Summary
Bloomberg reporter Kristina Peterson discusses the trend of US consumers seeking lower-caffeine beverage options, driven by wearable sleep tracking, health consciousness, and reduced alcohol intake. Beverage companies are launching half-caff blends, decaf cold brews, and functional teas to capture demand, while ready-to-drink decaf and lower-caffeine coffee sales are expanding.
- Consumers are tracking caffeine's impact on sleep via devices like Oura Ring, prompting afternoon lower-caffeine choices.
- Health and wellness trends, particularly among younger generations, and reduced alcohol consumption are fueling demand for alternative evening beverages.
- New products include matcha, hojicha, half-caff blends from Peet's and Starbucks, PepsiCo's sparkling tea with L-theanine, and caffeine-free sodas.
- Ground coffee and coffee bean sales are declining, while ready-to-drink decaf and lower-caffeine coffee is a growing segment.
- A company is launching a decaf-only cold brew in cans, betting on a market for caffeine-free options.
- Jim Beam is launching its first non-alcoholic product amid the broader trend of health-conscious cutbacks.
- The trend is not expected to replace traditional coffee for the whole population but has staying power for a specific consumer segment.