Coffee category shows short term growth

BRAND ACTIVITY

Mar 14th 2012, 11:04

The coffee market saw relatively good growth (5.3%) during 2010, where this was driven by mixed instant, mixed ground and pure ground coffee volumes. This follows a fairly static market state in the two years prior to that.

Mixed instant coffee continues to dominate the total market in volume terms. The substantial 64.7% volume share that it commanded for 2010 meant that the 2.5% annual growth seen for the category automatically put the coffee market growth into the black. Furthermore, positive performances by both mixed instant and pure ground coffee served to bolster the base line growth already achieved.

The mixed instant volumes saw only limited growth during 2010 as larger manufacturers placed less priority on this established market. The category saw significant price increases in the last two quarters as it is believed that producers attempted recover sales late in the year.

In terms of the mixed ground category, one of the larger suppliers saw good growth in both their product repertoire and revenue during 2010, while the remainder of the market saw only limited growth. Market activity by this single player pushed growth for the category to 7.0% for the year. Price increases slowed as less established players lowered their sales prices in order to compete with the larger producers.

Read more about the coffee category in the BMi Annual Market Quantification (December 2011)Click here for more information on BMI Research