Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Coffee market, its consumers and the major players who make up that market.
Mintel has the answers you’re looking for
- What are the key challenges facing the industry?
- Who is the consumer and what do they want?
- Where are the opportunities, where are the risks and what lies ahead?
Point of sale market data
In conjunction with IRi, extensive point of sale data shows you what consumers are spending their money onMarket Size
How big is the market today and what is our 5 year forecast? Includes both best & worst case scenariosMarket Segmentation
What are the different segments within the market and how are those individual segments performing?
What are consumers looking for, what drives their buying habits and what are their main purchase influencers?Demographic breakdown
From iGen & Millennials to Baby Boomers & beyond. Who is spending money and what are they spending it on?Representative sample
We gather our data from real-world consumers, selected to accurately reflect precise global demographics
What are the key players doing, what has been successful for them and what was their marketing spend?Product innovation
Using data from our Global New Product Database, what products were launched and how well were they perceived?Opportunities
What happens next, which areas are likely to experience growth and what opportunities exist within the market?
Covered in this report
This Report covers coffee consumption in the retail market only.
Therefore, it does not include coffee shops or other outlets where
coffee is purchased and drunk outside the home. Sales through
vending machines and self-serve coffee outlets are also excluded.
The following broad segments make up the coffee retail market:
- Instant coffee – this is the largest sector accounting for around
70% of the market. This is where, through various processes,
the coffee is dehydrated into the form of powder or granules for
sale, and prepared by adding these to hot water
- Roast and ground – this is when coffee is sold in the form of
coffee beans or when the coffee beans are sold ready-ground.
- Coffee pods feature pre-packaged ground beans sold in their
own filter to make the coffee-making process easier. Included
in this category are products for open and closed coffee
systems, such as those that take a cartridge or pod.
The market definition includes decaffeinated coffee.
RTD (Ready-To-Drink) coffee drinks, such as Starbucks
Frappuccino and ready-to-drink cold brew coffee, are excluded
from Mintel’s market size figure for retail coffee, but are discussed
in Launch Activity and Innovation, and the Consumer sections of
this Report where relevant.
What you need to know
While the retail coffee market has enjoyed volume growth of 5%
over 2013-17, performance across the segments has varied.
Coffee pods were the main driver of growth over 2013-14;
however, pod machine ownership has now plateaued, putting
a dampener on volume growth.
Meanwhile, ground coffee and coffee beans have seen volume sales grow on the back of Brits’
connoisseur interest in coffee. Against this backdrop, instant
coffee saw sales chipped away over 2013-17 as consumers
switched to the other two segments. This trading up, combined
with rising inflation, has seen value sales grow ahead of volumes.
There remains notable interest in owning coffee pod machines
among current non-owners; however, unlocking this potential is
proving challenging with prices of both the machines and the pods
a barrier, while the current spotlight on packaging waste is also
not working in their favour. Meanwhile, interest in cold brewing
coffee at home could open up new usage occasions for ground
Expert analysis from a specialist in the field
Written by Anita Winther, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Coffee drinking is ingrained among Brits, with usage on-par with the quintessentially British tea. However, a plateauing in pod machine ownership has put the brakes on coffee pods’ growth and slowed the overall volume performance. Reusable pods could polish the green credentials of pod machines and appeal to those put off by the environmental issues surrounding single-use pods. Meanwhile, notable interest in cold-brewing at home highlights this as an area warranting more attention from ground coffee brands.Anita Winther
Food & Drink Analyst