Roasting Trends Archives - Perfect Daily Grind https://perfectdailygrind.com/category/roasting-trends/ Coffee News: from Seed to Cup Wed, 03 Dec 2025 12:27:30 +0000 en-GB hourly 1 https://perfectdailygrind.com/wp-content/uploads/2020/02/cropped-pdg-icon-32x32.png Roasting Trends Archives - Perfect Daily Grind https://perfectdailygrind.com/category/roasting-trends/ 32 32 More roasters are selling advent calendars: How do you make one? https://perfectdailygrind.com/2025/12/how-to-make-coffee-advent-calendars/ Wed, 03 Dec 2025 06:25:00 +0000 https://perfectdailygrind.com/?p=122531 More and more roasters are launching coffee advent calendars. Tapping into the growing “luxury” advent calendar trend, roasters like Onyx Coffee Lab, Grind, Pact, Pirates of Coffee, and more design their own every year.  They have become a staple seasonal product in the coffee industry, allowing roasters to showcase up to 25 coffees at a […]

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  • Coffee advent calendars are a growing seasonal trend that allow roasters to showcase a wide range of coffees in one product.
  • As the luxury advent calendar trend continues, coffee calendars offer the excitement of “daily discovery” and ritual.
  • Each calendar can include up to 25 different coffees, meaning roasters must start developing them well in advance.
  • Although they’re a unique opportunity for consumers to try many different origins, processing methods, and flavour notes, advent calendars pose several logistical challenges, including packaging design.
  • More and more roasters are launching coffee advent calendars. Tapping into the growing “luxury” advent calendar trend, roasters like Onyx Coffee Lab, Grind, Pact, Pirates of Coffee, and more design their own every year. 

    They have become a staple seasonal product in the coffee industry, allowing roasters to showcase up to 25 coffees at a time. Each day in the lead-up to the holidays starts with a different coffee, offering daily flavour discovery that actively engages consumers.

    Coffee calendars are an opportunity for roasters to flex their creative muscle, but developing one comes with a number of logistical challenges – from maintaining coffee freshness to designing intricate packaging.

    To learn more, I spoke to Will Corby at Pact Coffee and Abbas Alidina at Pirates of Coffee.

    You may also like our article on choosing the right specialty coffee gift.

    Pirates of Coffee advent calendar.

    Originating in 19th-century Germany, advent calendars are a traditional way to count down to the holidays, typically running from 1 December to 24 or 25 December. They feature a compartment, flap, or door for each day that reveals a small gift or surprise.

    The first commercial calendars, which typically included chocolate, were developed in the 1950s. But today, they can include beauty products, small toys, coffee, tea, and alcoholic beverages.

    Driven by the popularity of “unboxing” social media content (a cost-effective marketing tool for luxury brands), premium advent calendars have become a lasting trend. In 2021, fashion house Chanel released its first-ever advent calendar to celebrate the 100th anniversary of its iconic Chanel No. 5 perfume, which quickly went viral. 

    In the years since, more specialty coffee roasters have tapped into the trend, designing their own calendars to offer between 12 and 25 different coffees. Some opt for a 24 or 25-day version to maximise variety, but most prefer a 12-day format to make product development more manageable.

    “Our advent calendar features 25 different coffees, which is a very exciting way to introduce customers to the incredible range of flavours and characteristics in specialty coffees from around the world,” says Will, the director of coffee and social impact at the UK’s Pact Coffee

    “The goal is to show customers, some new to specialty coffee, as many unique natural flavours as we can, whether that’s chocolate praline, strawberry cream, or candied plums,” he adds. “As a long-standing UK tradition, Advent has been a particularly thoughtful and engaging way for us to do this, and when it involves incredible coffee, it can genuinely benefit the wider industry.”

    As demand for luxury advent calendars continues to grow, tapping into “little treat” culture, coffee calendars offer the excitement of “daily discovery” and ritual, appealing to a wide range of consumers, not just specialty coffee enthusiasts. In turn, they are becoming effective marketing tools for roasters.

    “It gives customers a reason to think about your brand 24 days in a row,” says Abbas, the founder of Toronto’s Pirates of Coffee. “If a roaster approaches it as ‘just a cool box’, it might feel like a stressful one-off project. 

    “But we see it as an annual flagship experience with good planning, storytelling, and follow-up. Our advent calendar has become a core part of our brand and holiday season.”

    A mug of coffee next to a box of ground coffee samples.

    How can roasters develop them?

    Although they’re a unique opportunity for consumers to try many different origins, processing methods, and flavour notes, advent calendars pose several logistical challenges.

    Despite being a seasonal product, planning a coffee advent calendar often requires year-round preparation. This gives roasters time to source their coffees, tweak packaging designs, and coordinate marketing strategies.

    “Planning takes the whole year, if not longer,” Will says. “Our first meetings take place in the second week of January, when we lock in volumes and begin the search for coffees with the characteristics we want to feature.”

    The selection process for coffee is key, and often the first step. Roasters can be guided by their existing stock and consumer demands, or choose to focus on limited-edition lots for more high-end products.

    “From the first cupping table to the samples arriving in the UK, every step is designed to ensure we find coffees that truly stand out with their festive tasting notes,” Will says. “Once we’ve identified these coffees, we carefully secure and store them, holding them until they’re ready to be roasted closer to December.”

    Since the goal of an advent calendar is to expose customers to a range of coffees, variety is crucial. By offering a wide array of tasting notes and roast profiles, customers can expand their palates and develop their preferences.

    “Our calendar is designed as a curated journey, so we choose the coffees rather than letting customers select individual days,” Abbas explains. “We mix approachable profiles (chocolately/nutty) with rare coffees (experimental and unique coffees), and sprinkle in some exclusive and limited lots that only appear in the calendar.

    “We want the 24 days to feel like going on a voyage with a beginning, middle, and end, as opposed to random coffees thrown into a box,” he adds. “The surprise and curation are part of the magic, and it keeps the logistics realistic.”

    Coffee freshness is another vital consideration. Given the high number of coffees per product, roasters need to find ways to prioritise quality and freshness. A major part of this is choosing between whole bean and vacuum-sealed ground coffee sachets.

    “Our coffees are whole bean only, which gives us more breathing room on shelf life,” Abbas says. “We release in batches and don’t roast everything months in advance. We plan roasting schedules so roasting and packing happen as close as possible to the shipping window.

    “We’re also very clear on cutoff dates, so customers receive calendars close to December, not sitting for months,” he adds.

    Considering packaging for coffee advent calendars

    Beyond coffee selection, designing and assembling packaging is one of the most exciting yet time-consuming parts of advent calendars. Housing up to 25 different coffees in one product requires precision, care, and thoughtful design.

    “Roasters should not underestimate the intensity of the packing process,” Abbas advises. “The packaging is the slowest part. For us, the coffee is flexible since we have a wide variety of beans from around the world. However, boxes, canisters, inserts, labels and custom die lines take the longest.

    “I recommend prototyping the workflow by doing a ‘dummy run’ of ten to 20 units to see how long assembly takes and which steps are bottlenecks,” he adds. “You want to iron out the kinks ahead of the holiday production season so you can be most efficient at crunch time.”

    The positive impacts of selling advent calendars can last long after the holiday season, but roasters must invest in effective marketing strategies.

    “Plan the post-calendar journey to develop a relationship with customers after the holidays,” Abbas says. “Putting in place email flows, landing pages, and special targeted bundles lets people buy bags of their favourite days and nurtures them into long-term customers.

    “We look at the calendar as both a product and a brand experience,” he adds. “It generates revenue, but it also introduces customers to many coffees they wouldn’t usually try and drives repeat purchases in January and February.”

    Doors of advent calendar.

    Coffee advent calendars become more and more popular every year, but designing one is more challenging than roasters might think.

    “It takes a tremendous amount of development and problem-solving, but we’re thrilled with the level of freshness we’re now able to share as each sachet is opened,” Will says.

    These products offer a truly creative outlet for roasters to showcase their coffees and design unique packaging.

    “It’s a privilege to create something that becomes part of someone’s build-up to the festive period,” Will adds. “Even on Christmas Day, we get to contribute to that moment.”

    Enjoyed this? Then read our 2025 holiday coffee gift guide.

    Photo credits: Pact Coffee, Pirates of Coffee

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    How roasters can use packaging and merchandise to stand out https://perfectdailygrind.com/2025/12/coffee-roasters-packaging-merchandise-stand-out/ Tue, 02 Dec 2025 09:18:18 +0000 https://perfectdailygrind.com/?p=122514 In specialty coffee, packaging has transcended its fundamental role of preserving freshness and quality. It is now one of the most effective tools roasters have for communicating value, establishing brand identity, and justifying premium pricing. Merchandise offers another viable branding opportunity. More and more roasters are designing unique clothing, caps, tumblers, prints, and other items […]

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  • Coffee packaging and merchandise allow roasters to showcase their brand identity and values in seconds, an essential first step in growing a loyal customer base.
  • Research from the University of Winnipeg found that consumers make up their minds within 90 seconds of their initial interaction with a product, and that 62% to 90% of this decision is based solely on colour.
  • In a hyper-competitive market like specialty coffee, roasters need to do all they can to stand out – and packaging and merchandise are highly useful tools for this.
  • Both must align with a brand’s core values and personality while demonstrating adaptability, dynamism, and the ability to authentically tap into trends.
  • In specialty coffee, packaging has transcended its fundamental role of preserving freshness and quality. It is now one of the most effective tools roasters have for communicating value, establishing brand identity, and justifying premium pricing.

    Merchandise offers another viable branding opportunity. More and more roasters are designing unique clothing, caps, tumblers, prints, and other items to express their creative flair and reach new audiences.

    But with up to 70% of customers reportedly spending more with brands they consider authentic, packaging and merchandise must align with a roaster’s values and personality.

    Viktor Štefančík, the founder, head roaster, and creative director at Spojka Roastery Co. in Slovakia, explains more.

    You may also like our article on how roasters can use packaging to sell their coffee for more.

    Viktor Štefančík holding coffee beans.

    Coffee quality alone is no longer enough to stand out

    Quality has always been a unique selling point of specialty coffee. 

    Through grading systems, cupping protocols, best practices in farming and roasting, and marketing strategies, the industry emphasises quality as its differentiating factor.

    Even within the specialty coffee niche, roasters compete to source auction lots, high-scoring varieties, or the latest experimental processing trend – all marketed with the promise of exceptional quality and unique flavours.

    As more consumers seek premium options, the push for extraordinary coffees intensifies. This, however, creates a double-edged sword; offering these coffees helps raise standards and expectations in the industry, but it means quality alone is no longer enough.

    “Coffee quality has become a given, not a differentiator. Years ago, truly great specialty coffee was rare; today, many roasters have access to excellent beans, technology, and knowledge,” says Viktor at Spojka Roastery Co., a specialty coffee roaster in Prešov, Slovakia. 

    Founded in 2022, Spojka recently won Gold and Bronze awards at the Global Coffee Awards European edition, which recognised roasting excellence across the continent. The roaster received Gold in the Filter Washed category for its Humming Bird Costa Rican coffee, and Bronze in the Filter Single Origin Experimental category for its Juicy Strawberry Colombian beans.

    Additionally, Spojka was awarded Overall National Winner Slovakia in recognition of the outstanding quality of its coffees. As the Eastern European specialty coffee market grows, with green coffee imports increasing at an average annual rate of 3.3% between 2016 and 2020, brands like Spojka are emerging as market leaders, driving not only coffee quality but also innovation.

