X
Table of Contents
X
Table of Contents
Contents
By
Bryan Huynh
Key Takeaways
Coffee is one of those beverages that is so ingrained in modern society that it's hard to believe what life could or would look like without it. However, the modern coffee experience is much different from what older generations were used to. For many years, coffee was pure and simple, with just a few add-ons to help maximize the flavor.
Since the 1970s and the rise of specialty coffee shops like Starbucks, the entire industry has shifted. Whereas instant coffee and basic roasts used to dominate the field, now more brands are focused on small-batch beans sourced from some of the best farms around the world. Consumers have more choices than ever, and they can buy from brands that represent both their flavor preferences and values.
But the rise of specialty coffee didn't happen overnight, nor did it occur in a vacuum. Let's look at the history of coffee and see why it has become such a diverse and multifaceted industry.
Before we can look at the proliferation of specialty coffee, we must first understand what it is. Specialty coffee is defined as coffee roasts that have been grown, harvested, and roasted at their peak conditions. So, every component is crafted to deliver the best drinking experience possible for that bean and that roast.
Basically, specialty coffee is far more artisanal and flavorful than traditional large-batch coffee blends. While many of the big companies roast beans that are "good enough," specialty coffee growers and roasters only select the best beans for each batch.
One of the most influential organizations is the Specialty Coffee Association (SCA), which develops and sets standards for specialty coffee blends. Although these standards are voluntary, they offer transparency and confidence for consumers. So, if a coffee enthusiast wants to ensure they're drinking the best roast, they can verify if the batch meets or exceeds SCA standards. Specifically, whether it scores at least 80 points on the SCA's evaluation scale.
The SCA has extensive guidelines and rules regarding how they score a particular roast. Everything from the equipment used to the time it takes to roast the coffee is included in the evaluation. Most roasters aim for a score between 80 and 85, which is "Very Good" coffee. From there, batches can rank "Excellent" (85-90) or "Oustanding" (90-100).
As with anything else, specialty coffee didn't evolve overnight. It took years and decades for both roasters and consumers to shift their mindsets and pay closer attention to every step of the coffee-making process. In fact, you can see these incremental steps in three distinct "waves" of coffee consumption.
Here's a brief overview of each wave and how it's defined.
Although coffee has been around for centuries, there has always been one problem that plagues its production and consumption—consistency. Starting as early as the 1500s and onward, there were no standards for coffee beans or how to roast and brew them. So, everyone tried their own gimmicks to see what worked.
It wasn't until the Industrial Revolution that companies started producing consistent batches of coffee. During the 1800s, companies like Maxwell House, Nestle, and Folgers began harvesting and packaging massive quantities of beans to distribute to consumers. During this wave, advancements like instant coffee and vacuum sealing became prevalent.
Still, the main draw was quantity over quality. Most consumers just wanted to get caffeinated, and they didn't care much about the origins or quality of their beverage. While it's hard to pinpoint when this wave ended, most experts agree it was around the 1970s.
When Starbucks first hit the scene, it was a novel concept. However, because the company paid attention to the quality of its product, customers took notice. A big reason why Starbucks became such a global phenomenon is that it was the first brand to offer better roasts from different parts of the world. Now, quality was more important than quantity, especially for the consumer.
The peak of this wave hit around the 90s when coffee shops became more mainstream and culturally important. TV shows highlighted the social aspect of hanging out in a coffee house with friends, and consumers wanted higher-quality beverages. This wave tentatively ended in the late 2000s.
As you can see, each successive wave of the coffee movement got smaller and smaller, at least in terms of their focus. While the first wave brought cheap coffee to the masses, the third wave focuses on small-batch roasts from local farms around the globe. This wave is distinguished by a rivalry between "big brands" and "little brands."
As consumers become savvier and more aware of where their coffee comes from, they want to ensure big companies aren't taking advantage of small operations. Customers often seek out artisanal roasts that may cost more but taste better than anything a big brand like Maxwell House could deliver.
The fundamental philosophy of the third-wave coffee movement is choosing quality over quantity. Consumers want to know as much about their beverage as possible, from where it was grown to how it was harvested, roasted, and shipped to their local coffee shop.
Some of the core tenants of third-wave coffee include:
However, this wave is also marked by a distinct customer-service mindset. Both roasters and coffee shops cater to specialty coffee lovers by providing more information about what's in their cups and enhancing the flavor via innovative brewing methods. Since customers are willing to pay extra for higher-quality coffee, providers are stepping up and ensuring a better, more well-rounded coffee-drinking experience.
Some examples of third-wave coffee brands include Intelligentsia, Blue Bottle Coffee, Stumptown, and Verve Coffee Roasters. Cities with a big coffee-connoisseur population (i.e., Seattle) have many more local shops and brands that cater only to their residents.
The main impacts of third-wave coffee include a better relationship between growers and distributors, a heightened focus on sustainable farming practices, and the rising popularity of different types of coffee beans (e.g., robusta or liberica).
There's a direct correlation between modern consumers being savvier than ever and the easy access to information via the internet. As computers and smartphones became more widely available, it was much easier for coffee drinkers to learn more about the coffee-making process.
A defining factor of why so many coffee lovers started paying attention to the industry is because of a history of exploitation and abuse. For decades, growers would sell their crops for pennies on the dollar while big corporations would rake in billions from customers. As individuals became aware of this disparity, the calls for equity grew.
