Coffee culture preferences spark innovation, alternative channel growth

The Morder report states: “Increasing awareness about healthy eating habits has transformed consumer preferences in the coffee industry, driving significant demand for specialty and organic coffee products. Consumers increasingly seek coffee products that are produced with minimal exposure to synthetic chemicals and pesticides, believing these options offer superior health benefits.”

As a result, coffee manufacturers are focusing on developing innovative products that cater to health-conscious consumers such as low-acid coffee varieties, organic certified products and specialty blends that emphasize both quality and health benefits.

For example, Ciprian Bucsa, president of US Products, says, “Two Bears is a beverage company dedicated to crafting delicious, clean and innovative drinks that are committed to quality. We use simple, clean ingredients and ensure that every beverage is made with zero added sugar.”

Busca continues: “From creamy oat lattes to protein-packed drinks, Two Bears believes in delivering beverages that are not only better for you, but also ferociously delicious. Two Bears is passionate about offering options that meet modern, health-conscious lifestyles without compromising on taste.”

Improving productivity, one cup at a time

Additional research has shown that loneliness has an impact on a corporation’s productivity and sales. A report published in the Journal of Organizational Effectiveness: People and Performance stated that loneliness strongly affects an organization and its financial success. The report found that loneliness costs companies more than $154 billion annually in lost productivity due to absenteeism. Employers are paying attention (see sidebar "Well-stocked breakrooms improve productivity").

“Employers recognize the importance of a premium offering and that it keeps employees in the office and working productively,” explains Eric Anderson, sales manager, alternative channels, with Rise Brewing Co. “As a result, more employers are returning to subsidizing premium coffee products as an employee perk.”

Among these OCS offerings are Rise’s ready-to-drink (RTD) coffee products, which feature organic ingredients and “none of the fillers or high sugar content that you’ll often find in ready-to-drink coffee products. Additionally, because it’s in a slim can, it makes for a great grab-and-go solution,” notes Anderson.

Similarly, Super Coffee’s 11 oz. slim cans of Super Coffee Espresso are the brand’s leading item in the vending, micro market and OCS space. “Customers like being able to have a quick shot of high-quality coffee without the sugar and calories,” says Jake DeCicco, chief revenue officer with Kitu Life, whose Super Coffee brand sells about $20 million annually in the OCS channel. “In OCS, we are seeing a demand for higher-quality ingredients. It’s not just about convenience and availability, it’s about stuff that tastes good and is good for you. Things don’t need to be niche, but the days of only offering Oreos and Coca-Cola are over.”

However, RTD cans aren’t the only premium offering in the workplace. Aaron Lerner, AFH/OCS senior sales manager, with Peet’s Coffee, says the company provides whole bean, portion pack and single-cup paper pods to the OCS space. “As consumers have been returning to the office post COVID, we are a loved and trusted brand that always delivers a strong, full-bodied coffee without a bitter aftertaste,” explains Lerner.

Peet’s recently made a single-cup coffee with a BPI-certified paper pod available to the OCS space. “The single-cup paper pod market has been serviced by regional coffee companies across the U.S.” says Lerner. “Currently, we are the first national brand to enter this space. Our lineup has two of our most popular blends, Major Dickason and Café Domingo.”

Another driving force behind novel coffee products in the OCS space and micro markets is the influence of young coffee drinkers, including Millennials and GenZ.

According to the Grand View Research study, which breaks down findings by age, GenZ, or consumers between the ages of 18 and 24 years old, led the market with the largest revenue share of 31.9% in 2024, saying that the affordability and accessibility of specialty coffees such as cold brew and RTD options contribute to the growing demand within this age group.

Meanwhile, Millennial consumers, or those aged 25 to 39, are responsible for the fastest-growing CAGR of 10.3% from 2025 to 2030. “This demographic utilizes specialty coffee as a means of enhancing productivity and incorporating indulgence into their daily routines,” according to the report. “This group places increasing emphasis on the quality and health benefits associated with specialty coffee, recognizing the potential for antioxidants and improved focus. They are increasingly drawn to unique flavor profiles and regional origins offered by specialty coffee roasters.”

Likely, these factors contribute to the novel offerings in the RTD coffee segment. “The RTD segment has seen particular innovation, with companies introducing premium cold brew varieties, functional coffee beverages and unique flavor combinations to appeal to younger consumers seeking convenience without compromising quality,” according to the Mordor report.

NielsonIQ, a global consumer intelligence company that provides market research services, agrees that cold brew and RTD options are gaining popularity. “Cold brew coffee is less acidic and has a smoother flavor than traditional hot-brewed coffee. Many brands are selling pre-made cold brews.”

Meanwhile, a growing focus on mental health has initiated studies on the effects of loneliness on health and productivity, forcing corporate America to take action in the form of well-stocked breakrooms offering premium coffee products.

This trend was, in part, spurred by two reports, a Cigna study cited by the American Psychological Association and a 2023 report published by Dr. Vivek Murthy, surgeon general of the United States, which both refer to loneliness as a lethal pandemic with effects rivaling that of smoking 15 cigarettes a day.

To help combat loneliness and boost employee morale — and productivity — many businesses are beefing up their breakroom offerings with healthy, premium and specialty coffee selections. This trend may be one of the driving forces behind the growth of the OCS market, which is thriving despite inflation and a still-somewhat remote workforce culture. Automatic Merchandiser’s 2024 State of the Office Coffee Service Industry Report showed that 73% of respondents reported an increase in sales in 2023 and 54% of those surveyed suggested an increase in locations served.

A study titled, “U.S. Specialty Coffee Market Size, Share & Trends Analysis Report by Age Group, by Distribution Channel and Segment Forecasts, 2025-2030,” by Grand View Research further suggests growth in the OCS and workplace outlets, stating that the away-from-home distribution channel, which includes workplaces, held the largest revenue share — over 70% — of the coffee industry. “The desire for convenient and readily accessible specialty coffee options in diverse settings, from traditional coffee shops to quick-service restaurants to workplaces, contributes significantly to the segment’s growth.”

Ami Krishan, senior marketing leader with Java House, agrees that younger consumers are a driving force in the coffee industry: “The next generation likes to indulge with flavors and different roasts as well as cold brews. We have been able to do a very good job at brewing a smooth and delicious cold brew, and we offer lattes in popular flavors to meet these demands.” Java House currently offers 8-oz. cold brew RTD options in Pure Black, Vanilla Latte and Salted Caramel Latte.

Similarly, Starbucks also offers a variety of RTD coffees, including Cold Brew, Nitro Cold Brew, Tripleshot Energy and Doubleshot Energy. “We know consumers are on-the-go and looking for a variety of premium, high quality options to meet their lifestyle needs,” says a Starbucks spokesperson. “Starbucks RTD beverages are the same high quality Starbucks coffee and flavors that our consumers love.”

Additional innovation in this space can be seen in Rise’s RTD cans, including its nitro cold brew, which “offers a bold flavor that’s less acidic and slightly sweeter than a standard cup of hot coffee and features a nitrogen widget to mimic the draft experience as closely as possible,” says Anderson.