Author: Jason Holms Last Updated On: 9/18/2022

A 2020 study by SquareUP shows that there has been a 109% increase in coffee subscription sales and a 25% increase in coffee companies offering coffee subscription services from 2019 to 2020.

Data from Google trends also show increased interest in coffee subscriptions, with December 2020 being the peak search month for the topic.

While the Covid-19 pandemic has significantly sped up the interest in the subscriptions, coffee subscriptions have been on an upward trend for over a decade, and it’s for a good reason.

How does it all work?

A coffee subscription service delivers coffee directly to a customer’s mailbox weekly, monthly, or on any other pre-determined basis. The coffee is sent from the subscription’s roaster or directly from the coffee roaster.

Many coffee subscription companies send the coffee at the beginning of every month, at the same time, for all their subscribers. But some premium service providers ship the coffee to their customers on customized schedules and at different recurring frequencies.

While some subscriptions will allow the customers to choose and rotate their preferred coffee, many ask for basic customer details, such as the preferred brewing method, roast profile, and grind size.

The subscription services that allow you to rotate the coffee will do it based on the roaster’s profile, where they give their customers a chance to try out a “coffee of the month.”

What is so alluring about coffee subscriptions?

Coffee subscriptions come with a number of perks:

According to Mathew Berk, the founder of Bean Box, the primary reason consumers prefer subscriptions over buying from their local stores is because the subscriptions give them a tasting experience.

When you order your coffee, many service providers will send you fresh coffee type to try. This is attractive not only to coffee enthusiasts but also to beginners who are dipping their toes into the coffee. The subscription model gives them a way to figure out their preferences.

The other factor that draws people to the subscription model is the freshness of the coffee. As a coffee lover, you understand that the quality of your cup of coffee is directly correlated to how fresh the coffee beans are.

Most coffee subscriptions send coffee within hours of roasting, meaning that you receive your coffee while it’s still fresh, and the flavors you crave are still rocked in and ready for you to brew at peak freshness.

Coffee subscriptions also allow you to customize your coffee based on your preferences. 

Sure, you can use a dairy alternative in your local coffee shop where you try out a different type of coffee every day or add a distinct flavor to your cup of coffee, but this is where the customization ends.

The baristas and coffee shops have control over the espresso recipe or coffee, and even if you know you are taking high-quality coffee, you have no control over the recipe.

Coffee subscriptions give you complete control over your coffee. You can control the type of coffee you want, the roast level, and even the delivery schedule.

You can customize your coffee subscription to cater to your every need and desire!

For business owners, the subscription model gives businesses more stability. Since they have a known number of monthly customers, there is less pressure on the books, not to mention better cash flow and inventory management.

Do you think a coffee subscription service is your thing? Find out more about it here.

How can coffee subscription companies keep pulling people in?

As much as there have been plenty of positives written about the coffee subscription business model, it’s not all smooth sailing, especially for subscription companies.

This is because the vertical is highly crowded and highly competitive. If you are in the business, you might be wondering how you can stand out and compete, right?

Well, there are several hooks you can take advantage of.

The first one is to give your customers a fantastic tasting experience. As much as the subscription box is curated to the customer’s preferences, create variety.

Allow your customers to try out their preferred coffee blend from different parts of the world.

For example, allow them to try out coffee from Asia, Africa, North America, and any other region you might have in your catalog.

Besides this, have different roast levels.

Another way to stay competitive is to focus on quality over quantity. You might find this a cliché, but it’s vital in the coffee industry. The advantage of the subscription model is that it allows companies to send fresh-roasted beans directly from the roasters.

Only work with quality roasters with a proven record to keep your customers happy. You should even partner with artisanal roasters that your customers would never even consider trying their coffee.

Finally, make your coffee subscriptions available to everyone. You can do this by having different subscription levels. And don’t stop there. Every time you send out a subscription box, strive to educate your customers.

There is no problem with your customers knowing the difference between Kenyan and Ethiopian coffees or even the difference between the different coffee pour-overs.

What is the future of coffee subscriptions?

As mentioned, the sharp interest in coffee subscriptions was driven by the Covid-19 lockdowns, but as the economies open up and there are more open coffee shops, is there a reason for the coffee companies to lose sleep over the loss of customers?

While going to a coffee shop is an experience and it’s unbeatable to have someone who knows about coffee serving you, there are people that still want to continue making their coffee at home.

And with the ever-growing number of coffee lovers, the future of the coffee subscription business model looks bright, but coffee companies need to be strategic in how they go about it.

They shouldn’t simply send the coffee boxes. They should strive to educate their consumers on the different coffee blends and push them to try out different recipes.

Like the local coffee shops, the coffee companies should work on their craft and make the subscription service an exciting experience.