In spite of their presence in the coffee industry for over ten years, vegan milks are still often considered the new kid on the block. However, plant-based products have made a serious dent in the once-monopolised milk segment.

When Starbucks introduced soy milk in its stores in 2004, it did not take long for plant milks to gain real traction. By the early 2010s, they were soaring in popularity.

Ethical consumers became increasingly conscious of the problems associated with dairy farming and turned to plant-based milks on mass.

The pandemic saw a new wave of acceptance of vegan milks. Globally, alternative milk sales grew by 19% between 2020 and 2022, while conventional dairy saw a drop of 9%.

While almond milk still leads retail sales in some major markets, oat milk is now the go-to milk for coffee shops across the world. 

Oat milk has seen an explosion in popularity – its prevalence in specialty coffee helping to promote it to the wider consumer market.

“It’s ridden the wave of specialty coffee,” explains Gavin Winterwell, owner of London vegan coffee shop The Fields Beneath. “It’s probably got the most neutral flavour profile and doesn’t mask the coffee’s taste. It steams really well, so you get the microfoam that a lot of other milks don’t get.”

Gavin also attributes some of oat milk’s success to Oatly. Their marketing campaigns have long since positioned oat milk as coffee’s perfect companion. While the brand has its fair share of critics, it’s clear they were trailblazers on the vegan milk scene – targeting coffee shops and using that platform to introduce oat milk to consumers.

Thanks to a press release calling out the World Barista Championship, Oatly has now also helped introduce vegan milk to the competition stage.

With oat milk pioneering the way, alternative milks have become a staple offering at coffee shops across the world. However, they do come at a higher price, and the cost-of-living crisis may have just tipped the balance for the vegan milk category.

Tough times ahead

Higher costs of production drive up the price of vegan milks and, in the current economic climate, the extra money needed to pay for a carton of oat milk may be the saving that many customers are having to make.

Plant-based milks were expensive before inflationary pressure came to a head. The raw materials used, such as oats, almonds and soybeans, require more intensive processing to turn them into milks, which comes at a higher cost. Bottling procedures and packaging materials are also expensive.

All this means that right now, vegan milk products are on average 13 to 14% more expensive than they were a year ago. And some customers – most likely those operating on flexitarian diets – have switched away.

With companies like Beyond Meat seeing revenues slump and Pret a Manger closing almost all its vegetarian stores, there could be evidence that this market segment has tough times ahead.

For coffee shops, one solution is to raise prices, thereby absorbing this increase in costs.

Gavin explains that The Fields Beneath has increased its prices by 10% in the last 12 months to accommodate higher staff wages, as well as the increased costs of coffee, chocolate, and oat milk – but sales are still very strong.

“We haven’t got a choice,” he says. “Customers can take more than we think in price increases. I might be wrong, but I’ve surprised myself over the last year with how we managed to put our prices up quite significantly, and people are still prepared to pay for that.”

Gavin believes that the coffee industry is terrified of raising its prices. However, with clear communication between baristas and customers, price increases can be managed without affecting sales, and it can relieve huge pressure on the bottom line.

Vegan milks are here to stay

Given these higher costs, many shops add a premium to their vegan milk drinks. However, as they are better for the environment and do not cause the harm that dairy farming does, customers often advocate for coffee shops to remove the surcharge.

Ozone Coffee Roasters have just done this – customers are simply able to swap dairy for a vegan milk alternative.

Ozone’s retail operations manager, Dougal Gordon, says oat milk coffee orders are as common as dairy in the brand’s four east London locations.

With oat milk sales at such a high volume, coffee shops are able to benefit from economies of scale – ordering a larger amount at discounted prices.

The Fields Beneath has oat milk delivered in pallets. “When you’re buying about 1,000 litres at a time, that works,” Gavin says. “If we’re buying 20 litres a day, that would be a really, really big problem – it would add on thousands of pounds across the year and be unworkable.”

He adds that some oat milk brands deliver their product in half pallets, so if coffee stores have the space to take that amount of milk, it’s a great way to manage prices.

However, for coffee shops without the space or sales volume to justify buying a pallet at a time, vegan milks remain a premium product.

Despite this, Gavin believes the future of plant milk in the coffee industry is bright, and that demand for these alternatives will only rise. “First and foremost, people want a milk that’s tasty and good value, and that looks after their health,” he says. “Once they become aware of the downsides of animal products, I don’t see any reason why alternative milk sales wouldn’t continue to increase.”

Indeed, research suggests that vegan milk sales are still on an upward trend. Last year, the total plant milk category grew in sales by 9% to $2.4 billion, while refrigerated oat milk sales exploded, increasing by 37% to $512 million.

And while oat milk’s neutral flavour means it remains popular with coffee, other fruits, nuts, and grains are appearing in the market and can re-energise the sector. For Gavin, as long as it’s a cost-competitive product that’s delicious in coffee, it is worth exploring.

When we look at where the industry was 10 years ago, it’s clear that plant milks have come a long way. An enormous amount of product development and marketing prowess has secured their place in coffee shops across the world. And while a cost-of-living crisis might cause customers to think more carefully about paying more for oat or almond milk, it’s clear that it will take more than that to knock plant milks off their perch.

When Kenneth Shoji left Japan following a devastating earthquake, he could only have dreamt that, in just over a decade, he would control a specialty coffee empire spanning the globe.

Yet today, Shoji’s coffee shop chain, % Arabica, has grown from one small store in Hong Kong to more than 150 outlets across 20 countries. From its headquarters in Kyoto, it has become an internationally recognised name owing to its minimalist coffee shop designs and striking espresso machines.

It has also built up a cult following, particularly among younger generations, with more than 300,000 followers across its Instagram profiles. In 2022, its impact on the UK since launching two years before, was recognised when it was awarded the Most Notable New Café award at the prestigious London Coffee Festival.