    “What now makes a roaster stand out is their story, mindset, and the energy they create around their coffee,” Viktor says. 

    As more roasters offer similarly inspiring origin stories and groundbreaking processing methods, consumers will tune out the noise unless the product presentation is exceptional and emotionally resonant. 

    In the same way that specialty coffee is constantly redefining what is possible in coffee quality and flavour innovation, coffee packaging design is evolving to reflect this shift. Roasters are increasingly focusing on packaging and merchandise to creatively capture consumers’ attention.

    Brands are utilising packaging to enhance the perceived value of their coffee and are shifting their focus from the product to curating a visual brand identity and experience that customers want to be part of.

    “Quality is our foundation, but what makes our coffees special are the emotions and the community behind them,” Viktor says. 

    Coffee packaging from Spojka Roastery in Slovakia.

    How roasters can use packaging and merchandise to differentiate

    Years of rising coffee prices have stretched out the pandemic-driven trend of more people drinking coffee at home. Roasters are adapting to this new norm by expanding their product lines and merchandise – and packaging them in unique ways that customers want to display in their kitchens. 

    Utilising this strategy for diversification and focusing on standing out on retail shelves and webpages is increasingly crucial for roasters who have dealt with a difficult past few years of rising operational costs.

    The push for innovation in coffee farming, processing, roasting, and brewing has also led roasters to become more creative with brand design. Coffee packaging and merchandise allow roasters to showcase their brand identity and values in seconds, an extremely important first step in growing a customer base.

    Colour plays a crucial role in shaping consumer behaviour, perceived coffee value, and willingness to pay higher prices. 

    A 2023 Coffee Science Foundation study found that both packaging colour hue and saturation affect consumers’ expectations of a coffee’s sensory attributes and, therefore, its value

    Coffee from a yellow bag was expected to be the most acidic, while coffee from a pink bag was anticipated to be the sweetest and have more fruit-forward flavour notes, for example. Both colours were also associated with being “modern”, potentially boosting consumer interest compared to colours like brown and black.

    The silent salesman

    Packaging has long served as the “silent salesman”, communicating brand values and persuading customers to purchase products without any human interaction. 

    “Packaging and merchandise are ways to tell your story without words. For many people, it’s their first contact with the brand, even before they taste the coffee,” Viktor says. “A bag can show who you are, what energy you bring, and what values you stand for.”

    To leverage the influence of packaging, roasters are looking to the most innovative and effective materials and printing methods. In recent years, advancements in digital printing technology have allowed roasters to bring their creative ideas to life with bold, crisp colours and different textures. 

    Spojka, for example, utilises bright colours in unique applications to make its packaging unmistakably identifiable; Viktor and Spojka’s sales & marketing manager Eva Srvátková personally spray-paint each bag with streaks of colour that allude to graffiti art – a nod to Viktor’s interests and hobbies.

    “I still skateboard, and I grew up surrounded by street culture, music, skateboarding, graffiti, and community. It all shaped me,” he explains. “The energy connects people from entirely different worlds. Street art and skateboarding are universal languages everyone can understand, even if we speak different ones.

     “Through design, we express Spojka’s DNA: a mix of street culture, art, and specialty coffee. That’s what makes people recognise us instantly,” he adds. 

    Spojka’s emphasis on bold, bright colours earned it the MTPak Packaging Award at the European Global Coffee Awards, recognising exceptional design and innovation.

    “‘Brewtiful People’ isn’t just a slogan; it’s our identity,” Viktor says. “We collaborate with local designers and keep things raw, honest, and full of character.”

    Through Spojka’s packaging and merch, Viktor relays the buzzing energy of skateboarding community spots he grew up in. The roaster’s merch is designed to both celebrate and be worn by the skateboarding community; its caps and beanies are styled for the skatepark, and Spojka collaborated with local brand Tlakers to create a custom deck. 

    “Inspiration comes from walls, stickers, and streets, not from offices or marketing agencies,” he adds.

    Viktor Štefančík roasting coffee.

    Balancing creativity and authenticity

    Innovation in coffee packaging and merchandising offers roasters the opportunity to be truly original and inventive, and to connect with their audience in new ways. 

    With this in mind, roasters must balance staying relevant and true to their core audience while attracting more customers. Successful coffee packaging and merch simultaneously align with the brand’s values and personality while demonstrating that the roaster is adaptable, dynamic, and able to tap into trends in ways that serve their customers.  

    Striking this balance entails careful consideration of organic, authentic designs.

    “Authenticity builds trust. People can sense when something feels fake or overly polished,” Viktor says. “Our packaging and merch have to feel like a natural extension of who we are, not just a sales tool. 

    “When someone holds a bag of Spojka, I want them to feel the real passion and community behind it, not just see another product.” 

    The passion behind Spojka – which means “connection” in Slovak – is its mission to bring roasters, baristas, and consumers together across Slovakia, Poland, Romania, and beyond through coffee. 

    “Through pop-ups, collaborations, and festivals, we’re building a community that’s open, creative, and full of positive energy,” Viktor says. “We want to show that Eastern Europe has its own strong voice in the global coffee scene.”

    Juicy Strawberry coffee from Spojka Roastery.

    Strategic packaging and merchandise design choices can significantly impact consumer behaviour and perceived brand value. However, these tactics are only effective when they authentically reflect a roaster’s identity.

    In a market where differentiation is increasingly difficult and margins are constantly under pressure, investing time, effort, and creativity into packaging and merch has become an essential strategy. 

    Enjoyed this? Then read our article on why coffee quality alone is no longer a differentiator for roasters.

    Photo credits: Spojka Roastery, Dušan Holovej, Vlastimil Slávik

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    Private label coffee is on the rise: What brands need to know https://perfectdailygrind.com/2025/10/what-roasters-need-to-know-private-label-coffee/ Mon, 20 Oct 2025 05:34:00 +0000 https://perfectdailygrind.com/?p=121677 Private label coffee – produced by one roaster to be sold under another brand – has always been popular. But as coffee prices stay high and volatile, more consumers are seemingly switching to these products to adapt. According to NielsenIQ, private label sales across 17 European markets reached €352 billion (US$406 billion) in 2024, and […]

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  • As retail prices rise, private label coffee – produced by a third-party roaster but sold under a different brand name – is becoming more popular.
  • A recent US study reveals that over the past four years, private brand sales have increased by nearly a quarter each year, hitting a record high in 2024.
  • With coffee prices staying high and volatile, private label products could be an effective way forward for coffee shops and other hospitality businesses. They offer consumers better value for money and greater variety, while also providing retailers with exclusive products, lower costs, and the ability to build customer loyalty.
  • But businesses need to work with trusted suppliers that can manage complex manufacturing and distribution logistics to find success.
  • Private label coffee – produced by one roaster to be sold under another brand – has always been popular. But as coffee prices stay high and volatile, more consumers are seemingly switching to these products to adapt.

    According to NielsenIQ, private label sales across 17 European markets reached €352 billion (US$406 billion) in 2024, and data suggests that this trend will continue.

    For coffee businesses, exploring opportunities to expand their retail offerings through private label partnerships could prove effective. But working with a trusted supplier that prioritises quality and brand identity is essential.

    I spoke with Ethan Oakes at Fresh Roasted Coffee to learn more about what brands need to know about selling private label coffee.

    You may also like our article on why roasters should consider diversifying beyond coffee.

    Black Knight private label coffee capsules on a production line.

    Put simply, private label coffee is prepackaged roasted coffee that suppliers sell to buyers. The coffee is branded for the buyers, who sell it to consumers as their own product. 

    For the former, especially smaller operations, this is a more affordable and efficient alternative to sourcing, roasting, and packaging their own coffee. Meanwhile, for the latter, offering private label roasting services allows them to expand their business into a new revenue stream that is popular among consumers.

    Historically, private label coffee has been positioned as a lower-cost alternative to branded products, offering better value for money at a similar level of quality. Because of this, private label sales often increase during periods of economic downturn and instability.

    In early 2020, during the height of the pandemic, for example, overall private label sales in the US increased by 15%, surpassing national brand growth by 33%. With economic uncertainty and a cost-of-living crisis driving consumer choices, people were more willing to turn to private label products for the discounts they offer.

    Following Covid-19, as global inflation rates have remained high, the trend towards private label products has remained steady. Recent data from McKinsey suggests nearly 75% of US consumers and almost 85% of European consumers say they are “trading down” when shopping – and switching to private-label brands accounts for a quarter of this behaviour.

    Offering quality and value

    However, the concept of “trading down” is also changing as the perception of quality improves. The same research shows that more than 80% of US consumers rate the quality of private brand food products as either the same as or better than that of national brands. Over 80% of European consumers also perceive the quality of private brand offerings as equal or superior to branded products.

    As the coffee industry navigates one of its most turbulent periods in recent history – grappling with sustained high green coffee prices that have more than doubled over the last two years – interest in private label coffee is rising. 

    “We’ve seen retailers and brands turn to private label coffee more than they ever have in the past,” says Ethan, the head of co-packing and private label sales at Fresh Roasted Coffee, a leading wholesale, co-packing, and private label services supplier, established in 2009.

    “As green coffee prices have remained high, private label provides a way for retailers to deliver quality coffee to their customers at competitive price points without sacrificing margin,” he adds.

    Many roasters and coffee businesses have had little choice but to raise their retail prices as green coffee and operating costs soar. Although consumption levels remain steady, consumers are inevitably changing their buying habits to adapt to rising prices.

    “Consumers are increasingly value-conscious, but they’re not willing to compromise on taste or quality,” Ethan says. “Private label coffee allows them to access premium-quality coffee at more affordable prices, making it a natural choice during times of economic uncertainty.”

    Dave at Fresh Roasted Coffee roasting coffee on a Loring machine.

    How private label services are creating new opportunities for coffee brands

    The coffee industry is navigating one of its most turbulent periods in recent history. Record green coffee prices – driven by unfavourable weather and ongoing supply shortages in Brazil and Vietnam – have coincided with rising inflation and high interest rates. This has created a perfect storm of challenging market conditions for producers, traders, and roasters alike.

    Political volatility and ongoing trade tensions have also added further layers of complexity. US President Donald Trump’s decision to roll out sweeping tariffs earlier this year – including a staggering 50% on Brazil – is reshaping global coffee trade as we know it.

    As coffee businesses grapple with these challenges, the need to differentiate and secure new revenue streams becomes all the more important. Given its significant market growth and the increasing consumer perception of value and quality, selling private label coffee is emerging as an effective way to stand out and adapt.

    Ethan highlights some of the benefits that selling private label coffee products offers:

    • Stronger brand identity by offering new products
    • Improved customer loyalty, as consumers associate quality and consistency with their café or brand
    • Increased margins and flexibility compared to national brands that have to handle the logistics of sourcing, roasting, and packaging coffee
    • Control over product formats, flavour profiles, and sustainability claims that align with brand identity
    • Ability to move quickly and follow trending flavours or products, such as capsules or single-serve bags

    Working with a trusted partner

    Initiating the process of selling private label coffee can be somewhat overwhelming. Today’s specialty coffee landscape is highly competitive, with new processing methods, flavour profiles, and quality standards driving consumer behaviour.

    By working closely with established private label roasters, brands can take advantage of these emerging trends, helping them stay current with market developments while deepening their understanding of the coffee industry’s supply chain.

    “A brand should understand its goals for quality and sustainability,” Ethan explains. “It’s important to choose a manufacturer who can deliver on those standards consistently, has the capacity to scale, and offers flexibility in packaging and formats.

