- Over the last few years, coffee has increasingly positioned itself in the health & wellness segment
- Cold brew is being touted as the new healthy energy drink – 21% of coffee drinkers believe it is healthier than other types of coffee
- For 73% of global consumers, wellness is now an essential element of a brand’s positioning
LONG considered a caffeinated pick-me-up, our morning brew seems to be embracing a new identity – that of a healthful elixir.
Brands are capitalising on the ever-growing interest in wellness by customising their coffee offerings to cater to different consumer markets, with a distinct focus on health-conscious options.
For a long time, and still today in many places, coffee has been perceived as unhealthy.
“Coffee is still being questioned about its impact on our health,” says Ilze Laukalēja-Broka, Ph.D. (Latvia University of Life Sciences and Technologies), Head of EIT Food HUB Latvia.
“However, coffee consumption has generally been increasing over the last 10 years. It means the more we drink coffee, the more the consumer and the researcher want to find out what coffee truly is and how we can benefit from it. Meanwhile, the coffee industry is highly competitive, and innovation is a key way to stand out.”
From protein-packed varieties to decaf options, and organic roasts, the coffee industry is pushing health as the new frontier for differentiation and trying to tap into the lucrative health and wellness segment.
Purity Coffee has built its brand on healthy coffee, offering organic-certified, mycotoxin-free, “high in antioxidants” coffees. On the Health Options website, coffee and powder drinks are a prominent feature, and Jennifer Aniston reportedly starts her day with collagen coffee – a recent craze for those on a quest for eternal youth.
Meanwhile, the healthy coffee ready-to-drink (RTD) segment is exploding, positioned as the new energy drink. Kohana Coffee boasts “a healthy, natural energy boost” cold brew to grab “as you head to the gym.” Starbucks, a brand more associated with sugar-laden frappuccinos than health drinks, just launched its new line of “handcrafted iced energy drinks”. Even though they contain tea rather than coffee, it’s still a coffee brand tapping into the wellness segment.
Black Rifle, the far-right American coffee brand targeting the gym-going “man’s man” has its very own “healthy” RTD 300 product, “with 300mg of caffeine per can and an energising blend of MCT Oil and amino acids.” Ironic, because it’s almost the entire daily recommended caffeine intake by the FDA – which is 400 mg. The Starbucks energy range also contains half the daily recommended intake.
Indeed, questions loom over the actual health benefits of these products. There is some debate on whether collagen actually works and whether it’s healthy. As for other “healthy” coffees, do they offer genuine health advantages or are they simply highlighting ingrained properties?
Health is higher than ever in consumer priorities, but they must remain cautious
Consumer priorities are undergoing a significant shift, with health now occupying a paramount position. An escalating demand for organic, nutritious products is observed alongside a trend of reducing Ultra-processed Foods (UPFs), fueled by the influence of social media.
“Health has become a higher priority for consumers today, driven by increased access to information, the rise of wellness culture, and a growing focus on preventive care,” says Ilze. “The COVID-19 pandemic further heightened awareness of the importance of health and immunity.”
The aftermath of the pandemic has intensified focus on the quality of ingredients we consume, prompting a reevaluation of our dietary choices.
New research reveals young people across Europe want an overhaul of how they access, discuss and learn about healthy food, and an Instagram survey shows Gen Z wants to prioritise staying healthy in 2024.
While health consciousness permeates various sectors, the interest in health is particularly visible in the coffee realm, illustrating a broader societal shift towards prioritising personal wellness.
Coffee – and cold brew especially – is emerging as a novel and health-conscious alternative, positioning itself as the new go-to energy drink for athletes and sports enthusiasts, as well as young consumers. The National Coffee Association’s latest Spring 2024 report finds that 21% of surveyed coffee drinkers believe cold brew coffee is healthier than other types of coffee.
“With this increased demand for healthy products, consumers should be cautious of greenwashing and pseudoscience, as some companies and social media influencers use marketing tricks and unfounded claims to capitalise on these trends,” says Ilze.
“These factors have collectively fostered a market where health and wellness are integral aspects of consumer decision-making, but it’s crucial to discern between genuine health benefits and mere marketing.”
The irony lies in the fact that many of these seemingly health-focused products are often heavily processed, leading to a debate on whether the health branding is just a marketing strategy.
“Terms like ‘organic,’ ‘clean,’ ‘protein-enriched,’ or ‘collagen-infused’ carry positive connotations and are appealing to consumers, even if the actual health benefits may be marginal or context-dependent,” says Ilze.
This ties into consumer knowledge, product transparency, and perceived value of products based on intangible qualities. While health claims tend to be regulated, brands are often good at selecting qualities that offer the impression, rather than the promise, of health.
“There is a consumer knowledge gap when making a decision about the value of any food and beverage product,” says Abdulrahman Hayel Saeed, Founder of UAE brand Mokha Not Mocha. “Our perception of products is often far from their true description. The word health needs validation of its authenticity more than ever.”
Health as the new customisation frontier
As health continues to capture consumer attention across demographics, it has emerged as the pivotal point of coffee customisation.
Each health-centric option caters to a specific consumer segment, be it the collagen-driven choices for older men and women, protein-infused blends for gym enthusiasts, or decaf selections for the health-conscious teetotalers.
This strategic diversification enables brands to access new markets, appealing to a diverse range of consumers, including Gen Z individuals who prioritise wellness.
“Health has become a key customisation point, allowing brands to cater to specific consumer needs like energy, immunity, or weight management,” says Ilze. “By offering health-focused products, brands can tap into niche markets and expand into wellness sectors.”
The future trajectory suggests that health is set to become an even more significant coffee customisation point, facilitating brands in penetrating untapped markets and fostering a deeper connection with health-conscious consumers.
“National and international funding programmes support this trend,” says Ilze. “For example, the EU’s Horizon Europe and Health Programme, and the US’s NIH, CDC, and USDA NIFA grants, offer financial support for projects developing functional foods, including innovative coffee products.”
“These programmes can help coffee companies create products with enhanced health benefits, aligning with public health priorities and providing new market opportunities. This customisation not only helps brands capture new consumer segments but also builds trust and loyalty by addressing the growing emphasis on personalised health solutions.”
The fusion of health and customisation heralds a new era where wellness is not merely an add-on but an integral part of the coffee experience. As brands ride the wave of health-conscious consumerism, the convergence of coffee and wellness could significantly reshape the industry.
Coffee Intelligence
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