Brazil, the US, Indonesia, Germany and Japan are the world’s five most promising coffee markets, according to a new report published by Euromonitor International.
Global retail coffee sales reached $83 billion in 2017, and the aforementioned five largest markets accounted for 50% of total volume sales.
The report claims that these mature and developed coffee markets actually offer the best opportunities for coffee businesses, though the demands of consumers in each market differ.
According to the report, Brazil surpassed the US as the world’s largest coffee market in 2014, accounting for 15% of global coffee sales. The country’s coffee market has grown above the global average despite an economic recession, and the introduction of new coffee types such as pods could stimulate further growth in the future.
In the US, coffee pods have surpassed coffee beans and have become the second most prominent coffee format in the country, despite sustainability concerns. The report claims that the future of the US market relies on formats which are both premium and convenient, and coffee shops and specialised stores are key drivers for this market.
In Indonesia, total coffee volume sales reached 735 thousand tonnes in 2018, and growing urbanisation and more demanding lifestyles are driving consumers to convenient options such as instant coffee mixes.
Meanwhile in Japan, coffee consumption is projected to be twice as large as tea consumption by 2022. Coffee beans accounted for 32% of all coffee sales in Japan, and the sales of coffee pods are expected to decline in the country, due to the limited space in urban households.
Finally, the German market does not have a dominant coffee format, and the report claims that this presents opportunities for innovation and new brands.
However, sustainability and traceability concerns are becoming increasingly important for German consumers, as more consumers are adopting responsible consumption habits.
Angelica Salado, senior analyst at Euromonitor International said: “Companies sometimes wrongly believe that mature markets no longer offer opportunities for new players.
“However, coffee can present excellent opportunities for innovation in different channels, formats and claims, even in mature markets”.
© FoodBev Media Ltd 2018