It’s time to stock up on decaf

Moderation. It’s a word that’s finding its way into multiple categories within the food and drink sectors right now. Moderation of sugar, salt and fat. Of alcohol. And of caffeine.

According to analysts, retailers and drinks brands, the thirst for decaf alternatives is on the up. There are a few reasons, they say, for this. But leading the charge is wellness. Younger tea and coffee drinkers (especially Millennials and Gen Z) are trying to be more mindful…and having the jitters late in the afternoon, or just before bedtime doesn’t fit in with their greater consciousness of ‘routine’ and ‘settling’ in the evenings.

As discussion grows (in mainstream media, on podcasts and social media) around the importance of sleep to our hormones, weight, mental health and productivity, so more consumers have been sitting up, taking notice, and reaching for alternative brews.

Mintel’s research shows that two-thirds of coffee drinkers are no longer buying it for an energy hit, but for flavour. It also demonstrates that caffeine continues to be a source of concern, with two in five coffee drinkers saying they are trying to cut down.

Brian Williams, sales manager at John Farrer & Co Tea & Coffee Merchants, says the brand’s experience tallies with this, and the team have noticed a 10% increase in sales of decaf coffee over the past two years.

Hundred House Coffee has responded by adding a half-caffeine coffee, Nom Nom, to its range to great success, bridging the gap for those who want a gentle buzz from their cup.

And new coffee alternatives, such as Noffee, a natural, chicory-based alternative filled with gut-friendly fibre, are coming to the fore at a pace, as are caffeine-free superfood and vitamin infused teas from both large and independent brands. Blends to boost immunity, improve gut health, illuminate the skin, alleviate the symptoms of menopause and more are taking off in a big way, with huge sections of shelf space now dedicated to this category in large retailers.

How are decaf tea and coffee made?

Traditionally both tea and coffee have been processed using chemicals (solvents), but an increasing number of producers are shifting to natural methods, as consumers become more wary about what’s going into their bodies.

Commonly methylene chloride or ethyl acetate are used in the process – removed by heating tea leaves or coffee beans, leaving just a small amount of residue behind.

CO2 is a common method of extracting caffeine from tea too. This involves soaking the leaves in water, and putting them under intense pressure, which (in simple terms) turns the CO2 into a solvent that attracts and removes caffeine.

One of the most sought-after processes for decaf coffee drinkers is the totally natural, patented Swiss Water Method. Green coffee beans are washed and pre-soaked before being introduced to GCE (Green Coffee Extract) - a chemical-free solvent which causes caffeine from the beans to migrate out.

Are decaf tea and coffee healthy?

Though there are concerns about chemical residues in certain decaffeination methods, these have been passed as safe by the relevant authorities.

However, shoppers are more mindful today of decaf products that have been processed in this way, and may actively seek out drinks made more naturally.

Some suggest the decaffeinating process removes a portion of polyphenols (beneficial compounds) from tea and coffee. It’s worth talking to the brands to understand the science behind their methods and how healthful their products are.

Why are decaf drinks so popular right now?

Guy Wilmot of Decadent Decaf says he’s seen a gradual uptick in sales over the years, and puts this down to “steady growth from consumers actively looking for great chemical-free decaf”.

“Decaf is finally coming of age and growing in popularity largely because of demographic and cultural trends, namely a larger segment of Gen X, over 50s, that want to live healthy lifestyles, and Gen Z and Millennials, who are thinking much more about what goes in their bodies, and leaning into wellness,” he says. 

The founders of Hundred House Coffee, Anabelle de Gersigny and Matt Wade, share Guy’s thoughts. “There’s more awareness around caffeine and the body,” they add. “For example, the conversation around caffeine and the menopause. Also, people are enjoying coffee over alcohol, and they want to drink it more than once a day.”

Changing lifestyles and greater awareness of the health claims of food and drink have definitely altered the way we enjoy tea and coffee, says Catherine Loftus, head of brand at Bird & Blend, which is seeing more and more interest in caffeine-free teas across its UK stores “as consumers embrace the variety that tea has to offer beyond a traditional breakfast brew”.

Many of their shoppers are “wanting to cut down on caffeine to improve sleep and overall wellbeing, or during new life stages including pregnancy”.

Caffeine-free products open up a world of new opportunies, Catherine says, noting Bird & Blend has seen a rising trend in shoppers choosing fruit teas, in particular those brewed in water, lemonade or milk as alcohol alternatives.

“Many of our bestselling teas now have a caffeine-free base, such as rooibos, herbal or fruit,” and “caffeine free herbal blends remain ever popular for enjoying as part of an evening wind-down.”
This desire to ‘take it easy’ in the latter part of the day is an important part of the ‘sell’ for decaf drinks, says Noffee founder Krishma Mehta. “There is a heightened focus on avoiding coffee crashes and jitters, and a lot more research and awareness on the impact of optimal sleep on various facets of life, from weight loss, to gut health, brain performance and beyond.”

Additionally, she says, chiming with Catherine, “There is growing recognition of the link between menopause, poor sleep and caffeine, making decaf a preferred option for many women”.

As the shift away from excessive caffeine continues, Krishma explains, interest in decaf drinks is soaring and becoming trendy across all age groups. 

Why do retailers need to take notice of decaf drinks?

In a market that is booming, it makes sense to onboard (if only small) a greater range of decaf teas, coffees and drinks, to test the waters with your customers. Get producers in to explain their flavour profiles, health benefits, and the way they were made. Arrange tastings in store. Perhaps use any loyalty schemes or social media campaigns to target the kind of consumer actively looking for decaf.

“Consumers increasingly know more about products than the retail buyers do,” says Guy Wilmot. “Often retailers are way behind what people want!” Coffee made using the Swiss Water Method is “very much in demand” he adds, “yet often decaf processes are still cloaked in secrecy on the packets of coffee brands sold on the retail shelf.” There must, then, be clarity, and visibility of process to hit the right target.

“The market is littered with good options,” says Blendsmiths’ Ryan Moore, adding that the key to the longevity and success of decaf drinks, beyond transparency, is taste. “Education, fancy packaging and bottomless pockets will only go so far,” he adds, making the point that first and foremost, retailers must try any decaf options they are considering stocking, to ensure they hit the brief on flavour.

What’s next for the decaf market?

“We’re still waiting for Gen Z and Millennials to discover half-caf coffee,” says Guy. “You don’t actually need as much caffeine to get that caffeine hit, and by drinking half-caf you can drink more coffee and still get a lot of the well-known health benefits. Maybe this decade?

“Other than that, we think that decaf will continue to grow, as awareness grows that good decaf tastes great, and consumers look to make healthy choices.”