Coffee drinkers across the globe are increasingly opting for instant (39%), followed by filter (28%) and pods (25%).
The popularity of instant coffee increases among British consumers, with more than half (54%) of UK respondents choosing this format.
The findings come from Deloitte’s first ever global coffee study, which surveyed 7,000 consumers across 13 countries, revealing that convenience and rising coffee prices are driving a preference towards instant coffee made at home.
The study shows that more than half of respondents (55%) say price hikes have pushed them away from out-of-home coffee. And while the frequency of at-home consumption is similar to the global average, fewer UK consumers regularly drink coffee at work (48% vs 65% globally), at a café (22% vs 31%), or to go (22% vs 29%) than in other markets.
“As far as the coffee industry is concerned, the pace of inflation is both a challenge and a big opportunity,” explained Karine Szegedi, consumer and luxury goods industry lead at Deloitte Switzerland.
“With customers now more willing to go without things, offering value for money is becoming even more important. This is opening up new possibilities, such as selling supplies directly to consumers for them to make coffee at home. And retailers will benefit from innovative, cost-efficient strategies that attract new, price-savvy customers while also strengthening their bond with existing ones through digital channels and loyalty schemes.”
Generational divides in coffee
Globally, consumers’ taste for convenience products is highlighted by the demand for coffee in cans and bottles which is proving especially popular in Asia, North America and the UK.
But there is an evident generational divide, with millennials getting their caffeine fix from a can or bottle and older generations tending to prefer a machine.
The study also showed that younger people drink less coffee than older generations, with Gen Z drinking an average of one to two cups a day, compared to between two and three for baby boomers and older.
The young generation tends to lean towards other caffeinated beverages such as energy drinks (38% of Gen Xs vs 11% of baby boomers and older).
There are also variances in the type of coffee drank among the different age groups, with younger consumers preferring milky coffee and older ones more likely to take theirs black.
In the UK, those who take their coffee with milk generally choose low-fat milk – a distinct outlier compared to the global trend (40% vs 22%).
Sustainability and certification
The impact of climate change, deforestation and biodiversity loss are posing major challenges for coffee growers. Meanwhile for consumers, the issue of sustainability is becoming more important – as are schemes that certify a producer’s compliance with welfare and environmental standards along its value chain.
Many coffee companies have therefore launched initiatives to offer their customers sustainably produced coffee.
Almost half (46%) of the consumers surveyed worldwide had heard of sustainable coffee, while 28% said that they had tried it, and 17% reported drinking it at least once a week.
The respondents cited several reasons for this: most importantly they want to support fair pay and good working conditions at coffee producers (52%) and contribute to a sustainable coffee industry (47%).
In the UK, however, there is less willingness to pay for certified coffee, with Brits saying they’d pay a premium of 14% to 21%, compared to the global average of 19% to 26%.
Looking at it from a global perspective, Roberto Micelli, sustainability and future of food lead at Deloitte Switzerland said the importance of certified, sustainably produced coffee is growing overall.
“In the coming years, producers will need to focus not only on quality but also on strategic marketing in order to remain competitive over the long term.”
