NEW YORK— Millennial consumers are creating craft coffee beverages at home and plan to do more of it. According to a recent report from the NPD Group, Millennials are at the center of the niche segment of younger, urban oriented consumers embracing craft coffee brewing methods at home.
NPD research identified that craft coffee brewing, such as using pour over cones, French presses, and vacuum brewers, is how 11% of young adults, ages 18 and over, brew their coffee at home.
“Millennials, who are driven by creativity and the desire for personalization, are attracted to craft coffee brewing because of the skill and challenge involved. Craft coffee brewing enables them to participate in the experience of creating a perfect cup of coffee,” said Joe Derochowski, executive director and home industry analyst at NPD.
“The growing demand from consumers to prepare and enjoy more craft coffee at home has translated into steady sales growth in a lot of our core businesses such as coffee presses and pour over coffee makers. We’ve also had tremendous success in emerging craft coffee segments like cold brew coffee,” said Josh Melzer, vp/marketing and communications, Epoca, which manufactures the Primula beverageware brand.
Additionally, NPD is forecasting 9% growth in coffee consumption by 2024. For vendors in the non-electric coffee and tea maker segment, this provides an opportunity to boost sales of at-home craft coffee makers even further.
“We have seen craft coffee/home brew sections within our customer’s stores expanding very quickly over the last few years. I think a lot of this is because of the coffee culture trend and all the great coffee shops and roasters who are popping up everywhere,” said Diana Memedi, national sales manager, Bodum USA. “What you see within the coffee shops are mostly hand brew methods like pour over, drip and French press. It’s inspired people to do this at home, too.”
For Bodum, known for its at-home coffee brewing product selection, in order to keep this momentum going the company constantly works to introduce new products.
“We plan to grow organically with how craft coffee interest is trending,” she said.
For example, Memedi pointed out that while Bodum has seen its core French press makers remain popular over the years, its new pour over coffee maker has gained attention. Memedi noted that this type of brewing has become the newest trend among coffee-loving consumers.
Melzer agreed, and said Primula sees the demand growing for products that continuously improve the at-home craft coffee experience.
“We see a lot of opportunity for innovation and trading consumers up to higher-end products, especially within the craft cold coffee segment,” he said.
Tim Feeney, managing director pantryware, cookware and bakeware, Lifetime Brands, also noted on how certain craft methods, such as cold brew, have really just begun.
“We certainly believe cold brew is on the rise, as cold brew coffee is also being used for coffee cocktails and even infusing teas with coffee. These are all new experiences that will keep the trend going for some time,” he said.
In addition, Melzer forecasted that the omnichannel experience is another area for future opportunity. “Accessories and add-on products are expected to grow even further and retailers should look to expand their online assortment with these offerings to complement their brick-and-mortar placements,” he said.
In addition, Memedi said that Bodum has witnessed travel style brewers becoming popular as well.
“We are also now offering travel presses, which is a great way to have coffee on-the-go without the waste of paper cups or spending money at a coffee shop when you can get the same great taste at home,” she said.
However, both Memedi and Melzer pointed out that growth in retail, be it in-store or online, is not without challenges.
“Retail priority placement for innovative craft products can be a challenge. The incumbent brands are focused on the old mindset that coffee is a means to wake up with caffeine. Our brands explore the lifestyle mindset of the craft coffee consumer, and retailers need to more prominently display these options in-store,” Melzer said.
Memedi said that with the at-home craft coffee maker segment becoming so competitive, for Bodum, copycat models are also a threat.
“There are many copies out there but we stay ahead by being the original and bringing creative brewing ideas to customers. We are always striving to be well priced and of great quality,” she said.
Other tactics to help vendors rise above the crowd include a heavy focus on social media marketing to provide a sense of community for craft coffee connoisseurs.
“This keeps us in the forefront of the customers’ minds when it comes to choosing their home brew products. Our packaging also always educatesthe customer on how to brew at home with step-by-step images for the French press, pour over and other items,” said Memedi.
Feeney also noted that the importance of educating the consumer is key. For example, he explained that Lifetime’s recently released La Cafetière cold brew coffee maker comes packaged with recipes, as well as care instructions for the brewer.
“It’s important to show the consumer how to use the item ‘as they know it’ and enhance the experience with a taste for some new ideas as well,” he said.
Another big challenge, Melzer suggested, is keeping up with the changes in how consumers are buying in the marketplace.
“We’re seeing consumers who are buying their products through new channels, such as online coffee subscriptions. Additionally, consumers are taking on more experienced methods of preparing coffee,” he added.
While it may be a challenge as vendors strive to keep up with consumer demand and changing manual brewing preferences, the demands for new ways to purchase coffee and the increase in experimentation is a strong indicator that the demand for at-home coffee brewers will continue.
“The craft coffee movement, which is already embraced by the country’s largest generational group, Millennials, is well-positioned to capitalize on future industry growth,” said NPD’s Derochowski.