Table of Contents
Introduction
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- Definition
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Retail market value of coffee in China, 2009-19
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- Figure 2: Share of China’s coffee market segment by value, 2009-19
- Companies and brands
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- Figure 3: Market share of non-liquid coffee retail market, by value 2013
- The consumer
- Usage of coffee
- Reasons for not drinking coffee
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- Figure 4: Reasons for not drinking coffee, May 2014
- Frequency of drinking different types of coffee
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- Figure 5: Frequency of drinking different types of coffee, May 2014
- Occasions of drinking coffee
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- Figure 6: Occasions of drinking coffee, May 2014
- Consumers’ perception of different types of coffee
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- Figure 7: Consumers’ perception of different types of coffee, may 2014
- Coffee buying and drinking behaviours
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- Figure 8: Coffee buying and drinking behaviours, May 2014
- Attitudes towards coffee
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- Figure 9: Attitudes towards coffee, May 2014
- Key issues
- How can brands encourage more habitual consumption of instant coffee?
- How can brands overcome the taste and cost barriers of fresh coffee?
- How to change consumers’ negative perception of RTD coffee?
- How to motivate young consumers to drink more coffee?
Issues and Insights
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- How can brands encourage more habitual consumption of instant coffee?
- The facts
- The implications
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- Figure 10: Examples of instant coffee with added benefits, Mainland China & Hong Kong, 2014
- How can brands overcome the taste and cost barriers of fresh coffee?
- The facts
- The implications
- How to change consumers’ negative perception of RTD coffee?
- The facts
- The implications
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- Figure 11: Examples of coffee innovations with “natural” claims, Japan, 2014
- How to motivate young consumers to drink more coffee?
- The facts
- The implications
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- Figure 12: Examples of coffee and soft drink blends innovation, China, 2006-14
Trend Applications
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- Capturing more consumers on the go
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- Figure 13: Examples of RTD coffee packaging innovations, Taiwan, France & Czech Republic, 2013-14
- Making coffee a mood food
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- Figure 14: Examples of coffee products with emotional benefits, US, Finland & Vietnam, 2014
- Enhancing the sensory experience
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- Figure 15: Examples of coffee featuring intensified physical and sensory experiences, US & Finland, 2014
Market Size and Forecast
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- Key points
- China’s coffee market value enjoyed a rapid growth in past five years
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- Figure 16: Retail market value of China’s coffee market, 2009-14
- Great room for future consumption growth
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- Figure 17: Non-liquid coffee retail market volume & volume consumption per capita, China, Japan, US and UK, 2013
- Coffee market forecast to grow at a double-digit rate in five years
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- Figure 18: Retail market value of coffee in China, 2009-19
- Forecast methodology
Market Segmentation
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- Key points
- Instant coffee still dominates but is growing at a slower rate
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- Figure 19: Share of China’s coffee market segment on value, 2009-19
- Fresh coffee grew fastest among all three segments in value terms
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- Figure 20: Retail market value of China’s coffee market, by segment, 2009-14
- Market volume grew steadily but at a slower rate than market value
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- Figure 21: Retail market volume of China’s coffee market, by segment, 2009-14
Market Share
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- Key points
- Nestle dominates China’s coffee market
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- Figure 22: Share of value in China’s non-liquid coffee retail market, by company, 2012-13
- Mondelez comes in second place
- New variety extensions and advert help Mondelez increase market share
- China’s coffee market is dominated by multi-national brands
Who’s Innovating?
