Sunday 13 October 2024

Americans and Canadians shift coffee rituals with the rise of enhancers and alternatives: square report

The report from Square highlights the growing preference for non-dairy alternatives and specialty add-ons in coffee consumption based on millions of transactions at coffee shops, cafes and restaurants using Square’s platform and from findings from a new consumer survey by Morning Consult

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MILAN, Italy – As National Coffee Day passed on September 29, new data from Square reveals Americans and Canadians are transforming their coffee habits. From sustainable sourcing to innovative enhancers like protein and collagen, this year’s coffee rituals are evolving.

The report from Square highlights the growing preference for non-dairy alternatives and specialty add-ons in coffee consumption based on millions of transactions at coffee shops, cafes and restaurants using Square’s platform and from findings from a new consumer survey by Morning Consult.

Buying over brewing

Across the U.S. and Canada, more than half of respondents are happy to shell out for their daily fix, with 1-in-4 coffee drinkers in the US and 1-in-3 in Canada visiting coffee shops at least three to four times per week.

Around 1-in-10 consumers choose to leave their caffeine to the experts and purchase their coffee from shops daily.

Conscious consumption on the rise

Coffee drinkers care not only about taste, but also about how their brew impacts the world. In fact, 27% of Canadians and 21% of Americans say they are willing to pay more for coffee that’s sustainably sourced, while 24% of Canadians and 21% of Americans will pay extra for coffee that is certified organic.

Along with ethical considerations, coffee drinkers are embracing a variety of add-ons, with 19% of coffee drinkers in the US and 15% in Canada willing to pay extra for a protein boost. That number is significantly higher among Americans aged 18-34, at 32%, and Canadians in that age group at 27%. Collagen enhancers are also gaining traction, particularly in the U.S., where 11% of consumers are willing to pay more for this upgrade.

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From dairy to plant-based

Cream and sugar used to rule, but with countless non-dairy options on the market, US and Canada’s coffee drinkers are increasingly taking advantage of plant-based alternatives according to transaction data from coffee shops, cafes and restaurants using Square’s platform.

Although Whole Milk remains the most popular creamer, comprising 44% of orders, Oat Milk has a commanding lead as the favorite alternative milk product for 33% of consumeres. Almond milk is a distant third at 10%.

“It’s rare to see a consumer base coalesce so quickly around a new product, but that is what we’ve seen with Oat Milk, which has dominated market share for alternative milk in recent years,” said Ara Kharazian, Research and Data Lead at Square. “What is remarkable is that Oat Milk can be a fairly costly add-on, but one consumers are clearly willing to pay for. For businesses, this represents a win-win: meeting customer demand for quality while boosting profit margins with more premium offerings.”

(data provided)

A new fall fave

Pumpkin spice gets a lot of attention in the US and Canada, but in truth its appeal is fleeting, peaking in autumn but nearly flatlining the rest of the year. Much more popular is Chai, which also experiences cold-weather highs.

But the real success story lies with matcha, which has seen steady year-over-year growth, and with sales more than doubling since 2019. Despite some dips, the steady climb in popularity has weathered all seasons.

Andytown – San Francisco, CA

Based in the Outer Sunset of San Francisco, Andytown is a specialty roaster that serves up delicious coffee and is best known for its drink, Snow Plover, an espresso cream soda named after an endangered shore bird. Since opening in 2014, Andytown has expanded to seven cafes, and more on the way, a roastery, and a bakery. Throughout the year, Anydtown also partners with local organizations to host beach clean ups in order to give back to the community.

“To continue innovating, we love creating new iterations with seasonal flavors and variations like matcha, huckleberry, or our freshly milled Pumpkin Spice from Oaktown Spice Shop. With Square, we have all the tools we need in one place so we can communicate with customers and offer the best experience possible. Whether it’s our order ahead feature, online ordering, or marketing and loyalty software to reward customers and share news about offers. We’ve been fortunate to have some amazing opportunities over the years and we hope to continue for years to come!” – Lauren Crabbe, Owner & CEO of Andytown

321 Coffee – Raleigh, NC

321 Coffee is a coffee shop and specialty roaster that is founded on inclusion and diversity, aiming to create meaningful employment opportunities for adults with intellectual and developmental disabilities (IDD). Founded in 2017, 321 Coffee has since grown to 5 locations and employs more than 50 adults who are responsible for roasting, taking orders, and making drinks, whether it’s their Cinnamon Roll Latte or Love Big Latte. Over the years, 321 Coffee has expanded through offering mobile coffee carts at events and corporate offices, catering, gift boxes, and selling their beans at well-known grocery stores and retailers across the country.

“We want to redefine the way people with disabilities are viewed in the workplace and society. We’ve been with Square from the beginning and they’ve been a key partner in our success. Square’s accessibility features are intuitive and user-friendly for our staff, ensuring they can work independently and be successful, while also offering an exceptional and unique customer experience. We’re focused on growth and excited for what’s to come in the future!” – *Lindsay Wrege, Co-Founder of 321 Coffee.

Stereo Coffee Roasters – Toronto, ON

Stereo Coffee Roasters was founded in May 2018, by Toronto native Geoff Polci, who has worked in the coffee industry for 20 years. Polci spent two years running a restaurant in Costa Rica, where he roasted his own coffee in the restaurant’s oven, before returning to Toronto and opening Crema Cafe, ultimately expanding to four locations. Following the founding and ultimate sale of another roasting business, he started Stereo Coffee Roasters with the goal to develop each coffee varietal to its full potential.

“Square is so easy to use, particularly when it comes to changing or adding items and prices on the fly. For example, it’s made it easier to specify milk types, which has been helpful as consumer trends and preferences change. Our default is now oat milk, but we do offer 2% as well, and in the past people went with almond or soy options, but oat milk’s texture and taste pairs better with coffee. Ultimately, I believe a really good cup of coffee brewed well is a magical thing, and when brewed right, there’s really no need to add anything.” – Geoff Polci, Owner at Stereo Coffee Roasters

Methodology

The surveys were conducted online between August 30 – September 5, 2024, among the general population for Adults age 18+ in the US and Canada. Weights were applied for age, gender, education, and region based on the general population in each country. Additional weights for race were also applied in the US.The margin of error (MOE) was +/- 2% for the US Adults with n = 2,203 and +/- 3% for Canada Adults with n = 1,002.

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