Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- ACORN
- Abbreviations
Executive Summary
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- World stage
- Lower prices, lower value for suppliers
- Lower prices, more choice for consumers
- Selling to the young and the bold
- Maturing tastes
- Instant coffee – a British thing
- Trading up expected to continue
- Market growth depends on increasing levels of consumption
Market Drivers
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- Price of raw materials
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- Figure 1: Composite indicator price of green coffee beans, 1989-2003
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- Figure 2: Indexed sales of green coffee beans, 1989-2003
- The social dimension – fair trade
- New initiatives
- Health issues
- The effects of weather
- Economy – PDI and consumer expenditure
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- Figure 3: PDI and consumer expenditure, at current and constant 1998 prices, 1998-2007
- Demographics – main consumers aged 35+
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- Figure 4: Trends and projections in UK population, by age group, 1998-2007
- Youth market
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- Figure 5: UK retail market for soft drinks, by volume, 1998-2002
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- Figure 6: Consumption of coffee and other non-alcoholic drinks in GB – all adults and coffee drinkers, 2003
- Figure 7: Consumption of other non-alcoholic drinks, by age and gender, 2003
- Café culture/work habits
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- Figure 8: Ownership of electric kettles and elctric filter coffee machines in GB, by age and gender, 2003
Market Size and Trends
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- Volume remains stable
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- Figure 9: UK retail sales of coffee, by volume, 1998-2003
- Value reliant on world price of coffee beans
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- Figure 10: UK retail sales of coffee, by value, 1998-2003
- Value sales of coffee – instant versus ground
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- Figure 11: UK retail sales of coffee, by sector, by value, 1999-2003
- Fair trade coffee
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- Figure 12: UK retail sales of Fair Trade coffee, by value, 1998-2003
Market Segmentation
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- Instant coffee
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- Figure 13: UK retail sales of instant coffee, by value, 1998-2003
- Instant by category
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- Figure 14: UK retail sales of instant coffee, by sector, by value, 1999-2003
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- Figure 15: UK retail sales of instant coffee, by sector, by value, 2003
- Regular
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- Figure 16: UK retail sales of regular instant coffee, by value, 1998-2003
- Premium
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- Figure 17: UK retail sales of premium instant coffee, by value, 1998-2003
- Super-premium
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- Figure 18: UK retail sales of super-premium instant coffee, by value, 1998-2003
- Decaffeinated
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- Figure 19: UK retail sales of decaffeinated instant coffee, by value, 1998-2003
- Speciality
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- Figure 20: UK retail sales of speciality instant coffee, by value, 1998-2003
- Powders
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- Figure 21: UK retail sales of instant coffee powders, by value, 1998-2003
- Other instant coffee
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- Figure 22: UK retail sales of other instant coffee, by value, 1998-2003
- Comparative performance, sector by sector
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- Figure 23: Indexed UK retail sales of instant coffee, at current prices, by sector, 1998-2003
- Figure 24: Indexed UK retail sales of instant coffee, at constant 1998 prices, by sector, 1998-2003
- Coffee beans/ground coffee
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- Figure 25: UK retail sales of ground coffee/coffee beans, by value, 1998-2003
- Figure 26: Indexed UK retail sales of instant coffee and ground coffee/coffee beans, at current prices, 1998-2003
The Supply Structure
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- Foreign trade
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- Figure 27: Production levels of main coffee-exporting countries, by volume, 1998-2002
- Manufacturer and brand shares
- Instant coffee
- By producer
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- Figure 28: Market share of instant coffee, by producer, by value, 1999-2003
- By brand
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- Figure 29: Market share for instant coffee, by leading brand, by value, 1999-2003
- Fresh/ground coffee
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- Figure 30: Market share for ground/fresh coffee, by producer, by value, 1999-2003
- Companies and brands
- Nestlé
- Kraft
- Douwe Egberts
- Cafédirect
- Food Brands
- Gala Coffee and Tea
- Lavazza
- RGB – Rombouts
- Bettys & Taylors of Harrogate
- Illy Caffe
- Boaters
New Product Briefs
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- January 2004
