donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes. Their mission is to “build, support and activate an alliance of businesses financially committed to creating a healthy planet.”

Access the survey here. We hope you will take time to share your thoughts on tea sustainability. Thank you!

Best wishes for a happy, healthy and prosperous 2022! Stay safe and be well!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.comTwitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

The post New year, new consumer trends revealed appeared first on Tea & Coffee Trade Journal.

Per Euromonitor, the Top 10 Global Consumer Trends in 2021 are:

• Build Back Better
• Craving Convenience
• Outdoor Oasis
• Phygital Reality (physical + digital)
• Playing with Time
• Restless and Rebellious
• Safety Obsessed
• Shaken and Stirred
• Thoughtful Thrifters
• Workplaces in New Spaces

In describing the trends, the authors of the report, Gina Westbrook and Alison Angus, write, “We [consumers] want to make the world better — either for our own sake or for humanity. We want new ways to make life both convenient and safe, inside and outside. Where we have the ability, we are balancing our time creatively. Amidst the anxiety and turmoil, we seek holistic, resilient solutions, more thoughtful consumption and, in some cases, ways to fight back.”

They note that resilience and adaptability are the driving forces behind the top global consumer trends in 2021. The pandemic created, influenced or accelerated each of these ten trends, forever altering consumer behaviour. I won’t go into detail on all the trends, but some require comment.

Regarding “Build Back Better,” consumers are demanding that companies care beyond the bottom line. They believe companies should help reshape the world in a more sustainable way, leading a shift from a volume- to a value-driven economy while reforming social inequity and limiting environmental damage.

“Craving Convenience” may not seem to be a new trend, but Covid-19 reduced impulse shopping, forcing consumers to plan “walk-ins.” Furthermore, the pandemic accelerated digital adoption, which sent e-commerce soaring. “Businesses are under pressure to rapidly adapt their operations to develop a resilient customer experience while maintaining convenience. Companies must preserve the swift and seamless shopping journey across all channels,” explain Westbrook and Angus.

Consumers embraced internet-connected devices to maintain their daily routines amid Covid-induced lockdowns. According to Euromonitor, video conferencing, smart appliances and technologies like augmented reality (AR) and virtual reality (VR) helped consumers form new habits around working, learning, exercising, shopping, and socialising (e.g., 34% of consumers take part in online video gaming at least weekly). These digital tools enabled “Phygital Reality,” which is a hybrid of physical and virtual worlds where consumers can seamlessly live, work, shop and play both in person and online. “Businesses can integrate virtual processes into their physical spaces to give consumers who prefer to stay home the comfort to venture out instead. Delivering virtually enabled at-home experiences remains imperative to drive e-commerce sales and gather data,” note Westbrook and Angus.

Now, consumers are both able and forced to be more creative with their time in order to get everything done, hence, “Playing with Time.” Per Euromonitor, businesses should provide solutions that address the consumer desire to maximise time, offering increased flexibility, especially with products and services that can be accessed from or near the home.

“Consumers are fed up. Distrust in leadership has become the norm. Bias and misinformation are causing a crisis of confidence,” write Westbrook and Angus. They explain that companies can cater to the “Restless and Rebellious” via more precise marketing on social media and gaming, where they can give consumers a voice and pressure social giants to take on misinformation.

The report finds that “Safety Obsessed is the new wellness movement.” Consumers demand touchless, cashless and clean. The fear of infection and increased health awareness drive demand for hygiene products and pushes consumers towards contactless solutions to avoid exposure. Euromonitor advises companies to implement enhanced safety measures and innovations that target concerns to reassure consumers. (Pursuant to “contactless,” the report reveals that 44% of consumers would be comfortable receiving a delivery via drone or robot.)

“Shaken and Stirred” is an interesting trend. The authors explain that the global pandemic reconfigured daily lives, testing mental resilience, restricting experiences, and provoking economic shocks (per the report, 73% of consumers rate depression and mental health as currently having a moderate or severe impact on their everyday life). As a result, consumers have a new understanding of themselves and their place in the world in pursuit of a more fulfilled, balanced and self-improved life. “Businesses must provide products and services that support resiliency for mental wellbeing and to help Shaken and Stirred consumers weather adverse circumstances to gain trust.”

Euromonitor says that companies offering digital products and services are best equipped to help Shaken and Stirred consumers access information and virtual engagements to promote self-improvement and lifestyle balance. The report finds that pre-pandemic, 46% of Generation Z and 50% of millennials preferred spending money on experiences over things, but restrictions on large gatherings are generating interest in at-home events (such as at-home coffee and tea tastings).

With incomes being impacted by Covid, consumers are cautious and frugal (e.g., there was a 10% growth in sales of discount retailers like Aldi and Lidl from 2019 to 2020). “Discretionary spending is declining due to the uncertain economic environment. Thoughtful Thrifters are prioritising value-added and health-conscious products and services,” writes Westbrook and Angus. Euromonitor suggests companies pivot towards value-for-money propositions, offering affordable options without sacrificing quality. Premium attributes should be reinforced with a new empathetic story and have a strong tie-in with health and wellness, self-care or mental wellbeing.

“Workplaces in New Spaces” seems to be an obvious trend as working from home is not a new concept, but Covid refined it. The authors note that Covid had “a rippling effect on consumer life, from clothing choices to technology spend to eating habits and beyond. Consumers are searching for new ways to define the beginning and end of their workdays, as they struggle to manage their time.” According to the report, 64% of professionals think work from home will become a long-term change. Businesses must support work-life balance, productivity and communication needs. Understanding the benefits and challenges of working remotely allows companies to bring the best of the office into the home.

Consumers – people – are resilient, they will acclimate and adapt. As Westbrook and Angus state, “purpose-driven initiatives will resonate with consumers in 2021. Amidst social unrest, consumers want the facts and expect brands to act. Communicating with compassion and supporting mental wellbeing are critical attributes to drive brand loyalty. Flexibility, agility, transparency, and technology will pave the way forward. With mounting uncertainties reshaping the world, businesses should prioritise and reinforce consumer, environmental and safety needs to foster a brighter future.”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

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The post Euromonitor International’s Top 10 Global Consumer Trends 2021 appeared first on Tea & Coffee Trade Journal.