Report: Matcha, Oat Milk and ‘Functional’ Ingredients on the Rise in US and Canada – Daily Coffee News

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Daily Coffee News Staff | October 9, 2024
coffee
Payment and business technology giant Square recently analyzed millions of transactions across the United States and Canada to discover coffee consumer trends.
Prominent findings included increases in out-of-home coffee purchasing, increased interest in sustainable and organic products, increases in non-dairy milk and matcha consumption, and increased interest in “functional” ingredients like collagen and protein boosters.
The report was further supported by a survey of more than 3,000 U.S. and Canadian adults, weighted to represent the general population based on age, gender, education, race and region.
Square suggested that more consumers are choosing “buying over brewing,” with approximately 25% of U.S. coffee drinkers visiting coffee shops three to four times per week, with 10% making daily purchases.
This trend falls in line with the most recent U.S. National Coffee Association drinking trends report, which found that 36% of people who said they drank coffee within the past day did so “out of home,” meaning in coffee shops, offices or other venues.
In Canada, the trend was even stronger, according to Square’s data, with approximately 33% of coffee drinkers visiting coffee shops three to four times weekly.
Consumers say they are interested in sustainability and ethical sourcing, with 27% of Canadians and 21% of Americans indicating they would pay more for sustainably sourced coffee. Organic certification was specifically identified, with 24% of Canadians and 21% of Americans willing to pay a premium for certified organic drinks.
In the same breath used to request ethically sourced coffee, consumers are progressively requesting add-ons such as protein boosters and collagen powder for perceived “functional” benefits related to health and beauty.
This trend is most apparent among younger consumers. In the U.S., 32% of coffee drinkers age 18-34 are willing to pay extra for a protein bump, compared to 19% of the general population.
In the U.S., 11% of consumers said they are willing to pay more for a collagen booster, such as powder, despite the collagen supplement industry’s documented associations with deforestation and unsustainable bovine and fish production.
According to Square, traditional dairy creamers are continuing to lose ground to plant-based alternatives. While whole milk still holds the largest share, at 44% of all coffee drink orders, oat milk has emerged as the dominant alternative, accounting for 33% of orders. Almond milk trails at 10%.
“It’s rare to see a consumer base coalesce so quickly around a new product, but that is what we’ve seen with oat milk, which has dominated market share for alternative milk in recent years,” Ara Kharazian, research and data lead at Square said in an announcement of the report. “What is remarkable is that oat milk can be a fairly costly add-on, but one consumers are clearly willing to pay for.”
Survey data for the study was collected between Aug.30-Sept. 5 of this year. Square said the margin of error was +/- 2% for the U.S. population, and +/- 3% for the Canadian population.
Here are a couple of fun graphs Square made to support the report: 


 
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Daily Coffee News Staff

Tags: collagen, consumer trends, functional coffee, ingredients, market research, oat milk, point of sale, protein boosters, research, Square
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