Noteworthy Coffee Shop Market Trends for Small Business Owners
If you’re researching coffee shop market trends, then you’re already on the right track to starting or scaling your coffee shop business. Knowing the industry is key to building your business plan or creating a menu. Learn more about a few noteworthy coffee trends below.
Don’t go too far down the coffee shop ownership journey without the help of an expert like Texas Coffee School.
View upcoming dates for the 3-Day Coffee Business Master Class and register today!
The Market Is Brewing
If you’re wondering about the general state of the coffee shop market, fear not. According to a report by Allegra Group’s World Coffee Portal, the coffee shop industry grew to $49.5 billion in the past year, an 8% increase. And there’s now more than 40,000 coffee shops in the U.S.
“[It’s] credible evidence of a very robust market,” says Allegra Group’s founder and CEO. “There are strong times ahead for well-organized operators with a strong focus on customer service and clear brand purpose.”
But just because there’s more competition doesn’t mean a new coffee shop business can’t compete. A growing market goes hand in hand with a growing customer base, as we’ll see below.
Americans Are Caffeinating More Than Ever
Currently, almost 2/3 of Americans have had a cup of coffee within the last day. That’s more than bottled water, tea, tap water, soft drinks, and juice. And we’re drinking an average of 2.8 cups a day!
The National Coffee Association (NCA) also reports that coffee drinkers spent almost $110 billion on coffee and coffee goods in 2021. That’s a whopping $301 million a day.
Writing a strong coffee shop business plan can help you map out your finances for the next five years and consider different business models, like a hybrid model. You don’t want to leave any coffee spending money on the table when launching a new business!
Cold Coffee Is King
Iced coffee orders have increased by 64% just since January 2023, according to the NCA. Here a few more quick trends to note:
- The number of people who drink cold brew on occasion has gone up 73%.
- The number of people who make cold brew at home has gone up 32%.
- The number of people who drink cold brew regularly has gone up 60%.
- The number of people who are unaware of cold brew has gone down 61%.
The World Coffee Portal says younger coffee drinkers are responsible for a large share of the iced coffee popularity. And for 24% of customers, iced coffee is their daily order.
Learn more about serving cold brew in your coffee shop.
Customers Love These Drinks a Latte
Want to take a guess for which type of espresso-based drink is America’s current favorite?
If you guessed a latte, you’re right! Lattes hold 18% of popularity, followed by espressos, cappuccinos, Americanos, mochas, macchiatos, then flat whites.
Plus, specialty coffee is on the rise. 2/3 of coffee drinkers ages 25-39 had a specialty drink in the last week. The same goes for more than half of coffee drinkers of all ages.
Check out these ways to include oat milk and other milk alternatives in your espresso drink menu.
Don’t Forget About Flavors
Finally, if you’re adding flavored or signature specialty drinks to your menu, remember to set prices that sufficiently cover your cost of goods sold. Nailing down menu prices can help take your coffee shop to the next level.
Enter the Coffee Shop Market With the Help of Texas Coffee School
With such promising trends in the coffee shop market, it can be tempting to want to dive right in. However, we can’t emphasize enough the importance of investing in a coffee education to help save you time and money down the road.
Our 3-Day Coffee Business Master Class teaches students the know-how, resources, and a step-by-step plan of action to launch and grow your own independent coffee shop business. We’ve just added new class dates and would love to see you in our classroom! View upcoming dates and register here.
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