Coffee consumption in Canada is evolving. Cold beverages are now popular year-round, while consumers are constantly exploring new flavours and formats. Expectations for convenience, value and sustainability are higher than ever.
With National Coffee Day today September 29 and International Coffee Day on October 1, Deena Nezirevic, senior product manager at Second Cup, provides insight into current Canadian coffee preferences and the factors shaping the market.
What coffee flavours, beverages and formats are currently gaining the most traction with Canadian consumers?
Coffee is such a fun ingredient to work with because it is so adaptable. It pairs well with many flavours and there are endless beverage applications. We continue to see a lot of global influence on flavours from Asia, Latin American, the Middle East and North Africa – from pistachio, sesame, yuzu, pomegranate, horchata and more. A love for nostalgia continues with flavours like PB & J, Nanaimo Bar and Banana Bread but it’s evolving into Newstalgia blending classic flavours with emerging one, and we’re seeing them used in espresso-based beverages, cold brew and RTD (Ready-to-Drink) coffee. Beyond flavour, texture is gaining a lot of traction. Layering with a velvety cold foam or topping with a crunchy garnish, all to enhance the drinking experience.
Being that it’s the fall season, I would be remiss to not talk about Pumpkin Spice. This flavour continues to be relevant even after 2+ decades. It’s a nod to the changing season. Love it or hate it, it symbolizes a return to cozy and comfort and it’s a must have on the menu. How it’s evolving is through new beverage applications like Second Cup Café’s Iced Matcha with Pumpkin Spice Cold Foam, but you can’t not include the classic, Pumpkin Spice Latte.
How are younger consumers influencing café menus, particularly in terms of customization, new flavours and cold beverages?
The younger consumer’s influence on café menu development is huge. Their gateway into coffee drinking is cold coffee, often starting their taste journey with sweet and creamy drinks that mildly resemble coffee and gradually progressing to coffee-forward cold beverages.
Customization is critical for any coffee house. Younger consumers want to make it their way. It’s that opportunity to make it uniquely yours, a custom creation, adapted for me. In Full-Service Restaurants, you might see a menu notation ‘no substitutions, best enjoyed how the Chef intended’. That won’t work in a café environment. It would alienate too many, especially the younger consumer. They are also the ones who are driving innovation and LTOs (Limited Time Offers) thanks to their desire for new, eagerness for taste adventure, and, of course, the influence of social media.
Second Cup recently released an Espresso Mocktini, our take on a classic Espresso Martini. This is in response to younger consumers fueling the demand for healthier options like non-alcoholic beverages and functional drinks like protein coffee. Yet, on the other side of the spectrum, they are often driven to the counter trend of over-the-top indulgence.
How has the growing popularity of cold coffee beverages changed the way Canadians consume coffee throughout the year?
Cold coffee is no longer just a summertime beverage. At Second Cup, we see the gradual shift in our sales mix, year over year, away from drip and hot espresso-based drinks to cold coffee. Cold beverage options are essential year-round, and you’ll see them featured on Second Cup’s seasonal menu even in the dead of winter! Consumers enjoy soda year-round. Why should cold coffee be different?
How are factors such as value, convenience, customization and sustainability influencing Canadians’ coffee purchasing decisions?
These are all critical factors right now affecting Canadians’ purchasing decisions and how brands are designing menus and creating offers to encourage visits. Canadians love their coffee and they will continue to enjoy it despite the rising cost of living. What is changing is how and where they enjoy it.
We see growth in the at-home barista. They’ve invested in coffee equipment and are buying beans from shops like Second Cup, other local cafés or direct from roasters. For those who continue to purchase their coffee away-from home, convenience is key. Customization and community are critical drivers as well. A warm interaction and custom-crafted beverage go a long way. For others, it’s a hybrid of at-home vs. away-from home. A visit to the coffee shop might be to treat yourself or for a special occasion. It’s easier on the budget than a night out for dinner. Climate change and the impact on coffee growing regions is undeniable. Protecting the future of coffee, the financial sustainability for farmers and the environmental sustainability for the lands on which they harvest, are critical for the future of coffee.
What emerging trends do you expect will have the biggest impact on Canadian coffee and café culture over the next few years?
Canada’s café culture will continue to be vibrant, innovative, and community focused. Many Canadians are craving connection and human interaction. The coffee shop fills that void and will continue to with vibrancy and warmth. What better way to build community and make people feel seen than through a great cup of coffee and welcoming atmosphere?
From a menu development standpoint, global influence and food tourism will continue to have a huge impact but you don’t need a plane ticket to experience it. Explore in your own city by visiting local cafés and restaurants that are doing great things.
I expect Mood Food, the functional food trend, will continue to evolve in new ways. Consumers want efficient and delicious ways to get more out of their food and drink. We saw that with protein, collagen, hydration and the next might be fibre, although not the sexiest to market. Prebiotics sounds catchier. I like to think that coffee is the original energy drink. It’s clean energy too and there are endless ways to enjoy it.
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