Market Trends of Europe Coffee Industry
This section covers the major market trends shaping the Europe Coffee Market according to our research experts:
Consumer Preference for Premium Coffee Fuels Growth in Specialty Coffee Shops Market
The sharp growth in the premium coffee market has been partly driven by the continuous growth of out-of-home consumption. Coffee shops in European countries are leading the way by introducing sophisticated, high-value varieties to consumers, thereby boosting market growth significantly. The growing demand for premium coffee is in line with growing consumer interest in how the coffee is brewed, as well as how the crop is grown. It has, therefore, become essential for specialty coffee producers to tell the story behind their coffee, its origin, and its other environmental and social aspects.
In recent years, coffee in the United Kingdom has become reliant on coffee shop-driven premiumization. Over the last decade, consumers who had been witnessing rising incomes learned about value-added approaches to coffee at coffee shops. Thus, there was an increased appreciation for premium coffee in other food service and retail occasions. Further, the origin of coffee is receiving increasing attention from the industry and consumers in the premium category. Single-origin coffee is associated with high quality and uniqueness from a certain region or country. At Starbucks, the world's largest coffee chain, single-origin coffee has also started to gain space.
Germany Holds 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 Centre for the Promotion of Imports Ministry of Foreign Affairs, an increasing number of Germans are consuming coffee at their homes, coffee shops, and cafes, leading to growth in the on-trade market segment in Germany. This is increasing the application of various coffee products in the country. According to Kaffeeverband, a German coffee organization, in 2021, the per capita consumption of coffee rose from 168 liters to 169 liters, a corresponding 500 million more cups (compared to 2020).
Coffee consumption at work is of great prominence in Germany. Germany is the largest importer of green coffee beans in Europe. The German coffee roasting industry has grown to be one of the most significant in the world, serving both its domestic market - the largest in Europe - as well as its export markets. For the German coffee market, sustainability has become a minimum requirement for entry. In recent years, specialty coffee has taken over a larger share of the market. Germany imports the greenest coffee beans in Europe. As per Eurostat, in 2021, Germany accounted for 34% of direct European imports from producing countries, totaling approximately 1.1 million tonnes worth USD 3.51 billion. The increasing demand for freshly brewed coffee is pushing companies to opt for roasted whole beans, thereby reducing the sales of roasted ground coffee in the country.