“I think it is amazing that someone with a vision and the right timing can spread a company so quickly,” says Eric Tessier, a coffee writer based in Tokyo. “I remember visiting Arabica when there were still only two locations, and the barista telling me that the owner envisioned expanding globally.

“At the time, I thought it was a far-fetched idea. Especially because many Western cities are saturated with coffee shops. Looking at the global map of % Arabica locations, I am rather humbled.”

Although some worried at the time that % Arabica’s rise signalled the end of Japan’s traditional coffee house culture, known as kissaten, most have now come to realise there is space for both.

“Traditional cafés, or kissaten, can be intimidating,” Eric explains. “% Arabica stood out at its founding as approachable and familiar to people from outside Kyoto.

“In the past decade, the third-wave coffee boom has swept over Japan and, with it, many iconic brands were born. I feel the idea of taking a concept and adding a detail-oriented focus is part of Japanese espresso culture.”

Coffee shop design: % Arabica’s not-so-secret weapon

When you walk into % Arabica’s flagship UK store in Covent Garden, London, you are immediately struck by how different it feels from other coffee shops. But then, after a few moments, you realise why.

A minimalist approach to their coffee shop design is ingrained into the entire identity of the brand.

The simple bar featuring an espresso machine built like an F1 car is set against a bare brick wall, with Chemexes hung and laid out deliberately upon light fixtures. There is a wall-mounted table with stools (both white) opposite the bar, with lighting that’s intentionally ambient and comforting.

The ‘%’ sign adorns multiple bar elements – including the paper cups, coasters, and sugar packets (all white, of course). Reflecting its attention to detail, there are also mini plastic simple syrup containers (akin to Domino’s dips) for iced drinks, with the same ‘%’ branding on top.

The pastry section houses giant croissants, canelés, vegan bliss balls, doughnuts, Danishes and cakes. The espresso machines are custom-made in Seattle for the brand, providing baristas with a tailored tool to make consistent drinks best suited to % Arabica’s coffee.

And apart from the classics, the espresso menu features a Kyoto Latte (which contains condensed milk), a Spanish Latte (more condensed milk), and a Dark Latte (which is essentially a mocha).

Notably, it is all very Instagrammable. As Eric puts it, “There’s a lot that can be learned from a well-planned café that works well for both patrons and employees. When a workplace and a public space feel organic together, it is a thing of beauty.”

He believes % Arabica caters to people looking for a comfortable third space: “The design is bright and open, and the designer clearly has thought about how the café will photograph. The aesthetic appeal paired with a familiar drink and a bit of cool factor go a long way.”

Drawing inspiration from % Arabica

% Arabica has become a true trailblazer in the specialty coffee industry thanks to its purposeful coffee shop design and branding. Each store is tailored to its location, as evidenced by the distinctive brickwork featured in their London locations. The brand’s success has made it a standout in the industry and act as a source of inspiration for coffee shop owners worldwide.

The minimalist aesthetic that % Arabica champions has gained considerable popularity in recent years. According to a survey, 59% of Americans prefer clean and minimalistic coffee shop design.

However, the appeal of minimalist design extends beyond its aesthetic benefits. In fact, it has practical advantages when correctly adopted. According to industry expert Eric, the less-is-more approach is ideal for coffee shops because it “reduces clutter and allows patrons to feel like they are part of the process”. As a result, customers feel more engaged in the coffee-making process, leading to a better overall experience.

Another hallmark of % Arabica is its custom espresso machines. These machines serve as the focal point in each store, providing consistency and quality with every cup of coffee served. By incorporating a attractive espresso machine, such as the Elektra KUP, into their coffee shop design, business owners can strike a balance between aesthetics and quality coffee service. Although a significant initial investment is required, Eric notes that it can pay off in the long run.

“Following in % Arabica’s footsteps would require a considerable amount of capital,” he explains. “But having a well-thought-out plan and a goal to aim towards will help guide coffee shops in the right direction.” By emulating % Arabica’s approach, coffee shop owners can create an unforgettable customer experience that sets their business apart from the competition.

Ever since the first coffee capsules were launched in 1986, they have had a curious ability to divide opinion.

While some swear by their quality and consistency, others won’t go within a metre of them, claiming the coffee is stale long before it arrives at the customer.

Their environmental impact is also a source of contention. Many have raised concerns about the logic of using pods that will likely end up in landfill sites or the ocean after just one use; smaller doses, flash heating, and recycling schemes are often put forward by the other side to suggest why we need to stop being so quick to judge.

Whichever side of the fence you sit, what’s undeniable is the popularity of pods. The global coffee pod market has experienced enormous growth in recent years, expanding at an annual rate of 24.2% from $9.9 billion in 2021 to $12.3 billion in 2022.

The reasons for this explosive growth run in parallel to an industry-wide trend that prioritises convenience. For many consumers, convenience is king – even more so since the pandemic – and there’s considerable value in products that are affordable, multifunctional, and easy to use.

Using coffee capsules eschews the need for equipment like scales, grinders, and filter papers, and makes an everyday process much quicker. Perhaps that’s why, even with soaring inflation, the coffee capsule market is expected to reach a market value of $16.7 billion within the next three years.

But as more and more companies, especially in the specialty coffee sector, enter the segment, those of either side of the fence have become increasingly vocal. And, now more than ever, many are asking whether the market is choosing convenience at the planet’s expense.

The environmental impact of coffee capsules

Earlier this year, the University of Quebec published a study that drew widespread attention. It claimed that brewing coffee with a capsule could cut down carbon emissions compared to other methods.

Their analysis considered the entire process, from production to the amount of waste that ends up in a landfill after the cup is finished. It found that, compared to a French press, the amount of coffee inside each capsule is controlled, which saves around 11-13g of coffee.

However, many have contested this. One study suggests that coffee pods account for more emissions than other brewing methods. Another goes beyond coffee, calling capsules among the worst forms of human waste for the environment when it comes to long-term damage.

