Global Information would like to present a new a new market research report, "Coffee - UK - February 2010" by .
The coffee market has managed to maintain adequate market performance in the face of economic turbulence between 2008 and 2009. From the year 2005 through 2009, the UK market for in-home coffee has attained 17% growth in value. Despite the fact that some of this growth can be attributed to the rise in raw coffee and production costs, "trading up" has still been a central aspect of this market.
Interestingly enough, approximately 90% of the 27 million coffee-drinking consumers have drunk some type of instant coffee in the last year. This data indicates that instant coffee continues to reign as the dominant product in the coffee market. These findings also implicate that there are sizeable market opportunities for suppliers who can persuade instant coffee drinkers to trade up to consuming ground, pods, of beans in place of instant. Additionally, despite the fact that coffee pods account for around a fifth of expenditures in the roast and round category, consumer research shows that they are only used by 14% of consumers, which reflects a high-spending nature of the coffee pod consumer.
All-in-all, with the price of coffee beans forecasted to fall this year, it will be necessary for coffee and coffee shop brands to cut prices or find new methods to justify higher prices. Looking towards the future, coffee brands will need to find innovative ways to attract "green" consumers as Fairtrade becomes more commonplace in the market.
