January 17, 2025 – Coffee is an icon of a quick energy boost. It appeals to consumers in the US and Canada for its ability to satisfy indulgence by offering rich, unique flavors and diverse textures. Innova’s 360 research into coffee trends highlights the latest sales and product launch insights, key innovation trends, and what may develop in the future.
Coffee Product Launch and Sales Trends
North America is the second largest region for coffee sales value, after Europe, in the past year. 20% of consumers in the US and Canada opt for biodegradable/biobased packaging in coffee, aligning with growing coffee trends toward sustainability. Products with biobased packaging display 6% launches in the past year. Launches incorporated with materials such as recyclable paper fiber, bio-based polyethylene, and polylactic acid. These innovations support sustainability by reducing environmental impact and waste while promoting renewable resources in packaging.
Coffee launches in the US and Canada display a 16% rise as a percentage of the hot drinks category over the past three years. Traditional coffee, inspired by global regions, such as Italian espresso, Turkish coffee, café au lait, and Ethiopian snow, caters to the 34% of consumers who value foods reflecting heritage and tradition and is available in varying intensity levels ranging from 5 to 9, presented in light, medium, and dark roasts. This diverse selection reflects making tradition-rich heritage and craftsmanship globally and drives new product development.
Coffee is the leading subcategory, accounting for 59% of launches in the hot drinks category in the US and Canada.
Leading Coffee Markets
The United States is the leading market for coffee launches in the past year. Canada displays a 16% coffee subcategory launches over the past five years.
Half of consumers in the United States pay attention to the origin of the ingredients on the packaging. This drives a 30% CAGR growth in coffee products, highlighting single origin on packaging. Aligning with coffee market trends, single-origin coffee beans sourced from various countries like Ethiopia, Columbia, Brazil, Guatemala, Mexico, and Sumatra reflect this trend, offering consumers an opportunity to explore diverse global flavors and expand their palates.
This aligns with Innova’s annual top trend of 2024, ‘Local Goes Global,’ which showcases consumer receptiveness to global flavors, appreciating food and beverage from diverse origins and broadening their palates with a wide variety of tastes.
Coffee Brands and Companies
Nestlé is the key player for coffee launches, driven by its brands Nescafé and Nescafé Gold, in the US and Canada. This is followed by Aldi, Nestlé Nespresso, Joffrey’s Coffee & Tea Company, and Loblaws.
In the US & Canada, 62% of consumers prefer to consume food and beverages at home, while 28% of consumers purchase coffee from specialty stores, such as cafés. Nestlé has leveraged this preference by launching Nescafé Gold Espresso, facilitating a café-style experience for consumers at home. The coffee is composed of 100% premium espresso, offering a convenient method for individuals to prepare coffee with café-quality flavor in their kitchens. This aligns with another Innova’s annual top food trend of 2024, ‘Home Kitchen Heroes,’ which highlights that homes are increasingly recognized as alternative venues for social gatherings, accommodating changing lifestyles and budget considerations.
Top Coffee Claims and Positionings
Indulgent and premium, organic, traditional, gluten free, and no additives or preservatives are the top 5 positionings for coffee subcategory launches in the US and Canada.
41% of consumers in the US and Canada drink hot coffee to gain energy or to keep themselves going. This is reflected in the 17% growth in coffee launches with energy/alertness claims in the past year. Green, black, and mocha versions of coffee infused with adaptogenic mushrooms, such as lion’s mane, reishi, chaga, and cordyceps, can provide an energizing effect while helping to balance cortisol levels. This combination supports both vitality and overall wellness to the body. This has supported the new product development in the US and Canada, aligning with emerging coffee market trends that focus on health and functional benefits.
Coffee Flavor Trends
Hazelnut is the top flavor, followed by caramel, French vanilla, vanilla, and milk chocolate.
Nearly 3 out of 5 consumers in the US and Canada prioritize taste and flavor in their coffee purchases, driving diverse flavor innovations. Addressing this demand, coffee launches feature blends like caramel and pecan, milk chocolate and almond, and vanilla with spices such as French vanilla and cinnamon or Madagascar vanilla and spiced pumpkin. This has supported the new product development in the US and Canada, in line with the latest coffee market trends.
What Is Next in Coffee Market Trends in the US and Canada?
In the US and Canada, 61% of consumers prefer coffee prepared using filter brewing methods. This drives a 3% rise in launches crafted using the filter brewing method. Reflecting coffee trends, brands tap into this by focusing on diverse brewing methods, including drip machines, French presses, Aero presses, and moka pots, offering distinct flavor experiences. This diversity allows coffee enthusiasts to explore a wide range of flavor profiles for consumers in the US and Canada.
Meanwhile, 23% of consumers seek indulgence in hot drinks, boosting a 14% increase in premium coffee launches. Reflecting coffee trends, artisanal beans with fruity, citrus, chocolate, and honey notes gain attention, enhanced by roasting techniques like drum, kiln, and oven toasting. As consumer demand for specialty coffee grows, brands are likely to have opportunities to refine brewing techniques and launch exclusive flavor profiles.
This article is based on Innova’s Overview in Coffee in the US & Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
