Europe Coffee Market Research Report 2024

Europe Coffee Market Segment Analysis:

Europe Coffee Market Segmented based on Product Type, Variety, and Distribution Channels.

By Product Type, Instant Coffee segment is expected to dominate the market during the forecast period

• Instant coffee offers unparalleled convenience. It's quick and easy to prepare just add hot water and stir. For busy individuals or those on the go, this convenience is a huge selling point. instant coffee has a significantly longer shelf life. It doesn’t go stale quickly, making it a practical choice for people who don't consume coffee regularly or in large quantities.
• In Eastern European nations, similar to Ireland and the United Kingdom, there's a notable penchant for instant coffee, constituting approximately 24% of the coffee consumed. This surpasses the average of 11% seen in other European regions. Notably, many instant coffee brands rely on lower-grade Robusta beans to produce their blends. However, despite this dominance, there's a notable surge in the demand for higher-quality and specialty coffees within Eastern Europe. This shift is vividly portrayed by the burgeoning presence of specialty coffee shops and small-scale roasters, showcasing a growing consumer desire for enhanced quality and diverse offerings in their coffee experience.
• While instant coffee maintains a significant market share across Eastern European countries, its dominance isn't uniform. The prevalence of instant coffee remains substantial, yet it doesn't consistently outweigh other coffee variants. This nuanced market landscape underscores the multifaceted preferences within Eastern Europe's coffee culture, where despite the prevalent presence of instant options, there's an evident openness and interest among consumers for superior quality and diverse coffee experiences.

By Variety, Arabica segment held the largest share of 55.34% in 2022

• Arabica coffee, known for its superior quality and distinct flavor profile, has been gaining significant traction in the market. Its popularity stems from a combination of factors, primarily its delightful taste characterized by nuanced acidity, pleasant sweetness, and varied aroma notes, ranging from fruity to floral. This species of coffee plant thrives in higher elevations with specific climatic conditions, making it more challenging to cultivate compared to its counterpart, Robusta coffee.
• Arabica coffee has solidified its dominance in the European market owing to several key factors. its superior taste profile stands out prominently. With a smoother, more aromatic, and nuanced flavor compared to its counterpart, Robusta, Arabica beans offer a more refined and enjoyable coffee experience. European consumers, renowned for their discerning palates and appreciation for quality, are drawn to Arabica for its rich and flavourful taste, elevating their coffee rituals.
• Arabica beans aligns with the burgeoning café culture across Europe. As specialty coffee shops and artisanal roasters gain traction, there's a growing emphasis on offering high-quality, specialty-grade coffee to enthusiasts. Arabica's inherently superior taste and its potential for diverse flavor profiles when grown in different regions align perfectly with the European market's quest for unique and exquisite coffee experiences.

Europe Coffee Market Regional Insights:

Germany is Expected to Dominate the Market Over the Forecast period

• Germany has a robust coffee culture deeply ingrained in its social fabric. The country boasts a strong tradition of coffee consumption, with a high per capita consumption rate. Coffee isn't just a beverage in Germany; it's a ritual, a social connector, and an integral part of daily life. This consistent and widespread coffee consumption forms the foundation of Germany's dominance in the market. The German coffee market is diverse, catering to various preferences. While there's a significant presence of traditional coffee products, there's also a growing demand for specialty and high-quality coffee. This diverse landscape allows for the coexistence of various coffee segments, appealing to a wide range of consumers.
• Germany boasts a thriving café culture, with numerous coffeehouses and specialty cafés spread across its cities. These establishments offer not only a wide array of coffee options but also create spaces for socializing and relaxing, contributing to the overall coffee consumption culture.

Europe Coffee Market Top Key Players:

• Lavazza
• Jacobs Douwe Egberts
• Nestlé
• Melitta Group
• Strauss Group
• Tchibo
• Julius Meinl
• Löfbergs
• Paulig
• Geisha
• Segafredo Zanetti
• Illy
• Kimbo
• Caffè Borbone
• Vergnano

Key Industry Developments in the Europe Coffee Market:

• In June 2023, Löfbergs launched a new line of organic and Fairtrade certified instant coffees, responding to the growing demand for ethical and sustainable coffee options.
• In October 2023, Nestlé announced a new partnership with the Rainforest Alliance to promote sustainable coffee sourcing in Europe. This initiative aims to support responsible farming practices and improve livelihoods for coffee farmers.

Frequently Asked Questions