Coffee Consumption Shifts in North America: Trends and Enhancers Taking Over in 2024
Credit Source: Squareup.com
September 25, 2024
As National Coffee Day approaches, Square’s latest report reveals changing coffee consumption habits among Americans and Canadians. Drawing from millions of transactions processed on Square’s platform and a Morning Consult consumer survey, the data sheds light on consumer preferences, health-conscious trends, and the rise of innovative coffee add-ons.
Data-Driven Insights: Key Coffee Trends
Coffee continues to be a staple in North America, with an impressive number of consumers opting for coffee shop visits instead of brewing at home. In the U.S., 1 in 4 coffee drinkers stop by their local café three to four times a week. This number jumps to 1 in 3 for Canadians. A small but significant group—10% of coffee lovers—purchases coffee from a shop every day, bypassing home brewing altogether.
The willingness to pay extra for ethically sourced and health-conscious options is on the rise. 27% of Canadians and 21% of Americans are prepared to spend more on coffee that’s sustainably sourced, while nearly the same percentage will pay a premium for certified organic options. Younger generations are even more eager to experiment with their drinks, with 32% of Americans aged 18-34 adding protein to their coffee, compared to 27% of Canadians in the same age group.
The demand for alternative health-enhancing ingredients is also growing. In the U.S., 11% of consumers are willing to pay extra for collagen, a trend gaining particular traction among younger audiences looking for added nutritional benefits in their coffee rituals.
To experience a premium coffee subscription offering that aligns with these evolving consumer preferences, check out Ovalmugs’ Premium Coffee Subscription Box for ethically sourced and health-conscious coffee delivered to your door.
From Dairy to Plant-Based Preferences
Non-dairy milk alternatives are taking over the coffee scene in North America. While whole milk still leads as the top choice, used in 44% of coffee orders, Oat Milk has become the clear favorite among plant-based options, comprising 33% of orders. Almond milk trails behind at just 10%.
Ara Kharazian, Square’s Research and Data Lead, highlighted the rapid adoption of Oat Milk: “It’s unusual to see such a strong preference for a relatively new product. The fact that consumers are willing to pay extra for Oat Milk, despite its higher price, demonstrates its staying power in the market. This has also been beneficial for coffee shops, increasing profit margins by meeting demand for premium alternatives.”
Conscious Coffee Consumption and Ethical Choices
Ethical considerations are becoming a key factor in how people choose their coffee. Consumers are increasingly prioritizing sustainability, with 27% of Canadians and 21% of Americans willing to pay more for sustainably sourced beans. Organic certification is also a major draw, with nearly 1 in 4 coffee drinkers in both countries opting for organic coffee, even at a higher price.
These preferences reflect a broader shift towards more mindful consumption, as consumers are not just focused on flavor, but also on the impact of their coffee on the environment and society. Add-ons like protein and collagen are part of this movement, catering to a growing interest in health and wellness.
Matcha: A Year-Round Favorite
While seasonal favorites like pumpkin spice may get a lot of attention in fall, they fade quickly outside of autumn. Chai enjoys steady popularity during the colder months, but matcha is the real standout. Since 2019, matcha sales have more than doubled, making it a year-round favorite, weathering fluctuations in seasonality that affect other specialty drinks.
Andytown Coffee Roasters: A Model for Innovation and Community
Andytown Coffee Roasters, based in San Francisco, has become known for its signature espresso cream soda, the Snow Plover, and its commitment to both innovation and community service. Since its opening in 2014, the business has expanded to seven locations and added a roastery and bakery. Andytown partners with local organizations for beach cleanups, blending business success with a focus on social responsibility.
Owner Lauren Crabbe credits tools like Square's platform for helping the business thrive: “Square has allowed us to streamline our communication with customers and optimize the experience through features like online ordering, customer loyalty programs, and marketing software. We’re proud of the growth we’ve achieved and look forward to continuing to innovate.”