A 2024 report by Expert Reviews highlights changing coffee consumption trends in the United States, driven largely by rising coffee shop prices due to inflation. The findings show a significant shift toward homebrewing, alongside evolving preferences and generational differences in coffee habits.
Key Findings
Home Brewing Growth:
· 80% of Americans now enjoy at least one cup of coffee at home daily, up by 10% since 2017.
· The average annual spend on home coffee is $75. Drip coffee remains the most popular brewing method, favoured by 45% of home coffee drinkers.
· The US dominates the coffee machine market, accounting for 29% ($3.7 billion in 2024), projected to exceed $4.3 billion by 2030.
Decline in Coffee Shop Sales:
· While 51% of Americans still purchase coffee from shops weekly, only 8% do so daily.
· Monthly coffee shop spending is modest, with 54% spending $20 or less, a trend likely to persist as coffee prices rise—up 23% over three years.
· Starbucks reported declining sales in 2024, reflecting this shift.
Changing Preferences:
· Top Choice: Cappuccino is the preferred coffee style, enjoyed by 55% of consumers.
· Milky Options on the Rise: 77% favour coffee with milk or creamer, and alternative milks like oat (+90%) and almond (+71%) are gaining traction.
· Black Coffee Decline: Consumption dropped from 74% in 2022 to 18% in 2024.
Generational Differences:
· Daily coffee consumption decreases by generation: Baby Boomers (83%), Gen X (74%), Millennials (66%), and Gen Z (42%).
· Iced coffee is particularly popular with Gen Z, with 85% expressing positive views.
Emerging Trends
- Sustainability:
· 70% of consumers prioritize environmental friendliness when buying coffee.
· 47% actively seek fair trade options.
- Cultural Influences:
· South Korean-inspired Dalgona coffee has surged in popularity, driven by social media.
· Espresso martinis have seen a 79% increase in consumption since 2022, now enjoyed by 1 in 4 Americans.
- At-Home Experimentation:
· The rise of home coffee brewing coincides with the growing interest in unique recipes and brewing techniques.
Coffee remains a beloved ritual for Americans, but its consumption is evolving. With younger generations embracing new coffee forms inspired by global trends and social media, and inflation driving the shift to home brewing, we anticipate continued innovation in home coffee-making. This evolution presents challenges and opportunities for coffee shops and chains, especially during the holiday sales season.