Then, in 1988, the concept of "Fair Trade" coffee was developed and quickly became the industry standard. This set of best practices helped ensure growers could sustain their farms and earn a fair amount for their crops. Now, it was economically viable for farmers to start paying closer attention to their harvests, leading to specialty coffee varieties.
It's also important to note that younger customers are more inclined to pay attention to the origins of their coffee. While older generations were used to big brands like Folgers, Millennials and Gen Z drinkers are more focused on sustainability. Since these generations consume more coffee than anyone else, companies and coffee shops are adapting to meet their demands.
Because specialty coffee is all about maximizing a bean's peak flavor profile, drinkers must be able to trace their cup to the source. Third-wave coffee connoisseurs can tell you virtually everything about what they're drinking. They can tell you the type of roast it is, where it was grown, and why that location delivers such a superior flavor experience.
For example, volcanic soil works best for coffee plants because it's so rich in nutrients and minerals. So, coffee farms that utilize volcanic soil tend to command a higher price than those that use regular dirt.
Direct trade helps establish a connection between farmers and customers. So, as customer demands shift and adapt, farmers must keep up with these changes. For example, if an artisanal brand starts using unsustainable farming practices, its customer base may turn away from it and switch to a different company.
Overall, the farm-to-cup journey helps establish accountability and prevent abuses within the supply chain.
High-quality coffee doesn't taste very good if it isn't brewed correctly. While drip coffee makers used to be the norm, they're almost antiquated for many modern consumers. Instead, connoisseurs prefer to take more control over their brewing methods.
One example is the rise of at-home grinding. Because the aromas and flavors are at their peak just after the beans are ground, more drinkers prefer to do it themselves. While vacuum sealing can help preserve some freshness, it's not the same. So, many third-wave coffee enthusiasts use grinders and specialty coffee brewers to make their favorite cups.
That said, grinding and brewing specialty coffee from scratch can take a while, so many customers defer to the barista at their local coffee shop. These days, baristas are far more specialized and highly trained than in years past. Before, the term "barista" didn't even exist. Now, they are more akin to mixologists and high-end bartenders than standard foodservice workers.
While baristas at major chains have a limited understanding of specialty coffee, those who work at a local shop are likely more well-educated. Often, a skilled barista can bring out better flavors and aromas than a connoisseur could with the same equipment at home.
The specialty coffee industry is growing at a healthy rate. In 2020, it generated roughly 2.9 Billion in sales. A year later, that number swelled to 3.3 Billion. According to research, the industry is expected to grow about 10 percent annually through 2030, so there are no signs that demand will slow anytime soon.
However, as with many other industries, there's a disconnect between supply and demand. Because of the rigorous standards required for coffee to be labeled as "specialty," it takes more time and resources to craft each batch. Although there are more specialty farms than ever before, they may not be able to satisfy the growing demand.
On the supply side of the equation, farmers are seeing strong economic gains. Not only are they making more for each harvest, but they can benefit from tourism and selling brewed coffee to customers directly. Overall, the growth has had a net positive benefit on growers, but that's not to say they don't face substantial challenges.
While increased demand has led to higher earnings and better economic output, some obstacles can threaten the entire industry, such as:
Since this wave of specialty coffee is still relatively new, it's hard to say how it will pan out over the long term. However, here are some potential developments that may occur in the future:
Cannibalization - With so many artisan brands out there, it's virtually impossible for them all to succeed. Realistically, larger companies will absorb smaller ones, leading to less competition and over-saturation.
Alternative Coffee Beans - Climate change is here to stay and will only worsen in the future. So, coffee lovers will have to embrace other bean varieties like robusta and liberica. With a bit of creativity and innovation, these beans may increase their market share and become just as common as Arabica.
Hyper-Focused Coffee Shops - Most coffee shops try to appeal to as many customers as possible, but that may not always be the case. Specialty coffee shops may have a more niche following, such as serving only coffees from Vietnam or only one type of coffee (i.e., Turkish coffee). As consumers refine their palates, niche shops may have enough demand to thrive in certain areas.
As consumers become more aware of their role in the global economy, trends like specialty coffee will only become more widespread. What this wave has illustrated is that it's possible for a consumer-minded approach to work well for everyone involved. While some growing pains and issues must be addressed, the overall trend has created a net positive impact.
On top of that, the coffee produced today is far better than any previous varieties. The main reason why demand is so high is that the quality of each cup is incredible. Once a customer samples a specialty coffee roast, it's virtually impossible to go back to traditional options. So, if you haven't tried specialty brews before, now is the perfect time to embrace them.
Ideally, the lessons learned from the specialty coffee wave can be applied to other industries (i.e., chocolate) and create a more sustainable, equitable future for everyone.
Bryan Huynh
Product Tester & Writer
Bryan Huynh is a determined Product Tester & Writer. Being a coffee addict, it is only right that he mainly tests and reviews different coffee from around the world and coffee subscription services.
Bryan Huynh is a determined Product Tester & Writer. Being a coffee addict, it is only right that he mainly tests and reviews different coffee from around the world and coffee subscription services.
Edited by:
Bryan Huynh
•
Product Tester & Writer
