Explaining the 3 Waves of Coffee Market Development. Part 2

This is a continuation of the article. Read about Wave #1 in the previous article

The second wave of coffee market development

   The second wave is associated with large coffee chain brands that began to develop in Western countries (and then spread around the world). These retail chains have revolutionized coffee consumption culture, most notably in the United States. Other countries began to imitate and copy the States, trying to join their way of life. At the end of the 20th century, these brands brought a lot of new things to consumption.

    Yes, they started showing information not only about the region and country of origin of the coffee, but sometimes also the farm, and focusing on higher quality coffee than cheap market coffee. Many delicious coffee recipes were also invented with milk, toppings, sprinkles, other complementary flavors, whipped cream, other ingredients, and straws that were inserted into glasses of coffee drinks. 

   Still, this wave is characterized by a focus not on the quality of the coffee itself, but on the experience that the consumer receives. The emphasis is on a creative drink, a good mood, and friendly baristas. 
   
   This undoubtedly increased interest in coffee. But the coffee itself rarely strayed from the darkest roast, which left the coffee on its own, without additives, still as bitter, uninteresting, and uniform as in the first wave. 

   In a large number of countries that consumed coffee, instant coffee became widely available during the 2nd wave. In some countries, it still remains too popular, which is why natural, high-quality coffee beans cannot compete with it (a prime example is Japan). 
   
   The beginning of the 2nd wave is usually considered to be the period of the 1950s-1960s in the USA and some European countries. In other countries, the 1st wave migrated directly into the 3rd or into a mixture of the 2nd and 3rd waves. Despite the beginning of the 3rd wave in the 1970s and widespread development in the 1990s-2000s, the second wave continues in many countries around the world today.

   Common signs of the second wave: 

   • Dark roast, bitter coffee; 

   • Creating sweet coffee drinks; 

   • Rapid development of chain coffee shops around the world; 

   • Lots of ground and bean coffee in packs in supermarkets; 

   • A little more recognition of the country and farm of origin of the coffee; 

   • Popularization of baristas, but they are more passionate about making coffee than about the beans themselves.

   The third wave of coffee market development 

   The third wave developed from a niche community in the US in the 1970s that focused on the quality and properties of coffee beans. This small group of coffee roasters experimented with the lightest and medium roast levels of beans to discover new, exotic flavors and aromas of high-quality natural coffee. 
   
   In 1982, the Specialty Coffee Association of America (SCA) was founded, providing a platform for the development of new roasting and brewing styles. At the same time, this wave gained popularity in other regions of the world, including Australia, Canada, and Scandinavia. This sub-industry grew in the following decades, and continues to do so today.    
   
   The term “third wave” itself (like all other waves) was introduced in 1999 in print media. More and more consumers realized that there were many other nuances of taste and aroma in coffee than just bitterness and an ashy taste. The 3rd wave is a coffee renaissance that continues into 2024. 

    Today, the phrase “third wave” itself is rarely used. People more often refer to the segment as “specialty coffee.” In the US, Australia, and Scandinavia, it is the largest coffee sub-industry, employing over a hundred thousand people. 

    Specialty coffee is developing thanks to large industry exhibitions, global competitions, formalization of conditions for growing and processing such coffee, and the efforts of many dedicated people. Today, the focus is on high-quality coffee beans with all their properties, which are highly appreciated by experts. Specialty coffee today is light and medium roasting, transparency in origin and love for a cup of really good quality. 

   Common signs of the third wave: 

   • Appreciation of specific notes in taste and aroma; 
   
   • Lighter roast profiles; 

   • Emergence of latte art; 

   • Focus on heterogeneity, on specific origin (specific farm) of beans; 

   • Popularity of hand brewing methods, e.g. French press, V60, siphon; 

   • Fresh roasting.   

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Explaining the 3 waves of coffee market development. Part 1