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Insight of the Day: Want an Iced Coffee? Brands Want You to Make Your Own

Key Takeaway:

The demand for cold coffee is surging, prompting packaged coffee makers to innovate and offer new products and technologies to cater to consumers' preferences for homemade iced coffee.

Trend:

The trend is towards increasing consumption of cold coffee, driven by changing consumer preferences and the growing popularity of iced coffee at cafes.

Consumer Motivation:

Consumers are motivated by convenience, affordability, and the desire to replicate their favorite coffee shop experiences at home. They also seek variety and customization options in their cold coffee drinks.

Driving Trend:

Several factors are driving the cold coffee trend:

  • Rising popularity of iced coffee at cafes, particularly among younger demographics like Gen Z and millennials.

  • Consumers seeking more affordable alternatives to expensive coffee shop drinks.

  • Increasingly hot weather patterns making cold coffee a year-round beverage.

  • Technological advancements enabling packaged coffee makers to create better-tasting cold coffee products.

Target Audience:

The primary target audience is coffee drinkers who enjoy iced coffee but want a more affordable and convenient option than visiting a café. This includes younger demographics like Gen Z and millennials, who are more likely to drink cold coffee daily.

Products/Services:

  • Keurig's new machine that brews and chills coffee in under three minutes.

  • Nestlé's Nescafé Ice Roast, a reformulated instant coffee that dissolves in cold water.

  • J.M. Smucker's Dunkin' cold-brew liquid concentrate for customizable iced coffee drinks.

Conclusions:

The cold coffee market is rapidly expanding, and packaged coffee makers are investing in innovation to meet consumer demand. By offering convenient, customizable, and affordable options for making iced coffee at home, these brands are poised to capture a larger share of the growing market.

Implications for Brands:

  • Brands need to focus on developing innovative products and technologies that cater to the specific needs and preferences of cold coffee drinkers.

  • Emphasizing customization and variety in cold coffee offerings can attract a wider range of consumers.

  • Effective marketing campaigns that highlight the convenience and affordability of at-home cold coffee solutions can drive sales and brand loyalty.

Implications for Society:

The rising popularity of cold coffee can lead to increased innovation and competition in the coffee industry, resulting in a wider variety of products and potentially lower prices for consumers. It can also promote a more sustainable approach to coffee consumption by reducing the need for single-use cups and packaging from coffee shops.

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