Europe Coffee Market

Description

In Europe, Coffee is regarded as the highest consumed beverage. Worldwide, coffee is the second most traded commodity, being only next to oil. Coffee consumed in Europe mainly comes from developing countries like Ethiopia, Kenya, Columbia, India and China- to name a few. The European Coffee Market is currently accounted for US$XX Million and is expected to grow to US$XX Million by 2022, at a CAGR of XX% during the forecast period. Although some European countries, like Britain, are known for their obsession with tea, the younger generations have acquired the taste for coffee. Coffee has also become a prominent ingredient in many of the French Desserts.

Market Dynamics:

Cold Brew Coffee is gaining notable popularity in Europe, especially in bigger cities like London and Manchester. Brewing Giants like Starbucks, Costa and Brew Lab are expanding their cold brew products- in prominent outlets. Also, the urban consumers have less time to brew coffee, increasing the sale of instant coffee pouches and pods in cities. The trend has affected different segments of the industry, depending on the customer’s ‘relation’ with coffee.

The concept of nitro coffee is also in vogue. Nitrogenisation helps to make the texture more smooth and protects the sweetness of the company’s cold-brew coffee recipe. Growing unpopularity of carbonated drinks and a demand for more refreshing beverages have shaped the coffee Industry, not only in terms of revenues but also in terms of variety of products.

Market Segmentation:

On the basis of type, the Coffee business has been fragmented into Arabica, Robusta and Liberica- Arabica being the largest segment. On the basis of the end product, it can be divided into Coffee Powder, Pod, Capsule, Dips, etc, where the instant coffee segment has the largest market share and shows a promising growth rate. The main reason for the popularity of Instant Coffee is not only the rapid refreshment it provides, but also its versatile flavours and economic feasibility. Speciality coffee is another emerging segment, which targets customers prioritising experience over price. Increasing sophistication of coffee shops and baristas have lead to increase in the number of signature blends, which highlight their uniqueness of aroma and their origins have made coffee a phenomenon in the region.

Geographical Analysis:

It is said that Italy is the birthplace of modern Coffee culture. Although hot beverages are deeply rooted into Italian culture, Northern countries like Finland lead in Coffee consumption. In terms of per capita consumption, Finland leads the position, followed by Sweden, Netherlands, Germany, Norway and Denmark. The market is expected to grow exceptional growth in France and U.K.

Key players in the market include Starbucks (American), Nestle (Swiss), Coffee Republic (British), Dunkin’ Donuts (American) and Luigi Lavazza (Italian)- to name a few.