Piotr Barczak is the circular economy program manager at the ACEN Foundation, an organisation dedicated to driving sustainability in Africa. He refers to coffee pods as an example of how our consumption isn’t aligned with the principles of resource and energy efficiency – and offers a counterargument to the University of Quebec’s findings.

“Just for our misconception of comfort, we are misusing resources,” Piotr says. “On average, one capsule is 9g: 6g are coffee grounds and 3g packaging. Already, this shows us that the product is overpackaged. I don’t know any other examples of such inefficiency, where more than 30% of a product is its packaging.

“We, as consumers want a tasty coffee, not packaging, right? But we pay a lot for it.”

He also dismisses the idea put forward by the University of Quebec study that people are consistently over-using the amount of water and coffee they use when they brew coffee: “Each consumer is aware of waste and energy usage, and counts how much water they need to make for a specific number of people.”

Apart from the materials used to make coffee pods – for example, Keurig uses plastic derived from fossil fuels, and Nespresso uses aluminium (which needs a lot of energy to produce) – recycling them is the biggest climate issue.

Speaking to NPR, Nespresso USA’s sustainability head, Anna Marcina, revealed the company spends more than $35 million annually on a coffee capsule recycling system – but only 36-37% actually gets recycled in the US.

While compostable pods are cropping up on the market, Piotr says it’s very difficult to recycle traditional single-serve coffee capsules, since there are usually three materials – plastic, aluminium and biomass (the spent grounds) – bundled together, and hard to separate.

“When encapsulated in a capsule, these go to landfill or incineration, generating only more emissions.”

He adds that many manufacturers aren’t covered enough (or at all) by extended producer responsibility, so there isn’t adequate financial incentive to collect and process these materials separately. “As a result, they end up in a residual stream, which is the most expensive to cover. And therefore, the costs for waste management increase.”

Is there a better alternative?

Since the 1980s, manufacturers have undoubtedly made progress in reducing the environmental impact of coffee capsules.

Growing pressure from consumers has seen concerted efforts to swap plastic for compostable materials and improve the lifespan of the machines themselves. PodBack, a dedicated coffee capsule recycling scheme, has also helped reduced waste in a number of cities. In one UK city, over 200,000 coffee pods were collected in just six months.

However, as Piotr points out, problems persist with the format. What’s more, each serving is considerably more expensive than a whole bean bag of coffee, yet the higher prices are because of the packaging rather than because the farmers are being paid more.

According to the Speciality Coffee Retail Price Index, 1lb of coffee is priced between $18.28 and $38.99 by most US specialty roasters. In comparison, the cheapest Nespresso pods in the US cost 80 cents each. Given that standard Nespresso capsules contains around 5g of coffee each, that equates to about $70 for each pound of coffee – way higher than the coffee you’d buy for traditional machines.

So this all leads to the question: is there a better alternative? For businesses that typically use capsule machines, such as hotels and coworking spaces, a better option is superautomatic coffee machines.

Like capsules, they provide convenience and consistent cups of coffee by controlling parameters such as water temperature and grind size. However, rather than relying on wasteful, single-serve pods, they freshly grind the coffee from whole bean.

Superautomatic coffee machines can also produce a wide range of milk drinks, including flat whites, macchiatos, and cappuccinos. This is without the need for a separate milk steamer, keeping the grinding, steaming, and extraction all in one place.

Coffee capsules continue to be wildly popular with convenience a clear driving force in the sector. But let’s not allow ourselves to lose sight of what’s most important. After all, if climate change continues on its course, there won’t be any coffee to serve whichever brewing method we prefer.

Walk into any pub worth its salt, and you’re likely to see bartenders pouring draught beer into carefully-tilted beer glasses.

In the world of barley and hops, this is typically done to achieve an optimal beer-to-head ratio, with the head referring to the thick layer of foam floating atop the golden brew.

On a more scientific level, tilting allows the bartender to manage the carbon dioxide that makes beer so satisfyingly bubbly. More specifically, tilting helps to release the CO2, ensuring that the head isn’t too thick.

Although coffee shops and pubs may seem worlds apart, a similar technique is used by baristas for two distinct purposes: to improve espresso brewing and to create aesthetically pleasing latte art.

However, while the latter is considered standard practice in cafés around the world, the jury is still out regarding the efficacy of tilting the cup during brewing. The founder of the Specialty Coffee Academy of India, Suhas Dwarkanath, is one proponent of this unconventional technique.

“Heavy solubles tend to settle at the bottom when the cup is placed straight,” he explains. “But when tilted, they tend to move and tumble around the espresso better in the cup, giving the person drinking the coffee a uniform experience throughout.”

More in the vein of the beer technique, founder of Batch Coffee Tom Saxon explains that holding the cup very close to the portafilter or spout during brewing and tilting it slightly will result in a larger and denser layer of crema.

This is particularly useful for coffees that produce a weak crema, and it’s widely accepted that crema creates a heavier, more balanced texture.

When it comes to latte art, tilting is less of a contentious topic. In this case, many coffee professionals consider it an essential aspect of creating latte art, which is considered a fundamental skill for the modern barista.

These days, latte art is a much-desired trait in espresso-based drinks like flat whites and cappuccinos. In fact, research shows that modern coffee consumers are willing to pay 11% more for a drink with latte art.

Does tilting the cup improve espresso extraction?

Marcus Wood is the co-founder of Sanctuary Coffee in London. He explains that when espresso is brewed, different compounds are extracted at different stages of the process.

“When the espresso lands in the cup, these acids and oils sit on top of each other due to a difference in mass,” he adds. “Some of these acids present higher bitter notes; some present higher sour notes.”

Rhian Nolan, Marcus’ co-founder, emphasises that tilting the cup doesn’t have any impact on improving extraction, arguing that extraction takes place entirely within the confines of the espresso machine.

Rather, she believes that it’s what happens after extraction that may warrant tilting the cup.

