Inflationary times are putting increasing pressure on consumers and foodservice operators. Despite the challenges, the demand for quality coffee beverages – from traditional drip to specialty espresso-based to cold brew and iced coffees – remains strong.
According to the Coffee Association of Canada, coffee continues to be the most consumed beverage, with 71 per cent of Canadians consuming at least one cup of coffee a day in a single day in October. It also reports that more Canadians are embracing cold coffee beverages: nine per cent of Canadians drank at least one cold traditional coffee and 20 per cent had at least one cold specialty coffee in a week in the same month. As Canadians continue to emerge from the pandemic, 46 per cent of coffee drinkers drank at least one cup prepared out-of-home in the same time frame.
Quick service represents the largest area of coffee consumption at more than 70 per cent, while convenience represents one of the fastest-growing categories for coffee service.
“Generally speaking, sales from a consumer-consumption standpoint continue to move up two or three points,” says Robert Carter, president, Coffee Association of Canada. “We’re also seeing more product development on the cold side, which is expected to continue.”
Consumers are also becoming more educated about their coffees, including countries of origin and different taste profiles, a trend that will continue through 2024, Carter adds. “The sustainability aspect of coffee is also becoming a greater interest for consumers with the growing concerns over climate change and processing practices. That will impact inventory levels and volumes, which will in turn put pressure on pricing moving forward.”
A key issue during inflationary times is the value equation and the consumer’s willingness to pay, says Carter. “Their willingness to pay is pretty high – up to the $5 to $7 range based on the value of what they’re getting. At the same time operators are dealing with labour and supply shortages. As a result, there’s definitely a movement to more automation and ease of use in coffee equipment.”
In addition, Harold Ooft, head of Sales and Service, Canada for SEB Professional, also emphasized the resilience of the coffee market during inflationary periods. “Inflation may be driving up costs, but the love for a great cup of coffee remains unwavering,” he says. “Consumers are increasingly discerning about their coffee choices, and this trend isn’t going away. As we navigate these economic challenges, it’s crucial for coffee equipment manufacturers – such as SEB Professional – to keep innovating and offering high-quality options that justify the value, embracing automation and efficiency in the process.”
