BREWING UP A STORM
Every passing year brings a wealth of discoveries on the hot beverage front and, while some novelties will make more waves than others, you can bet that the hits will keep on coming
This year was no different, especially for the coffee industry, which global experts believe is gradually maturing into a fifth wave. The first of four pillars to consider is the shift away from a ‘science-centric’ approach to one that places equal emphasis on the actual business model itself, in light of rising concerns about supply and demand. This, in turn, is driving both the growers and major brands to rethink their approach.
Another issue relates to the adoption of a more holistic approach in which the in-house roasting element is employed to create a smart boutique feel, delivering a customtailored, artisanal service on a model of scale. This will require the individuals operating within the HORECA industry to acquire a special set of skills, a trend known as hyperspecialization, which, in the years to come, will fuel the sector and drive it forward. Finally, as consumers’ expectations rise, getting ‘just the right’ cup of coffee, will no longer suffice. As ‘exacting’ standards become the norm, increased investment in new technologies will hit new highs.
Once all of these elements fall in sync, the results will yield a highly-focused and more efficient business model, fueled by a collectively sincere passion for the craft. This will lead to the delivery of original concepts that are sure to hit the right note with consumers, especially among millennials who will soon become this sector’s largest market segment.
Riding the coffee wave
According to the Global Coffee Platform Organization’s annual report for 2016, demand for coffee will outstrip supply at current rates by 2030. This is partly due to the fact that consumption has doubled in the last 35 years, from 4.9 billion kilograms to 9.5 billion in 2016. As a result, the estimated value of the global industry has risen to more than USD 100 billion, with 120 million people working in the coffee segment.
This rise in demand, is fueled by an increase in consumption by drinkers aged 19-24, better known as millennials, market research company Mordor Intelligence concluded in its Global Coffee Market Forecast 2017-2022 study.