• by Karlene Lukovitz  @KLmarketdaily, October 8, 2010

Tepid coffee demand among younger consumers has stalled the category's sales growth in recent years, and also threatens to limit growth in the decades ahead, according to Mintel.

Two-thirds (66%) of Americans drink at least one coffee daily, but only 27% of consumers 18 to 24 drink coffee daily, reports the research firm.

Coffee drinking is most prevalent among those ages 45 and older, and those 55 and up are the fastest-growing segment.

While 40% of young adults believe that coffee helps their concentration, they are somewhat more likely than those over 55 to associate coffee consumption with negative health consequences.

"Among young adults in particular, understanding the choice between energy drinks and coffee needs significant marketing focus," comments Mintel senior analyst Bill Patterson. "If coffee companies can't convert these younger drinkers to everyday users, long-term growth may suffer."

Since younger adults also tend to prefer visiting cafés when they want coffee, Patterson suggests that coffee companies may need to offer products similar to those found in popular cafés, but easy to prepare at home or the office -- a strategy which, of course, has already been highly successful for Starbucks, with Via.

Younger coffee drinkers also show a preference for sweetened coffee drinks over plain coffee: 40% of those 18 to 24 express this preference, versus just 22% of those 45 to 54. Just 28% of young adults like the taste of coffee on its own, compared to 53% of that older age segment.

However, with some tailored product and marketing strategies, there is hope: 46% of young adults say they like to relax with a cup of coffee, and 22% say they like to have a cup of coffee on hand when they're running errands.