- December 2003
- November 2003
- October 2003
- September 2003
- August 2003
- July 2003
- June 2003
- April 2003
- March 2003
- February 2003
Advertising and Promotion
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- Above the line
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- Figure 31: Main monitored media advertising expenditure on coffee, 1998-2003
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- Figure 32: Main monitored media advertising expenditure on coffee, cumulative total by top spenders, 2000-02
- Below the line
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- Figure 33: Selected below-the-line promotions in the coffee market, September 2003
Distribution
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- Multiples dominate
- Packaging – shape and size
The Consumer – Levels of Usage
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- Pan-European comparison of coffee consumption
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- Figure 34: Consumption of instant and fresh ground coffee, by country, 2003
- Tea is more popular than coffee in GB
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- Figure 35: Consumption of coffee and tea, by country, 2003
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- Figure 36: Consumption of instant coffee, by country, 2003
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- Figure 37: Frequency of drinking instant coffee, by country, 2003
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- Figure 38: Consumption of fresh ground coffee, by country, 2003
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- Figure 39: Consumption of fresh ground coffee, by country, 2003
- Room to revive the decaffeinated sector
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- Figure 40: Profile of instant coffee drinkers, by type drunk: standard or decaffeinated, by country, 2003
- Coffee consumption
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- Figure 41: Frequency of consuming instant coffee in GB, 2003
- Instant coffee most popular among over-34s
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- Figure 42: Penetration and frequency of drinking instant coffee in GB, by gender and age, 2003
- Upper-middle income groups rely on instant
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- Figure 43: Consumption and frequency of drinking instant coffee in GB, by annual income group and working status, 2003
- Londoners shun instant coffee
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- Figure 44: Consumption and frequency of drinking instant coffee in GB, by region, 2003
- Frequency higher in households with children
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- Figure 45: Penetration and frequency of drinking instant coffee in GB, by presence of children and household size, 2003
- Fresh ground coffee – particular bias towards over-44s
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- Figure 46: Penetration and frequency of drinking fresh ground coffee, by gender and age, 2003
- Volumes concentrated in base of frequent users
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- Figure 47: Consumption and frequency of drinking fresh ground coffee, by annual income group and working status, 2003
- Consumption of fresh ground low in Midlands and North
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- Figure 48: Penetration and frequency of drinking fresh ground coffee, by region, 2003
- Consumption frequency highest in smallest households
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- Figure 49: Penetration and frequency of drinking fresh ground coffee, by presence of children and household size, 2003
- Medium ground the most popular choice
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- Figure 50: Type of fresh ground coffee drunk in GB, beans or ground, 2003
- Attitudinal influences – inexpensive prices not most popular factor
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- Figure 51: Attitudes towards shopping, brands and quality – all adults and coffee drinkers, 2003
- Mintel European target groups
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- Figure 52: Consumption and frequency of drinking coffee, by GB Special Groups, 2003
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- Figure 53: Consumption and frequency of drinking coffee, by GB Special Groups, 2003
The Consumer – Type of Coffee/Attitudes Towards Coffee
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- Branded instant coffee takes top spot
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- Figure 54: Types of coffee bought in the last three months, 1999-2003
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- Figure 55: Types of coffee bought in the last three months, 1999-2003
- Consumers turn to premium instant and ground as they age
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- Figure 56: Types of coffee bought in the last three months, by gender, age and socio-economic status, November 2003
- Pre-/no family go for instant
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- Figure 57: Types of coffee bought in the last three months, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Married respondents opt for premium varieties
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- Figure 58: Types of coffee bought in the last three months, by marital status, working status, household size and tenure, November 2003
- Room to expand consumer base in Scotland?
