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Coffee - Ireland - December 2013

INTRODUCTION
Key themes of the report
Definitions
Consumer research
Data sources
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Segmentation of the coffee market, by type, IoI, 2012
Forecast
Figure 2: Indexed growth in retail coffee market, NI and RoI, 2008-18
Market factors
Coffee bean prices plummeting
Robusta market picking up
Ireland embracing coffee shop culture…at home
Innovation picking up in coffee pod/capsule market
Companies, brands and innovations
The consumer
NI consumers drinking more coffee than RoI consumers
Figure 3: Types of coffee consumed at home in the last six months, NI and RoI, November 2013
Instant coffee most popular for daily consumption
Figure 4: Frequency of standard instant coffee consumption, NI and RoI, November 2013
Consumers valuing rich taste of coffee
Figure 5: Factors that would make consumers choose one type of coffee over another, NI and RoI, November 2013
Consumers drinking coffee as a treat
Figure 6: Agreement with statements relating to coffee, NI and RoI, November 2013
What we think
ISSUES IN THE MARKET
What types of coffee are Irish consumers drinking?
What opportunities are there for brands to add value to the in-home coffee market?
Are health concerns impacting the market and causing consumers to switch to decaffeinated coffee and reduce their daily consumption?
What influences are high street coffee shop chains having on the retail market?
TREND APPLICATION
Sense of the Intense
Transumers
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MARKET OVERVIEW
Key points
Supply exceeding demand
Figure 7: Average annual prices of coffee beans, 2005-13
Figure 8: Consumer price index for coffee, percentage change over 12 months, RoI, 2005-13
Superior Arabica bean prices experiencing sharp decline
Figure 9: Monthly weighted average price of coffee beans on world markets, by coffee bean type, 2005-13
Robusta market growing
Coffee shop culture influencing at-home market
Coffee pods enabling consumers to recreate barista experience at home
Figure 10: Coffee pod/capsules sales, UK, 2010-12
Brands maintaining dominance in coffee market
Figure 11: Percentage share of coffee launches, by private label and branded, UK and RoI, 2008-13
Conflicting research on caffeine consumption likely to cause confusion amongst coffee drinkers
COMPETITIVE CONTEXT
Key points
Figure 12: Flavoured, herbal and spiced teas launches, UK/Ireland, 2009-13
Ireland’s on-the-go coffee culture limits take-home coffee market
Low-fat/calorie hot chocolate targeting health-conscious consumers
MARKET SIZE AND SEGMENTATION
Key points
Coffee market expected to grow
Figure 13: Estimated market size and forecast for the value of the total in-home coffee market, IoI, RoI and NI, 2008-18
Growth in NI coffee market expected to outpace RoI
Figure 14: Indexed growth in retail coffee market, NI and RoI, 2008-18
Coffee pods expected to drive growth in the market
Figure 15: Segmentation of the coffee market, by type, IoI, 2012
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Significant increase in coffee filter/pod NPD activity
Figure 16: Product launches within the UK/Ireland coffee market, by main format types, 2011-13
Coffee for the festive season
Flavoured coffees
Figure 17: Coffee launches, by unflavoured and flavoured, UK and Ireland, 2011-13
Barista-style instant coffee
Chocolate influencing chilled coffee flavours
Directly targeting the breakfast market
COMPANIES AND PRODUCTS
Bewley’s
Café Direct
Costa Coffee
Douwe Egberts
Johnsons Coffee
Lavazza
Mondelēz International
Nestlé
Robert Roberts
Starbucks
THE CONSUMER – USAGE OF COFFEE
Key points
NI consumers drinking coffee more frequently than RoI consumers
Figure 18: Types of coffee consumed at home in the last six months, NI and RoI, November 2013
Instant coffee most popular for daily consumption
Figure 19: Frequency of standard instant coffee consumption, NI and RoI, November 2013
Men and parents drinking instant coffee most frequently
Figure 20: Frequency of standard instant coffee consumption (2 or more times a day), by gender, NI and RoI, November 2013
Figure 21: Frequency of standard instant coffee consumption (2 cups a day or more), by presence of children in household, NI and RoI, November 2013
NI under-35s most likely to drink ground coffee
Figure 22: Ground coffee consumed in the past six months, by gender and age, NI and RoI, November 2013
Ground coffee appealing to a premium market
Figure 23: Ground coffee consumption in the last six months, by social class, NI and RoI, November 2013
Coffee pods appealing to ABC1 consumers
Figure 24: Coffee pod usage (eg Nespresso) in the last six months, by social class, NI and RoI, November 2013
THE CONSUMER – FACTORS INFLUENCING CHOICE OF COFFEE
Key points
Irish consumers seeking rich taste from coffee
Figure 25: Factors that would make consumers choose one type of coffee over another, NI and RoI, November 2013
Men and over-35s valuing rich taste of coffee
Figure 26: Consumers influenced by rich taste when choosing one type of coffee over another, by gender and age, NI and RoI, November 2013
RoI consumers valuing fair trade credentials
Figure 27: Consumers influenced by fair trade when choosing one type of coffee over another, by age, NI and RoI, November 2013
Premium brands appealing to ABC1 consumers
Figure 28: Consumers influenced by premium brands when choosing one type of coffee over another, by social class and age, NI and RoI, November 2013
Women and under-25s most likely to choose flavoured coffees
Figure 29: Consumers influenced by added flavours (eg chocolate, Amaretto, vanilla-flavoured coffee) when choosing one type of coffee over another, by gender and age, NI and RoI, November 2013
