There is no shortage of coffee shops that label themselves as "specialty" – but the number of coffee shops that serve a cup of coffee that would meet James Hoffmann’s expectations are few and far between. 91% of consumers prefer authentic brands, but misuse of the term "specialty" is eroding trust. Rising YOY sector growth is fuelling subpar cafes prioritising profits over quality. Clear standards are crucial to protect quality cafes and preserve value chains.
Supermarkets worldwide are leveraging the powerful imagery and narratives of small farmers to tap into consumers' increasing appetite for local and small-scale produce. “Farmwashing” exposes these practices. In specialty coffee, some also profit from farmer stories while underpaying producers. Young consumers aren’t impressed – 80% of them rethink purchases after negative social media buzz.
Authenticity and nostalgia are now essential for brands building loyalty among budget-conscious consumers. “Authenticity” was 2023’s word of the year from Merriam-Webster and Oxford. Many in specialty coffee overlook quality for authenticity or nostalgia, As AI rises, these qualities may gain value – 52% of Americans see AI as a serious threat.
Quality is increasingly under pressure as farmers weigh short-term gains against long-term standards. US coffee import prices jumped 65% from 2021 to 2023. To maintain quality, the industry must step up incentives for farmers.
Is the idea of a “coffee community” holding the sector back?
