Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Abbreviations
Premier Insight
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- Brand synergies to be gained
- Coffee makes a personal statement
- Raising the profile of Fairtrade
- The return of the bean
Executive Summary
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- Value outpaces volume
- Premium drives growth…
- ...for instants
- …and for ground coffees
- Fairtrade growing and evolving
- Decaff broadens spectrum
- Nestlé and Kraft dominate instants
- Douwe Egberts leads fragmented ground sector
- New product development
- Advertising and promotion
- Distribution chiefly through multiples
- The consumer
- The future
Market Drivers
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- An increasingly affluent population
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- Figure 1: Trends and projections in UK population, by socio economic group, 2000-09
- Ageing population favours coffee
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- Figure 2: Trends and projections in total UK population, by age group, 1999-2009
- Addressing health concerns
- Innovation drives growth
- Growing thirst for premium tastes
Market Size and Trends
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- Market maintains steady growth
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- Figure 3: UK retail sales of coffee, by value, 2000-05
- Volume growth
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- Figure 4: UK retail sales of coffee, by volume, 2000-05
- Ground gradually gaining on instant
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- Figure 5: UK retail sales of coffee, by sector, by value, 2003, 2004 and 2005
- Where is the value growth coming from?
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- Figure 6: Sources of value growth in overall market, by sector, 2004-05
- Pod technology adds value
- Fairtrade grows
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- Figure 7: UK retail sales of Fairtrade coffee, by value, 2003-05
- Ethical products move to mainstream
Market Segmentation
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- Instant
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- Figure 8: UK retail sales of instant coffee, by value, 2000-05
- Speciality has been the real success story
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- Figure 9: UK retail sales of instant coffee, by sector, by value, 2003, 2004 and 2005
- Regular loses out to occasion coffees
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- Figure 10: UK retail sales of regular instant coffee, by value, 2003-05
- Blurring between regular and premium
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- Figure 11: UK retail sales of premium instant coffee, by value, 2003-05
- Consumer confidence benefits super-premiums
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- Figure 12: UK retail sales of super-premium instant coffee, by value, 2003-05
- Decaffeinated
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- Figure 13: UK retail sales of decaffeinated instant coffee, by value, 2003-05
- Catering for mood swings
- Speciality sales boom
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- Figure 14: UK retail sales of speciality instant coffee, by value, 2003-05
- Powders fall by the wayside
- Coffee beans and ground coffee
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- Figure 15: UK retail sales of ground coffee/coffee beans, by value, 2003-05
- Ground growth outperforms market
The Supply Structure
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- Instant – by producer
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- Figure 16: Market share of instant coffee, by producer, by value, 2003 and 2005
- Nestlé and Kraft dominate
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- Figure 17: Market share for instant coffee, by leading brand, by value, 2003 and 2005
- Little change in share
- Special positioning drives sales
- Fresh/ground coffee – by brand
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- Figure 18: Market share for ground/fresh coffee, by producer, by value, 2003 and 2005
- Fairtrade comes into its own
- Companies and brands
- Cafédirect
- Douwe Egberts
- Food Brands (Percol)
- Gala Coffee and Tea (Lyons)
- Illy Caffe (Euro Brands)
- Kraft Foods
- Lavazza
- Nestlé
- Rombouts (RGB Coffee Ltd)
- Taylors Tea and Coffee Ltd
New Product Development
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- Figure 19: Summary of product positioning of new launches, Oct 2004-05
- Indulgence
- For the caffeine concerned…
- …and for the calorie conscious
- Fairtrade
- Pod convenience
- International
- A coffee with even more energy
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Advertising and Promotion
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- Above the line expenditure
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- Figure 20: Main monitored media advertising expenditure on coffee, 2000-05
- Instant coffees spend most
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- Figure 21: Main monitored media advertising expenditure on coffee, cumulative total by top spenders, 2004
- Expenditure by media type 2004
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- Figure 22: Expenditure by media type, instant vs roast/ground coffee, 2004
- Women – targets for indulgent ads
- Celebrity promotions
- Press focus for fresh coffee ads
- A younger audience
- Below the line promotions
Distribution
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- Figure 23: Retail distribution of coffee by outlet type, (estimated) 2005
- Most coffee sold at supermarkets
- Home shopping for connoisseurs
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The Consumer
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- Little discernible change in drinking habits