    “Developing a coffee programme requires more than just roasting beans; it takes experience, infrastructure, and a proven track record,” he adds. “At Fresh Roasted Coffee, we bring that to the table through a collaborative approach.

    “We ensure that our partners’ products meet the highest standards while reflecting their unique brand identity.”

    Sangallo private label coffee capsules on a production line.

    What brands need to know about private label coffee

    Once known for being the budget-friendly choice, private label coffee is gaining traction as quality, sustainability, and value increase. Retailers are no longer just filling gaps; they are actively innovating in premium and niche segments like wellness, sustainability, and convenience.

    This means that selling private label coffee is about more than just liaising with a supplier and applying your logos to packaging. It’s also about aligning your brand values with the priorities of a trusted supplier.

    The first step in the process is finding a roaster who can accommodate your vision and goals. Executing this level of service often isn’t as straightforward as it seems; it requires a roasting partner which has the expertise and capacity to guarantee long-term success.

    “We source coffee responsibly from origins around the world, roast with precision using state-of-the-art equipment, and maintain rigorous quality controls throughout packaging and fulfilment,” says Ethan. “Every step, from green coffee to finished product, is designed to preserve freshness, flavour, and consistency.”

    Relying on a private label roasting partner to deliver the necessary quality standards demands mutual trust, as consistency and dependability are essential to growing a business.

    “We take the time to understand each client’s brand identity, product goals, and packaging preferences,” Ethan tells me. “By aligning with their specifications and working closely throughout the process, we ensure that the finished product reflects their brand consistently and accurately.”

    Prioritising sustainability

    NIQ data shows that 53% of global shoppers say they’re buying more private label products, including coffee, than ever before. Other research, meanwhile, shows that 57% of consumers are open to changing their buying behaviour to minimise their environmental impact. This means that outlining and improving sustainability efforts for the private label coffee sector is no longer important – it’s a prerequisite for success.

    Certifications have emerged as a powerful, trusted way to demonstrate commitment to organic farming practices and other environmental and social concerns.

    “We offer a wide range of certified coffees, including Fair Trade, Organic, and Rainforest Alliance,” Ethan explains. “Beyond certifications, we focus on responsible sourcing, efficient production practices, and sustainable packaging options such as compostable and recyclable formats.

    “At Fresh Roasted Coffee, sustainability is woven into everything, from sourcing responsibly and offering certified coffees to investing in renewable energy through our onsite solar array, which powers much of our production facility,” he adds. “This commitment ensures that our partners can grow their private label programmes with confidence, knowing that environmental responsibility is a priority.”

    Boxes of Fresh Roasted Coffee on a production line.

    In an increasingly competitive landscape, private label coffee offers brands a chance to build customer relationships, enhance brand identity, and deliver quality products.

    But when taking on this new venture, the key to success lies in choosing a roasting partner who understands your goals and shares your commitment to sustainability, quality, and innovation.

    By leveraging the infrastructure and expertise of experienced roasters, brands can enter the coffee space with products that reflect their values and resonate with their customer base.

    Enjoyed this? Then read our article on whether consumers will favour local roasters as retail prices rise.

    Photo credits: Fresh Roasted Coffee

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    Are we seeing a new era in coffee roasting? https://perfectdailygrind.com/2025/10/new-era-in-coffee-roasting-technology/ Mon, 06 Oct 2025 07:59:01 +0000 https://perfectdailygrind.com/?p=121442 Innovation is a hallmark of specialty coffee, driving necessary change across the supply chain.  However, the fundamental technology behind coffee roasting has remained surprisingly stagnant. While they increasingly incorporate more advanced features, traditional drum roasters often utilise engineering principles unchanged since the early 20th century. This technological inertia presents both challenges and opportunities for the […]

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  • AI-driven technologies and hybrid machines are among the recent innovations reshaping roasting, signalling a new age for the coffee industry.
  • Modern coffee roasting equipment often incorporates sensors, software for automated control and data analysis, and Internet of Things (IoT) integration for remote monitoring and optimisation.
  • Although these sophisticated features help advance our understanding of coffee quality and roast profile development, the design and engineering of modern machines have remained largely unchanged for decades.
  • The next phase of roasting will be defined by companies and professionals willing to embrace genuine innovation, challenge conventional wisdom, and invest in technologies that create new possibilities rather than simply optimising existing processes.
  • Innovation is a hallmark of specialty coffee, driving necessary change across the supply chain. 

    However, the fundamental technology behind coffee roasting has remained surprisingly stagnant. While they increasingly incorporate more advanced features, traditional drum roasters often utilise engineering principles unchanged since the early 20th century.

    This technological inertia presents both challenges and opportunities for the industry. As climate change impacts growing regions, green coffee prices fluctuate wildly, and consumers demand more sustainable and innovative products, the question becomes increasingly apparent: can the coffee industry truly evolve without reimagining some of its most important tools?

    The answer may lie in embracing genuine innovation rather than incremental optimisation – a shift that could define the next era of coffee roasting.

    I spoke with Ioannis Papadopoulos at IRM, Konstantinos Perpinias at Mr. Bean Coffee Company, Axel Datschun at Loppokaffee, Liam Hayden at Brew-It Group, and Axel Simon at Mare Terra Coffee for their insight.

    You may also like our article on why coffee quality is no longer a differentiator for roasters

    An engineer manufactures an IRM coffee roasting machine.

    Coffee roasting has come a long way – but there’s room for more progress

    Coffee roasting is a centuries-old practice that dates back to the early days of the Ottoman Empire. 

    But it was the emergence of third wave and specialty coffee in the late 1990s and early 2000s that fundamentally changed roasting technology. Manufacturers were pushed to prioritise consistency and precision as coffee professionals sought to gain a deeper understanding of the roasting process. 

    Machines then became much more advanced, leveraging automation and intuitive heat transfer methods to maintain quality and highlight a coffee’s best attributes.

    “In the past decade, roasting has taken on a more scientific approach,” says Konstantinos, the CEO of Mr. Bean Coffee Company, a specialty coffee roaster in Greece. “We now place greater emphasis on the parameters of roasting curves.”

    To facilitate this shift, modern machines include sophisticated data collection systems, advanced sensors, and digital platforms that provide unprecedented control over the roasting process. These developments have enabled greater consistency, improved quality control, and more precise replication of roast profiles across batches.

    However, despite these advances, the focus has been predominantly on optimisation rather than genuine innovation. Most commercial roasting machines continue to rely on the same fundamental engineering principles that have governed the industry for decades. Despite the introduction of fluid bed roasters in the 1970s, drum machines based on 19th-century patents remain the choice for most roasters today.

    This adherence to conventional design philosophies has created limitations that may potentially hinder the coffee industry’s ability to evolve and meet contemporary challenges.

    “Most machines today only decorate old mechanics with touchscreens and presets, while in reality, they take freedom away from the roaster,” says Ioannis, the owner and CEO of IRM, a leading manufacturer of roasting equipment since 1998. “We aim to give that freedom back – offering full control of air, burner, and drum, without locked curves or hidden software.”

    Why innovation in roasting is critical

    As specialty coffee navigates one of its most turbulent periods – marked by price volatility and unprecedented tariffs that are reshaping global trade as we know it – addressing these potential barriers to innovation becomes more crucial.

    “The coffee industry cannot limit itself to only reacting when market conditions change – otherwise it will always be too late,” says Axel Simon, the Q Lab Manager at green coffee importer Mare Terra Coffee. “Coffee is going through a delicate period: climate change is reducing growing areas, green coffee prices are fluctuating wildly, and young consumers are no longer just looking to ‘drink coffee,’ but instead seeking experiences and a product with history and real value behind it.”

    In turn, agility, adaptability, and flexibility become essential for roasters and other supply chain actors.

    “We need to take risks that few dare to. This means not only solving the problems faced by roasters still operating machines with 1980s technology, but also creating machines that adapt to the roaster’s needs – and not the other way around, as is the case with many competing machines in the global market,” says Ioannis. “In today’s challenging global economic conditions, it’s time to face the problem and provide real solutions, which can’t come from repackaging or marketing, but only from technology and true innovation.”

    To support this industry-wide push, IRM sponsored the Roasters Forum at this year’s Caffè Culture Show in London, UK, on 30 September and 1 October. The forum explored topics such as air roasting and offer real-world, actionable insights for coffee professionals to apply to their business operations.

    The IRM Academy also serves as an additional resource, functioning as a comprehensive hub for coffee training and innovation while connecting professionals and facilitating knowledge sharing.

    A close-up of heating elements in a coffee roaster.

    How technology will define a new era of roasting

    Over the years, significant advancements have been made in roasting technology. Automation and intuitive control systems have massively improved performance. Machines have become increasingly reliable, guaranteeing precision, efficiency, and consistency across various roast profiles – helping push coffee quality to new levels.

    New technologies are also fundamentally redefining the roasting experience, making operations more streamlined, efficient, and ergonomic. Given that roasting can be a repetitive job requiring intense focus and physical endurance, improving the user experience has become paramount for modern equipment manufacturers.

    “One of the defining features of the ‘new era’ of roasting is reducing noise and emissions,” notes Axel Datschun, the co-founder of German specialty coffee roaster Loppokaffee. “We only use organic coffee and import it directly from our partner cooperatives. Therefore, it’s important for us to roast as eco-friendly as possible. 

    “As our new roasting facility is in a library and close to offices, the IRM 30E was perfect for us because it reduces emissions and noise. Other machines wouldn’t have worked in this location.”

    The company’s range of machines can also reduce operating costs by up to 50% compared to conventional machines. They also produce up to 20% less acrylamide (a chemical formed during the Maillard reaction) compared to more traditional equipment, a significant health and safety consideration for many roasters, even when proper ventilation systems are in place.

    Optimising speed and performance is also key to the future of roasting. 

    “IRM’s Air Technology system offers new ways of roasting by adding up to five times more air throughput, combined with a mixed geometry steady drum and variable paddle speed, to allow full convection or controlled conduction,” says Liam, the sales co-ordinator at IRM UK & Ireland and partnerships manager at equipment supplier Brew-It Group

    “This allows roasters not only to redefine traditionally restrictive roast profiles but also to roast consistently at a speed and volume that allows for double the output of a traditional roaster with comparable capacity,” he adds. “More control over more variables offers flexibility for experienced roasters. However, the ability to capture data and let the machine replicate profiles also lends itself to autonomous roasting, allowing commercially minded roasters to focus on other tasks.”

    Why AI will lead the way

    Beyond energy-efficient features and automation, AI-driven technology will reshape the future of coffee roasting. 

    “With the data collected through AI, we can ensure consistency in roasting,” Konstantinos explains. “For a coffee roaster managing large volumes daily, this is extremely important as it also contributes to growth through increased sales. IRM also provides excellent after-sales support; for a roaster working at an intense pace, having the support available 24/7 is invaluable.”

    While automation relies on humans to make decisions and implement workflow for machines, AI (or artificial intelligence) is programmed to use information about certain repeatable tasks to improve efficiency and achieve a desired outcome.

    “The introduction of IRM’s Pro AI feature, for instance, opens the door to endless possibilities,” Liam says. “While taste will always be king when it comes to roasting, the use of data and machine learning can greatly speed up the process in getting to the desired profile sought by roasters, regardless of experience.”

    The company’s Kai-Zen proprietary digital platform also enables real-time data analytics and remote control capabilities, transforming how roasters interact with their equipment.

    New technological integration doesn’t just solve existing problems; it creates new possibilities for roasters to experiment, innovate, and push boundaries in ways previously constrained by equipment limitations.

