The Biggest Influences on Consumer Demand for Coffee Products

Pattern Data Science

September 15, 2022

What Drives Consumer Demand for Coffee Products?

Pattern analyzes the top influences driving consumer demand for coffee products from 2020 – 22.

Key Highlights:

  • Coffee brands by highest consumer demand
    • When is consumer demand for coffee brands highest?
  • Cold brew vs. hot coffee vs. espresso — what do consumers want?
    • Prime Day and weather drive consumer demand for coffee, cold brew, and espresso
  • Coffee types in highest demand
  • Coffee machines in highest demand
    • When is coffee machine demand highest?
  • Key takeaways for ecommerce coffee retailers

As National Coffee Day approaches on September 29, our team decided to take a closer look at what’s been driving consumer demand for various coffee products from 2020 – 22.

While retailers might not expect an increase in consumer demand during National Coffee Day in September, our analysis suggests a strong correlation between higher overall demand for coffee products and Prime Day. With rumors of another Prime Day slated for October 2022, it’s important for ecommerce coffee retailers to prepare for possible increased demand during this time.

Coffee Brands by Highest Consumer Demand

Our team made some surprising discoveries when it came to consumers’ coffee brand preferences. Even though Starbucks, Maxwell House, Dunkin, and Folgers hold the largest market shares in the space, Starbucks was the only brand that consistently remained at the top of consumers’ minds from 2020 – 22. Privately owned brands like Black Rifle Coffee, Community Coffee, Café Bustelo, and Death Wish rounded out the top five coffee brands in highest demand during this same period. Here’s a look at the spread of consumer demand among the brands we analyzed:

When is Consumer Demand for Coffee Brands Highest?

Consumer demand for specific coffee brands tends to be highest at three main points throughout the year: Valentine’s Day, Prime Day, and the period from Thanksgiving – Christmas Day. When observing seasonality trends in both 2020 and 2021, we can see this pattern repeat itself in both years:

Cold Brew vs. Hot Coffee vs. Espresso — What Do Consumers Want?

Overall, demand for coffee, cold brew, and espresso products has remained fairly consistent over the years. When observing weekly change in demand for each of these products in 2020, 2021, and 2022, we see very little fluctuation except for Prime Day:

Interestingly, espresso was the only category that experienced a spike in consumer demand. As consumers seek out deals on products with higher price points (i.e. espresso), demand for high-end coffee increases around Prime Day. Compared to the week preceding Prime Day, here’s how demand for espresso products increased from 2020 – 2022:

  • 2020: 198% increase during the week of October 11
  • 2021: 169% increase during the week of June 20
  • 2022: 252% increase during the week of July 10

Prime Day and Weather Drive Consumer Demand for Coffee, Cold Brew & Espresso

Prime Day is the driving force behind increased demand for espresso products. However, there are other noteworthy patterns our team observed that point to what may be influencing demand throughout the year — specifically weather changes.

For instance, when comparing seasonality in 2020 to 2021, we can see how demand for cold brew coffee sees an annual increase starting around May and tapering off by the end of September. Conversely, demand for espresso tends to fall during this same period (except for when Prime Day occurs during the summer in 2021).

Despite the cyclical increased demand for cold brew coffee products, however, demand overall for these products appears to be on a downward trend when comparing year over year demand:

Coffee Types in Highest Demand

The pandemic had little effect on consumer demand for coffee products in terms of brand, boldness, and temperature. However, when it came to specific types of coffee (whole bean, K-cup, ground, instant, etc.), the pandemic was an obvious factor influencing demand. In particular, coffee beans saw the highest increase in demand with a 182% increase over the annual average for 2020 during the week after the pandemic was formally declared:

We further see the pandemic’s influence on consumer demand when observing year over year change in demand from 2020 to 2021 in the chart below:

During the same week the pandemic was declared in 2020, demand for all products in this category fell significantly in 2021. K-cups saw the sharpest decrease at -74% year over year.

