Key Findings

Shift in coffee consumption habits in Asia Pacific

In a post-pandemic era, remote working and relocated daytime populations have impacted the location, timing and frequency of coffee consumption. Moreover, the different generational expectations of socialising among consumers has changed frequency and location of coffee consumption.

New channels beyond traditional coffee shops set to excite consumers in Asia Pacific

With consumers seeking convenience to drink coffee anywhere and anytime, coffee shops have responded by launching new channel formats. This increases the availability of coffee in multiple locations, but also help brands enhance their brand positioning and excite consumers in a competitive environment, beyond just new product innovations and price positioning.

Forecourt retailers and drive-throughs set to gain momentum in Asia Pacific

The presence of coffee shops in forecourt retailers (which are located at petrol/gas stations) serve to provide a caffeine fix for these drivers, who typically stop to refuel and take a break. Similarly, drive-throughs, a common channel in the US, have been increasing in Asia Pacific, appealing to consumers’ busy lifestyles.

Smart vending machines for coffee gaining momentum due to growing popularity

Vending machines have reached an unprecedented level of advancement in recent years, utilising artificial intelligence and computer communications to provide consumer convenience, enhance efficiency and reduce operating costs. Moreover, automated coffee robots are also emerging, providing convenience to consumers while dealing with labour shortages.

Partnerships with non-coffee brands enhance cost efficiency and expand consumer base

Chained specialist coffee shops are increasingly strengthening their partnership with non-coffee brands to reach out to a wider consumer base, while sharing a similar storefront reduces operating costs. This is especially evident in China through partnerships with food and beverage outlets.