Sales in coffee shops and tea shops are set to grow by double digits in the US this year, GlobalData has said, despite the growing cost of living crisis.
According to a GlobalData study, sales in coffee and tea shops are poised to grow by 10.5% this year, due to their position as an established habit in consumers' daily routines, and following on from a slump in the market due to the pandemic.
According to a recent consumer survey by the research firm, the number of US consumers that claimed to spend a 'high amount' in coffee and tea shops decreased by just 1% in the most recent quarter, indicating that shoppers are less willing to make sacrifices when it comes to coffee and team.
'Inexpensive Luxury'
“This is perhaps owing to the ‘lipstick-effect’ of a retained inexpensive luxury," commented Jenny Questier, senior analyst at GlobalData. "With consumers returning to the workplace, these purchases are a relatively low-value indulgence that makes up part of a classic office ritual—the coffee break—that gives people a chance to socialise, get some steps in and break up the working day.
"As an already established behavior, many people may be reluctant to give up this ‘justified treat’."
Reduced Spending In Leisure Outlets
In other food and drink outlets, such as leisure venues, the percentage of consumers that say they spend a 'high amount' fell by 7% in the same period, GlobalData said.
“On the other end of the scale, spending on food and drink in typical leisure venues or restaurants must be counted, in consumers’ minds, alongside additional entertainment or activity costs," said Questier. "When a family trip to the cinema likely includes visiting a restaurant afterwards, many may opt for cooking at home and Netflix, cutting out these types of activities altogether.”
According to GlobalData’s Q3 2022 consumer survey, the number of US consumers who said they visited coffee shops or tea shops once a week or more was 34%, compared to leisure venues at 25%.
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