Taco Bell, a brand synonymous with budget-friendly tacos and late-night cravings, is expanding into premium coffee. Its Live Más Café brings specialty drinks to the $5B coffee market, targeting younger, trend-focused consumers. Fast-food chains added 1,400 coffee outlets in 2023, with Taco Bell joining the race to compete with Starbucks and Dunkin’. Taco Bell is betting on affordable drinks to stand out in a crowded coffee space.
For decades, the label “Made in China” carried a stigma, particularly in industries that prided themselves on craftsmanship, precision, and performance. Now, building on decades of experience in manufacturing, processing, supply chain management, and quality control, China’s manufacturing capabilities have made leaps – including coffee equipment.
McDonald’s has launched a limited-time Dulce de Leche Frappé, signalling a calculated nod to the Latino community, their fastest-growing demographic in the US and a key driver of specialty coffee consumption. The frappé offers a workaround for their espresso machine troubles, with espresso drinks off the menu in several cities. With Latino spending power set to hit $2.6 trillion by 2025, McDonald’s blends cultural relevance with practicality.
As tough economic times hit, the core values of specialty coffee – commitment to quality, sustainability, and fair practices – seem to be getting diluted. Two-thirds of young consumers prioritise ethics, but rapid growth often sacrifices transparency and producer welfare. Mayorga Coffee’s 5x facility expansion shows scaling can align with fair prices and socio-economic impact.
Starbucks, the world’s largest café chain and a buyer of 3% of the world’s coffee, has taken a risky gamble in its approach to coffee purchasing. Starbucks cut coffee hedging from $1B in 2019 to $200M amid a 70% price surge this year. By relying on price-to-be-fixed contracts, Starbucks is shifting risk to an uncertain future. Starbucks and many small to mid-sized roasters are betting on future price drops but risk hefty costs if prices remain high.
In the fast-paced world of specialty coffee, baristas and shop owners obsess over sourcing the finest beans, perfecting brewing methods, and crafting the perfect pour. Cynical memes about cleaning coffee gear flood the internet – but the reality isn’t so funny. Neglecting coffee equipment can lead to harmful bacteria and mould, studies warn. Clean equipment isn’t optional – it protects your business from wear, tear, and unhappy customers.
Coffee prices have surged to their highest levels since April 1977, driven by fears over supply disruptions in top-producing nations like Brazil and Vietnam, and the anticipation of the EU Deforestation Directive (EUDR). While headlines indicate the coffee world is in shock, hasn’t it been a long time coming?
Children consuming coffee is a concept that would be met with either outrage, pride, or a shrug – depending on where you are in the world. Some western influencers are increasingly warning against coffee for kids and adults, but sugar-loaded energy drinks with high caffeine levels are less scrutinised. In markets like Brazil, children drinking coffee is a longstanding tradition. "Demonising" coffee can also disrupt & reshape global markets – giving high-sugar soft drinks the upper hand.
Italy’s beloved espresso, a cultural icon served at bars across the country for as little as €1, is poised to undergo a radical transformation. Espresso prices in Italy could jump 66%, reaching €2 – double the iconic €1 tradition. Global coffee prices have soared as Arabica just hit $3 per pound, driven by climate disruptions. Italy’s beloved coffee culture faces a reckoning as the €1 espresso era fades.
The UK coffee market is becoming a tricky one, tough for specialty coffee shop chains, and major players are redefining their strategies to capture consumer interest in high-traffic areas. Nero Group’s acquisition spree includes recent buys 200 Degrees and FCB Coffee. Now with 790 UK stores and over 1,100 worldwide, Nero Group is expanding fast. Specialty coffee chains are struggling across the UK, making investment and acquisitions the path to survival.
As coffee culture spreads across Asia, championship-level barista training is on the rise. 2024 saw the SCA’s World of Coffee event land in Busan, South Korea – the first time ever in Asia. Coffee demand in Asia is booming, with 6% year-on-year growth – three times the global rate.
CEO Brian Niccol, leading Starbucks’ turnaround plan, unveiled sweeping changes to the Starbucks experience. This new strategy targets better pricing and convenience, and premiumisation and nostalgia at the same time. Meanwhile, Luckin Coffee is gearing up for US entry with $2 coffee options.
Roasters in the specialty coffee industry hold a unique position of power and influence over both supply chains and market trends that can sometimes compromise their integrity. Recent consolidation and market shifts continue to position them as dominant players. This buyer power often comes with little to hold them accountable.
High coffee prices, stubbornly sustained over the last two years, are emerging as a lasting reality for the coffee industry. Arabica prices peaked at $2.75 in September 2024 – roasters are holding off on premium buys. The expected price drop? Unlikely to happen soon.
In Thailand, where midday temperatures regularly exceed 30°C, cold coffee has become more than a beverage option – it’s a cultural staple across the country. Gen Z leads the trend: 60%+ prefer their coffee cold. Speed and convenience fuel the popularity of RTD across Southeast Asia.
Alupak AG, the Swiss packaging company known for its pioneering role in coffee capsule manufacturing, is preparing for the future. The capsule market has surged since Nespresso lost its patents, with over 400 competitors now in play. As the market grows, regulators are tightening the restrictions on waste.
Office coffee, once drab, is now elevated to the standard of “barista-quality” thanks to coworking companies using sleek, bean-to-cup machines or even hiring their own baristas. This trend is transforming the modern workplace, as businesses and coworking spaces alike look to offer employees the perfect balance of flexibility, comfort, and caffeine. Yet, 60% of survey respondents still favour coffee shops over offices for remote work.
In a decision that has divided stakeholders across industries, the European Union (EU) has announced a 12-month delay in the implementation of its Deforestation Regulation (EUDR). The delay was driven by both technical and political factors. After 20 years in development, EUDR remains firm, but does this delay hint at easing requirements?
In Greece, few drinks are as emblematic as the freddo espresso. Whether it’s sweltering summer heat or the cooler months of fall, Greeks can be found sipping it at all hours of the day. Cold coffee reportedly makes up 60-65% of total coffee consumption in Greece, with freddo espressos and cappuccinos comprising 70-80% of that. Surprisingly, this beloved drink was originally created to revive a sluggish coffee market.
In late 2023, the Alshaya Group, a major franchise operator in the Middle East and North Africa (MENA), reportedly put plans to sell a minority stake in its Starbucks franchise on ice. Political tensions and growing “boycott, divestment, and sanctions” movements may be factors. Homegrown brands like Barns are expanding fast, aiming for 1,000 outlets globally by 2030.
