In the past, the main target markets for these convenience stores were older consumers Xi to these flavors, as well as anyone who grabbed a cup on the go. However, this is not always the case today.
While this is a relevant target market, convenience stores are increasingly expanding their coffee portfolios to target a wider range of consumers, especially young people.
The reason for this shift is the need to attract the next generation of customers, namely millennials and Gen Z. Over the past 20 years, people have shifted to specialty coffee, espresso, iced coffee, cold brew, and that's what we're after: attracting new customers, not just keeping existing customers coming back.
However, for convenience stores in today's market, the key is simple: offer a variety of products that follow customer trends. These include beverages that existing customers know and love, such as food truck-style drip coffee, as well as beverages that appeal to younger people, such as cold coffee and ready-to-drink products.
Consumer demand for coffee has undoubtedly expanded over the past few years. This demand is as relevant to the convenience store coffee market as it is to the third wave of coffee shops.
These demands have prompted convenience stores to offer a wider range of physical products, as they recognize that while some customers are willing to pay more for quality, some customers simply want something to buy quickly, while others still want something cold or chilled.
Subsequently, the convenience store coffee bar offers a range of options, from coffee beans to a hot drink, to iced coffee and cold brew. Within this range, customers can buy staples such as cappuccinos, lattes, and mocha – which are also increasingly made using fresh milk instead of powdered milk alternatives.
Perhaps the biggest driver of change in convenience store coffee is consumer Xi. Of course, as the coffee industry grows, the market needs to challenge itself.
This means asking who is buying coffee and why they are entering the store. Are people coming into the store from a gas station?How do we promote our coffee program?What type of coffee products do consumers want to see?Which types of coffee sell best?
One of the biggest changes in convenience store consumer Xi is "frictionless" service. Essentially, people want coffee to be made quickly by as few people as possible.
Another increasingly important trend is the focus on health products. Many customers, even those at gas station convenience stores, are increasingly looking for healthy alternatives to their favorite products, which traditionally can be high in calories or sugar.
As health becomes a more important consideration in shoppers' shopping journeys, retailers need to offer products that meet both consumer desires and HFSS guidelines. You want to strike a balance between something delicious and something that's not bad for you.
In today's market, where the options for buying a cup of coffee are almost endless, convenience stores face increasing competition from drive-thru coffee shops. With all these options, convenience stores face a huge challenge to stand out.
Convenience stores have become a destination for people to buy fast** and ever-improving quality coffee. As a result, we're seeing stores targeting new demographics, evolving and refining their coffee ranges over time to cater to emerging consumer trends.