2016 - 2026
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The Europe coffee market is projected to register a CAGR of 4.35% during the forecast period (2021-2026).
As a consequence of the COVID-19 pandemic, European governments have put measures like social distancing and lockdowns in place. These have had a huge effect on cafés, micro-roasters, restaurants, and other out-of-home outlets. Owing to this factor, the demand for coffee products such as instant coffee and ground coffee has moved to off-trade, which has resulted in enhanced coffee sales in the retail sector. Moreover, since consumers have restored to in-house coffee consumption, there has been an increase in demand for different types of coffee in the region studied.
The European coffee market is driven by multiple factors like the increasing demand for certified coffee products, acceptance of single-serve coffee brew systems by consumers, and constant innovation led by the top players in the coffee market. However, the changing weather conditions play a crucial role in coffee production in countries where production takes place, thus affecting the supply chain for coffee being imported into the European countries.
The premiumization of whole bean coffee products is driving the coffee market. Major players of the market are trying their best to introduce premium products by utilizing artisanal techniques or using the handpick method to get a premium product, which is increasing the demand.
Germany and Spain are the largest coffee-consuming nations of organic and conventional coffee in Europe. Germany is also a major importer of organic coffee in Europe.
Scope of the Report
Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain coffee species. By product type, the market is segmented into whole bean, ground coffee, instant coffee, and coffee pods and capsules. By distribution channel, the market is segmented into on-trade and off-trade distribution channels. The off-trade channel is further segmented into convenience stores, specialist retailers, supermarkets/hypermarkets, and other distribution channels. By geography, the market studied is segmented into France, Germany, United Kingdom, Spain, Italy, Russia, and the Rest of Europe. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).
|By Product Type|
|Coffee Pods and Capsules|
|By Distribution Channel|
|Rest of Europe|
Key Market Trends
Rise in Demand For Freshly Brewed Coffee
The demand for freshly brewed coffee is rising in the region, owing to the escalating interest in specialty coffee and freshly ground coffee pods, headed by the growth of specialty coffee shops, coffee consumption in offices, and in-house brewing. The trend of in-house brewing is the key factor, led by the consumers’ desire for freshly brewed coffee, which is contributing to the growth in the sales of coffee in Europe. Consumers’ inclination toward producing their own coffee from roasted whole beans allows them to make fresh batches of coffee all the time. Therefore, this factor is expected to drive the coffee market in Europe.
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Germany Holding a Significant Share in the Coffee Market
Europe has minimal coffee production, and Germany is one of the coffee-producing countries in the region. As per the data published by the CBI Ministry of Foreign Affairs, as an increasing number of Germans are consuming coffee at their homes, coffee shops, and cafes, the on-trade market segment is growing in Germany, thereby increasing the application of various types of coffee products in the country.
Coffee consumption at work is of great prominence in Germany. According to the data published by Beverage Business World in 2019, Germany was the groundbreaker in coffee consumption in office spaces, with a value of EUR 725 million and an average growth of 3% in 2018. Owing to the increasing demand for whole roasted coffee and the ban on coffee pods in government offices in 2016, the key players prefer serving freshly brewed coffee made from whole roasted beans in workplaces. The increasing demand for freshly brewed coffee is pushing the companies to opt for roasted whole beans, thereby reducing the sales of roasted ground coffee in the country.
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Some of the most active companies operating in the market studied are Starbucks Corporation, Tchibo GmbH, Strauss Group Ltd, Nestle SA, Luigi Lavazza SPA, and JAB Holdings. Companies such as Nestle SA have expanded their production capacity by creating new manufacturing units to capture market share and introduce new varieties of coffee for buyers. For instance, in November 2018, Nestle’s Nespresso announced a CHF 43 million investment in the creation of two new production lines in its factory in Romont, Switzerland, to fulfill the increasing demand for the versatile coffee system, Vertuo. This investment was taken to develop new Nespresso machines and Grand Cru coffees, including unique coffees from rare origins. Furthermore, the companies are actively investing in online distribution channels, targeting consumers who seek convenience.
In 2018, Nestle launched refreshed the Nestle Gold Instant coffee range in continental Europe. The overhauled range includes a Fairtrade organic variant, as well as decaf, strong, and barista-style blends.
In 2018, Nestle and Starbucks formed a license agreement to strengthen their position in the roast and ground coffee segment.
In 2019, Nestle launched a new range of coffee products under the Starbucks brand. The new range includes 24 products, including whole bean, roast, and ground, as well as Starbucks capsules developed using Nespresso and Nescafe Dolce Gusto proprietary coffee and system technologies.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Whole Bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 By Distribution Channel
220.127.116.11 Convenience Stores
18.104.22.168 Specialist Retailers
22.214.171.124 Other Off-trade Channels
5.3.1 United Kingdom
5.3.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 JAB Holding Company
6.3.2 Nestle SA
6.3.3 The Kraft Heinz Company
6.3.4 J.J. Darboven GmbH & Co. KG
6.3.5 Strauss Group Ltd
6.3.6 Melitta Group
6.3.7 Starbucks Corporation
6.3.8 KRÜGER Gmbh & Co. K
6.3.9 Luigi Lavazza SpA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Europe Coffee Market market is studied from 2016 - 2026.
What is the growth rate of Europe Coffee Market?
The Europe Coffee Market is growing at a CAGR of 4.35% over the next 5 years.
Who are the key players in Europe Coffee Market?
- Nestlé S.A
- Starbucks Corporation
- JAB Holding Company
- Strauss Group Ltd.
Are the major companies operating in Europe Coffee Market.