The changes brought on by the global pandemic have impacted many industries. This includes the coffee packaging industry. Here are some of the packaging trends we anticipate for 2021 and beyond.
As we continue to get settled into the new “normal,” the overall outlook for the industry remains as strong as ever. According to the International Coffee Organisation, the total number of exports within the first 4 months of the year from 2020 to 2021 increased by a whopping 41.88 million bags. This is in comparison to just 40.38 million bags the previous year.
In a newer article by CNBC, a professional within the industry noted that “coffee is one of the main categories that is expected to experience the most significant benefits brought on by the changes in the pandemic both in the short and long term.”
The industry itself is one of the fastest-growing. However, the way a lot of consumers are drinking is changing. Nearly 2 billion cups of coffee are consumed daily throughout the globe according to the BCF. Even though there are worldwide lockdowns stopping people from venturing out to their favourite coffee shops in a lot of countries, people are still making their coffee at home.
This continues to add up to a major opportunity for a lot of suppliers. There is also a major focus on sustainability across the board now. Here are some of the major trends for the industry that you should be aware of going forward.
1. More Selling Online
Lockdowns are occurring across the globe. Because of this, a lot of people are prohibited from visiting their nearest coffee shops like they used to. This has no longer become a priority for those concerned with safety either. Rather, they are looking to make their coffee in the convenience and safety of their homes. This is leading to more people buying coffee online. This is a trend that is only expected to continue as more and more consumers get used to the affordability and convenience of making their coffee at home.
In the UK alone, grocery stores have sold a sky-high £24 million more coffee and tea in June of 2020 than the same period from the previous year. In the very same year, Nestle ended up reporting their biggest quarter of sales in 5 years with their pre-packaged coffee goods.
2. Coffee Has Become a Premium Experience
There is a lot of optimistic thinking that summer will bring about more re-openings in Europe. However, according to Mintel, consumers are still going to continue to relax at home for at least the next year or so. Along with this, Mintel is advising that a lot of retailers and brands look to leverage these changes and create better experiences for their consumers.
Coffee is something that is a daily ritual for a lot of people. With its aromatic flavours and it is being associated with caffeine and energy, it’s something a lot of people cannot live without. The key to positioning your product like this is through premiumisation. There is a global leader at Euromonitor International that explained that “premiumisation is all about bringing a craft-batch type of experience to people to allow them to recreate the premium coffee-house experience in the comfort of their home.” While both convenience and accessibility are crucial, having a unique and powerful brand story and a quality experience are important too.
3. Sustainability Matters
A lot of consumers are prioritising sustainability above a lot of other things. Consumers want their producers to be delivering not only quality products and experiences, but with sustainability in mind. We have research that shows that only 6% of consumers in Europe remain unconcerned about sustainability.
A lot of consumers have sustainability concerns that have caused a lot of brands to take action. For instance, Starbucks has created their private standard for having better and more sustainable production. They did this through Starbucks’ Coffee and Farmer Equity Practices. Likewise, a brand like Nestle has created similar guidelines with its measures known as the Nespresso AAA Sustainable Quality standard.