THE CONSUMER – ATTITUDES TOWARDS COFFEE
Key points
Irish consumers ‘treating themselves’ to coffee
Figure 30: Agreement with statements relating to coffee, NI and RoI, November 2013
Disparity in NI and RoI ABC1 consumers’ usage of coffee as a treat
Figure 31: Agreement with the statement ‘Coffee makes a nice treat’, by social class, NI and RoI, November 2013
RoI consumers more discerning coffee drinkers
Figure 32: Agreement with the statement ‘I notice a difference in quality between instant and non-instant coffee’, by age and social class, NI and RoI, November 2013
Consumers seeking coffee for energy boost in the morning
Figure 33: Agreement with the statement ‘Coffee gives me an energy boost’, by gender and age, NI and RoI, November 2013
Figure 34: Agreement with the statement ‘Coffee is a good way to start the day’, by gender and age, NI and RoI, November 2013
Men valuing quality of coffee
Figure 35: Agreement with the statement ‘Quality of coffee is more important to me than how easy it is to make’, by gender and age, NI and RoI, November 2013
Difficulties in creating barista experience at home
Figure 36: Agreement with the statement ‘It's hard to recreate coffee shop-style drinks at home’, by social class and age, NI and RoI, November 201
APPENDIX
NI Toluna demographic tables
Figure 37: Frequency consumers have drunk standard instant coffee (eg Nescafé) at home in the last six months, by demographics, NI, November 2013
Figure 38: Frequency consumers have drunk ground coffee (eg Carte Noire) at home in the last six months, by demographics, NI, November 2013
Figure 39: Frequency consumers have drunk coffee made using whole beans (ground personally) at home in the last six months, by demographics, NI, November 2013
Figure 40: Frequency consumers have drunk coffee pods (eg Nespresso) at home in the last six months, by demographics, NI, November 2013
Figure 41: Frequency consumers have drunk chilled ready-to-drink coffee (eg Starbucks Frappuccino, illy Iced Coffee, etc.) at home in the last six months, by demographics, NI, November 2013
Figure 42: Frequency consumers have drunk decaffeinated coffee (any type) at home in the last six months, by demographics, NI, November 2013
Figure 43: Frequency consumers have drunk instant cappuccinos/latte/mocha coffee (eg Kenco 3-in-1, Starbucks VIA, etc.) at home in the last six months, by demographics, NI, November 2013
Figure 44: Frequency consumers have drunk whole bean or micro-ground instant coffee (eg Kenco Millicano, Nescafé Azera) at home in the last six months, by demographics, NI, November 2013
Figure 45: Frequency consumers have drunk other coffee types (eg One-cup coffee filter bags) at home in the last six months, by demographics, NI, November 2013
Figure 46: Factors that would make consumers choose one type of coffee over another, by demographics, NI, November 2013
Figure 47: Factors that would make consumers choose one type of coffee over another, by demographics, NI, November 2013 (continued)
Figure 48: Factors that would make consumers choose one type of coffee over another, by demographics, NI, November 2013 (continued)
Figure 49: Agreement with statements relating to coffee (at home), by demographics, NI, November 2013
Figure 50: Agreement with statements relating to coffee (at home), by demographics, NI, November 2013 (continued)
Figure 51: Agreement with statements relating to coffee (at home), by demographics, NI, November 2013 (continued)
RoI Toluna demographic tables
Figure 52: Frequency consumers have drunk standard instant coffee (eg Nescafé) at home in the last six months, by demographics, RoI, November 2013
Figure 53: Frequency consumers have drunk ground coffee (eg Carte Noire) at home in the last six months, by demographics, RoI, November 2013
Figure 54: Frequency consumers have drunk coffee made using whole beans (ground personally) at home in the last six months, by demographics, RoI, November 2013
Figure 55: Frequency consumers have drunk coffee pods (eg Nespresso) at home in the last six months, by demographics, RoI, November 2013
Figure 56: Frequency consumers have drunk chilled ready-to-drink coffee (eg Starbucks Frappuccino, illy Iced Coffee, etc.) at home in the last six months, by demographics, RoI, November 2013
Figure 57: Frequency consumers have drunk decaffeinated coffee (any type) at home in the last six months, by demographics, RoI, November 2013
Figure 58: Frequency consumers have drunk instant cappuccinos/latte/mocha coffee (eg Kenco 3-in-1, Starbucks VIA, etc.) at home in the last six months, by demographics, RoI, November 2013
Figure 59: Frequency consumers have drunk whole bean or micro-ground instant coffee (eg Kenco Millicano, Nescafé Azera) at home in the last six months, by demographics, RoI, November 2013
Figure 60: Frequency consumers have drunk other coffee types (eg One-cup coffee filter bags) at home in the last six months, by demographics, RoI, November 2013
Figure 61: Factors that would make consumers choose one type of coffee over another, by demographics, RoI, November 2013
Figure 62: Factors that would make consumers choose one type of coffee over another, by demographics, RoI, November 2013 (continued)
Figure 63: Factors that would make consumers choose one type of coffee over another, by demographics, RoI, November 2013 (continued)
Figure 64: Agreement with statements relating to coffee (at home), by demographics, RoI, November 2013
Figure 65: Agreement with statements relating to coffee (at home), by demographics, RoI, November 2013 (continued)
Figure 66: Agreement with statements relating to coffee (at home), by demographics, RoI, November 2013 (continued)

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