Photo credit: MTPak Coffee
Data shows that today’s shoppers want all the facts before they buy. With the rise in popularity of QR codes and online shopping, consumers now have access to unprecedented amounts of information and are doing their research. From a coffee brand’s story to its product supply chain, transparency, and traceability are the name of the game.
In September, Nielsen IQ and the Food Industry Association (FMI) released a five-year study on transparency trends for US shoppers. The results demonstrate that transparency is now as paramount as price and quality when shoppers make decisions. According to the study, the importance of transparent product information has steadily risen over the last five years—from 69% in 2018 to 76% in 2023.
The number of shoppers willing to seek out additional information beyond what’s on the label has also increased. One study participant said, “I would gravitate towards the company that was more transparent because I would feel safer that way.” Fraudulent greenwashing statements and lawsuits against companies such as Starbucks and Keurig Dr. Pepper for false sustainability claims have turned coffee consumers into detectives, deep diving for the truth.
Transparency refers to the open sharing of product information, i.e., the ingredients and how they are sourced and prepared. Traceability, in the case of coffee, follows a product's journey through its supply chain, from farm to cup. Eighty-six percent of participants rated traceability as important as transparency.
With space on coffee packaging limited, companies and consumers are turning to QR (quick response) codes for vital information. Statistics from QR Tiger reveal a massive 433% increase in the scanning of QR codes since 2021. In April 2024, the country with the highest QR scanning activity was the US, with 38%, followed by India (9%) and Mexico (3.9%).
A new hybrid shopping method is emerging. The Transparency Trend Report shows that more people are using in-person shopping to discover new products and brands, scanning codes and browsing websites to learn the whole brand story, and then conducting repeat business online.
Coffee roasters and brands must decide how much information to convey on the package and then follow that with various media options that paint the whole picture. Videos introducing the farmers to the consumers, interactive maps illustrating origins, and detailed flow charts describing coffee processing or sustainable methods all build trust between the viewer and the brand.
Trust has become the new currency. Fifty-five percent of US consumers want to know the story behind their brand and feel more connected to the product before they buy. “We are now witnessing an era of profound transformation in how people engage with brands and approach their purchasing decisions,” says Sofia Hernandez, the global head of business marketing for TikTok.
In the social media app’s What’s Next 2024 Shopping Trend Report, Hernandez states, “The shift from consumption of fleeting viral trends to more deliberate and informed buying choices is reshaping the landscape. Today's shoppers are motivated by joy, curiosity, and a desire for long-term value, prioritizing genuine brand relationships over superficial interactions.”
Coffee brands that embrace full transparency and traceability forge more meaningful and deeper bonds with their customers, creating loyal relationships that will weather the storms of high inflation and climate change.