In response to mounting pressures on household spending, a significant shift is emerging in coffee consumption patterns across the UK. With a noticeable trend of reducing expenses, many consumers are opting to swap their regular visits to coffee shops for brewing their drinks at home. Recent surveys reveal that 53% of consumers are opting to cut back on their café visits as a cost-saving measure.

A large portion of at-home coffee adaptations has seen an inclination towards instant coffee products. Currently, 79% of in-home coffee cups are prepared using instant coffee, showcasing a growing opportunity for premium hot beverage products. These products promise to deliver a cafe-like taste with minimum fuss and at a significantly lower cost per drink when compared to typical coffee shop orders.

This trend is particularly prominent among younger shoppers. Edward Watts, the sales director for the UK and Ireland at Jacobs Douwe Egberts, highlighted that 49% of consumers claim to visit coffee shops less frequently to save money, with a trend towards enjoying more coffee at home. He noted the growing consumer behaviour of investing in products that allow for an easy recreation of their favourite coffee shop experiences at home.

Watts acknowledged the significant growth in the specialities and mixes segment. Data indicates a surge in spending on soluble specialities in August 2024 compared to the same period in 2023. This segment has gained substantial market penetration, valued now at over £173 million. Watts emphasised that these speciality products play a crucial role in attracting younger shoppers and expanding the overall popularity within the coffee category.

Beyond coffee, tea remains a staple in British households. Market analyst Statista reported that the most popular tea brands in the UK include PG Tips, Yorkshire Tea, Tetley, Twinings, and Typhoo. Research from The Tea Group shows that 47% of Brits consume up to five cups of tea a day, while over a quarter drink between six to ten cups daily. This equates to approximately one brew per hour during an average working day.

The preference for herbal teas is increasing, with 55% of consumers favouring this option. Specifically, 22% choose green tea variants like matcha, while 11% prefer rooibos, ginger, peppermint, chamomile, or fruit teas. Traditionalist preferences still hold strong, as 54% of tea drinkers prefer their morning brew with milk. A substantial 68% make their tea directly in a mug, though 20% believe in the classic method of using loose leaves, china cups, and a teapot for the perfect brew.

Coffee remains a vital part of daily routines for many consumers, with the coffee market now valued at £1.6 billion. More than 24 million UK households purchase coffee, presenting a lucrative opportunity for retailers. Watts highlighted the importance for retailers to offer a diverse range of coffee products that meet the evolved tastes and quality expectations of modern consumers. The range includes products like Kenco Iced/Hot Lattes, allowing consumers to tailor their coffee preferences.

Decaffeinated coffee options have gained traction, now making up a quarter of all instant coffee sales. Watts mentioned that decaf products cater to health-conscious shoppers who seek to enjoy coffee without the caffeine. Retailers are encouraged to provide high-quality decaf choices from trusted brands like Kenco Decaf.

The hot drinks category also encompasses 'food beverages' such as hot chocolate, cocoa, and malted drinks. This segment is thriving and is valued at £204 million annually, with branded products comprising more than 80% of the category's value. Nostalgic dessert flavours have emerged as a popular trend, influencing companies like Aimia Foods to introduce a 'pudding flavours' range. This range includes classic dessert-inspired variants like Banoffee Pie, Apple Pie, and Cherry Bakewell, and has seen positive market reception.

Mars Chocolate Drinks & Treats continues to innovate within the hot beverages sector, offering products in various formats like sachets, jars, and pods. Seasonal gift packs with toppings such as marshmallows and sprinkles have also been popular as consumers seek to recreate exciting hot chocolates at home. Michelle Frost, general manager at Mars Chocolate Drinks & Treats, advised retailers to integrate hot chocolate with other beverages like tea and coffee. She emphasized the importance of offering a selection within the core hot chocolate segments, namely instant hot chocolate, add-milk varieties, indulgent options, malted drinks, and cocoa products.

As consumer behaviours evolve, the landscape of hot beverage consumption in the UK is undergoing a transformation. This shift towards in-home brewing presents opportunities and challenges for both retailers and brands as they adapt to meet the changing needs of their customers.

Quality Food Awards finalists

This year, we have four finalists in our Foodservice Beverages category:

• Chef's Larder Gold Roast Freeze Dried Coffee
• Booker Citavo Instant Hot Chocolate Drink
• Brakes Royal Roast, JJ Foodservice Sysco
• Premium Freshly Squeezed Orange Juice with Bits

And two finalists in our All Year Round Hot Beverages category:

• Creatine Hot Chocolate
• Dunnes Stores Simply Better Single Estate Peruvian Ground Coffee

Our 2024 winners will be revealed at our Awards and Networking evening on Thursday 7 November at 8 Northumberland Avenue. Book your tickets here: https://uk.qualityfoodawards.com/QFA24/en/page/2024-awards-attendance