    Although AI isn’t currently widely used in the coffee industry, machine learning could enable us to gain a deeper understanding of the various factors that impact how we roast coffee – including origin, bean density, and processing method – and create roast profiles that yield better results.

    A person holds a cappuccino next to a coffee roaster.

    What will define the next phase of roasting?

    The coffee industry requires genuine innovation to propel itself forward – not merely incremental improvements, but transformative changes that enable entirely new approaches to roasting and business development. This represents a call to action for embracing a new era of roasting technology and methodology.

    “Innovating in coffee doesn’t just mean coming up with new packaging or a trendy drink, but going deeper across all levels of the supply chain,” Axel Simon says. “Technology will not only make roasting more efficient, but will also democratise excellence in quality, allowing more roasters to flourish and specialty coffee to reach a wider audience.

    “The IRM3, for example, helps improve quality and productivity in a roastery,” he adds. “We decided to install it at Mare Terra Coffee Institute because its design philosophy aligns with our belief that a training centre should teach the latest innovations on the market. The machine allows us to offer students a new perspective on roasting technology, helping them to train with a comprehensive overview of the options available.”

    Roasters must also adapt to changing market conditions, including high coffee prices. However, this requires more than problem-solving – it demands the creation of new products, services, and markets that transcend current limitations and encourage calculated risk-taking.

    Looking ahead, AI-driven systems will facilitate this transition.

    “Like all industries, AI is speeding up processes and refining practices in the coffee industry, and roasters are no exception,” Liam explains. “The potential for machine learning to accurately predict changes by quickly analysing data, and to compute and calculate the changes required as well as instantly implementing them, leads to proactive, rather than reactive, changes based on real-life data that can only be guessed by human intuition.

    “The past decade has seen data-driven roasting get the best out of coffee. AI enables roasters to focus on designing the profile that will benefit their coffee the most,” he adds. “At the same time, the machine handles curve chasing and alleviates many of the frustrations that roasters encounter on a daily basis.”

    Machine learning will enable roasters to refine their roast profiles and broader business operations, but fundamental equipment design also needs to evolve in tandem with these intuitive, integrated technologies. Otherwise, roasters risk being constrained by the very tools they rely on.

    “We built a new foundation for roasting, not another trend or interface,” Ioannis says. “With IRM, every roaster – from 50 grams to 150kg – gets the same design and software to achieve the same results, signalling the new wave of roasting.”

    A close-up of an IRM handle on a coffee roaster.

    The next phase of roasting will be defined by companies and professionals willing to embrace genuine innovation, challenge conventional wisdom, and invest in technologies that create new possibilities rather than merely optimising existing processes. 

    As the industry faces unprecedented challenges from climate change to shifting consumer preferences, the question isn’t whether change is necessary – it’s whether the industry will lead that change or be forced to follow it.

    Enjoyed this? Then read our article on why price increases are different for roasters now.

    Photo credits: IRM Coffee Roasting Machines

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    Why coffee quality is no longer a differentiator for roasters https://perfectdailygrind.com/2025/09/specialty-coffee-quality-no-longer-differentiator/ Mon, 15 Sep 2025 05:33:00 +0000 https://perfectdailygrind.com/?p=121009 Quality has always been a unique selling point of specialty coffee.  Through grading systems, cupping protocols, farming and roasting best practices, and marketing strategies, the industry emphasises quality as its differentiating factor – the “better” alternative to commercial-grade coffee. Even within the specialty coffee niche, roasters compete to source auction lots, high-scoring varieties, or the […]

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  • Quality has been a hallmark of specialty coffee since its inception, shaping standards for processing, sourcing, roasting, and brewing for the pursuit of excellence.
  • Roasters leverage the unique attributes of coffees to help build their branding around quality-driven values.
  • But as more premium coffees appear on roasters’ offerings, and the market becomes increasingly competitive, quality alone is no longer enough to stand out.
  • Offering consistency and value is becoming more critical, especially with the new reality of sustained high coffee prices.
  • Quality has always been a unique selling point of specialty coffee. 

    Through grading systems, cupping protocols, farming and roasting best practices, and marketing strategies, the industry emphasises quality as its differentiating factor – the “better” alternative to commercial-grade coffee.

    Even within the specialty coffee niche, roasters compete to source auction lots, high-scoring varieties, or the latest experimental processing trend – all marketed with the promise of exceptional quality and unique flavours.

    As more consumers seek premium options, the push for extraordinary coffees intensifies. This, however, creates a double-edged sword; offering these coffees helps raise standards and expectations in the industry, but it means quality alone is no longer the differentiator.

    Instead, roasters must also rely on consistency, value, and transparency to engage with customers in new ways. Bogdan Ciocian of Meron Coffee and Mark Dundon of Seven Seeds share their insight.

    You may also like our article on why it’s never been more important for roasters to invest in quality control.

    A roaster cupping at Meron Coffee in Romania.

    Specialty coffee’s concept of “quality” has changed

    Specialty coffee positions itself as the artisanal, premium alternative to commercial-grade coffee. While large brands focus on reaching as many consumers as possible, specialty coffee roasters prioritise quality above all else, catering to a niche segment of the market.

    As a result, its market share will always remain small, but the industry’s focus on excellence has fuelled a boom in premium coffee consumption over the last decade. The Covid-19 pandemic, in particular, was a significant driver of interest in higher-quality coffee. With cafés closed the world over, consumers had no choice but to replicate drinks at home – which meant investing in better beans and equipment.

    The relentless pursuit of flavour diversity and innovation has also spurred market growth and diversification. As more consumers demanded new experiences, roasters pivoted their sourcing strategies to offer truly unique coffees: single origin micro lots, competition and auction-winning coffees, and experimentally processed beans. 

    These coffees sparked curiosity, gaining the interest of customers who wanted to expand their palates and try more exclusive offerings. They also redefined what was possible in terms of quality and flavour innovation, showcasing entirely new sensory profiles and sometimes boasting higher cup scores. Their packaging design for these coffees has also reinforced this shift, enhancing perceived value.

    Processing, in particular, became a key point of quality differentiation. While the “big three” – washed, natural, and honey – account for most of the coffees available on the market, demand for less traditional tasting notes accelerated the growth of advanced processing techniques. Terms like “thermal shock” and “lactic fermentation” became part of modern specialty coffee culture, changing how we describe quality and flavour.

    However, as the specialty coffee market has matured in regions such as Australia, Western Europe, North America, and Japan, these once novel coffees have begun to lose their exclusivity.

    “A few years ago, anaerobic, carbonic maceration, or co-fermentation coffees were rare and exciting. Today, they’re common in high-end cafes and competitions, and even showing up in subscription offerings,” says Bogdan, the CEO of Meron Coffee, a specialty coffee roaster in Transylvania, Romania.

    “Once cutting-edge, these processes are no longer inherently differentiating – unless tied to a unique story, origin, or execution. Many roasters are chasing the same rare varieties, experimental processes, and exclusive farms,” he adds. “As more roasters offer similar stories, consumers tune out the noise unless the delivery is exceptional or emotionally resonant.” 

    Baristas serving customers at Meron Coffee.

    Conflating exclusivity with quality

    Quality will always be a defining characteristic of the values and ethos of specialty coffee. But as more competition coffees, “rediscovered” varieties like Sidra, Sudan Rume, and Chiroso, and experimentally-processed lots flood the market, exclusivity and quality are often considered interchangeable – but this isn’t always the case.

    “Even a coffee that receives a few hundred Euros per kilogram in an auction can be mediocre quality,” Bogdan says. “Some Asian markets are obsessed with buying expensive, exclusive coffees, even when they’re low-quality.”

    This is a phenomenon known as “premiumisation” – the practice of using rarity and exclusivity to drive up brand appeal and price, often to an astronomic level at competitions and auctions. When these coffees are smaller in size, such as a limited-edition micro lot or a one-off batch of experimental processing, price and sense of value only increase.

    Without transparency about the “objective” quality of these coffees – including grades and cup scores, not just scarcity – customers can easily conflate “exclusivity” with “quality”. This can cause widespread confusion, damage consumer perception of “middle-tier” specialty coffees, and overexaggerate the size of the high-end coffee market.

    Furthermore, as roasters often use these upscale coffees as unique selling points, they risk losing customers if quality isn’t a priority across all of their offerings.

    “Some cafés can use a high-end lot as an exclusive offering, while their bulk coffee is subpar,” says Mark, the co-owner of Seven Seeds, a specialty coffee roaster in Melbourne, Australia. “Any roaster or café that uses the word ‘specialty’ should be transparent about the quality of all the coffee they buy; to do that makes you stand out.”

    But in more mature specialty coffee markets such as North America, Europe, Australia, and Japan, consumers are accustomed to the widespread availability of specialty coffee.

    “People are inundated with options,” Bogdan says. “In addition to the countless new coffee shops opening on every street corner, more recently, specialty coffee has also penetrated other types of retail businesses.”

    Expectations about quality then rise, but the risk of consumer fatigue – when consumers are overwhelmed by excessive marketing or too many purchasing decisions – also increases.

    “People will question whether or not it’s worth paying US$4 for an espresso or a cortado,” Bogdan adds. “The bar is raised higher and higher, more and more money is invested in equipment and design, and entering a mature market becomes increasingly difficult.”

    Roasters at Meron Coffee in Romania.

    Value and brand experience become crucial

    As coffee quality becomes more of a prerequisite than a differentiator, roasters must find new ways to capture the attention of consumers.

    “Whether you want to call it ‘peak specialty’ or something else, we have reached a point where roasters need to make decisions,” Mark says. “The need to stand out has driven a lot of change in the industry; now it’s time to focus on what longevity for the coffee industry is.”

    To stay competitive, having a strong brand that communicates values and allows people to connect with them is more crucial than ever.

    “Modern consumers are experience-driven; they remember how they feel more than what they buy,” Bogdan tells me. “They are super socially conscious; they align with brands that share their values.”

    Simultaneously, as retail prices rise, independent specialty coffee roasters have an opportunity to double down on the value they offer customers – convincing them to switch to a buy local or small mindset.

    “However, value is not just about price – it’s also about perceived worth: sustainability, origin story, craft, service, and café design,” Bogdan adds. “Brand experience is the emotional and sensory journey from packaging to in-café service to online interaction.”

    To be successful, brand experience should be more than visual identity, a new logo, or refreshed packaging. The focus must shift from product-first to experience-first; roasters need to curate a cohesive brand narrative that customers want to be a part of, not just buy from.

    “There is room for any roaster to tell a new, beautiful, and interesting story about great coffee,” Bogdan says. “In an industry full of Colombians and Ethiopians, you could introduce lesser-known origins such as Bolivia, Nicaragua, Tanzania, or Papua New Guinea.”

    Above all else, roasters must offer dependability and reliability, especially in an increasingly volatile coffee market.

    “The true differentiating factor is the consistency with which you can deliver these coffees,” Bogdan adds. “You need to convince customers by offering quality coffees year after year – this consistency leads to a culture of quality that people notice over time.”

    Meron Coffee bags and equipment on shelves in a café.

    Once differentiators, exceptional quality and unique micro lots have become the norm in specialty coffee. To stand out in today’s rapidly changing market, roasters now need to focus on consistency, value, and transparency.

    “Each café needs to showcase what specialty coffee means to them,” Mark concludes. “The industry needs ambassadors to communicate the value of coffee, why roasters are so excited about it, and why it requires so much work and effort to serve it to customers.”

