Coffee Industry Trends to Look for in 2016

Here at Galaxie Coffee, we welcome the new year with a lot of excitement and anticipation about how we can best serve our customers over the next 12 months. We will be keeping an eye on both the direction of the coffee and beverage industry as well as the changing and growing needs of those we serve. In light of that, there are some trends we expect to emerge in 2016. Most of those trends are very good; one is not so good, though nothing we cannot overcome.

How Coffee Will Be Served

The standard pot of coffee, hot brewed with a slow drip machine, will continue to dominate global coffee consumption. That is not going to change anytime soon. But consumers are looking at other ways to enjoy their favorite beverage. According to New York investor, entrepreneur, and coffee roaster Jonah Engler, there are three particular serving options that should be especially strong in 2016:

• Espresso – Espresso is by no means a new beverage. Yet it is one that is not truly appreciated here in the United States. That may change. Engler cites the fact that brands like Dunkin’ Donuts and McDonald’s have already added espresso drinks to their menu; he expects others to follow. That should mean more espresso drinks in the office as well.
• Cold Brew – We have been talking about cold-brewed coffee for a while now. Cold brewing is also not new, but it has recently taken hold as a trendy way to enjoy coffee here in this country. All of the major equipment manufacturers are now making cold brew machines for the individual consumer alongside their traditional hot brew, slow drip machines.
• Draft Coffee – Creating draft coffee by infusing cold drip blends with nitrogen is all the rage in cities like New York and Los Angeles. We expect the trend to expand across the country in the coming months. Expect your local coffeehouse to be looking at a draft coffee system this year.

Coffee Shortages and Higher Prices

Back in October, Food World News reported on looming coffee shortages they expected to see 2016. Little has changed in the three months since that report was put together. Abnormal weather patterns being experienced as a result of a very strong El Niño in the Pacific are negatively impacting coffee production in Australia, Indonesia, and other parts of the world. Food World News estimates coffee yields could be 7% lower this year.

How big the gap between supply and demand grows will determine wholesale prices for this year. If coffee shortages remain relatively modest, we do not expect any drastic increases for consumers. However, shortages in excess of 7% to 10% could result in some significant changes in pricing. It is something we will be keeping our eyes on.

Galaxie Coffee is proud to be able to serve the greater New York area. We look forward to what 2016 has in store for us and our customers.