“Agitation of the espresso itself whilst in the cup does offer a better flavour experience,” she explains. “The various layers of coffee on a molecular scale are able to mix together, creating a beautiful harmony of flavours.”

There’s also an argument to be made for the shape of the coffee cup. Tom points out that while it doesn’t affect extraction, it can affect the espresso’s appearance and the depth of the crema.

Suhas, on the other hand, feels that cup shape plays an integral role.

“The bottom of the cup should always be curved or U-shaped to tumble the liquid around,” he says. “The mouth of the cup should not be too wide, or the crema will dissipate. Crema is very important as it holds and preserves the aromas inside the espresso, until the cup is brought near the lips and the first sip is consumed.”

Finally, he adds that the lip of the cup should be thick and rounded, as this “makes the consumer perceive the coffee to be rounded and creamy”.

Marcus agrees, arguing that the shape of the cup can affect how the human olfactory system interprets the coffee. 

“A cup that’s domed towards our nose and mouth will generally direct the vapour towards us,” he notes. “As we inhale and sip our coffee, we will detect more of the coffee itself than we might have if the cup had a larger or less directed angle.”

Tilting as a tool for artistic expression

Rhian explains that lots of baristas tilt cups when pouring milk into espresso – more so than baristas who use tilting as a tool to improve extraction.

“The foamed milk will need a good amount of velocity to mix thoroughly with the espresso, allowing for a well-structured base for latte art to sit nicely upon,” he says.

Ultimately, it’s all about physics. Milk poured from a higher height sinks underneath the surface, while tilting allows the barista to create a larger surface area of espresso while shortening the distance between the top of the crema and the spout of the milk jug.

“As you pour, first break the surface of the espresso with the denser part of the milk,” Tom explains. “The cup will remain steady and tilted until you reach the part where the cup is around 70% full and the jug is predominantly more textured milk.”

The tilting doesn’t end there – he adds that as the barista begins to form the artwork, they should gently tilt the cup all the way back until they’ve finished the pour.

Suhas has an alternative view: “Tilting the cup doesn’t really affect latte art or the milk foam that’s poured on top,” he says.

Many baristas, he argues, forgo tilting and still manage to pour beautiful latte art. However, one thing all these experts agree on is cup rotation – both during extraction and while pouring milk.

“Baristas should definitely swirl the cup around to dissipate the crema for a latte or cappuccino, so that the milk, foam and espresso mix well together,” he continues. “It also helps with better contrast in the latte art designs.”

On that note, Tom explains that rotating the cup is only important when creating certain designs. For example, a rosetta or tulip doesn’t require the barista to rotate the cup while pouring. Nevertheless, when it comes to more complicated designs, he admits that the barista might need to “gently rotate the cup so they can add certain details”.

“Rotating doesn’t always mean easier,” Marcus adds. “It just gives an alternative perspective of the canvas and where you can apply beautifully steamed milk.”

Ultimately, while these nuances can be useful, a good cup of coffee always starts with high-quality beans and good equipment. And, tilting or not, baristas and prosumers require other fundamental skills to get the best out of their traditional espresso machines.

Over the last few months, a lot of noise has been made about the soaring price of coffee beans: according to Nasdaq, the global trading benchmark for arabica coffee, the “C price” has been at more than $2 per pound since January. This is almost double what was throughout most of 2020.

However, for many café owners, the price of coffee isn’t the most expensive cost, even given the recent highs.

Estimates indicate that staff, rent, equipment maintenance, and energy bills eat into the vast majority of a café’s profit margins, while “raw ingredients” comprise just a third of total expenditure.

For cafés that rely on a steady stream of price-sensitive customers, keeping down the cost per cup is of the utmost importance. But as labour shortages continue to affect countries around the world and energy bills soar to record levels, it is becoming increasingly difficult to keep prices from skyrocketing.

As cafés look for long-term solutions, superautomatic coffee machines have emerged as a way of not only reducing the cost per cup of coffee, but also bringing a higher level of convenience, consistency, and innovation.

How can superautomatic coffee machines cut costs?

Superautomatic coffee machines carry a number of financial benefits for price-sensitive customers.

While, like most coffee equipment, they represent a significant upfront investment, these machines require minimal human interaction to operate, therefore reducing the cost per cup over time.

This, according to the founder of Coffee Culture Thailand, Susan Villota, carries a number of benefits not just for cafés, but a range of hospitality businesses.

“They can reduce costs a lot, as there’s no barista required,” she says. “It’s simply a great self-serve process, enabling fantastic breakfast service at hotels and resorts, and catering to large corporations with many staff members.”

Superautomatics can also have a positive impact on other overhead costs, in particular, because they demand less energy than traditional machines.

For example, machines that go into standby mode until a person is ready to use it can cut energy consumption significantly. Not only does this have financial benefits for coffee businesses, but it also appeals to customers who value sustainability.

Manufacturers such as Carimali have also developed specific superautomatics tailored for low to middle-income markets. For example, the company’s Mya Ultra retails in multiple Asian countries, targeting emerging coffee markets and addressing the region’s ever-growing demand for coffee.

China, for instance, has already seen double-digit year-on-year growth in coffee sales. Overall, Asia’s coffee consumption has grown by 1.5% in the last few years – compared to 0.5% in Europe and 1.2% in North America.

Carimali’s Mya Ultra can produce 400 cups of coffee a day, with a touch-screen menu offering a number of drinks, from double espresso to cappuccino. Machines such as these are perfect for convenience stores or high-volume self-service stations, but can also be adapted for café use.

Balancing quality & price

In low to middle-income markets, Susan explains that there is a crucial balance between product quality and price.

“In Thailand, the majority of customers look for quality and value side-by-side,” she says, adding that price has become an increasingly important factor since the outbreak of Covid-19.

Indeed, a 2021 report reveals that value for money is now a key consideration for 57% of Southeast Asian consumers.

