The Small Bean’s Large Impact
Did you know: one quarter of homes in the U.S. has a pod-style coffee maker? [1]
Towards the end of the 20th century, Starbucks had started to normalize the idea of drinking coffee in single-cup servings, offering consumers more opportunities at flavor varieties. This helped to set the stage for the introduction of pod-style coffee, which took off in the U.S. when Green Mountain purchased Keurig in 1998 [2].
Since then, the pod-style system has expanded to other types of beverages…
This new method of making coffee capitalized on the consumer desire for convenience and variety. No longer would users have to vary the parameters of traditional drip-brew coffee making (for example, the water temperature, extraction rate, weight of coffee, etc.); instead, this was all done automatically with a press of a button. The simple single-serving system also meant that users could swap out a new flavor with every cup.
As Mike Hachey, CEO of Egg Studios, expressed, “Any cup of coffee we want! And look, they brew Starbucks! [1]”
Keurig machines use less coffee in terms of weight to produce a cup of coffee than traditional machines. With this in mind, pod-style coffee is actually more expensive in terms of the amount of coffee that one pays for; however, the price per cup of coffee is lower. In the eye of the consumer, who cares more about the cost-per-cup than the cost-per-coffee-weight, it is the more cost-effective means to get their caffeine fix [3].
Despite the opinions of coffee snubs who adamantly proclaim that pre-ground coffee is not artisanal, pod-style coffee companies are proving otherwise by appealing to a haute consumer group: Michelin-starred restaurants. Nespresso claims that around 30% of Michelin-starred restaurants around the world use their products [4].
But Wait…
Pod-style coffee has seen a meteoric rise since its debut; however, that growth could be slowing down due to increased scrutiny on its environmental impact (for example, the viral “Kill the KCup” campaign) and the improving economy, which might cause a shift in American consumerism toward paying more for coffee made in coffee shops [5].
[1] J. Hamblin, “How Bad Are KCups for the Environment?,” The Atlantic, The Atlantic, 02-Mar-2015. Available at: https://www.theatlantic.com/technology/archive/2015/03/the-abominable-k-cup-coffee-pod-environment-problem/386501/ [Accessed 10 Feb. 2020].
[2] Á. González, “Single-serve coffee revolution brews industry change,” The Seattle Times, The Seattle Times, 19-Feb-2014. Available at: https://www.seattletimes.com/business/single-serve-coffee-revolution-brews-industry-change/ [Accessed 10 Feb. 2020].
[3] O. Strand, “Single-Serve Coffee Brewers Make Convenience Costly,” The New York Times, The New York Times, 07-Feb-2012. Available at: https://www.nytimes.com/2012/02/08/dining/single-serve-coffee-brewers-make-convenience-costly/ [Accessed 10 Feb. 2020].
[4] C. Rainey, “Pod People: Nespresso’s Push to Become High-End Restaurants’ Go-To Coffee,” Grub Street, Vox Media, 21-Mar-2013. Available at: https://www.grubstreet.com/2013/03/nespresso-sold-at-michelin-starred-restaurants/ [Accessed 10 Feb. 2020].
[5] R. A. Ferdman, “America’s favorite coffee trend may be coming to an end,” The Washington Post, The Washington Post, 03-Feb-2016. Available at: https://www.reuters.com/article/us-coffee-demand-kcups/americans-are-drinking-less-coffee-one-k-cup-at-a-time-idUSKBN0P209F20150622/ [Accessed 10 Feb. 2020].