The pandemic wasn’t the only factor influencing consumer demand in 2020. In the charts below, we see Prime Day is a key factor in determining when demand will be highest across all types of coffee in 2021 and 2022:

Once more, we can see how products with higher price points see increased demand during Prime Day. K-cups and coffee beans saw the highest increase in demand during these periods. When comparing the week preceding Prime Day, here’s how much demand increased across these two product categories:

  • K-Cups | 2021: 74% increase during week of June 20
  • Coffee Beans | 2021: 31% increase during week of June 20
  • K-Cups | 2022: 98% increase during week of July 10
  • Coffee Beans | 2022: 31% increase during week of July 10

Coffee Machines in the Highest Demand

In every week where Prime Day occurred from 2020 – 22, demand for coffee machines of all types rose significantly. Just like with coffee beans, K-cups, and espresso, coffee machines see a spike in demand during this time because consumers are seeking out deals on products that are normally more expensive:

Espresso machines and Keurig machines are in the highest demand during this time while percolators, cold brew coffee makers, and French press machines take up the rear. This is likely due to the fact that espresso machines and Keurig machines have a higher price point than percolators, cold brew coffee makers, and French press machines.

When is Coffee Machines Demand Highest?

Not only can increased demand for coffee machines be observed during Prime Day, but consumers also tend to search more for these products during the holiday season and on Valentine’s Day. Using 2021 as the baseline for “new normal” in terms of seasonality, the chart below illustrates how consumer demand for coffee machines changes in a typical year:

As we can see, demand surges around Valentine’s Day with Keurig machines taking the lead in demand. This is likely due to the company’s annual Valentine’s Day sale. From Thanksgiving until Cyber Monday, demand increases again, this time with espresso and Keurig machines leading the way. Consumers are likely searching more for high-end products during this time as they prepare for holiday gifting and try to take advantage of Black Friday and Cyber Monday savings.

Key Takeaways for Ecommerce Coffee Retailers

This data offers invaluable insights for ecommerce coffee retailers. First, the influence of Prime Day over consumer demand for all coffee products cannot be underestimated. Particularly, products that have a higher price point should be made available to consumers who are searching for such goods in higher volume during Prime Day than at any other time of the year.

Along with Prime Day, ecommerce coffee brands should take note of how other holidays and weather change directly impact consumer demand. Thanksgiving, Valentine’s Day, and weather patterns all impact when certain products are in highest demand. By understanding when these changes occur throughout the year, coffee retailers can better coordinate inventory, fulfillment, marketing, and customer service at these critical moments.

Want to use patterns like these to empower your brand throughout the year? Request a demo with Pattern to improve your ecommerce strategy today!

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Amazon's Sponsored Product ads
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What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Utilizing Amazon sponsored ads can be a smart way for a brand to drive greater traffic to a product listing and start increasing sales. While many brands still struggle to manage their advertising strategies, 30% of Amazon brand sellers increased their advertising budgets in 2022. As ecommerce executives (or even on the nose with VPs of ecommerce?)  approve their 2023 advertising budgets, it may be worth it to take a look at Amazon’s advertising products and the benefit they may have on increasing conversions. 

​​Pattern is the premier ecommerce accelerator with all of the expertise, data-driven insights, and technology brands need to gain control on Amazon and maintain their competitive niche. We know the high value of and how to utilize Amazon’s advertising products to drive the most traffic and conversions to benefit and accelerate your brand.

Here are Amazon’s three main advertising products you should know about in order to drive listing traffic to your products and increase conversions: 

For a brand executive who is selling their product on Amazon, you may not already know the differences between campaign type, so we will walk you through the differences and uses for each of these three ad campaigns.

Sponsored Product Ads

Sponsored Products are a mid-funnel advertising strategy that gives visibility to products above the top organic listings (see example below). This strategy uses custom keywords to get products in front of the consumers who are searching for them, however it can be used to capture new audiences as well.These cost-per-click (CPC) ads require no additional copy or images, but usually receive the most interaction of the campaigns and need to be monitored closely.

As you can see, these ads look just like an organic listing, however they say, “Sponsored,” on them. These types of ads can be especially effective forms of advertising because they tend to blend in with the organic results around them. With Sponsored Products, you can get your products in front of qualified customers who are searching for your product in such a way that doesn’t make them feel like they are being served an advertisement.

Sponsored Brand Ads

Sponsored Brand Ads are a top-of-funnel brand awareness tool and function on keywords. This ad format helps show a customer what they may be in need of and where to get it.  Commonly used to promote product lines or best sellers, a Sponsored Brand ad shows up as a banner above the search results (see example below). This type of ad requires that the brand showcase at least three separate products.

Unlike other campaigns used on the Amazon platform, Sponsored Brand ads require ad copy and a unique logo. These ads also can take customers to a custom landing page, or a page on the brand store, that way they get a clear and overall picture about who your brand is, what other products you sell, and why they can trust your brand

Sponsored Display Ads

Sponsored Display ads can be a tactic for top, middle, or bottom of the advertising funnel due to its varying targeting abilities. Although most commonly found under the bullet points of a detail page, these ads can also show in emails, newsletters, and even more locations off platform.