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- Key points
- Suntory launches Liqu Salty Coffee and Coffee Milk Tea Blends to China
- Starbucks launches low-calorie Frappuccino Light Mocha in China
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- Figure 23: Example of low calorie coffee, China 2014
- Brands innovate coffee with new mellow flavours and aroma in China
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- Figure 24: New coffee products with mellow taste and aroma, China 2014
- Nescafe gets innovative with 3D-printed alarm cap
- Coffee berries used to make coffee a healthier option
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- Figure 25: Examples of coffee & juice infusion innovations using coffee berry, Mexico & US, 2011-13
- Old Orchard introduces iced coffee concentrates to the freezer section
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- Figure 26: Examples of iced coffee frozen concentrate, Canada, 2014
Companies and Brands
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- Nestle
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- Figure 27: Examples of mellow flavoured instant coffee, China, 2014
- Mondelez International
- Mocca Foods
- Dehong Hogood Coffee Co. Ltd
- Suntory
- Uni-President
- Kirin
The Consumer – Usage of Coffee
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- Key points
- Coffee is far from a mainstream drink in China
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- Figure 28: Coffee usage in the last three months, May 2014
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- Figure 29: Coffee usage in the last three months, by city tier, May 2014
- Young males in their 20s have the lowest usage rate
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- Figure 30: Coffee usage in the last three months, by gender and age group, May 2014
- Income drives coffee consumption
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- Figure 31: Coffee usage in the last three months, by monthly personal income, may 2014
The Consumer – Reasons for not Drinking Coffee
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- Key points
- Bitter taste puts consumers off from drinking coffee
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- Figure 32: Reasons for not drinking coffee, May 2014
- Negative effect on health by caffeine is another major concern
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- Figure 33: Agreement on “I am concerned about the negative effect on the health of caffeine”, by gender, May 2014
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- Figure 34: Examples of low-caffeine coffee products, China, 2013-14
- Market barriers vary by city
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- Figure 35: Most popular reasons for not drinking coffee, by city and tier, May 2014
- Coffee blends with soft drinks could appeal more to people in their 20s
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- Figure 36: Most popular reasons for not drinking coffee, by gender & age group, May 2014
The Consumer – Frequency of Drinking Different Types of Coffee
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- Key points
- Instant coffee is the most consumed coffee
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- Figure 37: Frequency of drinking different types of coffee, May 2014
- Consumers from northern cities drink instant coffee more frequently
- Potential for coffee beans and pods as coffee machines are more affordable
- Families with kids drink coffee more frequently
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- Figure 38: Examples of coffee suitable for children, Europe & Asia, 2011-14
- Coffee consumption frequencies go up as income rises
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- Figure 39: Frequency of drinking different types of coffee, by monthly personal income, May 2014
The Consumer – Occasions of Drinking Coffee
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- Key points
- Coffee is a mood drink for Chinese consumers
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- Figure 40: Occasions of drinking coffee, May 2014
- But there is also a functional element
- Build medium users to heavy users of instant coffee
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- Figure 41: Occasions of drinking coffee, by frequency of drinking instant coffee, May 2014
- Narrower consumption occasions for singles
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- Figure 42: Most popular occasions of drinking coffee, by marital status, May 2014
The Consumer – Consumer Perceptions towards Different Types of Coffee
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- Key points
- Reinforcing energy boosting feature to meet consumer needs
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- Figure 43: Consumer perceptions of different types of coffee, May 2014
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- Figure 44: Examples of coffee highlighting energy boosting property, Vietnam, 2014
- The artificial image of RTD coffee hinders its sales
- Taste and cost put consumers off home-made coffee
- Opportunities for instant coffee to trade up by premiumisation
The Consumer – Coffee Buying and Drinking Behaviours
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- Key points
- Make coffee drinking part of lifestyles
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- Figure 45: Coffee buying and drinking behaviours, May 2014
- Half of consumers prefer coffee from chain cafe brands
- Coffee with added benefits targets consumers with specific needs
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- Figure 46: Examples of coffee with added benefits, Vietnam & Thailand, 2014
- Only one in four consumers claim to be knowledgeable about coffee
The Consumer – Attitudes towards Coffee
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- Key points
- A high level of interest in fresh coffee products among consumers
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- Figure 47: Attitudes towards coffee, May 2014