    Enjoyed this? Then read our article on how producers can drive quality in specialty coffee.

    Photo credits: Meron Coffee

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    Bigger roasters are buying cheaper coffee – but what does that mean? https://perfectdailygrind.com/2025/09/why-bigger-roasters-are-buying-cheaper-coffee/ Mon, 08 Sep 2025 05:35:00 +0000 https://perfectdailygrind.com/?p=120895 Single origin micro lots once underpinned third wave practices, from expressing the unique characteristics of each coffee to ensuring traceability along the supply chain. But as larger roasters, many of which built their branding around these sourcing strategies, grapple with sustained high green coffee costs, consistently offering these coffees has become less viable. Instead, the […]

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  • Many pioneering third wave roasters built their brands on paying higher, fairer prices for single origin, traceable micro lot coffees.
  • But in today’s challenging economic climate, green coffee costs are squeezing margins more than ever.
  • In an effort to protect their bottom lines, larger, established roasters have shifted to more cost-effective coffees, aiming to reach a broader audience.
  • The implications are felt across the supply chain, influencing smaller roasters’ behaviour and reshaping trade dynamics and consumer trust.
  • Single origin micro lots once underpinned third wave practices, from expressing the unique characteristics of each coffee to ensuring traceability along the supply chain.

    But as larger roasters, many of which built their branding around these sourcing strategies, grapple with sustained high green coffee costs, consistently offering these coffees has become less viable.

    Instead, the demand for consistent, familiar blends and more cost-effective options is driving the market, ultimately changing the prices paid for coffee and reshaping trade dynamics.

    To learn more, I spoke to Shawn Hamilton of Klatch Coffee

    You may also like our article on whether consumers will favour smaller, local roasters as prices rise.

    A barista prepares three pour overs in a coffee shop.

    Specialty coffee was built on single origins & micro lots

    “Single origin” has been a key defining factor of specialty coffee since its inception. Pioneering roasters popularised the term in the early 2000s, leveraging it to emphasise their commitment to sourcing traceable coffees that are a “true” expression of terroir.

    This served as a unique point of differentiation in a highly competitive coffee market, and continues to do so today. By communicating the superior quality of these coffees, as well as the mutually beneficial relationships with the producers who grow them, roasters can justifiably charge higher prices.

    The demand for these coffees only continued to grow. In 2020, nearly half of global coffee company launches mentioned some value associated with sustainability, double from the number in 2012.

    However, over the years, the term “single origin” has become less straightforward; it can be used to describe coffee from a single country, region, estate, or cooperative.

    As specialty coffee consumers take a greater interest in traceability, the ambiguity around “single origin” coffee has become increasingly evident. In response, specialty coffee roasters of all sizes have refined their focus; “micro lots” have become a defining feature of the industry, with less confusion about where they come from.

    Although multiple definitions exist, many coffee professionals use the term for small, exclusive, and traceable lots of coffee that are grown and processed separately to preserve their “pure” flavours.

    Effectively, micro lots offered roasters an opportunity to “double down” on single origin coffee and the values they represent. The higher costs of production – a result of the greater care and attention to detail required during cultivation, harvesting, processing, and milling – mean these coffees can command even higher prices.

    To secure loyal customers and attract new ones, many trailblazing roasters made micro lots a staple of their offerings, positioning themselves as quality pioneers in an increasingly competitive market.

    But high coffee prices have become a new reality

    Historically, specialty coffee roasters thrive when coffee prices are low, allowing them to purchase high-quality beans while maintaining healthy profit margins. But the recent surge in the C price is forcing both roasters and producers to adapt in new ways, reshaping strategies and relationships across the supply chain.

    Green arabica prices surpassed US$4.40/lb in February 2025, and have largely remained around the US$4/lb-mark ever since. The reasons for the surge, representing a more than 70% increase from three years prior, are complex: supply shortages in major producers such as Brazil and Vietnam, the impact of climate change, and unprecedented US tariffs.

    Many in the industry expressed their shock at seeing the highest coffee prices since the 1970s – an occurrence some never expected to witness in their careers. While it’s a welcome shift for an industry that advocates for higher, fairer prices for producers, the reality is more complicated. 

    Unpredictable weather, rising fertiliser costs, and labour shortages all add pressure to farmers’ operations. Additionally, buyers are more cagey, so more options don’t necessarily equate to a better position for producers.

    Although coffee price volatility is nothing new, the current situation is different. Instead of the dramatic yet predictable peaks and troughs, prices have remained consistently high, creating a new set of challenges for both roasters and producers.

    Roasters, in particular, are largely unaccustomed to such financial pressures. When the C price exceeds US $2/lb, many often express concern, as it directly impacts their ability to maintain margins without raising consumer prices.

    In an effort to protect bottom lines, many roasters, particularly larger operations, are turning to cheaper blends or diversifying their sourcing to include lower-cost origins.

    A barista steams milk and extracts espresso in a café.

    Cheaper lots and origins have become more viable

    As the industry comes to terms with the likelihood of sustained high coffee prices for the foreseeable future, stakeholders across the supply chain are taking steps to adapt.

    For successful roasters, it means adjusting to a “new normal”, rather than waiting for prices to fall. A key part of this is rethinking green coffee sourcing and retail pricing strategies, and striking a delicate balance between the two.

    Many specialty coffee roasters have inevitably had to raise their retail prices, passing on additional costs to consumers rather than absorbing them completely. Understandably, however, some customers and wholesale buyers are expressing confusion or pushing back on higher prices. Many believed they were already paying more to support coffee producers and shield the supply chain from volatility.

    According to a recent Reuters report, major retailers in Europe initially resisted price increases, opting to stock out rather than absorb the costs, after green coffee prices more than doubled in a year. This highlights widespread uncertainty over who should bear the additional financial burden in the coffee supply chain.

    In a bid to avoid price hikes and the ensuing tension they can cause, roasters – especially larger operations that depend on both B2B and B2C clients – have significantly shifted their sourcing strategies. Cost-effective coffees have become a much bigger priority, signalling a temporary pivot away from high-end origins and micro lots.

    “Bigger roasters are buying cheaper coffee in general,” says Shawn, the Vice President of Operations at Klatch Coffee, a family-owned specialty coffee roaster founded in 1993. “They need larger quantities of consistent-tasting coffees, and when you require these kinds of volumes, you somewhat have to settle on quality to achieve consistency.”

    Sourcing from more affordable, yet still quality-driven, origins like Brazil has proven effective, allowing roasters to protect quality, flavour consistency, and pricing stability. Blending has also become a key strategy for roasters, enabling roasters to maintain quality while managing costs.

    How does this impact the wider coffee supply chain?

    As larger roasters shift their buying behaviour to adapt to sustained high coffee prices, other supply chain actors inevitably feel the effects.

    For consumers and wholesale clients, there are obvious benefits. “Roasters can manage their margins without hiking prices, so it translates to smaller price increases to the consumer,” Shawn says. 

    However, the trade-off between price and quality can be difficult to balance. 

    “The downside is that the larger companies, by default, are selling a larger share to the consumer,” Shawn explains. “If their coffee is now diminishing in quality, that can leave a bad taste in people’s mouths – no pun intended.”

    Without transparent and honest communication explaining the steps taken to minimise price increases, such as blend reformulation or a temporary switch to more affordable origins, roasters risk damaging consumer trust and loyalty.

    “This could eventually lead to people switching from coffee to other beverages and decreasing consumption across the entire industry, not just the brands that ‘cheapened’ their products,” Shawn adds.

    The launch of more affordable sister brands, such as Madcap Coffee’s ‘Dito’, is an example of how roasters can satisfy loyal customers while also extending their reach. Marketed as “a creative way to reach a broader audience”, Dito targets younger and price-sensitive consumers with aesthetic packaging and more accessible price points, simultaneously preserving the premium position of Madcap’s other coffee products.

    Producers, meanwhile, also feel the impact of changing roaster behaviour. While those who offer more cost-effective coffees could benefit, others in more premium origin countries could struggle to maintain their market share. This risks upending long-term partnerships with trusted suppliers, damaging resilient supply chains that have been developed over years.

    But with coffee prices not expected to retreat until late 2025 – and the ripple effects likely to be felt for at least four years, according to recent UN forecasts – short-term thinking and opportunism can’t weather the storm.

    While roasters may need to add more affordable coffees to their offerings temporarily, the most resilient businesses will be those that prioritise mutually beneficial relationships, transparency, and shared risk management. 

    When both producers and roasters understand each other’s challenges and constraints, they can develop resilient solutions that preserve business viability while maintaining quality and sustainability commitments. These trusted partnerships create stability in an otherwise volatile market, enabling long-term planning despite short-term fluctuations.

    A man cools roasted coffee in a large roaster cooling tray.

    Larger roasters are adjusting their sourcing strategies to cope with sustained high coffee prices, which inevitably influences the decisions of their industry peers, big and small.

    Although more affordable lots and offerings are an effective way to navigate the current economic landscape, roasters who invest in strong relationships, efficient practices, and value-added strategies will be best positioned to thrive in the long term.

    Enjoyed this? Then read our article on why roasters are delaying more payments, not just for green coffee.

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    As retail prices rise, will consumers favour smaller, local roasters? https://perfectdailygrind.com/2025/08/high-coffee-prices-favour-local-smaller-roasters/ Thu, 28 Aug 2025 05:34:00 +0000 https://perfectdailygrind.com/?p=120738 High green coffee prices have become a new normal for the coffee industry – and they’re reshaping consumer behaviour. Many roasters have raised their menu prices to manage tight margins, passing additional expenses onto already cost-conscious customers. Some may pivot to more affordable blends or single origins in response, while still staying loyal to their […]

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  • “Buy local” movements often gain traction during times of economic hardship in a bid to support small, independent businesses.
  • A recent poll revealed that 42% of Canadians were willing to “absolutely do everything” to avoid purchasing US-made products following 25% tariffs.
  • As green coffee prices continue to climb, many roasters are raising their retail prices to protect margins, potentially pushing consumers towards their favourite local brands.
  • Conversely, a recent US study revealed that private brand sales have increased by nearly a quarter each year over the past four years, reaching a record high in 2024.
  • Coffee consumers could either double down on independent roasters or switch to more cost-effective options from regional, national, and international brands.
  • High green coffee prices have become a new normal for the coffee industry – and they’re reshaping consumer behaviour.

    Many roasters have raised their menu prices to manage tight margins, passing additional expenses onto already cost-conscious customers. Some may pivot to more affordable blends or single origins in response, while still staying loyal to their favourite local independent roasters.

    Despite a cost-of-living crisis, GlobalData reports that 41% of consumers “somewhat agree” that supporting the local community was more important than buying from larger multinational brands, while 22% “strongly agreed”.

    But at the same time, private label products have never been more popular in countries like the US, signalling a division in the market.

    I spoke with John Steel of Cafédirect and Alicia Love of Coffee Labs Roasters to find out how rising retail prices could reshape coffee consumer behaviour.

    You may also like our article on how rising prices allow consumers to learn more about coffee shops.

    Person vacuum pumps green coffee at Cafedirect.

    How rising coffee prices are reshaping the industry

    The C price continues to remain high and volatile. In February 2025, arabica futures rose to an all-time high of US$4.41/lb. Since then, prices have fluctuated, but largely remained above the US$3/lb mark.

    Although specialty coffee operates outside the C market, with roasters and importers paying premiums for higher-quality lots, it is heavily influenced by broader market movements.