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- Figure 24: Usage of instant, decaffeinated coffee, milk drinks, fresh ground, standard, packet tea, 2002-05
- Consumption of drinks by age group
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- Figure 25: Usage of instant, decaffeinated coffee, milk drinks, fresh ground, standard, packet tea, by age group, 2002-05
- Young eschew coffee for milk
- Over-55s drink most tea and coffee
- Growing base of non-instant drinkers
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- Figure 26: Non-drinkers of instant coffee, compared to average, 2005
- Londoners less inclined to instant
- More switch to decaff
- Quality not quantity
- Upmarket bias in ground coffee
- Shifting segments
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- Figure 27: Types of ground coffee drunk, 2002-05
- Coffee drinking behaviour
- Attitudes to coffee
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- Figure 28: Coffee-drinking habits, August 2005
- C2DEs stick to instant
- Repertoire drinkers
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- Figure 29: Coffee’s role in the hot drinks repertoire, August 2005
- Café style drinks for the girls
The Consumer – Detailed Demographics
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- TGI data
- Instant coffee
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- Figure 30: Usage of instant coffee, 2002-05
- Types of instant coffee drunk, 2002-2005
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- Figure 31: Types of instant coffee drunk, 2002-05
- Fresh ground coffee
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- Figure 32: Usage of fresh ground coffee, 2002-05
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- Figure 33: Usage of instant coffee, by demographic sub-groups, 2005
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- Figure 34: Usage of fresh ground coffee, by demographic sub-group, 2005
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- Figure 35: Selected lifestyle statements by usage of instant coffee, 2005
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- Figure 36: Selected lifestyle statements by usage of fresh ground coffee, 2005
- Coffee-drinking habits
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- Figure 37: Coffee-drinking habits, August 2005
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- Figure 38: Coffee-drinking habits, August 2005
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- Figure 39: Coffee-drinking habits, August 2005
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- Figure 40: Coffee-drinking habits, August 2005
The Consumer – Attitudes and Motivations
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- Figure 41: Attitudes to coffee, August 2005
- Coffee suits different mood swings
- Quality worth paying for
- Confidence in coffee selection has yet to take off
- Coffee gets men going
- ABC1s are adventurous…
- …yet cautious drinkers
- Cross-analysis
- Attitudes versus behaviour
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- Figure 42: Consumer typologies according to attitudes to drinking coffee, August 2005
- Fickles (15%)
- Connoisseurs (10%)
- Coffee Addicts (13%)
- Limited (40%)
- Non-drinkers (21%)
- Targeting coffee drinkers
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- Figure 43: Consumer typologies according to attitudes to drinking coffee, August 2005
- Sophisticats (21%)
- Caffeine Cravers (17%)
- ‘Emotionally’ Uninvolved (62%)
- Correlation of clusters and main shops
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- Figure 44: Consumer typologies by preferred supermarket, August 2005
- Key findings
- Strengthening new and emerging sectors
- Coffee’s role in healthy living
- Targeting the younger demographic is still a challenge
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Attitudes and Motivations – Detailed Demographics
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- Attitudes to coffee-drinking
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- Figure 45: Attitudes to Coffee-drinking, August 2005
- Figure 46: Attitudes to Coffee-drinking, August 2005
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- Figure 47: Attitudes to coffee-drinking, August 2005
- Figure 48: Attitudes to Coffee-drinking, August 2005
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- Figure 49: Cross-analysis of attitudes to drinking coffee, August 2005
- Consumer typologies
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- Figure 50: First consumer typology based on attitudes to coffee-drinking, by gender, age, socio-demographic group, lifestage, regions, Mintel Special Groups, marital status, working status, household working patterns and household size, August 2005
- Figure 51: First consumer typology based on attitudes to coffee-drinking, by ACORN group, media usage, TV viewing and supermarket usage, August 2005
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- Figure 52: Second consumer typology based on attitudes to coffee-drinking, by gender, age, socio-demographic group, lifestage, regions, Mintel Special Groups, marital status, working status, household working patterns, household size and TV viewing, August 2005
- Figure 53: Second consumer typology based on attitudes to coffee-drinking, by ACORN group, media usage and supermarket usage, August 2005
The Future and Forecast
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- Similar pattern of growth moving forward
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- Figure 54: Forecast of the UK coffee market, 2005-10
- Supply and demand
- Fairtrade potential
- NPD
- A coffee revival?
- Consumer education
- Economic factors
- Factors incorporated in the forecast
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