- Fulfilling the market gap for premium instant coffee
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- Figure 48: Agreement on “There is no big difference in taste between instant coffee and freshly brewed coffee”, by monthly personal income, May 2014
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- Figure 49: Examples of premium instant coffee product launches, China, 2013-14
- Potential targets for premium instant coffee
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- Figure 50: Agreement on “I am willing to pay more for premium instant coffee (eg using arabica beans, made from organic ingredients)”, by gender and age group and city, May 2014
- Young consumers, especially women, demand greater flavour variety
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- Figure 51: Agreement on “there is a lack of various flavours of coffee (eg no coffee with nuts/fruit flavours) in the market”, by age and gender group, May 2014
Consumer Segmentation
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- Key points
- Consumer segmentation
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- Figure 52: Consumer segmentation on China’s coffee market, may 2014
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- Figure 53: Consumer attitudes towards coffee, by target groups, may 2014
- Quality Coffee Pursuers
- Convenience Seekers
- Variety Seekers
- Demotivated Drinkers
Appendix – Market Size and Forecast
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- Figure 54: Value sales of China’s coffee retail market, 2009-19
- Figure 55: Volume sales of China’s non-liquid coffee retail market, 2009-19
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Appendix – Market Segmentation
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- Figure 56: Value sales of China’s instant coffee retail market, 2009-19
- Figure 57: Value sales of China’s fresh coffee retail market, 2009-19
- Figure 58: Value sales of China’s RTD coffee retail market, 2009-19
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Appendix – The Consumer – Usage of Coffee
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- Figure 59: Coffee usage in the last three months, May 2014
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- Figure 60: Coffee usage in the last three months, by demographics, May 2014
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Appendix – The Consumer – Reasons for not Drinking Coffee
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- Figure 61: Reasons for not drinking coffee, May 2014
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- Figure 62: Most popular reasons for not drinking coffee, by demographics, May 2014
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- Figure 63: Next most popular reasons for not drinking coffee, by demographics, May 2014
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Appendix – The Consumer – Frequency of Drinking Different Types of Coffee
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- Figure 64: Frequency of drinking different types of coffee, May 2014
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- Figure 65: Frequency of drinking different types of coffee, May 2014
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- Figure 66: Most popular frequency of drinking instant coffee, by demographics, May 2014
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- Figure 67: Next most popular frequency of drinking instant coffee, by demographics, May 2014
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- Figure 68: Most popular frequency of drinking home-made coffee, by demographics, May 2014
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- Figure 69: Next most popular frequency of drinking home-made coffee, by demographics, May 2014
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- Figure 70: Most popular frequency of drinking ready-to-drink coffee drinks, by demographics, May 2014
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- Figure 71: Next most popular frequency of drinking ready-to-drink coffee drinks, by demographics, May 2014
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- Figure 72: Most popular frequency of drinking freshly made coffee at retail channels, by demographics, May 2014
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- Figure 73: Next most popular frequency of drinking freshly made coffee at retail channels, by demographics, May 2014
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Appendix – The Consumer – Occasions of Drinking Coffee
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- Figure 74: Occasions of drinking coffee, May 2014
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- Figure 75: Most popular occasions of drinking coffee, by demographics, May 2014
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- Figure 76: Next most popular occasions of drinking coffee, by demographics, May 2014
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- Figure 77: Occasions of drinking coffee, by frequency of drinking instant coffee, May 2014
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- Figure 78: Occasions of drinking coffee, by frequency of drinking home-made coffee, May 2014
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- Figure 79: Occasions of drinking coffee, by frequency of drinking ready-to-drink coffee drinks, May 2014
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- Figure 80: Occasions of drinking coffee, by frequency of drinking freshly made coffee at retail channels, May 2014
- Repertoire analysis
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- Figure 81: Repertoire of occasions of drinking coffee, May 2014
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- Figure 82: Repertoire of occasions of drinking coffee, by demographics, May 2014
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Appendix – The Consumer – Consumers' Perceptions of Different Types of Coffee
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- Figure 83: Consumers' perception of different types of coffee, May 2014
