With many employees still working from home, the office coffee market has tanked, falling 40% as result of the coronavirus. This is according to a new report from Packaged Facts, a market-research company for the food and beverage industries.
For foodservice providers in the corporate sector, that represents a significant loss of revenue. To recover some of this loss in 2021, it’s essential to pay attention to the preferences of workers under age 45, according to the report, “Office Coffee Service in the U.S.: Market Trends and Opportunities.”
“As more Gen Z adults aged 18 to 24 join millennials and Gen Xers in the workforce, even if as telecommuters, their preferences are becoming more important to the selection offered by office coffee service providers and employers,” says Jennifer Mapes-Christ, food and beverage publisher for Packaged Facts.
Many of these younger consumers are not drinking the same cup of joe as their parents or predecessors. Millennials, those 25- to 39-year-olds who were practically weaned on Starbucks, tend to prefer espresso-based beverages and cold brews. Along with Gen Zers, they are also more likely to consume ready-to-drink canned and bottled coffees rather than vending machine brews or pantry coffee service. And Gen Z consumers (18- to 25-year-olds) are driving a concurrent trend toward specialty and gourmet coffees.
Packaged Facts does not expect the office coffee market to completely rebound any time soon—especially if more people permanently work from home either part time or full time. But it seems that coffee drinkers who do return to the office will be looking for a different shot of caffeine.