Foodservice

Courting Young Coffee

Older demographic steady, but marketers must win over 18 to 24 year olds for sales growth
CHICAGO -- A cup of coffee is a daily occurrence for 66% of Americans according to Mintel, but sales have been relatively unchanged in recent years due largely to the sector's loyal, older customers. Demand for coffee is strong among those aged 45 and above, and over-55-year-olds are the fastest growing segment of coffee drinkers; however, in order to sustain long-term growth, marketers will need to court their younger customers.

Mintel research found that while 40% of 18 to 24 year olds believe coffee improves their concentration, only 27% drink coffee on a daily basis.[image-nocss]

"Young adults are somewhat more likely than over-55s to associate negative health consequences with coffee consumption," said Bill Patterson, senior analyst at Mintel, Chicago. "Among young adults in particular, understanding the choice between energy drinks and coffee needs significant marketing focus. If coffee companies can't convert these younger drinkers to everyday users, long-term growth may suffer."

Younger coffee drinkers also differ from their older counterparts in that they prefer sweetened coffee drinks to plain coffee (40% of 18 to 24 year olds say so, compared to only 22% of 45 to 54 year olds). Furthermore, just 28% of 18 to 24 year olds like the taste of coffee on its own, compared to 53% of 45 to 54 year olds.

"Another obstacle coffee companies face when targeting a younger demographic is that they often prefer to visit cafes for their caffeine fix," added Patterson. "Offering products that are similar to those found in popular cafes, but can easily be prepared at home or at the office could prove successful with 18 to 24 year old reluctant drinkers."

Mintel's research also highlights some interesting links between coffee and leisure habits of younger consumers. Some 22% of 18 to 24 year olds like to have a cup of coffee on hand when they are running errands, while 46% say they like to relax with a cup of coffee.

Separately, Filterfresh Coffee Service Inc., Westwood, Mass., a provider of home and office coffee products and supplies, recently released its 2010 Filterfresh Coffee Report. The report spills the beans on coffee drinking habits among Americans and reveals that they will go to great lengths to ensure they have their daily cup o' Joe. In fact, 54% of survey respondents said they would give up their cell phone before giving up their daily cup of coffee.

The report indicates that Americans turn to coffee for their daily shot of caffeine; 95% of survey respondents receive their daily shot of caffeine from coffee, over tea, soda and energy drinks. The survey also revealed: 59% of those surveyed drink two to three cups of coffee per day. 72% of those surveyed say coffee improves their mental focus. 82% of those surveyed say coffee is not a meal replacement.

When it comes to the workplace, people turn to coffee to get them through their workday. According to the survey, 90% of respondents drink coffee in the morning, and 72% drink it with their co-workers. Additionally, 30% of respondents indicated that they would not meet with their boss prior to their morning cup of coffee, while another 36% indicated that it depended upon the day. One of the most widely loathed workplace peeves takes place when someone reaches for the coffee pot, only to find it empty. The survey indicated that most people (69%) would most likely help out their caffeinated co-workers by making the next pot, while 24% said that it is not their job.

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