Italy Coffee Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Italy Coffee Market is segmented by Product Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods, and Capsules) and Distribution Channel (On-Trade and Off-Trade). The Report Offers Market Size and Forecast in Value (USD billion) for the Above-mentioned Segments.

Market Snapshot

italy coffee market
Study Period: 2016 -2027
Base Year: 2021
CAGR: 2.3 %

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Market Overview

The Italian coffee market is projected to register a CAGR of 2.3% during the forecast period (2022-2027).

Owing to the lockdown, which was in effect in the country by the end of the first quarter of 2020, all non-essential businesses were ordered to remain closed, with a particular focus on the on-trade channel. Despite restrictions being eased, a full recovery to pre-COVID levels in the on-trade channel is not expected before 2022. Over the long term, increased demand is expected from the off-trade channel, as consumers grew comfortable with consumption at home during the lockdown.

Coffee is an integral part of Italian culture. According to Eurostat statistics, Italy is the second-largest importer of green coffee beans in Europe, after Germany.

In Italy, the increased personalization within the coffee industry, from coffee beans to standard ground coffee and coffee pods, and the availability of different ranges of products offering high-quality coffee pods and capsules are expected to support the market growth.​

Scope of the Report

Coffee is the most popular and consumed brewed drink prepared from roasted coffee beans, the seed of certain coffee species. The Italian coffee market is segmented by product type and distribution channel. By product type, the market is segmented into whole-bean, ground coffee, instant coffee, coffee pods, and capsules. By distribution channel, the market is segmented into on-trade and off-trade. The off-trade channel is segmented into supermarket/hypermarket, convenience stores, specialist retailers, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Product Type
Whole-Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
By Distribution Channel
On-Trade
Off-Trade
Supermarket/Hypermarket
Convenience Stores
Specialist Retailers
Other Distribution Channels

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Key Market Trends

Lifestyle and Culture Drives Coffee Market in Italy

Coffee is an integral part of Italian culture. Italians tend to value high-quality coffees and are loyal to specific flavors and Italian brands. Coffee is consumed at various moments of the day, usually with sugar and no milk, except cappuccino, macchiato, marocchino, and caffè latte. 75% of the coffee consumed by Italians was at home.

In recent years, there’s been a sharp rise in single-person households. Also, young Italian professionals have a higher disposable income than in the past. Due to pessimism about the future, they’re keen to spend it because saving is seen as a pointless pursuit. They are particularly eager to spend on high-quality products and luxury brands. Coffee has become an integral part of Italian culture, with around 8 million bags imported annually. The availability of a wide range of coffee types, flavors, and brewing styles and growth in the number of food outlets and retail stores are the drivers fuelling the growth of the coffee market.

 coffee industry

Increasing Out-of-Home Coffee Consumption Boosting the Market

With the strong heritage of traditional coffee-drinking culture, Italians prefer to drink coffee from local independent coffee shops. Italy is the leading country in the number of out-of-home coffee servings in Europe. With the growing consumer trends for convenience, healthier eating is going to disrupt the traditional coffee market in the country. Coffee quality is considered a leading success factor for a coffee shop in Italy. There is a relative lack of knowledge about what constitutes quality. With growth primarily expected from traditional brands of local specialty shops and Starbucks, the imminent arrival into the market helps the growth of the coffee market during the forecast period. The incoming of Starbucks in Italy is expected to increase the availability of different types of coffee products in the market studied.

italian coffee market

Competitive Landscape

The market is highly competitive, with key players operating in the market, including Nestle SA, Kimbo SpA., and Luigi Lavazza SpA. The sustainable competitive advantage through differentiation is high. Manufacturers are increasingly introducing product innovations in terms of offerings, price, and packaging, leading to a high degree of competition in the market. Due to the high growth potential of coffee in European countries, most companies are trying to establish themselves in these regions by expanding their production lines to serve the increasing need for coffee across the region. The ease of use of these products a premium flavour to coffee. Good marketing by the key players and the wide variety of flavours have together contributed to their increasing popularity in Italy and other European countries.

Recent Developments

  • In March 2021, Massimo Zanetti Beverage Group, a worldwide leader in the coffee industry, introduces Segafredo Storia, a new sustainable coffee series that takes the next leap in global traceability and transparency made possible utilizing blockchain technology.
  • In September 2020, Caffè Musetti announced its acquisition of Caffè Bonomi Spa. The acquisition of Caffè Bonomi is the first important step in the growth project. In the last five years, Caffè Musetti has invested significant resources to strengthen its structure, and Caffè Bonomi Spa strongly believes that Musetti has the industrial capabilities to act as an aggregator pole, as well as an enabler of an evolutionary process also in a sustainable key, in a sector characterized by extreme fragmentation.
  • In July 2020, Nestle Nespresso SA announced a CHF 160 million investment to expand its Romont production center in Italy, to meet the increasing consumer demand for its premium coffees, and to support international development in the coming years.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Whole-Bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

      4. 5.1.4 Coffee Pods and Capsules

    2. 5.2 By Distribution Channel

      1. 5.2.1 On-Trade

      2. 5.2.2 Off-Trade

        1. 5.2.2.1 Supermarket/Hypermarket

        2. 5.2.2.2 Convenience Stores

        3. 5.2.2.3 Specialist Retailers

        4. 5.2.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Positioning of Players

    3. 6.3 Company Profiles

      1. 6.3.1 LUIGI LAVAZZA SpA

      2. 6.3.2 Nestlé SA

      3. 6.3.3 Kimbo SpA

      4. 6.3.4 Massimo Zanetti Beverage Group

      5. 6.3.5 Illycaffè SpA

      6. 6.3.6 Casa del Caffe' Vergnano SpA

      7. 6.3.7 Aromatica SRL

      8. 6.3.8 Gruppo Gimoka SRL

      9. 6.3.9 Pellini Caffè SpA

      10. 6.3.10 Hausbrandt Trieste 1892 SpA

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Italy Coffee Market market is studied from 2016 - 2027.

The Italy Coffee Market is growing at a CAGR of 2.3% over the next 5 years.

The Italy Coffee Market is valued at 3 Billion USD in 2016.

LUIGI LAVAZZA S.p.A. , Nestlé S.A., Kimbo S.p.A., Massimo Zanetti Beverage Group, Illycaffè S.p.A. are the major companies operating in Italy Coffee Market.

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