This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. “It really comes down to knowing who your customers are and formatting your locations to best satisfy those different consumer need states,” Hottovy said. Hottovy, head of analytical research at Placer.ai, told Retail Brew. While the coffee category is returning to “a period of more stable growth,” coffee shops must recognize changing behaviors and balance the grab-and-go nature of coffee chains with their sense of community, R.J.
Overall, brands that understand what coffee consumers want in 2022 will have a leg up.
Seasonality – New spring menus generally drive visits as the weather begins to warm up, while fall ushers in a stronger seasonal peak, with brands like Starbucks leveraging marketing techniques and human psychology to drive sales through unique limited-time flavors and experiencesĪlthough major players including Dunkin’ Donuts, Starbucks and Dutch Bros enjoyed healthy competition and steady growth throughout the second half of 2021, smaller coffee chains remain vulnerable to COVID-induced fluctuations.įurthermore, some shifts in visit patterns – specifically shorter visits and more late morning visits at the expense of early evening ones – are still enduring and may affect the type of experience that visitors are after.
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This is significant not just in the short-term, but for the long-term strength it could create in a professional context defined by hybrid work models. Socialization – The role of coffee shops as a “third place” for friends and family to meet outdoors continues to drive visits, particularly among younger consumers.
Strong grocery sales for on-the-go coffee further illustrate how trips to the coffee shop serve purposes beyond necessity and convenience. Meanwhile, unit sales for traditional coffee varieties - including ground, single cup, concentrates, and whole bean - returned to pre-pandemic levels. The data suggests that major coffee space players will continue to thrive in 2022 as the demand for dining continues to recover.Ī similar pre-pandemic comparison in the grocery store shows sales normalizing for homemade coffee and spiking for products on the go.Īccording to IRI data, for the 52-weeks ending January 9, ready-to-drink coffee products experienced phenomenal growth compared to the same time period in 2019. In a 2019 comparison, foot traffic in the coffee space grew 8.4% in November and 7.5% December, while overall dining experienced a decline of 6.4% and 1.8%, respectively. This traction comes despite struggles throughout the wider dining sector. Demand for coffee outside the home increased substantially in 2021, while traction at the grocery store remained strong – further solidifying the category’s overall appeal and adaptability to shifting consumer behaviors.Īccording to a recent report from Placer.ai, visits to major coffee chains returned to pre-COVID levels as of April 2021, and foot traffic has consistently outpaced 2019 numbers since May.
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