    “Coffee prices have risen so sharply that it’s not just low-cost supermarket coffees that are impacted,” says John Steel, the CEO of B corp UK roaster and coffee retailer Cafédirect. “Those of us who pay more for coffee are particularly affected. When you already pay above the market price for coffee, any global spike on top of that can be difficult to absorb.”

    Roasters are also grappling with higher operational costs. Energy prices remain volatile, labour costs are increasing as businesses compete for skilled staff, and sustainable packaging materials often carry a premium price tag. Even borrowing costs are climbing, with higher interest rates making loans and credit facilities more expensive.

    All of these conditions put roasters in a difficult position, forcing them to absorb additional costs or pass them on to customers.

    In many cases, they have little choice but to raise their retail prices. Already operating on razor-thin margins, absorbing costs in such a challenging economic landscape is too risky for most roasters.

    But despite price increases, consumers keep drinking coffee – and more of them want higher quality options. The National Coffee Association’s latest NCDT report found that the number of US citizens drinking specialty coffee in the past day has increased dramatically between 2020 and 2025. For every 100 cups of coffee consumed, 59 are specialty and 41 are traditional, representing an 18% increase over the five-year period.

    “After two recessions in 22 years, people still need their coffee – in shops and online, too,” says Alicia Love, the president and owner of Coffee Labs Roasters in New York, US. “Younger consumers have had specialty coffee shops around them their whole life, and many think nothing of buying a high-end, premium drink. 

    “We also saw a shift to espresso-based drinks during Covid-19, which make up the bulk of our over-the-counter sales,” she adds.

    Workers in the Cafedirect warehouse.

    How are coffee consumers responding?

    Even in the wake of high prices, consumers are maintaining their levels of coffee consumption.

    “Coffee remains one of life’s small daily rituals – something people are reluctant to give up,” John says. “But the way they drink it, and the choices they make, are changing.

    “The cost-of-living crisis has made many people more conscious about where their money goes,” he adds. “We’re seeing a rise in home coffee ’nooks’, with more people investing in bean-to-cup machines, trying out different beans, and exploring milk alternatives.”

    But while people are still willing to invest in high-quality coffee options, rising prices will inevitably shift consumer behaviour.

    According to a UN FAO report from March 2025, it will take almost a year for consumers to feel the effects of price spikes. The report states that up to 80% of these price rises will take up to 11 months to trickle down to EU consumers – and to US consumers in just eight months. The residual effects of these price rises are expected to last for four years.

    “I think we’ll see the real change of rising coffee prices in the third or fourth quarters of the year,” Alicia says. 

    Brands like JM Smucker, which owns Folgers, Dunkin’ at Home, and Café Bustelo, are warning of further retail coffee price increases in August, following earlier hikes in May, June, and October last year.

    Some supermarkets and grocery retailers have pushed back, signalling that prices are reaching the limits of what consumers will tolerate. JDE Peet’s also faced backlash from European retailers for its price hikes, with some chains even refusing to stock its products during negotiations.

    As major brands pass on costs to maintain their margins, we can expect to see a widespread shift in consumer behaviour.

    Following trends in other markets that have experienced similar price shocks, consumers initially absorb increases. However, as prices remain high or continue to rise, they inevitably adjust their behaviour to cope with the elevated costs.

    Eggs in the US market are a prime example. Average prices for a carton of eggs have soared from US$1.49 in 2018 to US$5.18 in 2025. In response, over a third of US consumers said they have stopped buying eggs, and won’t begin to purchase them again until the price comes down to US$5 or less.

    Changing coffee consumer behaviour could include buying less of the brands they typically purchase, switching to cheaper alternatives or private label products, or stopping the purchase of these goods altogether.

    A recent US study shows that over the past four years, annual private brand sales rose by nearly a quarter, reaching a record high in 2024. In the context of the coffee industry, this indicates that more consumers are shifting from premium beans to cost-effective supermarket blends – a sign of growing dependence on larger multinational brands.

    Could the “buy local” movement proliferate in specialty coffee?

    To offset steadily increasing prices, more customers are likely to pivot to cost-effective coffees, including more blends and affordable single origins like Brazil and Vietnam. 

    This switch, however, doesn’t always equate to a move towards bigger brands. 

    “Buy local” movements often gain traction during times of economic hardship in a bid to support small, independent businesses. Following the rollout of 25% US tariffs, 42% of Canadians were willing to “absolutely do everything” to avoid purchasing US-made products, determined to invest in local and national brands as a sign of solidarity.

    As roasters continue to grapple with rising prices and operating costs, consumers could stay loyal to smaller, local brands, building a sense of rapport and connection with businesses that depend on their continued support.

    “People may start to think more carefully about where their money goes, and choose to spend it with local businesses rather than multinationals like Starbucks,” John says. “There’s growing interest in value, not just in terms of taste or convenience, but in the bigger picture: where does this coffee come from, and who benefits when I buy it?”

    A person cups coffee using Grump Mule beans.

    Effective long-term strategies for roasters

    As consumer behaviour shifts over the coming months, roasters of all sizes will need to adapt to find success in a changing market.

    “Smaller roasters who have been around a long time can thrive and shift,” Alicia says. “Newer roasters facing costs with smaller customer bases may struggle.”

    With global coffee prices expected to remain high, many roasters will need to raise their prices to keep business healthy. However, sharp, sudden increases could risk driving consumers to competitors. 

    Curating diverse coffee offerings, including blends, at different price points can somewhat mitigate these risks.

    “Our blends have always sold the best, demand has just increased,” Alicia says. “We offer seasonal blends that change several times a year.”

    Another option is to explore alternative origins that offer competitive pricing.

    “For example, in previous years when robusta prices have risen sharply, we’ve seen shifts back to arabica,” John says. “The market adapts based on cost and availability. What’s key is ensuring that any shift in sourcing doesn’t come at the cost of fairness or quality.”

    Two people around large roaster at Cafedirect.

    Rising retail prices could result in two outcomes: a shift towards cheaper, white-label products, or growing loyalty to smaller, local roasters.

    For many in the specialty coffee industry, the hope is that consumers will support the latter as much as possible.

    “Local coffee houses will remain key community hubs,” Alicia concludes. “People need people, and coffee shops have long been places to connect and talk.”

    Enjoyed this? Then read our article on the pros and cons of raising your retail prices.

    Photo credits: Cafédirect

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    How roasters should prepare before entering a new market https://perfectdailygrind.com/2025/08/how-coffee-roasters-prepare-to-enter-new-markets/ Mon, 18 Aug 2025 05:46:00 +0000 https://perfectdailygrind.com/?p=120440 As coffee roasters grow, many consider expanding beyond their local communities, either nationwide or internationally. But the process is often easier said than done. Entering new and unfamiliar markets requires a significantly different approach from what works on a local level, especially when navigating different coffee-drinking cultures. Some emerging specialty coffee markets, like Southeast Asia, […]

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  • As coffee roasters grow, many want to expand into new markets to increase their reach and diversify their customer base.
  • Emerging specialty coffee markets, such as Southeast Asia, offer roasters the chance to capitalise on burgeoning growth.
  • Coffee consumption in Southeast Asia is expected to exceed 640 million kg by the end of 2025, with continued growth projected into 2026.
  • But scaling into untapped markets often requires a strategic approach, understanding local preferences and needs.
  • Building strong partnerships with established local coffee brands and creating vibrant community hubs are essential for long-term success.
  • As coffee roasters grow, many consider expanding beyond their local communities, either nationwide or internationally. But the process is often easier said than done.

    Entering new and unfamiliar markets requires a significantly different approach from what works on a local level, especially when navigating different coffee-drinking cultures.

    Some emerging specialty coffee markets, like Southeast Asia, are offering roasters the chance to capitalise on burgeoning growth. According to data from Euromonitor, foodservice sales of specialty coffee and tea in the region are set to grow 8% year-on-year until 2028.

    As roasters look to grow into these lucrative markets, understanding local preferences and how to build community are vital to long-term success.

    I spoke to Danial Akram Bakri and Barrie Nasim at CC: Roasters, a Malaysian specialty coffee roaster, to understand how they are scaling their business.

    You may also like our article on why emerging markets show promise for specialty coffee amid high prices.

    A box of CC:Roasters Thailand coffee in a glass jar.

    The growth of specialty coffee in up-and-coming markets

    Specialty coffee consumption has been rising in emerging coffee markets worldwide. This growth presents an exciting opportunity for established roasters to reach new consumers and bolster their business growth.

    The Southeast Asian specialty coffee market is a prime example of a market on the rise. Coffee consumption in the region is expected to exceed 640 million kg by 2025, with continued growth projected into 2026.

    Southeast Asia traditionally has a tea-drinking culture. However, the region saw a shift in the early 2000s with the introduction of second-wave coffee and an increased presence of larger international coffee chains.

    Initially, specialty coffee remained a luxury, costing more than 30% of the median income in Indonesia. As domestic coffee chains expanded in the following years, high-quality coffee became increasingly affordable, fueling its wider adoption across countries such as Vietnam, Thailand, and Malaysia.

    “The specialty coffee markets in Southeast Asia, particularly Malaysia, have seen significant growth and transformation, which are driven by evolving consumer preferences and the rapid rise of specialty coffee shops that also correlate with Asia’s emerging markets,” explains Barrie Nasim, the director at CC: Roasters, a specialty coffee roaster in Malaysia.

    This market shows no sign of slowing down, either. A growing middle class with higher disposable incomes is driving demand for more local, higher-quality coffee.

    “Southeast Asia is home to major coffee-producing countries such as Indonesia, Vietnam, Thailand, and, more recently, China,” says Barrie. “There’s been a shift toward showcasing locally grown beans rather than relying on imports due to the rapid improvements in terms of quality and also pricing.”

    Additionally, the acceptance of specialty coffee in Southeast Asia, particularly Malaysia, has continued to grow steadily due to more discerning customers.

    “We have experienced customers demanding more value-driven businesses such as ethical and sustainable sourcing practices by roasters, new coffee creations and mocktails in cafés, and a more diverse range of high-scoring specialty coffees,” says Danial Akram Bakri, the head roaster at CC:Roasters. “This has shown that consumers have become more knowledgeable about coffee origins, processing methods, and brewing techniques, which displays greater attention and appreciation for specialty coffee.”

    Beyond cafés, many Southeast Asian coffee consumers have home coffee setups and source their beans from local suppliers. This trend has helped strengthen specialty coffee culture as consumers prioritise quality, sustainability, and the overall coffee experience.

    Canned RTD drinks made by CC:Roasters.

    Understanding the local consumer base is key to expansion

    As specialty coffee roasters seek to expand beyond their traditional market, success hinges on capturing the loyalty and attention of local consumers. Understanding the local consumer base is essential, whether expanding nationwide or internationally.

    “It is important to understand the needs and wants of the community that roasters would want to work with, such as knowing the demographics, spending habits, what sort of events are held, the area’s local businesses, and their segments and offerings,” says Barrie.

    Danial adds, “Understanding these demographic variations allows for a more targeted and effective approach to reaching potential customers.”

    For example, with rising disposable incomes, Southeast Asian consumers are willing to pay more for diverse flavours, artisanal beverages, and ethically sourced beans. 

    Cold coffee has also become a regional favourite. The growing younger population and increased demand for speed and convenience have fueled the growth of ready-to-drink (RTD) beverages in Southeast Asia.

    The relationship between roasters and the local community is symbiotic, as they mutually benefit from one another’s growth. Roasters must engage with the community to connect and understand their needs, develop a reputation, and encourage repeat customers.

