Ireland is a nation of coffee lovers, with over half of NI and four in 10 RoI consumers drinking at least one cup per day. Benefiting from its convenience and affordable positioning, instant coffee is most popular with 80% of NI and 70% of RoI consumers drinking it in the last six months, followed by the more premium option of ground coffee. Rich taste is the most influential factor for Irish consumers when choosing coffee, particularly amongst men and over-35s, whilst ABC1 consumers seek premium brands and their associated perceptions of quality.

With 2013 marking the first year that retail sales are expected to exceed their pre-recessionary levels, the market is well positioned to achieve growth of around 20% between 2013 and 2018, with the pods/capsules sector offering the greatest opportunity to drive this growth.

• What types of coffee are Irish consumers drinking? – With Ireland being associated as a nation of tea drinkers, are consumers embracing coffee? If so, is convenience in the form of instant winning out over quality?

• What opportunities are there for brands to add value to the in-home coffee market? – How can coffee brands innovate and add value to their products to keep consumers engaged with the category?

• Are health concerns impacting the market and causing consumers to switch to decaffeinated or reduce their consumption altogether? – With a growing emphasis being placed on diet and health, are consumers concerned about their caffeine intake and making appropriate adjustments?

• In the aftermath of the economic downturn, have Irish consumers changed their coffee drinking habits? – During the economic downturn, coffee shop sales were less affected than sectors such as pubs and full-service restaurants due to consumers opting for small, more affordable luxuries. As the economic situation improves, how can retail brands encourage at-home coffee consumption?

This report covers the NI and RoI retail market for in-home coffee consumption only. While coffee purchased and drunk outside of the home from coffee shops, foodservice establishments, kiosks or vending machines is mentioned in this report, it is not examined in terms of consumer usage or market size.

The main types of coffee included in this report are:

• Standard instant (eg Nescafé, Kenco)

• Ground

• Instant cappuccino/latte/mocha

• Whole bean/Micro-ground (eg Nescafé Azera, Kenco Millicano)

• Decaffeinated coffee

• Coffee pods/capsules (eg Nespresso, Dolce Gusto, Tassimo)

• Coffee beans

• Chilled ready-to-drink coffee (eg Starbucks Frappuccino).

Please note, excluded from this report are:

• Coffee sold in coffee shops, foodservice outlets, convenience stores and self-serve kiosks

• Sales of coffee machines

The Market Size and Segmentation section of this report includes estimates for the value of the all-Ireland retail coffee market including both NI and RoI data. Trade sources and government statistics have been used to verify market estimates, and have also been used for market forecasts.

Other Mintel reports of interest include:

• Irish Lifestyles – Ireland, September 2013

• Attitudes To Food – Ireland, August 2013

• Foodservice – Ireland, July 2013

• Grocery Retailing – Ireland, December 2013

• Hot Beverages – Ireland, July 2011

• Coffee – UK, August 2013.

For the purposes of this report, Mintel commissioned exclusive online consumer research into Irish consumers’ consumption of and attitudes towards coffee. The research was carried out by Toluna on behalf of Mintel in November 2013.

A total of 1,250 internet users aged 16+ in RoI and 750 internet users aged 16+ in NI were asked questions including:

“Thinking about drinking coffee at home, which, if any, of the following statements do you agree with? Select all that apply.”

“Which of these types of coffee, if any, have you drunk at home in the past six months, and how frequently?”

“Now thinking about shopping for coffee to drink at home, which of the following, if any, would make you choose one product over another?”

The results from this survey are discussed in The Consumer sections of this report.

Mintel also draws consumer insight from other sources:

Mintel’s Inspire database and previous Mintel reports from the UK and Ireland.

In compiling this report, Mintel has gathered data from separate NI and RoI sources (eg NISRA and CSO). In some cases therefore it has not been possible to provide comparable data for each region.

For the purposes of this report:

• Ireland refers to the island of Ireland

• NI refers to Northern Ireland

• RoI refers to the Republic of Ireland

• Therefore, ‘Irish consumers’ refers to both NI and RoI consumers.