The change in coffee consumption trend will benefit McDonald's and Starbucks
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Young Americans may not drink several cups of coffee a day as their elders do, but they are more likely to go out to buy coffee rather than brew it at home, a trend that could be good news for McDonald's and Starbucks, according to the website of Balon.
Forty-eight per cent of respondents between the ages of 18 and 24 said they had had coffee in the past day, lower than older respondents, Bernstein analyst Sara Senatore said, citing the latest opinion survey. But these younger generations of respondents said they didn't care about spending money on coffee, and they were about to enter a life where they may have to sleep less and need caffeine to cheer them up.
Santa Natore points out that 42% of young people surveyed drink coffee when they are "away from home," higher than 31% of older consumers.
"as young people enter the peak years of coffee consumption, this trend of preference for coffee while going out should continue, supporting the continued growth of the coffee retail industry," Santa Torre said. "
As a result, she estimates that the "non-domestic" coffee market will grow by about 5% a year over the next decade, faster than the catering market as a whole. McDonald's is expected to be one of the beneficiaries as the fast-food chain moves towards serving higher-end coffee drinks. Starbucks is also expected to benefit, but Santa Natore believes that Starbucks still needs to rely on food and non-coffee drinks to drive solid revenue growth.
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