Interesting Developments in the Coffee Industry

Premium Coffee Brand

South Africa has seen a few interesting developments in the coffee industry. At Café Kreme, coffee and customers are our passion. Therefore, we are constantly abreast of all developments surrounding coffee and how it influences our customers.

Coffee Labels

On 1 November 2021, strict new rules on what manufacturers may label as coffee were enacted. This comes as part of constant regulatory initiatives aimed at preventing consumers from being misled.

SA's new coffee labelling regulations published - DRINKStuff SA
South Africa’s new coffee label regulations were published in October 2021

The new amendments were published on the 30th of October 2020 by the Department of Agriculture, Land Reform and Rural Development.

The new requirements mean that some of South Africa’s well-known brands may not be classified as coffee anymore. Products in the categories “mixed coffee” or “coffee mixture” must contain 75% ground coffee.

As a result of these amendments, a new category called “chicory and coffee mixture” was introduced. This category makes allowance for products containing 50% chicory. This sees a certain household brand, which contains only 32,5% chicory, as not being able to label its product as coffee, or mixed coffee, or coffee mixture, or chicory and coffee mixture, and leaves us at Café Kreme wondering what they will now label their product.

An Increase in Good Quality Coffee Consumption

Good quality coffee

In South Africa, the local coffee market experienced positive growth in 2020 and 2021, achieving a 2.1% year-on-year growth relative to 2019. This increase is expected to continue, with the market forecast to grow at a compound annual growth rate of 2.5% between 2021 and 2025. This growth, both globally and locally, is being driven by several factors, including the increase in at-home coffee consumption.

As a result of the Covid-19 pandemic, consumers, both globally and locally, are looking for ways to improve their at-home coffee experience, as well as continuing to enjoy their favourite coffee drinks, without having to leave their homes. To cater to this demand, Café Kreme has recently launched its Rent-to-Own option which allows consumers to own their very own restaurant quality coffee machine (whether bean-to-cup, or capsule option) in the comfort of their own home at a very affordable price.

Growing Trend

As with fashion, coffee also has its trends. One such a trend is single origin coffee. Single origin coffee, also known as single source coffee, is harvested from a single crop, country, or region and carries the unique flavour notes of its origins. Today’s coffee consumer cares about ethical procurement, unique flavour experiences, coffee tourism, and sustainability. Tracing beans back to their grower allows you to confirm that they are fair trade, sustainable, and organic.

Single origin coffee beans cost more than coffee blends, but their retail value is far greater. Coffee drinkers will pay 200% more for roasts with a clear origin country. The more information a company can provide about their single origin selections, the better. If you want to engage with the region and culture that made their beverage, go have a look at our single origin coffee products.

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