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- Figure 84: Most popular consumers' perception of instant coffee, by demographics, May 2014
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- Figure 85: Next most popular consumers' perception of instant coffee, by demographics, May 2014
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- Figure 86: Most popular consumers' perception of home-made coffee, by demographics, May 2014
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- Figure 87: Next most popular consumers' perception of home-made coffee, by demographics, May 2014
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- Figure 88: Most popular consumers' perception of ready-to-drink coffee drinks, by demographics, May 2014
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- Figure 89: Next most popular consumers' perception of ready-to-drink coffee drinks, by demographics, May 2014
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- Figure 90: Consumers' perception of different types of coffee, by frequency of drinking instant coffee, May 2014
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- Figure 91: Consumers' perception of different types of coffee, by frequency of drinking home-made coffee, May 2014
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- Figure 92: Consumers' perception of different types of coffee, by frequency of drinking ready-to-drink coffee drinks, May 2014
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- Figure 93: Consumers' perception of different types of coffee, by frequency of drinking freshly made coffee at retail channels, May 2014
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Appendix – The Consumer – Coffee Buying and Drinking Behaviours
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- Figure 94: Coffee buying and drinking behaviours, May 2014
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- Figure 95: Most popular consumers' drinking and buying behaviour towards coffee, by demographics, May 2014
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- Figure 96: Next most popular consumers' drinking and buying behaviour towards coffee, by demographics, May 2014
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Appendix – The Consumer – Attitudes towards Coffee
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- Figure 97: Attitudes towards coffee, May 2014
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- Figure 98: Agreement with the statement ‘When drinking coffee out of home, the experience/services is more important than the coffee served’, by demographics, May 2014
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- Figure 99: Agreement with the statement ‘It is important for me to learn more about coffee’, by demographics, May 2014
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- Figure 100: Agreement with the statement ‘Coffee bought in coffee shops tastes better than home-made coffee’, by demographics, May 2014
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- Figure 101: Agreement with the statement ‘There is no big difference in taste between instant coffee and freshly brewed coffee’, by demographics, May 2014
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- Figure 102: Agreement with the statement ‘It is more time-saving to buy coffee out of home than making it at home’, by demographics, May 2014
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- Figure 103: Agreement with the statement ‘Coffee is more effective for energy boosting than strong tea’, by demographics, May 2014
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- Figure 104: Agreement with the statement ‘Coffee is a healthier option than energy drinks’, by demographics, May 2014
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- Figure 105: Agreement with the statement ‘I am interested in learning more about how to make coffee at home’, by demographics, May 2014
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- Figure 106: Agreement with the statement ‘Making coffee at home is an enjoyable process’, by demographics, May 2014
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- Figure 107: Agreement with the statement ‘Quality of coffee is more important than how easy it is to make’, by demographics, May 2014
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- Figure 108: Agreement with the statement ‘Making coffee at home is a symbol of pursuing better quality life’, by demographics, May 2014
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- Figure 109: Consumer attitudes towards coffee, by frequency of drinking instant coffee, May 2014
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- Figure 110: Consumer attitudes towards coffee, by frequency of drinking home-made coffee, May 2014
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- Figure 111: Consumer attitudes towards coffee, by frequency of drinking ready-to-drink coffee drinks, May 2014
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- Figure 112: Consumer attitudes towards coffee, by frequency of drinking freshly made coffee at retail channels, May 2014
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Appendix – The Consumer Segmentation
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- Figure 113: Target groups, by demographics, May 2014
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- Figure 114: Frequency of drinking different types of coffee, by target groups, May 2014
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- Figure 115: Occasions of drinking coffee, by target groups, May 2014
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- Figure 116: Consumers' perception of different types of coffee, by target groups, May 2014
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- Figure 117: Consumers' drinking and buying behaviour towards coffee, by target groups, May 2014
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- Figure 118: Consumer attitudes towards coffee, by target groups, May 2014
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