Unlike the previous ad campaigns discussed, sponsored display ads can target shopping behaviors, like repeat purchasers, similar product purchasers, and even people who viewed the detail page but did not buy. Sponsored Display ads help customers discover your brand, drive awareness, and create loyalty. 

The example above shows just one of the many placements Sponsored Display has.

Accelerate Your Sponsored Products With Pattern 

Rather than competing with each other, each of the three sponsored ad products focus on a different section of the sales funnel, allowing you to target your customers and hit your sales numbers, all while edging out possible competitors. When brands use these advertising campaigns, they can better optimize their ad budget to improve ROAS and build revenue. 

At Pattern, we have all the resources to help your brand build successful advertising and digital marketing campaigns on Amazon so you can increase traffic and conversions, which will in turn increase your revenue

Global Ecommerce Weekly News: 27th September 2022
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Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)

Top 5 Ways to Prepare for Peak with Google Ads
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Top 5 Ways to Prepare for Peak with Google Ads

Peak season is almost upon us and with all signs pointing to it starting earlier than ever, with Christmas gifting searches now ramping up in August and September, it’s time to start preparing for peak. In this article, we’re sharing our top five tips for planning and preparing for peak season with Google Ads and the strategies required to get your Paid Search ready so you can drive success over this crucial period.

1. Go Early

In 2021, gifting search terms started increasing in popularity in August. The general trend is that people are looking, researching and weighing their options early, so it’s best to start your Paid activity early to ensure that you’re capturing that early research traffic. This will help drive revenue alongside aiding those consumers who are in their research phase.

From 2020 to 2021, spend during Cyber Week actually only rose 2% but in the weeks leading up to it, it increased by 16%. However, Cyber Week is still the biggest period during the latter half of the year, accounting for 23% of all online spend by consumers over peak. Being prepared and starting early will help you to maximise your time during this period.

2. Get Ready for Privacy Changes

 According to Google, 48% of global consumers have stopped buying or using a service due to privacy concerns. Privacy is front of mind when consumers are shopping online and we know that Google is phasing out 3rd party cookies in 2023. This is going to make it much harder to track users online and it’s something that brands need to think about this now – waiting isn’t an option.

From a Google Ads point of view, you want to ensure you have set up the Google Ads tag across your site and have enabled ‘Enhanced Conversions’, which ensures all conversions are tracked and allows you to monitor other actions such as ‘Add to Cart.’ This is relatively easy to set up, especially if you use ‘Google Tag Manager’.

It’s also vitally important that you build up your first-party data during this time as this is data you own and it can be used when targeting consumers that have provided your brand with their email address. Pattern’s own experience shows that by segmenting and using first-party data, you can see a 10% improvement in revenue and ROI.

3. Ensure Consumers Can Discover your Brand

A full-funnel approach is now more important than ever as consumers become more discerning and have more choices than ever of where to shop.

Pattern has seen success with Google Ads’ ‘Discovery Campaigns’ (image-based ads that appear on Google platforms such as Gmail and the Google app), which have driven success both from a traffic and revenue perspective.

The performance of these campaigns is significantly enhanced by adopting a segmented and nuanced approach to first-party data and incorporating these into your campaigns. Other options for a full-funnel approach include YouTube and testing bidding on keywords that are more representative of the research phase. (e.g. ‘best baby clothes’ for a baby clothes brand)

4. Get Moving with Performance Max

Earlier this year, Google announced that they were moving away from Smart Shopping and launched Performance Max. This is a new campaign type that incorporates features and placements from Smart Shopping but expands them onto other platforms such as Gmail but also alternative creative options, such as images and videos.

Since Google has already started automatically upgrading Smart Shopping campaigns to Performance Max, expect to see some fluctuations in the first 2 weeks following the switch over but results generally seem positive. We recommend upgrading sooner rather than later to limit any potential impact to peak period.

5. Flight Budgets Accordingly

Peak period will be even more competitive than in 2021 and you’ll need your budgets to support this period, we recommend boosting budgets in October to start capturing that early peak traffic. As we enter November and the Cyber Period, start early and make sure you are capturing those consumers looking for early bargains, ensuring you are being nimble in your optimisations and reacting to the data that you are seeing.

Overall, peak period is vital to help drive your sales and by preparing early, you will see strong results and drive success for your brand. If you want to discuss how your brand can navigate this next peak period, contact us to discuss your options with our performance team now.