As consumer preferences and environmental factors continue to evolve, the café industry in 2025 is experiencing several new trends.This article explores market changes from both a global and Taiwanese perspective, covering innovative flavors, sustainability efforts,climate change impacts, strategies for coping with rising coffee costs, and recommended tea ingredients for cafés.By analyzing the latest data and expert insights, café owners and coffee enthusiasts can stay ahead of these emerging trends.
Global Café Market Trends: Innovation and Sustainability
Innovative Flavors and Diverse Experiences
The coffee industry is continuously innovating to cater to younger generations’ demand for diverse flavors.
Many cafés are introducing creative beverages, such as kombucha with tea-fermented flavors or coffee cocktails. The classic Espresso Martini has recently made a comeback on café menus, while cold brew coffee cocktails are also gaining popularity.
Additionally, plant-based milk alternatives are becoming mainstream, with many consumers opting for oat milk, almond milk, and other substitutes due to health and dietary reasons. This trend is expected to continue into 2025.
Sustainability and Ethical Sourcing
The growing awareness of environmental issues has made sustainability a key trend in cafés worldwide. Studies show that modern consumers increasingly consider a brand’s eco-friendly practices and ethical sourcing when making purchasing decisions. Many international coffee chains and independent cafés are adopting measures such as compostable cups, carbon footprint reduction, and fair trade coffee sourcing. Sustainability is no longer optional—it is essential. Businesses that emphasize ethical coffee sourcing and environmental initiatives are more likely to attract and retain younger customers.
Taiwanese Café Market: Consumer Trends and Local Characteristics
Rapid Market Growth
Taiwan’s coffee market has expanded significantly in recent years, ranking third in Asia in terms of per capita consumption.
According to Taiwan’s Tea Research and Extension Station, the average annual coffee consumption per person in Taiwan is 1.77 kg(approximately 177 cups), second only to Japan and South Korea. Over the past five years, Taiwan’s coffee consumption has grown by more than 20% annually, highlighting its strong momentum. Taiwan’s Ministry of Finance also reports that the number of cafés nationwide has exceeded 3,800, with one-quarter concentrated in Taipei. Coffee is no longer just an energy booster—it has becomean integral part of social and leisure activities.
Competition Between Chains and Local Innovations
With booming business opportunities, competition between international chains and local brands is intensifying. Major chains like Starbucks, Louisa Coffee, and 85°C continue expanding, but they face challenges in brand image and store space innovation. Emerging local brands, such as CAFE!N, have successfully attracted younger consumers through youthful marketing strategies. Many independent cafés in Taiwan differentiate themselves by emphasizing unique aspects such as coffee bean origins, roasting styles, store ambiance, and food pairings. Some businesses introduce specialty single-origin coffee beans, while others incorporate Taiwanese tea elements to create innovative hybrid beverages, meeting consumers’ demand for high quality and uniqueness.
Impact of Climate Change on the Coffee Industry
In recent years, abnormal climate patterns have significantly affected coffee production. Major coffee-producing regions have experienced extreme weather conditions such as droughts and cold waves, leading to decreased coffee yields and tighter global supply.
In 2024, Arabica coffee prices surged to a 50-year high of 321 cents per pound in the New York futures market, an increase of 78% since the beginning of the year. Brazil, the world’s largest coffee producer, faced severe drought conditions, raising concerns about reduced harvests and triggering a global coffee price surge. Rising energy and logistics costs, along with geopolitical uncertainties, have further fueled volatility in coffee trade prices.
The sharp rise in coffee prices has squeezed profit margins for businesses. Coffee chains and roasters struggle with cost absorption,forcing some to increase retail prices while others seek alternative coffee bean sources. For independent cafés, soaring coffee bean costs pose significant financial pressure. Experts warn that if climate-driven supply-demand imbalances persist, onsumers may face even higher coffee prices in 2025. To mitigate risks, businesses are adjusting strategies, such as diversifying product lines(by introducing more tea-based beverages), improving operational efficiency, and strengthening supply chain resilience.
Tea and Dessert Pairings: Profit-Boosting Strategies
The Potential of Caffeine-Free Teas
With increasing health consciousness, caffeine-free tea beverages are becoming a strong alternative to coffee in cafés. Consumers—including pregnant women, older adults, and those sensitive to caffeine—are seeking non-caffeinated options. Popular caffeine-free teas such as Rooibos, Rooibos green tea, and hibiscus offer unique flavors and all-day appeal.
Examples of tea-based beverages include:
– Rooibos Tea Latte: A caffeine-free tea with a rich, black tea-like taste, offering a smooth texture when paired with oat milk or fresh milk.
– Hibiscus Cinnamon Ice Tea: A refreshing, slightly tangy hibiscus tea, perfect for summer, enhanced with honey and fruit infusions.
– Chamomile Green Rooibos Tea: A mild and soothing drink ideal for relaxation, particularly suited for cafés with evening operations.
Tea and Dessert Pairing to Increase Sales
Cafés are leveraging dessert sales to boost revenue. In Taiwan, coffee is commonly enjoyed with a dessert or light snack, and well-paired food options can significantly enhance the customer experience. For instance, some boutique cafés report that if a customer only orders coffee, the average spending per person is around NT$150. However, when adding a NT$150 cake, the order value doubles. This demonstrates how well-matched tea and dessert combinations can drive higher sales.
Popular dessert pairings include:
– Hong Kong egg waffles
– Belgian waffles
– Handmade American cakes
Recommended Tea Ingredients for Cafés
To help café owners develop creative tea-based beverages, the following tea ingredients from High Tea are recommended:
– Kaya Powder: An instant coconut jam powder with a rich palm sugar aroma and pandan leaf flavor. Perfect for
making kaya milk tea, pandan-flavored lattes, or as a spread for toast and biscuits.
– Golden Passion Fruit Syrup: A concentrated syrup made from passion fruit and pineapple chunks, ideal for tropical fruit tea
or iced beverages. It contains real fruit pieces and does not include artificial flavors or colors.
– Red Velvet Cocoa Powder: A cocoa powder blended with natural beetroot and Dutch cocoa, creating a dreamy, muted pink color.
It has a subtle berry aroma and smooth texture, making it perfect for red velvet lattes or cocoa-based desserts.
Conclusion
The café industry in 2025 presents both opportunities and challenges. Global and Taiwanese market trends highlight the importance of continuous innovation, sustainability, and operational flexibility. By embracing these changes and integrating diverse elements like tea and desserts, cafés can stay competitive and deliver high-quality, unique customer experiences.
