[Asia Economy Reporter Seungjin Lee] Starbucks Korea predicted four expected coffee trends for this year, 'H.O.P.E,' based on Starbucks operational big data from last year.
According to Starbucks on the 4th, the trend of customized beverage orders and menus aimed at psychological stability, along with the increase in home cafe enthusiasts and the further spread of contactless consumption culture, is expected to continue throughout this year.
Based on this analysis, Starbucks plans to continue improving Siren Order and drive-thru (DT) services through IT technology development, strengthening various home cafe product lines, offering more personalized coffee beverages, and developing diverse menus for emotional stability and well-being.
Home cafe. Continued Home Cafe Craze
Starbucks expects the home cafe craze, enjoying coffee like at a specialty coffee shop at home, to continue this year. As outdoor activities became more restricted due to COVID-19, a social atmosphere formed where various cultural activities were enjoyed indoors, and the 'home cafe' craze, where people enjoy coffee tailored to their tastes at home, emerged. In December last year, Starbucks' coffee bean sales increased by 62% compared to the previous year.
Order&pay. Strengthening Digital-Based Contactless Ordering and Payment
With growing interest in contactless consumption culture, the use of Starbucks' mobile app ordering service, Siren Order, also increased. Since the service was introduced in 2014, the cumulative number of Siren Order transactions reached 180 million by the end of last year. The average daily Siren Order transactions last year were 170,000, accounting for 25% of total orders, indicating that one in four Starbucks customers uses Siren Order. Compared to 2019, Siren Order transactions increased by 14.4% in 2020.
The number of customers using the drive-thru, which allows safe and quick ordering from their vehicles, also steadily increased, and the usage rate of 'My DT Pass' rose significantly. 'My DT Pass' is a system where Starbucks Rewards members pre-register their vehicle information, enabling automatic payment with a Starbucks card during drive-thru orders without presenting a payment method. The number of 'My DT Pass' registered customers exceeded 1.5 million last December, accounting for about 20% of all Starbucks Rewards members.
Personalized. Increase in Customers Enjoying Customized Coffee by Selecting Beans
According to Starbucks, customers who change coffee beans according to their preferences when purchasing espresso-based beverages increased by 30% in 2020 compared to 2019. Customers adjusting milk or espresso shots according to their taste also increased. The 'Decaffeinated Caffe Americano' sold over 10 million cups last year, ranking 5th in overall beverage sales in 2020.
Additionally, it was found that 7 out of 10 Blonde Espresso beverages were purchased by customers in their 20s and 30s. This is interpreted as young customers, who express their individuality through consumption and value their preferences, choosing the Blonde Espresso, which offers a lighter and smoother flavor differentiated from the traditional espresso blend. Accordingly, the customer base seeking personalized beverages considering flavor differences is expected to expand this year as well.
Emotional well-being. Popularity of Tea Varieties for Emotional Stability
Among Starbucks' overall beverage sales rankings last year, the only non-coffee beverage in the top five was 'Grapefruit Honey Black Tea,' which ranked 4th. During the social distancing period in the metropolitan area last December, 'Cafe Americano' and 'Cafe Latte' were followed by 'Chamomile Relaxer' as the third most sold beverage. 'Mint Blend Tea,' one of the representative caffeine-free drinks, also showed a 26% sales increase compared to the same period last year.
This is analyzed as customers seeking emotional stability through caffeine-free or low-caffeine beverages. Starbucks expects the popularity of non-coffee beverages that provide psychological comfort to continue this year, especially anticipating attention on drinks containing vegetables or fruits for health.
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