The coffee market - Germany (2023)

Since 2020, the coffee market has seen a variety of emerging trends and developments. Consumer trends point to a growing demand for high-quality, sustainable coffee products, particularly among younger consumers such as Generation Z. Interest in herbal coffee, cold brews and innovative offerings such as Proffee (protein coffee) is on the rise. Market segmentation shows the growing popularity of coffee beans, which grew by 11.1% between 2020 and 2021, while traditional ground filter coffee declined by 5%.

The capsule and pod segments appear stable, with minimal changes in market share. Despite these fluctuations, ground roasted coffee remains the market leader, with a share of 46.9% in 2021. The German market, in particular, has shown a penchant for high-end products, contributing to sales in the fair trade sector reaching around 705.45 million euros in 2022. In addition, the average price of a cup of coffee at home in 2023 will vary according to the method of preparation, with Nespresso capsules being the most expensive at €0.36 per cup and Senseo pods the cheapest at €0.14. The growth of the coffee industry is also influenced by the Supply Chain Act, which aims to ensure ethical practices in the supply chain, reflecting the increased emphasis on corporate social responsibility and sustainability.

Coffee demand analysis: Key coffee market trends in the country concerned

The coffee market in the country concerned, which appears to be Germany from the context, has seen a palpable evolution in consumer preferences and trends. The growing appetite for coffee has led to an increase in export volume from around 118,000 to between 140,000 and 150,000 thousand 60-kilo bags in 2022/23. This growth not only highlights coffee's popularity, but also underscores its importance in world trade, with leading producers such as Brazil and Vietnam accounting for around half of total output. German consumers are particularly demanding when it comes to quality, which is reflected in their willingness to pay higher prices for top-of-the-range products. This trend is evident in the strong growth of fair trade coffee sales, which have reached between 700 and 710 million euros in 2022, positioning coffee as a leader in the fair trade sector. The market has increasingly favored organic coffee and coffee beans, indicating a general move towards more environmentally-friendly, higher-quality coffee options.

In Germany, almost 80% of adults consume coffee, with the majority drinking at least two cups a day. Coffee is appreciated for its taste and stimulating effect, but what is striking is that consumption increases steadily with age. Among people aged 18-29, 50-60% drink at least two cups a day, rising to over 70% for older people. Coffee preparation methods vary considerably, with fully automatic coffee machines gaining in popularity, as evidenced by the fact that over 20% of German households own one. By contrast, traditional filter coffee brewing methods are becoming less popular. In terms of brands, Jacobs leads the way with high levels of awareness and use among consumers - over 90% are familiar with the brand, and around three-quarters have purchased it. This market is set to evolve further with the introduction of the Supply Chain Act, which aims to ensure respect for human rights and environmental standards in corporate supply chains. This law could influence market dynamics by affecting international trade relations and possibly modifying cost structures. In summary, the German coffee market is experiencing dynamic growth, with a clear preference for high-quality, sustainable products on the part of increasingly discerning consumers. The market is also witnessing legal pressure for fairer business practices and greater corporate responsibility, which could influence future trends in this segment.

Key players dominating the German coffee market

The German coffee market, renowned for its growth and diversity of consumer preferences, is marked by the notable presence of both national and international companies. Among the myriad brands, several stand out for their decisive role in shaping consumer tastes and market dynamics.

• Neumann Coffee Group occupies an important place in the coffee trade. As the world's largest green coffee services group, Neumann focuses on green coffee sourcing, financing and logistics. Its expertise in this field has made it a leader in supplying sustainable, high-quality coffee products to roasters worldwide.
• Louis Dreyfus Company is another titan in the arena, with its global reach in agricultural commodities. The company's extensive portfolio includes the trading and marketing of a wide range of products, of which coffee is a key component. Louis Dreyfus prides itself on its responsible approach to sourcing, contributing to the sustainability discourse in the coffee market.
• When it comes to roasters, Nestlé is a household name, synonymous with its Nescafé brand, which is a staple in many German households. Its innovative approach to coffee products keeps Nestlé at the forefront of consumer preferences, catering for a wide range of tastes and preparation methods.
• JDE Peet' s brings together a large number of coffee brands, including Jacobs, Douwe Egberts and Tassimo. The diversity of its portfolio enables it to conquer different market segments, from instant coffee to sophisticated capsule systems, and thus maintain a solid position in the sector.
• Starbucks, world-renowned for its specialty coffees, is extending its influence through retail products. Offering a taste of the Starbucks experience at home, the brand's variety of packaged coffees and coffeehouse-style drinks has found a receptive audience in Germany.
• Lavazza, an Italian coffee manufacturer, delighted coffee lovers with its authentic espresso and wide choice of coffee blends. The brand's commitment to quality reflects the high coffee expectations of German consumers.
• The name Melitta evokes the tradition and culture of coffee-making. This long-established German brand invented the paper coffee filter, revolutionized home coffee-making and continues to innovate in the coffee world.
• Tchibo also plays a key role in offering a weekly rotating product range that often includes coffee-related equipment and accessories, as well as a wide range of coffee varieties. Tchibo's commitment to sustainable development and direct trade practices is in line with the European Union's coffee policy.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 05/06/2023

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