As coffee prices soar globally, an increasing number of coffee enthusiasts are choosing to brew their coffee at home. This shift in coffee consumption habits is driven by various factors, including the rising cost of living, inflation, and the convenience of home brewing.
In Australia, where the cost-of-living crisis has led consumers, especially younger ones, to seek more affordable alternatives, instant coffee has seen a surge in popularity. Nestlé’s Nescafé Gold has emerged as the fastest-growing coffee brand in the market, catering to the growing demand for premium instant coffee options.
Amidst soaring coffee bean prices due to weather challenges and supply chain disruptions, many consumers are turning to home brewing to save costs while still enjoying quality coffee. This trend has been further fueled by the work-from-home culture, which has become prevalent in Australia and other parts of the world.
Deloitte’s global coffee study for 2024 reveals that convenience and rising coffee prices have led more consumers to opt for brewing coffee at home. The study indicates that over half of respondents have been deterred from out-of-home coffee consumption due to price hikes, with 70% of consumers now brewing coffee daily at home.
Brands are capitalizing on this shift towards home coffee consumption by introducing innovative products tailored for home use. Nestlé, for instance, has launched coffee concentrates and premium instant options to meet the evolving preferences of consumers.
The trend towards home brewing is not limited to Australia but is a global phenomenon. In the U.S., despite a return to pre-pandemic levels of out-of-home coffee consumption, the majority of Americans still prefer brewing their coffee at home, signaling a lasting change in consumer behavior.
Looking ahead, the trend towards home brewing is expected to continue, particularly among Gen Z consumers who value customisation and convenience. Social media platforms like TikTok have popularized the “home café” trend, where users create personalized coffee experiences at home.
As the coffee industry adapts to these changing consumption patterns, brands are introducing new products tailored for home consumption. The rise of smart coffee machines and flavored instant options caters to the preferences of consumers seeking convenience and customization in their coffee experience.
While cafes are unlikely to disappear entirely, their role may evolve into venues for social gatherings or specialty experiences rather than daily rituals. The cafe culture is transforming to meet the demands of a generation that values unique and immersive experiences in their coffee consumption.
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