Additionally, convenience is a top priority for Asian consumers. Superautomatic coffee machines are preferable because they are versatile and easy to use: they can be positioned in airports, offices, service stations, convenience stores, and coffee shops, offering a level of convenience that’s hard to match.

“If you were to open a convenience store, then having a superautomatic coffee machine could really boost your traffic and sales,” Susan explains “Especially if you can sell coffees at a cost of 50 baht ($1.3) a cup or less.”

However, not everyone is convinced. Some believe that superautomatics miss the expertise and “human touch” of a barista, which they say could put customers off from coming back. Susan acknowledges that this is why many prefer barista-made coffee from a manual espresso machine over a superautomatic cup of coffee.

“Coffee shops with baristas provide an entirely different service and quality of coffee,” she admits.

That said, time has shown that baristas and superautomatics can coexist in a café environment. In fact, it’s now simply a case of changing the narrative. Superautomatics aren’t here to replace baristas. Rather, they are a new type of tool that baristas can manipulate to take coffee quality to the next level.

Superautomatics definitely have a place in the growing coffee market, especially in low to middle-income countries. The secret, it seems, lies in the balance between convenience, cost, and quality.

The younger generation – known as Gen Z – has a curious relationship with coffee.

In the UK, more than half of them claim to never drink coffee at cafés, while 46% claim to never consume it at home or work. In the US, two-thirds (63%) say they don’t drink coffee at all. This is in contrast to millennials – the generation directly before them – of which only 39% claim to avoid cafés.

However, the Gen Zers who do consume coffee are found to be twice as likely to prefer “gourmet” coffee – non-instant arabica, in this instance – than those over 60.

This indicates that while they may not drink vast quantities of coffee, the quality of the coffee they do drink is important. And, with a disposable income of more than $360 billion globally, it’s important for the long-term success of coffee businesses to pay attention to their habits.

“Gen Z will become the most pivotal generation to the future of retail, and an understanding of their specific tendencies and expectations is key,” says Rob Baines, general manager of Farrer’s, the UK’s oldest coffee roasters.

“They don’t just spend on a brand just for the brand’s sake, and they certainly aren’t afraid to shop around for the best quality and price. Alongside that, they are impatient, resource-conscious, and experience-driven.”

It’s not just about speed and efficiency, either. Research shows that Gen Z-ers are willing to pay a premium for healthier food. All these factors combined could present a lucrative opportunity for coffee businesses around the world.

What do Gen Zers look for in coffee brands?

According to estimates, only 37% of Gen Zers are brand loyalists – those who buy products from the same company they were considering at the start of their shopping journey. For baby boomers, this rises to 56%.

“These consumers have defined values and, as a result, pay more attention to how brands align with them,” Rob says. “They want convenience underpinned by home delivery, they demand more transparency and traceability, and above all, they want experiences.”

Consequently, research suggests that taste, price, and convenience are at the top of Gen Z’s coffee-buying motivations.

“They are the first fully digitised generation, used to online and social media shopping platforms linked to direct-to-door two-day delivery,” Rob adds.

In that case, it’s clear that convenience plays a part – but so do quality and cost.

However, Daniel Webber, founder of Chimney Fire Coffee, feels that transparency, sustainability, and ethics are equally, if not more important, for this generation.

“As Gen Zers turn their backs on corporate culture, some of the traditional strategies of big businesses around providing consistency and convenience seem to be less important than quality and transparency,” he explains.

Supply chain transparency, he says, helps them feel a connection to farmers and producers many miles away. “It turns what’s historically been viewed as an anonymous commodity crop into an experience to be celebrated and savoured for its individuality,” he adds.

He also notes that there’s a greater emphasis than ever before on buying more eco-friendly products, minimising single-use plastics and opting for recyclable or compostable packaging.

“They are fully invested in wanting to understand every stage of its journey from seed to cup,” Rob agrees. “They specifically want to know where their coffee is grown, who grew it, and whether it was grown ethically and sustainably.”

Sustainability goes hand-in-hand with reduced emissions. The advent of energy-efficient, superautomatic coffee machines aligns well with the demands of Gen Z.

Some of these machines even incorporate touch screens with useful videos, further appealing to the digital nature of this generation. Others are fully capable of frothing plant-based milks, addressing Gen Z’s interest in healthier, more sustainable product options.

How are coffee brands already adapting to the Gen Z market?

Above all, it seems that Gen Zers are obsessed with convenience.

Part of that convenience is the availability of ready-to-drink coffee products. In 2018, these – along with cold brew – were Gen Z’s most frequently purchased drinks. Furthermore, in the UK, 64% of 18- to 24-year-olds believe iced coffee is a better alternative to sugary drinks.

“They are possibly even more pressed for time than previous generations, so it’s important for coffee companies to innovate and provide this convenience for them too,” explains Rob.

Rob and Daniel both ascribe this to health consciousness, which is more prevalent than ever. Daniel explains that this market has exploded recently as healthier alternatives become more widely available.

“Sugary soft drinks are demonised for their negative health effects, so there are opportunities across the sector to create satisfying cold/ready-mixed drinks,” he says.

“These drinks also help provide the aspects of consistency and convenience that big name coffee shops have historically relied on, meaning their money can be spent in a more ethical fashion.”

However, the market is already incredibly competitive, making it increasingly difficult for coffee brands to stand out.

“If a brand can offer a product that aligns with their very specific values and passions, then it’s on the right side of the curve,” Rob suggests, referencing the modern shifts his 200-year-old company is making.

Daniel adds that brand messaging is crucial in creating trust.

“Audiences want to be educated rather than just sold to, and unsubstantiated claims are seen through and quickly debunked,” he elaborates.

Aside from being a certified B Corp business – which backs up its sustainability claims – Chimney Fire Coffee addresses this need by providing as much information as possible about both where its coffee comes from and how packing materials are sourced.

Rob asserts that making tactical use of a variety of media – including social and online – is essential.