    “Organising events or campaigns to educate the public about specialty coffee is essential for engaging local consumers,” explains Danial. “Such initiatives not only raise awareness of specialty coffee but also foster a deeper understanding of its broader value, including the positive economic impact it can have on the local community.”

    Barrie agrees, emphasising that roasters are not just sellers but also educators and ambassadors of specialty coffee.

    “Creating awareness and educating customers has to be a natural habit while being able to adapt to coffee flavours, roast profiles, and product offerings based on communities’ local preferences,” he says. “This will create synergy in growing the business as well as the communities we are in.”

    A group of people attend a coffee class at CC:Roasters in Malaysia.

    Creating community hubs to support and engage local consumers

    For centuries, coffee shops have been social spaces and community hubs. Today, consumers expect more than just a drink – they want an experience, especially as their knowledge of specialty coffee grows and their focus on education deepens.

    To succeed in new coffee markets, roasters must create dynamic spaces that support and engage local consumers through community-building and sharing industry knowledge.

    “By transforming the coffee shop into a vibrant community hub, we can create a space that not only serves high-quality coffee but also fosters learning, connection, and collaboration,” says Danial.

    CC:Roasters plans to open a new physical store in Malaysia, serving as a versatile space and community hub for specialty coffee lovers, professionals, and young consumers alike. 

    “For families and discerning customers, we aim to provide a welcoming atmosphere where they can enjoy quality time together while savouring specialty coffee and thoughtfully curated food offerings,” says Danial.

    Barrie explains that CC:Roasters intends to create a “fourth space,” a hybrid environment that combines elements of home, work, and the third space.

    “Communal spaces and furniture, flexible seating, and open floor plans would help us create workshops, event spaces, and social gatherings that we intend to host at our store,” he says.

    Danial emphasises that roasters can achieve an authentic community hub by transforming the café into a coffee education centre. For instance, CC:Roasters plans to host classes and events that will help deepen consumers’ appreciation for the craft of coffee.

    “We want to bridge a gap in the community by connecting consumers with our specialty coffee value chain, from traceability at origin and transparency at our roastery to the drinks they can have at our store,” says Barrie. “This entails bringing awareness on how we source, roast, and brew ethically and sustainably.”

    By creating a welcoming, education-driven space, roasters can help strengthen coffee culture, support the local economy, and foster a genuine gathering place for the community.

    A t-shirt hangs on a machine in a roastery.

    Partnering with local coffee brands to scale products and services

    To successfully scale and understand the needs of their new market, roasters can partner with established local coffee brands that are already familiar with the market.

    For example, roasters looking to expand into the Southeast Asian coffee market can partner with a leading Malaysian coffee brand and wholesaler, like CC:Roasters, which has in-depth knowledge of the country’s coffee culture.

    “Brand building can be achieved through partnering with local businesses, markets, sponsoring and hosting events by showcasing our offerings and how we can contribute to the community’s economic and social well-being,” explains Barrie. 

    Strategic partnerships enable roasters to achieve long-term success while maintaining full control over their supply chain, thereby ensuring quality and consistency. Barrie recommends that roasters look for brands with shared values and goals to ensure a successful collaboration.

    “We look into their unique selling proposition and its potential for growth in our market and how we can bridge and further innovate these propositions,” he adds. 

    CC:Roasters recently helped California-based Reborn Coffee open its first international outlet, Reborn Coffee Malaysia, which will serve as a launchpad for further expansion in Southeast Asia.

    “Reborn Coffee, with its dedication to high-quality, sustainable coffee, aligns well with the mission to offer an exceptional coffee experience while educating consumers about the value of specialty coffee,” explains Danial.

    Additionally, Reborn Coffee has won America’s Best Cold Brew award for two consecutive years and continues to innovate in the cold brew and ready-to-drink (RTD) sectors. 

    “This sector has not kicked off in Malaysia, and we see it as having huge potential to be successful,” says Barrie. “Other product developments are also being done together to see what offerings work best in the US and what works best in Southeast Asia.”

    Daniel adds that the partnership with Reborn Coffee aligns with the brand’s broader vision of creating a community hub with enhanced educational opportunities.

    “This collaboration can raise the standards of coffee offerings, educating local consumers about the craft of specialty coffee and its intricate flavours,” he says. “By introducing Reborn Coffee, this partnership can help nurture a more sophisticated coffee culture, attracting a wider audience of coffee enthusiasts and fostering appreciation for sustainability.”

    Beyond this, Barrie mentions that such partnerships also enable brands to collaborate with diverse origins and share insights on improving processing methods. This, in turn, helps both parties improve their processing methods, support fair trade and wages for farmers, and optimise logistics to reduce costs and waste.

    A CC:Roasters coffee sign outside of a café.

    As less mature coffee markets, such as those in Southeast Asia, continue to grow and develop, so will the opportunities for roasters to expand their reach and scale their business. However, to do so successfully, roasters must first understand the needs, preferences, and demographics of their new market.

    Building strong partnerships with established local coffee brands and creating vibrant community hubs will be essential to long-term success. By offering educational experiences, nurturing community engagement, and delivering high-quality specialty coffee, roasters can cultivate strong relationships with local consumers, foster brand loyalty, and position themselves for sustainable growth.

    Enjoyed this? Then read our article on why more coffee events are expanding into Asia.

    Photo credits: CC:Roasters

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    Why specialty coffee roasters need to find new ways to diversify https://perfectdailygrind.com/2025/07/how-specialty-coffee-roasters-can-diversify/ Wed, 23 Jul 2025 05:38:00 +0000 https://perfectdailygrind.com/?p=120089 The specialty coffee industry finds itself at a critical juncture.  As sustained high coffee prices continue to pressure profit margins and consumer behaviour evolves rapidly, roasters face an unprecedented challenge: how to maintain growth and profitability while adapting to a market that demands more options, convenience, and value.  The answer lies in strategic diversification that […]

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    The specialty coffee industry finds itself at a critical juncture. 

    As sustained high coffee prices continue to pressure profit margins and consumer behaviour evolves rapidly, roasters face an unprecedented challenge: how to maintain growth and profitability while adapting to a market that demands more options, convenience, and value. 

    The answer lies in strategic diversification that meets consumers where they are, at their point of need.

    I spoke with Mark Zhou at MTPak Coffee and Dustin Joseph at Left Hand Roasters to learn more.

    You may also like our article on how roasters are driving real innovation in coffee.

    Left Hand Roasters Community blend packaging.

    Why roasters need to diversify more than ever

    Roasters are navigating a perfect storm of economic pressures. Persistent high coffee prices have compressed margins across the industry, prompting roasters to reassess their traditional business models. 

    “Sustained high coffee prices signal a new era for coffee. While this is a long-overdue change for many producers, who have historically had to deal with low pricing, it creates ripple effects that extend further along the supply chain,” says Mark Zhou, the founder and CEO of sustainable packaging company MTPak Coffee

    “Roasters’ margins are now tighter than ever as they realign budgets to accommodate for their green coffee costs, almost doubling over the last two years.”

    This financial pressure coincides with rapidly changing consumer preferences that demand greater variety, convenience, and quality across all consumption occasions.

    The data paints a clear picture of this transformation. Specialty coffee consumption among US consumers continues to grow, even during times of heightened financial concerns. In January 2025, according to the latest National Coffee Data Trends report, past-day specialty coffee consumption hit its highest level in recent years. This growth represents not just opportunity, but necessity for roasters who must capture an expanding market while dealing with tighter margins.

    However, the challenge extends beyond simple growth metrics. Coffee roasters must adapt to consumers who increasingly view coffee as an essential daily ritual that transcends the traditional boundaries of home and café consumption. This shift necessitates a fundamental reevaluation of product offerings, packaging formats, and distribution strategies.

    Roasting House drip coffee bags.

    Market data reveals the diversification imperative

    Key industry reports highlight the dramatic changes reshaping coffee consumption patterns. 

    The NCA’s latest data reveals that ready-to-drink coffee has emerged as the third most popular preparation method among past-day specialty coffee drinkers in the US, representing an extraordinary growth of more than 83% since 2023. This meteoric rise demonstrates consumers’ increasing appetite for convenience without sacrificing quality.

    Traditional preparation methods continue to dominate the home coffee market, with drip coffee makers accounting for 37% of at-home preparation methods, followed by single-cup brewers at 28%. 

    However, the growth in alternative formats signals a market in transition. The US’ RTD coffee market was estimated at US $6.46 billion in 2024, and is expected to reach US $8.61 billion by 2029.

    The trend toward convenience extends beyond RTD coffee. Instant coffee consumption is experiencing a resurgence in the UK and Europe overall, driven primarily by rising coffee prices that have prompted consumers to seek more affordable options without compromising their quality expectations. This shift presents both challenges and opportunities for specialty coffee roasters, who must balance accessibility with their quality positioning.

    “Coffee is more than a product. It is a diverse industry, serving various passions. Cafés offer a sense of community and have historically served as catalysts for change,” says Dustin Joseph, the CEO and founder of Left Hand Roasters in Bangkok, Thailand. “This diversity is crucial in an industry evolving to a future focused on sustainability and ethics. 

    “As this transformation unfolds, we must find our place within it, contributing to a more responsible coffee culture.”

    In emerging markets like India, coffee consumption patterns are evolving rapidly as urbanisation and changing lifestyles create new demand for premium coffee experiences. These markets present a significant opportunity for roasters to tailor their offerings to local preferences while upholding specialty coffee standards.

    The home remains the dominant coffee consumption location, a trend likely to persist as high coffee prices continue to influence consumer behaviour. However, this shift toward home consumption does not mean consumers are willing to compromise on quality or experience. Instead, they are seeking products that deliver café-quality coffee across multiple consumption occasions and locations.

    Roasters are focusing on new products

    This evolution creates a clear imperative for coffee roasters: they must cater to the demand for both convenience and quality simultaneously. Consumers want specialty coffee experiences whether they are at home, in the office, traveling, or anywhere else as part of their daily routines. The demand spans multiple format preferences, from traditional whole bean and ground coffee to innovative packaging solutions that preserve freshness while offering unprecedented convenience.

    “Consumers now want more options that accommodate their demand for both convenience and quality, and roasters cannot afford not to cater to this,” Mark says. “We launched our portable and convenient drip coffee bags and filters for roasters to fill and seal so that their customers can enjoy specialty coffee in any environment.”

    Products like drip coffee bags and filters present a significant opportunity for roasters to diversify their offerings. These products bridge the gap between the convenience of instant coffee and the quality of specialty coffee, offering consumers a fully customisable experience that preserves the freshness and flavour characteristics that define specialty coffee.

    MTPak Coffee’s drip coffee bags and filters, for example, offer a convenient alternative to instant coffee while maintaining the quality standards specialty coffee consumers expect. The bags can be fully customised to reflect roasters’ brand identity and specific coffee profiles, allowing for differentiation in an increasingly crowded market. The format preserves freshness through advanced packaging technology while providing the convenience consumers increasingly demand.

    “The convenient quality coffee market is booming with innovations like concentrates and premium instants, offering exciting choices for consumers,” Dustin says. “However, these advancements bring potential sustainability challenges we are yet to understand fully.

    “The future of coffee should blend innovation with sustainability, ensuring we can enjoy great coffee without long-term environmental costs,” he adds.

    Coffee blooms in an Archers Coffee Brazil UFO drip bag.

    Strategies for successful diversification

    Successfully diversifying product offerings requires coffee roasters to stay ahead of consumer trends while maintaining their core quality commitments. The key lies in understanding that diversification is not about abandoning specialty coffee principles, but rather extending them across new formats and consumption occasions.

