Sustainability challenges for today’s coffee market

Sustainability

August 19, 2019

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Related regions: EMEA

What sustainability challenges face today’s coffee market? 3 key sustainability take-aways from the International Coffee Congress on Sustainability

Berlin-COngress-COVER

Sustainability continues to be a fundamental consideration for the coffee industry. Giorgio Dini, Amcor’s Marketing Manager for Coffee, reflects on the key discussion points from this year’s International Coffee Congress on Sustainability that took place in Berlin, in June.

At this year’s International Coffee Congress on Sustainability in Berlin, 240 coffee experts from 22 countries gathered to discuss sustainability in the coffee market. With sustainability only growing in importance to consumers, coffee brands are increasingly seeking ways to create a more sustainable business model, looking at their overall product carbon footprint, the impact of packaging to the environment, and their social responsibility.

The event, hosted by the German Coffee Association, included interesting talks from Fairtrade, Specialty Coffee Association, Nespresso, and the Rainforest Alliance to name but a few. Read on to discover 3 key discussion points and understand how consumer trends and sustainability legislation will impact coffee packaging moving forwards.

1. Certification claims can have an important effect on buying behavior

In terms of consumer buying behavior and whether the impact of certifications such as Fairtrade and UTZ Café affects this, there isn’t a one-size-fits-all answer. Consumers act differently across different regions. Many factors influence their decisions, and the dynamics in which consumers purchase are fluid.

According to a study presented by Prof. Dr. Olivier Kaul (smartcon GmbH), 39% of consumers say that not enough products on the shelf are certified. Overall, product certification awareness varies from one country to another. In the UK and Germany, for example, Fairtrade is the most recognized certification by a large margin1.

Despite the complexity of purchasing decisions, claims and certifications paired with strong brand positioning can support sales growth and cater to consumers’ preferences. And some regions do show clear behavior linked to claims: 37% of German coffee consumers say they would pay more for coffee that is ethically sourced, such as Fairtrade2.

According to Mintel, an increasing number of coffee brands are launching in new markets with on-pack claims about sustainability – this sustainable brand strategy proves to be an important purchase driver amongst shoppers, especially Millennials.

sustainability-claims-graph

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2. Coffee packaging can help educate consumers about their coffee purchases

When it comes to Sustainability in the Coffee sector, all actors agreed there is immediate need for further action and that cooperation is necessary.

With coffee production growing steadily, the rise in production costs, as well as climate change, it becomes crucial to communicate to consumers more effectively, and show the value of more sustainable products. This topic was addressed by Tchibo, in Berlin, as a way to move the needle towards more sustainability in the coffee sector.

At Amcor, we believe that coffee packaging can help to educate consumers about how their purchases impact the environment. Packaging represents a communication line between the consumer, roaster, and farmer, and enables brands to build trust and advocacy. A 2017 study by Packaging Digest found that consumers and brand owners see on-package messaging as the most effective way to educate consumers about more sustainable packaging.

Innovations like Amcor’s MaXQ digital packaging system provide brands with a range of tools to build relationships with consumers through personalized, targeted, two-way conversations. A quick scan of the MaXQ bag immediately connects the consumer to a wealth of information about the coffee’s origin, its producers and processing, and its journey to the retailer. And according to the insights presented in Berlin by the Specialty Coffee Association, 66% of the consumers think transparency is one of a brand’s most attractive qualities.

Related read: More sustainable packaging: 5 common questions

3. Progress is being made towards more sustainable solutions for coffee capsules

As sales of coffee pod/capsule machines continue to rise, discussions around the sustainability of coffee capsules and consumer perception also took place at the International Coffee Congress on Sustainability.

Here’s a look at the three main types of capsule, and their current sustainability credentials.

  • Aluminium capsules have a very good sustainability reputation thanks to the work done by Nespresso. Because it’s recyclable, aluminum is a smart solution, but aluminum capsules are not widely available to roasters due to technology limitations.
  • Compostable capsules are in strong demand. The consumer-appeal is high, the marketing message is clear and direct, but high-barrier compostable capsules are, again, not widely available (most are no-/low-barrier which compromises coffee quality and shelf life).
  • Plastic capsules won’t disappear anytime soon, because not all roasters can afford to move to aluminum or compostable options. To simplify the design for recyclability and improve sorting of such capsules, mono-polyolefin capsules and lids should be targeted.

While some countries are more advanced when it comes to end-of-life of aluminum and compostable capsules, the conclusion was that a lot of work still needs to be done across Europe to increase post-consumer streams. At present, recycling and composting rates of coffee capsules can be improved, and brands such as Nespresso are making significant progress with its recent move to share its recycling system with competitors.

More sustainable solutions for coffee capsules

nespresso-capsules

Related read: The simple, more sustainable switch to bio-based packaging

Not compromising on quality will bring new opportunities for coffee brands

To summarize, sustainability is an important purchasing driver among consumers, but it must go hand in hand with product excellence. In the not too distant future all brands will be obliged to follow regulations which state that packaging must be designed for recycling or composting. It is important that consumers understand that sustainability doesn’t mean any compromise to quality, and that brands keep this message front of mind. Quality will continue to be a factor that gives brands a competitive edge.

Related read: Metal-free coffee packaging that’s better for the planet

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1 Source: What is the impact of CSR on the image of coffee brands, the perception of the industry and on the purchase? Presented at the ICC on Sustainability, June 05, 2019.
2 Source: Mintel: A Year of Innovation in Coffee, 2019.

Giorgio Dini

Marketing Manager for Coffee, Amcor

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