Are You Jumping On The Iced Coffee Trend?
Iced and blended beverages are a growing trend in UK coffee shops, according to analysis by Allegra World Coffee Portal. Although cold brew is still very much the new kid on the block, iced coffees are still becoming increasingly popular and will continue to be so since summer is now very much on the horizon!
The organisation noted that this sector of the market grew by 18 per cent within UK coffee shops in 2016, bringing its total value to £338 million in turnover. It still only accounts for 3.8 per cent of all coffee shop sales, but that’s up on the 3.5 per cent recorded in 2015.
In its Iced Beverages 2017 report, which is part of the Project Cafè series produced by Allegra, the organisation revealed that the iced and blended beverages category outperformed growth in the overall coffee shop sector.
That’s not the only good news for coffee shops that have adopted this trend early, with the sector expected to experience further growth in 2017 as more stores offer iced and blended drinks, as well as extending the length of time that these offerings are available for.
Over the next five years, Allegra is predicting a compound annual growth rate of 17 per cent for this category of beverage.
The report also noted that more consumers are opting for iced beverages when they visit coffee shops, while price increases in this category of drinks have also given it a boost.
If you haven’t yet started offering iced and blended beverages, you should bear a few things in mind if you want this range of drinks to be a success in your coffee shop.
According to Allegra, the most important things to consumers are that these beverages are made using fresh ingredients, that they’re freshly prepared from scratch, and that they represent good value for money.
Pre-prepared iced drinks aren’t as appealing to customers, the researchers found. The report also highlighted new products that are expected to have an impact on the sector.
“The most innovative short-term development will be the growth of cold brew and nitro coffee,” the organisation revealed.
While iced coffee and other chilled blended drinks are on the up, one category that’s slipping in the UK’s coffee shops is tea. Sales of this household favourite slipped in 2016 and now represent 3.8 per cent of coffee shop turnover, down from 4.1 per cent in 2015, the portal’s Tea Out-of-Home 2017 report revealed.
The research found that although tea is a quintessential part of British culture, it is most often consumed at work or at home, with lower demand for the beverage in coffee shops. Among the barriers to consumers were that they didn’t feel coffee shops could make tea to their taste, and that it represents poor value for money.
However, there are opportunities for growth in the speciality and iced tea segments, the report noted, suggesting that consumers who are increasingly health and wellbeing-focused will be looking for healthier choices when they’re out and about.
Given that quality is key to coffee drinkers across the country, make sure that you’re sourcing the best coffee you can for your outlet. Working with contract coffee roasters can give you the opportunity to develop your own speciality coffees too.