“User engagement and social presence are key to gaining traction in younger generations, with the primary means of reaching new markets being platforms such as Instagram and TikTok,” agrees Daniel.

In the end, it’s “pretty simple, really”, concludes Rob.

“Focus on authenticity, quality, price, provenance, sustainability, ease of access, and experience,” he says. “Get those things right and you’ll have a winning formula.”

A few years ago, plant-based milks occupied a tiny corner of the coffee industry. Seen as the reserve of vegans and those with lactose intolerance, they carried a substantial surcharge and were largely ignored in favour of dairy.

Today, nearly 60% of UK households purchase plant-based food and beverages, with oat, almond, and soy milks among the most popular products.

To cater to the soaring demand, most coffee shops also keep a wide-ranging stock of plant-based milks to make everything from coconut cold brews to oat milk flat whites.

But in spite of all this, baristas and consumers still bemoan one particular issue with plant-based milks: steaming.

Like with dairy milk, the injection of hot steam and air through a steam wand causes proteins in the milk to encase air and form relatively stable bubbles. When done correctly, this creates a microtextured foam with a creamy, sweet mouthfeel.

However, plant-based milks are particularly susceptible to curdling when added to coffee. When this is added to coffees with high acidity, it can lead to a sour and unpleasant-tasting drink. It can also make latte art a challenge – although some baristas have found ways around it.

“Often, people will put a dash of the cold alternative milk into the espresso before their latte art, as this helps stabilise the acidity,” says Josh Tarlo, who works as head of coffee at UK specialty coffee brand Kiss the Hippo.

“For example, with our homemade nut milk, we tend to see a lot more curdling with it. But I find once you introduce some of the cold milk in espresso, it mitigates quite a chunk of that.”

What is the ideal steaming temperature for plant-based milks?

According to the Specialty Coffee Association (SCA), the ideal temperature for steaming dairy milk is between 55°C and 65°C. Going below this range can lead to “thin”, unstable foam, whereas going above it can end up scorching the milk and ruining the flavour of the coffee.

Due to their makeup, plant-based milks tend to react better to slightly lower temperatures.

“We tend not to go past 55°C (131°F) – but that’s not too hot,” he says. “Above that, you start to ask why, as it will be sitting there for ages before you can drink it.”

Some brands outline specific guidelines recommending the ideal steaming temperature. But Kiss the Hippo isn’t as regimented, letting baristas take the lead by using their experience.

“In terms of coffee quality and consistency, as a barista, you don’t respond well to intense, specific rules that feel like micromanagement,” Josh explains.

He says the company’s baristas adapt temperatures based on location and demographics. For example, the branch in Richmond generally caters to an older crowd, meaning baristas push the limits with heat.

From a scientific viewpoint, Josh explains that as with dairy, slightly cooler steaming temperatures don’t cause sugars to brown. Combined with the lack of curdling, lower temperatures make plant-based milks seem sweeter, which may or may not lend itself to coffee drinks.

“But because you’re never tasting anything in isolation, the harmonisation between the espresso and the milk is better at lower temperatures,” he notes. “However, that might just be because it’s working more together with the actual beverage. Perceived sweetness is a big part of that.”

Modern coffee machines are being designed with plant-based milks in mind. For example, the soon-to-be-launched Heylo Coffee Milk Module features an induction heating system that eliminates the need for steam altogether.

How plant-based milks are shaping the future of coffee

Understandably, a lot has been made about the use of plant-based milk in a coffee industry that’s historically been joined at the hip with cow’s milk.

But despite this, statistics show the market is becoming increasingly lucrative. Globally, plant-based milks accounted for $18 billion in retail sales in 2020, while leading oat milk brand, Oatly, recently went public with a valuation of more than $10 billion.

Kiss the Hippo uses oat milk at its five locations. As a roaster, it has some wholesale customers that are entirely plant-based, and Josh says about 35% of its sales involve plant-based milks.

“Generally, there’s been a massive trend from when Hippo opened its first stores to now,” he says. “I don’t know if it’s been exacerbated by the pandemic, but it’s just more about where the general trend is moving.

“There are a few major trends, including people lessening their impact on the planet through what they eat,” he explains. “The health thing is at play. There’s a cultural perception that milk is way sweeter in terms of topline stuff, so I can easily see [plant-based milks] becoming more popular.”

Because of these consumer trends, milk alternatives aren’t just limited to vegans, but a wider set of consumers who want to shift their consumption habits to care for their bodies and the planet. As the market for these drinks scales up, Josh envisions a future where plant-based milks could be cheaper than dairy – and may even become the default.

Header photo credit: Blackwater Issue

Technology has always played an important role in the coffee industry, from machines used to pick ripe cherries to software used for tracking changes during a roast.

However, the last few years have seen the arrival of coffee companies built almost entirely around single innovations. Known as “tech-led” companies, they exist at every stage of the supply chain, whether analysing coffee quality with AI or ordering takeaway cold brew via an app.

They have become increasingly widespread, particularly since the outbreak of Covid-19 in early 2020. And, little by little, they are dramatically changing the way in which people not only consume coffee, but grow, process, and roast it.

Arno Holschuh is chief coffee officer at Bellwether Coffee, a California-based manufacturer of electric, fully automated roasters. He says the coffee industry is a natural breeding ground for technology-driven brands.

“Coffee people care about doing the right thing,” he explains, “and so they see tech as the tool they can use to bring about change.”

Indeed, technology can allow coffee companies to develop higher-quality products at a lower environmental and financial cost – both issues that are of growing importance to consumers.

For example, almost two-thirds people in the UK want businesses to do more to help them reduce carbon emissions.

“Businesses have a whole lot of problems to solve – maybe declining profit in your café, maybe global warming destroying your farmers’ livelihoods – and technology gives businesses a way to respond that moves beyond the zero-sum game,” he says.

For Arno, companies that figured out the modern coffee ecommerce toolkit are among the modern pioneers. He adds that in the 21st-century sense of the word, “tech” tends to mean “disruptive digital technology”.

