NCA boss Bill Murray, president and chief executive officer, NCA, said out-of-home consumption will return to growth (photo: Probat)
US National Coffee Association (NCA) president and chief executive Bill Murray says the latest data gathered by the industry body “offers many reasons for optimism for all segments of the coffee sector,” including the away-from-home segment, which has been particularly hard hit by the Covid-19 pandemic. NCA’s latest National Coffee Drinking Trends (NCDT) report showed a pandemic-induced dip in away-from-home coffee preparation, but the association now confidently expects things to improve.
“In January of this year, 58% of Americans reported drinking coffee ‘yesterday,’ down from 62% a year ago, which is a modest change,” said Murray. “The away-from-home segment was impacted by the pandemic, but that was temporary… and is already reversing. We know this because of what the data tells us about the recent past – and consumer attitudes – towards coffee.
“Firstly, rolling, random lockdowns are coming to an end,” said Murray. “Second, the slight decrease in overall coffee consumption is linked to the economic impact of the pandemic. [24%] of Americans told us in January of 2021 that their financial situation was ‘much or somewhat worse’ than a year ago, up from 13% who told us the same thing in January 2020. Now, stimulus checks are in the mail, and shortages of workers are growing. Recent reports confirmed a surge in retail sales in March and falling unemployment. The economy is poised for a comeback and the worry now is actually over an overheated economy, and the inflation that could ensue.”
Murray’s third reason to be optimistic is that although drinking during in the afternoon fell during the pandemic, afternoon coffee is closely associated with socializing, work, or being out and about, and will grow again as America reopens.
“Fourth, away-from-home coffee didn’t disappear,” Murray noted. “In fact, over two-thirds of respondents told us they were already back in their coffee shops or anticipating a return in the near future. First responders, truckers, delivery service workers, tradespeople, grocery store employees, public sector employees – those in the ‘essential’ parts of the economy have been there all along, and about 11% of coffee drinkers drank their coffee during their commute – right through the pandemic.”
Another reason to feel optimistic is that away-from-home coffee pivoted quickly to adapt to the new reality, and coffee drinkers responded. What’s more, coffee drinkers miss their away-from-home coffee and the social aspect of going out to coffee shops, cafes, and restaurants, and will return to it. And last, but by no means least, steps that away-from-home venues take to encourage customers’ return are straightforward. Having workers wear masks and gloves – and having customers wear masks – encourages people to visit more often. Practicing visible sanitation protocols, and limiting capacity also work.
The bottom line is that vaccines are rolling out and the economy is improving,” Murray concluded. “America has not lost its love and need for coffee, or its relationship with it.”