    Staying ahead of consumer trends requires continuous market research and the integration of consumer feedback. The rapid growth of RTD coffee, the resurgence of instant formats, and the increasing demand for home brewing solutions all represent trend shifts that forward-thinking roasters identified and acted upon early. Success comes from anticipating where consumer needs are heading, not just responding to where they’ve been.

    Working with trusted suppliers becomes crucial in this environment. Companies like MTPak Coffee provide the expertise, innovation, and manufacturing capabilities that allow coffee roasters to experiment with new formats without compromising on quality or brand integrity.

    These partnerships enable roasters to explore diversification opportunities while maintaining their focus on core competencies, including sourcing, roasting, and customer relationships.

    “As with all our packaging, these products are highly customisable, offering roasters’ unique aesthetics that match their brand identity – which has never been more important, as more roasters push to differentiate and stand out,” Mark says.

    The most successful diversification strategies recognise that different products serve different consumer needs and consumption occasions. A single consumer might purchase whole beans for weekend brewing, ground coffee for weekday convenience, and drip bags for office or travel use. Rather than viewing these as competing products, successful roasters see them as complementary offerings that increase customer lifetime value while meeting diverse needs.

    Person holding Archers Coffee UFO drip bags.

    Building a sustainable diversification strategy

    Roasters who can successfully balance innovation with tradition, convenience with quality, and expansion with focus are poised for future success. Diversification is not just about being everything to all consumers, but rather about strategically expanding offerings to serve existing customers better while attracting new segments.

    The most effective approach involves gradual expansion that tests market response while maintaining operational efficiency. Starting with products that leverage existing capabilities and relationships, such as drip coffee bags that use existing roasted coffee, allows roasters to diversify without overwhelming their operations or compromising quality standards.

    Success in diversification also requires clear communication with consumers about how new products fit within the roaster’s quality framework. Customers need to understand that convenience-focused products don’t compromise on quality; instead, they serve as extensions of the same commitment to excellence applied to different consumption occasions.

    Left Hand Roasters set up in Bangkok, Thailand.

    The coffee industry’s current challenges present an opportunity for roasters willing to evolve. Those who thoughtfully embrace diversification, with trusted partners and clear quality standards, will emerge stronger and more resilient.

    The question isn’t whether to diversify, but how to do so in ways that strengthen rather than dilute brand identity while meeting the evolving needs of increasingly sophisticated coffee consumers.

    As the industry continues to evolve, the roasters who thrive will be those who view diversification not as a departure from their core mission, but as its natural evolution. By expanding their offerings to meet consumers wherever they are, whenever they desire quality coffee, these roasters will build more sustainable and profitable businesses while advancing the entire specialty coffee industry.

    Enjoyed this? Then read our article on how single-serve coffee is evolving.

    Photo credits: Left Hand Roasters, MTPak Coffee, Archers Coffee, Roasting House

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    How in-house roasting can help cafés manage high coffee prices https://perfectdailygrind.com/2025/05/roasting-coffee-in-house-manage-high-prices/ Mon, 26 May 2025 02:56:49 +0000 https://perfectdailygrind.com/?p=119092 High coffee prices are becoming a lasting reality for the industry. While many assert that this signifies a long overdue change, as coffee has historically been an undervalued commodity, price volatility affects all levels of the supply chain in various ways. For coffee shops, in particular, margins are tighter than ever. Many are facing the […]

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    High coffee prices are becoming a lasting reality for the industry. While many assert that this signifies a long overdue change, as coffee has historically been an undervalued commodity, price volatility affects all levels of the supply chain in various ways.

    For coffee shops, in particular, margins are tighter than ever. Many are facing the difficult decision to raise their retail prices, seeking new ways to streamline operations and manage cash flow more effectively.

    One solution is roasting coffee in-house. Although this gives café operators more oversight over their supply chains, there are still key considerations to factor in.

    I spoke with Dajo Aertssen at Cafés MUDA and Jens Crabbe at MOK Coffee about their experience working with Stronghold machines.

    You may also like our article on how automation can make the coffee sector more productive.

    A bag of roasted MOK coffee in a plastic crate.

    Rising coffee prices have become unavoidable

    Over the last two years, green coffee prices have risen rapidly, with no definitive end in sight. In early February 2025, arabica futures surged to US $4.41/lb, their highest-ever levels, and have remained above US $3.50/lb in the weeks since.

    The situation is the result of a complex web of interconnected factors, but is primarily attributed to the world’s two largest producers of coffee, Brazil and Vietnam, experiencing ongoing climate-induced supply shortages. Compounded by historically low global stockpiles, these disruptions in major producing countries have resulted in significant price hikes.

    Sensing opportunity in this scarcity, commodity brokers and speculative investors have increasingly bet on continued price appreciation, further accelerating market volatility.

    Green coffee has rarely been a product that offers roasters a high markup, but in a post-pandemic world, profit margins have become thinner as costs increase across the board – from labour to energy to packaging.

    “Everything keeps getting more expensive, which is normal, but now it’s happening at a faster rate,” says Jens Crabbe, the founder of MOK Coffee, a specialty coffee roaster in Brussels, Belgium, which uses a Stronghold S9X machine. “Historically, coffee is a cheap product compared to tea, beer, and other alcoholic beverages, so it’s a necessary price increase; coffee is undervalued as a commodity.”

    Because of its historical association with being a cheaper product, however, some consumers are reluctant to adjust to price increases.

    “People who don’t want to pay higher prices might complain about paying a couple of Euros more for an excellent coffee, but will spend the same amount more on a can of craft beer, which is faster to make, probably locally made, and historically more expensive,” says Jens.

    This ultimately puts roasters and coffee shops in precarious positions, striking a balance between absorbing and passing on additional costs.

    Dajo Aertssen at Cafés MUDA uses a  Stronghold S9X roaster.

    Why more café owners are roasting their own coffee

    Price volatility is becoming a lasting reality for the coffee industry. A recent UN report asserts that the residual impact of high coffee prices could affect consumers for the next four years, foreshadowing a significant shift in their behaviour. For many, visiting a coffee shop may become less of an affordable luxury, as they pivot to at-home consumption to manage monthly budgets.

    Café owners inevitably have to make difficult decisions. With margins already slim, they will need to pass on some of the additional costs to consumers and find new ways to streamline operations.

    One option is to start roasting coffee in-house, rather than relying on wholesale suppliers. While this decision allows businesses to have more control over their supply chains, it also comes with a number of crucial factors to consider before making the transition.

    First and foremost, café operators need to look beyond the immediate impact of high coffee prices and understand how roasting can be integrated into a long-term vision for their business.

    “Cafés that want to roast in-store shouldn’t do it because of price alone,” Jens tells me. “If your only motivation to roast yourself is because it’s cheaper, then it’s the wrong part to focus on. You also need to create added value to your business and the customer experience in their shop.

    “Café owners should still take responsibility to learn if they want to become coffee roasters,” he adds. “Technology certainly helps, but you need to learn how to do it firsthand.”

    Switching from wholesale suppliers to roasting in-store is a significant transition, but with it comes a greater connection to the product itself. Café operators are able to exert more control over their supply chains and the quality of the coffee they serve, empowering them to make more effective business decisions that streamline operations and improve efficiency.

    Moreover, establishing closer relationships with producers, importers, and exporters adds more value to the wider supply chain, which can be marketed and communicated to consumers.

    How in-store roasting impacts operations

    Naturally, switching from buying roasted to green coffee has a number of implications for business owners. Not only is green coffee lower in cost per pound when compared to buying wholesale roasted coffee, but price volatility can also be easier to manage. Café owners are able to oversee the costs of green coffee directly, bypassing the additional costs from wholesale retailers, which would inevitably have to be absorbed or passed on to consumers.

    As a result, business operators have more control over their cash flow management, although green coffee sourcing still requires careful planning.

    “We, like every other company, have been faced with higher operating costs, says Dajo Aertssen, the CEO and head of coffee at Cafés MUDA, a specialty coffee roaster in Lille, France, and the official distributor of Stronghold machines in France, including sustainable roasters designed for in-store use.

    “We buy or select our coffees around six months before we actually release them, when they’re still with the producer after drying,” Dajo adds. “This helps us plan ahead and not have to buy spot coffees that suddenly become more expensive because they’re more closely related to the C market. We have direct contact with producers, fix the prices outside of the C market, and work with them long term through importers that handle the logistics.”

    Roasting your own coffee also diversifies revenue streams, which, as cash flow becomes tighter, has never been more important. Selling in-house roasted retail coffee often results in higher long-term profit margins compared to stocking wholesale coffee bags, building more resilience to weather future market challenges.

    Roasted coffee beans being released from a Stronghold S9X roaster into a cooling tray.

    Finding long-term success with in-house roasting

    The transition from café owner to roaster is a major one that comes with its own unique challenges and opportunities. Investing in a roasting machine, as well as the associated necessary equipment (such as green and roasted coffee storage silos) presents significant upfront costs, but coffee shops are likely to recoup the investment if they adopt a strategic approach to in-house roasting with a long-term vision.

    “Within a year or two, many business owners are looking for a different machine, and it’s already a big investment,” Jens says. “If you buy a machine that’s too small, it could hurt you down the line. You have to roast for all of your B2C orders, so imagine if you want to take on B2B clients; buy the biggest roaster that you can.”

    Historically, cafés roasting their own coffee might experience an initial dip in quality, as business owners and experienced baristas grapple with honing their roasting skills and knowledge. 

    Today, meanwhile, modern roasting technology has largely helped eliminate this issue, automating and controlling the process. Roast profiles can be easily adjusted, which helps reduce waste, manage labour costs, and maintain quality standards during the transitional period.

    “You should be able to leave the machine to roast by itself, which links back to the overarching point: you want to roast in store because you want to have more control over what you’re serving,” Jens says. “Roasting in store allows you to be more connected to your product and figure out your own style.

    Stronghold machines are intuitive; you can set the profiles to roast coffee automatically,” he adds. “The infrared sensors, which are more sensitive than probes, accurately display the bean surface temperature. Moreover, there are three heat exchange systems, which give the user more control over the process.”

    Investing in equipment

    Given the large upfront investment to buy roasting equipment, café owners need to select cost-effective, efficient models.

    “Stronghold provides a separate smoke filter, so you don’t need to install a ventilation system,” Jens says. “If you need to start installing pipes, then you also need licenses, so they are low entry for roasting in-store. 

    “They’re also electric, so it’s cleaner energy and creates a safer working environment,” he adds.

    The ultimate goal should be to manage costs and diversify revenue streams, bolstering long-term business growth.

    “We bought the S9X around six months ago to be more efficient in our workflow at the roastery, and it’s been a game changer for us. It’s easy to clean and use, and it helps us decrease labour costs and focus on developing and updating profiles,” Dajo tells me. “Once we’re happy, the machine replicates them, which reduces our labour costs and allows us to be more flexible with our wholesale coffee prices.”

    MOK Coffee sign on a wall in Brussels, Belgium.

    Sustained high coffee prices signal a new era for the industry, and coffee shop operators are finding new ways to adapt and offset the costs. Roasting their own coffee in-house is proving to be one of the most effective strategies.

    Although it requires significant investment and skill learning in the beginning, innovative new machines and technologies are helping café operators streamline their transition into in-house roasting, reducing labour costs and maintaining quality standards.

    Enjoyed this? Then read our article on why some roasters are switching to electric machines.

    Photo credits: MOK Coffee, Stronghold

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