How are tech-led coffee companies developing?

In the context of coffee, there is plenty of scope for continued technological innovation. Some companies drive innovation through the manufacturing process, while customer-facing businesses are adopting new forms of software to streamline operations.

However, scaling up using hardware – especially for manufacturers in the coffee industry – isn’t always easy.

“Hardware is hard because every change you make to the design necessitates a whole round of prototyping, testing, and procurement – it takes a lot longer to get to a fully mature product,” Arno explains.

“Supply chain challenges and electronic component shortages have made this even worse, so hardware companies take a lot longer to scale, and the more complex the device, the longer it will take to get right.”

The upside, he argues, is that once the process is complete, your product becomes part of peoples’ physical environments.

“People get attached to their gear,” Arno says. “When there is passion for your product, you get a great direct relationship with customers.”

Software, on the other hand, can scale very quickly.

“You saw that with the order-ahead apps,” Arno notes. “First, a couple of companies built their own, then developers started making white-label apps that anyone could use and brand as their own.”

He argues that the pandemic made delivery apps essential for coffee shops and restaurants that wanted to stay afloat. Furthermore, some manufacturers doubled down on their development of “safer” technology like contactless coffee machines.

An example is Carimali’s telemetry system, CARIcare, which allows customers to select a drink from their fully automatic machines by scanning a QR code from their phone, circumventing the need to touch the display.

Innovation thrived out of necessity during the pandemic and coffee companies have taken note, increasingly exploring the tech-led route as a result.

Are tech-led brands changing the coffee industry for the better?

Arno believes that the coffee industry has a very conflicted relationship with sustainability. He says that on one hand, the industry is driving initiatives to reduce its carbon footprint and increase equity throughout the supply chain.

On the other hand, however, it’s extremely nostalgic.

“We dote on our 1960s-era roasters, or we build ones that are designed to mimic them,” he explains. “We all get misty-eyed over lever espresso machines. We find old stuff irresistibly charming and comforting.”

Conversely, technology is enabling greater insight into supply chains, consumer attitudes, and workplaces, ultimately making the industry more efficient.

Thoughtful collection and analysis of data can help with almost any activity in the industry. Bellwether, for instance, uses data to predict when its roasters are due for maintenance or diagnose malfunctions from its Berkeley head office.

However, he cautions that data can be random noise, too. Unless someone is actually harnessing it to improve quality and efficiency, it’s just waste.

“Technology got us into most of the messes we are in,” Arno suggests. “If we just deploy technology unthinkingly, it could be used to extract cash from the industry, rather than strengthen our foundations or further our sustainability goals.”

However, he insists that with the power tech-led coffee companies have, they have the choice to commit to using technology to do better.

“We can commit to using technology to better ourselves, or we can allow it to devolve us into something much worse,” he asserts. “For every player in the coffee industry, we have to be thoughtful and careful when deploying tech-forward products.”

He adds that tech-led companies can make the coffee industry more vibrant, accessible and supportive – but only if they decide to make that the case.

“That’s my mission, really: use technology to make this industry a model for a better economy and society,” he ends. “Ambitious? Yes, but then again, we all drink a lot of coffee, so ambition comes with the territory.”

It’s been a bumpy ride for businesses and consumers since the first pandemic-induced lockdowns in early 2020.

Since the outbreak of Covid-19, it’s estimated that around 92% of coffee businesses were forced to close their doors – some temporarily, others for good.

This saw more consumers brew coffee at home, led by a wave of new online content creators and marketing pivots. Online sales of whole bean coffee increased, as did the demand for brewing equipment and accessories.

The sales of items such as French presses, frothing wands, and cold brew makers saw double-digit growth between May 2020 and 2021. While brewing at home, coffee consumers began to delve deeper into the intricacies of espresso extraction and pour-over science.

As a result, Ishan, who has helped Starbucks establish a foothold in South Africa’s coffee market, believes the “experience” in coffee-drinking culture is now more important than ever.

“We’ve been held hostage by the pandemic and restrictions for so long that venturing to our favourite coffee spots is a definite treat these days, versus what used to be the daily routine or necessity,” he explains.

As the world settles into a new normal, the demand for an elevated experience remains. The desire for in-person connections after months of isolation and virtual meetings may be the driving force behind this change.

The importance of adding value to coffee servings

As consumers who were brewing coffee at home slowly return to coffee shops, the question on every business owner’s lips is: how can we retain them?

Fortunately, humans are creatures of habit. Despite enjoying their at-home coffee routines, recent research shows that 35% of Americans missed their favourite coffee beverages, with almost half already returning to their local coffee shops.

“Convenience and having a handcrafted beverage made by a skilled barista trumps everything,” Ishan explains.

Additionally, coffee shops can upscale their offerings to give consumers more reasons to step out and enjoy a professionally made beverage.

For instance, Starbucks provides several value-added options, such as free WiFi, an expansive menu, bathrooms, and comfortable spaces that suit a range of consumers.

Coffee shops should look to create a space where consumers can satisfy all their general needs: a one-stop shop.

“A diverse coffee offering with quality food that suits and complements the experience is key,” Ishan says. “Seasonal offers are also very successful in keeping people excited and drawing new customers in.”

These kinds of amenities can help set coffee shops apart from the competition, which – as expected post-pandemic – is fierce.

How can coffee shops upscale their offerings?

The way a coffee shop upscales its offerings depends largely on its reasons for doing so. For example, upscaling for a brand that wants to drive higher footfall will look different to those who want to create a more immersive experience for existing customers.

For example, in the case of Starbucks, Ishan highlights the role of the “third place” – a social environment separate from the home and office.

“Customer connection and a sense of community have always been at the forefront of our business, which is why customers come back,” Ishan says. “They feel safe and welcomed, with offers and spaces to suit every individual. There’s always something for everyone, and the bonds between our baristas and customers are special.”