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- Figure 59: Types of coffee bought in the last three months, by region and ACORN category, November 2003
- Heavy TV viewers drink standard instant
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- Figure 60: Types of coffee bought in the last three months, by media usage, TV viewing and main supermarket used, November 2003
- Own-label suits all tastes and pockets
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- Figure 61: Types of coffee bought in the last three months, by gender, age and socio-economic status, November 2003
- Raised health-awareness benefits decaffeinated coffee
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- Figure 62: Types of coffee bought in the last three months, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- One-cup portions offer convenience to one-person households
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- Figure 63: Types of coffee bought in the last three months, by marital status, working status, household size and tenure, November 2003
- Scotland has highest level of non-buyers
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- Figure 64: Types of coffee bought in the last three months, by region and ACORN category, November 2003
- Co-op shoppers buy own-label
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- Figure 65: Types of coffee bought in the last three months, by media usage, TV viewing and main supermarket used, November 2003
- Coffee primarily drunk after meals
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- Figure 66: Attitudes towards coffee drunk at home, November 2003
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- Figure 67: Attitudes towards coffee drunk at home, November 2003
- Room to promote coffee for breakfast and after-dinner
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- Figure 68: Attitudes towards coffee drunk at home, by gender, age and socio-economic status, November 2003
- Brand loyalty highest among the retired
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- Figure 69: Attitudes towards coffee drunk at home, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Older consumers least keen on coffee at breakfast time
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- Figure 70: Attitudes towards coffee drunk at home, by marital status, working status, household size and tenure, November 2003
- Brand loyalty high in the North West
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- Figure 71: Attitudes towards coffee drunk at home, by region and ACORN category, November 2003
- Broadsheet readers and Internet users exposed to health issues
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- Figure 72: Attitudes towards coffee drunk at home, by media usage, TV viewing and main supermarket used, November 2003
- 45-64s and ABs may favour super-premium instants
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- Figure 73: Attitudes towards coffee drunk at home, by gender, age and socio-economic status, November 2003
- Taste is the issue
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- Figure 74: Attitudes towards coffee drunk at home, by lifestage, presence of children and Mintel’s Special Groups, November 2003
- Smaller households choose instant over ground
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- Figure 75: Attitudes towards coffee drunk at home, by marital status, working status, household size and tenure, November 2003
- Settling residents look for convenience
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- Figure 76: Attitudes towards coffee drunk at home, by region and ACORN category, November 2003
- Broadsheet readers and Marks & Spencer shoppers prefer ground
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- Figure 77: Attitudes towards coffee drunk at home, by media usage, TV viewing and main supermarket used, November 2003
- Identifying the products by consumer preferences
- Ground coffee mainly drunk after dinner
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- Figure 78: Types of coffee bought, by attitudes towards coffee drunk at home, November 2003
- Sacrificing taste for convenience
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- Figure 79: Cross-analysis of types of coffee bought, by attitudes towards coffee drunk at home, November 2003
- Identifying targets
- Ground coffee has higher consumption out of home
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- Figure 80: Combined responses, November 2003
- Premium and ground bought by 45-64s and ABs
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- Figure 81: Combined responses, by gender, age and socio-economic status, November 2003
- ABC1 families and third agers opt for premium
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- Figure 82: Combined responses, by lifestage, Mintel’s Special Groups, marital and working status, November 2003
- Ground and decaffeinated most popular in London and the South
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- Figure 83: Combined responses, by region and ACORN category, November 2003
- Shelf allocation will vary store to store
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- Figure 84: Combined responses, by media usage, TV viewing and main supermarket visited, November 2003
- Scope for encouraging a range of products
- Importance of 45-54s
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- Figure 85: Number of different types of coffee bought in the last three months, November 2003
- Repertoire linked to affluence
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- Figure 86: Number of different types of coffee bought in the last three months, by gender, age and socio-economic status, November 2003
- North/South divide
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- Figure 87: Number of different types of coffee bought in the last three months, by lifestage and Mintel’s Special Groups, November 2003
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- Figure 88: Number of different types of coffee bought in the last three months, by region and ACORN category, November 2003
- Light TV viewers drink more coffee types
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- Figure 89: Number of different types of coffee bought in the last three months, by media usage, TV viewing and main supermarket visited, November 2003
- Spotting potential in similar customer profiles
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- Figure 90: Comparison of coffee combination buyers and grocery retailer consumer profiles, November 2003
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- Figure 91: Comparison of Coffee repertoire buyers and grocery retailer consumer profiles, November 2003
The Future
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- New initiatives
- Supply
- Demand
- Fair trade
- UK-specific factors
- Attracting youth
- Affordability
- Market growth depends on increasing levels of consumption
Forecast
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- Revitalising the market
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- Figure 92: Forecast of retail sales of coffee, by volume and value, 2003-07
- Marked improvement in performance
- Trading up is key to market development
- Diversifying from the after-dinner association
- Take-up among young consumers important to growth
- Factors used in the forecast
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