Housewares Business-to-business magazine for housewares retailers and their suppliers
As consumers tighten their belts more are drinking coffee at home instead of in cafes – and they are trading up in their choice of coffee.
According to new research from Mintel, between 2005 and 2009 the UK market for in-home coffee grew by 17% in value, with trading up a key contributing factor. Valued at £782m in 2009, the market for coffee is also forecast to grow by as much as 25% by 2014.
“Economic turbulence in the UK has contributed to a shift in the way that consumers drink their coffee, which has largely been to the benefit of the in-home coffee market,” says Ben Perkins, head of food and drink research at Mintel.
“As coffee shops have felt the effects of consumer belt tightening, the in-home market has witnessed a good deal of trading up, as consumers endeavour to replicate the coffee shop experience at an in-home price.
“While once Brits were happy to settle with a bog-standard cup of instant, today the traditional cup of coffee has become increasingly sophisticated as roast, ground, instant premium and super-premium are being sought after more frequently by core users than in previous years.”
With a 14% value share, sales of speciality coffee grew by 17%, while super premium, 13% share, grew by 18%. And, says Mintel, Fairtrade coffee is becoming the norm.
However, the industry is concerned about the lack of uptake amongst younger consumers.
“The issue with the younger end of the market is that these consumers don’t drink instant coffee, which is the largest part of the market,” explains Perkins, “so the big brands need to tap into this age group. Indeed, long-term growth in the market will very much depend upon how coffee brands can make coffee drinking appealing to a younger audience.”
The over-55s are the biggest coffee users.