Based on this principle, Starbucks recently launched a digital Third Place, its first foray into the metaverse and the world of non-fungible tokens (NFTs). The idea is to offer “unique experiences, build communities, tell stories, and boost customer engagement” by creating a digital ecosystem that complements its mobile ordering and loyalty schemes.

“Many spaces have transformed into something more than a traditional coffee shop,” Ishan adds.

Introducing eye-catching, “Instagrammable” features can also prove to be a successful way of upscaling.

Up Shot Coffeehouse in Canada, for example, offers customers a unique smoked nitro cold brew by smoking the coffee with hickory and mesquite wood. Caffè Vergnano 1882 in London, meanwhile, uses a striking, traditional Italian Elektra espresso machine to help capture the imagination of customers and make each serving feel special.

Since pandemic restrictions have eased, many coffee shops have also diversified their services and menu offerings. This includes implementing in-house bakeries that offer freshly-baked pastries and homemade bread, as well as wine and craft beer.

Many specialty coffee shops have also started increasingly providing tasting cards with each coffee. These often feature information about the origin, producers, processing methods, and roast profile, as well as offering expected flavour notes.

In essence, the idea is to make people feel as though they are receiving more than just a coffee, but a memorable experience they can share with others.

Ishan feels, even with elevated coffee shop experiences, one thing will always remain at the core: the coffee itself.

“Traditional drinking experiences will always be the biggest win for coffee shops,” he says. “Most coffee consumers are traditionalists; they rarely waver from their usual. People often prefer the consistency and value of what they know versus the ‘gamble’ of trying something new that may disappoint.”

To him, the traditional coffee experience will always be sustainable – but upscaling can add that little bit extra. “For growth, innovation is key to draw in a consumer group that would likely not have come in before.”

Electricity is the largest utility expense of a hotel business, comprising 60% of total utility expenditures. In restaurants, energy consumption can account for up to 6% of all operating costs.

With soaring energy prices – 150% higher than pre-pandemic levels on average – hospitality businesses are facing major challenges to survive. Around three-quarters are trying to reduce gas and electricity usage while raising prices, while almost 40% have cut trading hours.

Coffee machine manufacturer Carimali estimates that energy costs contributed to about 10% to 15% of a coffee shop’s overheads until 2021. In 2022, that grew to at least 20%.

The global pandemic and conflict in Ukraine have spurred a global energy crisis – and businesses and households alike are feeling the effects. For the hospitality industry, this represents an existential threat.

With Covid-19 turning the sector upside down, it’s been an uphill battle for businesses that managed to stay open throughout lockdowns. The pressure to save costs and increase turnovers has compounded the challenge of retaining old customers and appealing to new ones.

Monitoring energy consumption is the best way to manage costs. Recently, there’s been development in the field of motion-sensing coffee machines. Proponents say that this technology can significantly reduce energy costs by deactivating the machine when not in use.

What are motion-sensor coffee machines?

Roberto Gregis is marketing manager at Carimali. He explains that a motion sensor detects the presence of someone in proximity to the machine.

When nobody is close to the machine for more than a specified period of time – which can typically be adjusted – it instinctively switches off its heating elements.

“As soon as a user gets closer to the machine – usually closer than 70cm – it automatically starts the heating process,” Roberto says. “This way, the coffee machine heats water only when it’s strictly necessary.”

Motion sensors are becoming increasingly common in electrical applications, but they’ve been used for decades in electronics like lights and alarm systems. They provide a convenient way to navigate home and office settings, play a vital role in security, and help save on energy costs.

Among Carimali’s offerings with motion detector technology are the Optima Ultra and Optima Soft Plus. Using these machines, technicians can programme two parameters in the appliance: the number of minutes before the machine turns off the heating elements and the minimum temperature under which the machine starts the heating process again.

The heating element is one of, if not the most energy-intensive components of a coffee machine. By reducing its operating time, businesses stand to enjoy massive reductions in energy costs.

How much power can motion-sensor coffee machines save?

While motion sensors aren’t unheard of in the coffee industry, they’re still a relatively new addition to many machines. There isn’t extensive data on how much energy these detectors can save for coffee shops, but according to Carimali’s estimates, a business can save more than 30% of its energy costs.

Furthermore, by detecting when someone is in close proximity to the machine, Carimali’s MaxSave feature can save the specific energy used by a coffee machine by 25% to 90%.

While appliances with motion detectors can be slightly more costly, that surcharge is offset by the amount of money they save in the long run.

According to estimates, motion sensors use about 1W of energy on standby mode (for 24 hours), and about 5W per hour when active. Overall, however, their power consumption ranges from 0.5W to 8W.

For perspective, a low-consumption bulb equivalent to a traditional 100W bulb consumes 30W – that’s 60 times more than the most efficient motion sensors.

However, Roberto says the real benefit of motion sensors isn’t necessarily saving costs.

”Many machines are fitted with a reliable energy-saving mode and allow you to save the same amount of money,” he explains, adding that the real advantage is the time it takes to get the device ready again.

“Most coffee machines need the user to touch the screen to heat up, while the motion sensor doesn’t request ‘real contact’ between machine and user, speeding up the wake-up process.”

Apart from efficiency, convenience, and costs, motion-sensor machines serve another crucial purpose. When it comes down to it, the most valuable thing for coffee shops is to have a reliable consumer base.

With the climate emergency in focus globally, many customers expect businesses to be environmentally friendly and offer sustainable products. A 2018 NielsenIQ report showed that sustainable products in the coffee industry (among others) outgrew others in the same category despite a smaller market share.

Coffee companies have taken note: in 2020, 48% of all new coffee launches contained at least one sustainability claim. And, with the industry majorly impacted by climate change, global warming is forecast to cut areas suitable for coffee-growing in half by 2050.

Any steps towards conserving energy are a win for net-zero programmes and consumers looking for carbon-neutral coffee shops.