Coffee franchises were bouyed by a recent survey that showed coffee drinking is on the rise in young adults. Earlier this year, the National Coffee Association’s National Coffee Drinking Trends 2011 survey reported that 40% of 18 to 24 year olds drink coffee every day, as compared to 31% last year. This is great news for coffee franchises, as the 2010 survey indicated a drop in coffee drinking by young adults (which has largely been attributed to the poor economy).
In addition to an increase in daily coffee drinking, the report showed more expensive gourmet coffees – which includes drinks made with espresso or higher quality, premium-roasted coffee beans – are also experiencing increased demand.
Interestingly, the trend towards single cup brewing (like Keurig and Tassimo coffee pods) has not penetrated the younger market to the same extent of the general population of coffee drinkers. Only 7% of this age group own a single cup coffee brewing machine (on average these machines are growing at a rate of about 1% per year). Then again, this may also be good news for coffee businesses.
The report also showed that the 25 to 39 year old segment that drink coffee every day, increased by 10 percent (44% to 54%).