bake - December 2017 - 44

beverages

The Coffee Space is Hot
While the convenience of on-the-go food and drink options is

over the next ﬁve years. However, increased competition from

on the rise, coffee houses are making their move. New research

the ready-to-drink coffee category could pose a substantial

from Mintel reveals the US coffee house market continues to

threat. "We also see many brands driving innovation in the cat-

experience healthy growth with sales reaching an estimated

egory such as the emergence of nitro ready-to-drink coffees."

$23.4 billion in 2017, a growth of 41 percent from 2011.
Meanwhile, cold brew coffee continues to enjoy popularity in
Mintel forecasts coffee house sales will reach $28.7 billion by

the US, with total retail sales of refrigerated cold brew coffee

2021. Although sales are heating up, the boom in new coffee

growing 460 percent from 2015-17 to reach an estimated $38.1

shops entering the market is cooling down. The total number of

million this year. While cold brew at retail is on the rise, just

coffee shops in the US is forecast to grow by just 2.17 percent

seven percent of coffee drinkers say they have made their own

this year, the slowest growth rate seen in the last six years.

cold brew coffee at home, with 11 percent agreeing cold brew
takes too long to make.

ery and Tartine Manufactory plans to open a large space in

Innovation may help persuade consumers to enjoy cold brew at

early 2018 in Los Angeles that will feature a bakery, a pizza

home. One in eight (12 percent) are interested in roasts spe-

restaurant and an entire section dedicated to coffee. The new

cially made for cold brewing coffee at home, and one in 10 (10

roasting facility and coffee lab will not only produce the brand's

percent) are interested in RTD nitro cold brew. What's more, 13

coffee line, but will also feature guest roasters, coffee-related

percent of coffee drinkers over the age of 21 say they would be

experiments and other innovative ideas.

interested in alcoholic cold brew coffee.

A potential threat to the coffee house market, ready-to-drink

"Despite the fact that cold brew has revolutionized coffee

coffee is the fastest growing segment (20 percent market

house menus and garnered increased media attention due to

share) of the $13.6 billion retail coffee market, according to

its popularity, the average consumer is not highly engaged

Mintel. The convenience and broad variety of ﬂavors that RTD

with iced coffee or cold brew. This is likely due to consumers

coffee offers prove to be popular as consumers increasingly

preferring to buy cold brew coffee at coffee houses and other

seek out on-the-go and premium options. Mintel forecasts the

foodservice retailers, as well as reserving cold brew coffee for

RTD coffee segment will experience 67 percent growth from

the occasional treat rather than incorporating it into their daily

2017-22.

routines," says Megan Hambleton, beverage analyst at Mintel.
"Innovations such as alcoholic cold brew could broaden usage

Caleb Bryant, senior foodservice analyst at Mintel, says they ex-

occasions, driving more frequent consumption at night, and

pect to see coffee shop sales continue on an upward trajectory

ultimately encouraging at-home consumption more often."

44 < DEC 2017 | bakemag.com

©MATKA WARIATKA - STOCK.ADOBE.COM

Still, the coffee space is hot. The group behind Tartine Bak-
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