Coffee sales opportunity in offices set to grow
There is an opportunity to increase coffee servings in offices by 5m servings a year, new research has revealed.
The data from NPD Group, seen exclusively by Beverage Business World, revealed that in the year-end until July 2019 there were 29bn servings of food and drink in total in the out of home market.
Coffee servings were up by 1.5% in that period to 488m servings.
There was a total spend of £57bn in the total out of home food and drink market and of that £5bn was spent and consumed at work. Just under £1bn is hot drinks with coffee representing 68% of sales.
Dominic Allport, insights director, at The NPD Group said: “Coffee servings have increased in their importance in being consumed at work.
“It is 68% of consumption at work but that is lower than compared to the overall out of home market meaning there is an opportunity to encourage consumers to have more coffee servings at work.”
The data also revealed that almost half (48%) of coffee consumed is provided by contract caterers with coffee shops having a much smaller role (14%).
“Arguably contract caterers coffee might not match up with the quality of what is in the quick service tradition coffee shop space,” he said.
Sandwich shops, he added, were benefitting from their location near offices where consumers would visit at lunch to grab a sandwich and coffee.
"There is an opportunity to grow coffee shops in or near offices. Coffee operators that are looking for places to grow in an already saturated market need to think about offices."
The research also revealed that consumers top motivation for drinking coffee at work at 56% was ‘I was at work’, 20% said they needed a break, 15% said because it was convenient, 14% to satisfy thirst and 6% as a treat.
Interestingly, 40% said the top reasons for drinking coffee at work was the convenient location, 28% said they already went there, 23% for the price, 19% for the quality of the drink and 12% a good variety to choose from.
Energy drinks are three times as important within travel hubs versus total out of home market, NPD has revealed. These include 11,000 airports, train stations and motorway service stations across the UK.
Ice drinks and dairy based drinks also performed strongly in these locations.
Allport said: “Carbonated soft drinks are on the increase and frozen beverages.
“Coffee is everywhere and maybe there is too much coffee availability and not enough demand in travel hubs.”
He said that portability could be a reason for the energy drink popularity.
“It easier to drive with a cold drink in hand rather than a hot drink,” he said.
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