The coffee pod market - Italy (2024)

1.2 The Global Market

Market In ****, the global market for coffee pods and capsules reached a total value of $**.** billion. A compound annual growth rate (***) of *.**% is projected for the period ****-****, under which the world market could touch a value of $** billion by the end of the period. Coffee pods and capsules market World, ****-****, in billions of dollars MordorIntelligence Production In terms of annual coffee production, between **** and **** there is a growth of *.* percent, with total production increasing from ***.* million packs to ***.* million packs. While between **** and **** the production figure is substantially skewed, between **** and **** there is the highest growth of *.* percent. Coffee production World, ****-****, in millions of **kg packs Icocoffee In ****, **.*% of world coffee production is concentrated in the South American region. This is followed by Asia along with Oceania, where **.*% of the world's coffee is produced, and Africa, which stands at **.*%. Finally, in the geographic area enclosed by the Caribbean, Mexico and Central America, production stands at **.* percent of the world total. Coffeeproduction , breakdown by geographic region World, ****, % Icocoffe Consumption Trends in world coffee consumption closely track those for production. Between **** and ****, annual world coffee consumption grew by *.* percent, from ***.* million packs to ***.* million packs. Again, the trend is skewed ...

1.3 The Italian market

Regarding Italy and the size of the coffee market, between **** and ****, the total turnover of coffee and tea processing companies grew by **.* percent, from *.** billion euros to *.** billion euros. Growth appears to be steady throughout the entire period, with the exception of ****, when due to restrictions imposed to contain the pandemic, total turnover drops by *.* percent compared to ****, mainly due to a drop in demand in the Ho.Re.Ca. segment. Total turnover of companies active in coffee and tea processing (***) Italy, ****-****, in billion euros Istat Total household spending on coffee purchases also grows between **** and ****. During the period analyzed, total spending increases from *.** billion euros to *.** billion euros, registering a growth of **.* percent. Again, **** turns out to be the only year in which spending declines (***). Total household expenditure on coffee purchases. Italy, ****-****, in billions of euros Istat Finally, analyzing the market segment related to pods and capsules, between **** and **** the Italian market for these products experienced a remarkable growth of **.* percent. As shown in the graph below, the growth appears to be constant throughout the entire period and is also confirmed in ****. The positive growth figure recorded in **** can be attributed to the fact that coffee pods and ...

1.4 Import - Export

For the analysis of trade flows in and out of Italy, HS Code **** "Roasted coffee, decaffeinated coffee, and coffee substitute products" during ****-**** is considered.

During the period analyzed, Italian coffee exports grew by **.* percent from $*.** billion to $*.** billion. Imports also registered growth during the same period. Between **** and ****, Italian coffee imports increased from $*.** billion to $*.** billion, representing a growth of **.* percent. Finally, analyzing the export coverage ratio, determined by the ratio of exports to imports multiplied by ***, between **** and **** this ranges from **.* percent to ***.* percent.

Import - Export of Coffee (***) Italy, ****-****, in billions of dollars and % Uncomtrade

Trade flows out of Italy are extremely diverse. In ****, Germany and France are Italy's main trading partners, collecting **.* percent and **.* percent of total exports, respectively. They are followed by Poland, the United States and Greece, which contribute *.* percent, *.* percent and *.* percent of Italian exports, respectively. All other countries individually do not reach *.* percent of Italian exports and together contribute **.* percent of Italian exports.

Main destination countries of coffee exports Italy, ****, % Uncomtrade Finally, when analyzing Italian coffee imports, trade flows are more concentrated than in the previous case. In ****, Italy imported **.* percent of its coffee from Brazil and **.* percent from Vietnam. This is ...

1.5 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in consumer prices. The sector related to coffee consumption is not exempt. Between January ****and December ****, the consumer price index for coffee rose by *.* points, representing a price increase of *.* percent. Compared with ****, consumer prices increased by **.*%.

Consumer price index for coffee Italy, ****-****, base ****=*** Istat

The increase in consumer prices is merely a reflection of the increase in producer prices. Between January **** and December ****, the producer price index for the tea and coffee processing industry rose by **.* points, representing a **.* percent increase in production costs. In this case, the increase compared to **** is **.*%. Producer price index for the tea and coffee processing industry Italy, ****-****, base ****=*** Istat

2.1 Demand in Italy

Between **** and ****, value sales of coffee in the large-scale retail channel were found to be shrinking. In the perido analyzed, total sales volume decreased from ***.* million kg to ***.* million kg, marking a *.* percent decline. After declining in **** (***), also aided by the price increase described in the previous point.

Coffee sales Italy, ****-****, in millions of kg Beverfood

Regarding the breakdown of sales among the different product types, bagged ground coffee accounts for ** percent of the total volume in ****; however, the value of sales stands at just ** percent of the total. Opposite situation for portioned coffee (***): in **** this accounts for only ** percent of the sales volume but comes close to ** percent of the value. The other two types of products, coffee beans and powder, account for **% of sales volume and **% of sales value.

Coffee sales in the large-scale retail trade by volume and value, breakdown by product type Italy, ****, % Beverfood As for the further breakdown of portioned coffee in different formats, **.*% of the value of sales in **** is collected by Nespresso capsules. This is followed by Dolce Gusto and A Modo Mio capsules with **.*% and **.*% of the sales value. Finally, pods and other formats collect **.*% and *.*% of the value, respectively. Retail sales ...

2.2 Purchase Drivers and Consumption Mode

Several factors are analyzed by Italians when choosing coffee. YouGov analyzed the main purchase drivers through a survey of *,*** Italians and found that taste, brand and price are the factors that most influence purchase choices.

Coffee purchase drivers Italy, ****, in percent Source: ****

Coffee consumption in Italy is a daily habit for about **% of the population, of which **% consume it several times a day, * to * times, and **% only once.

Frequency of coffee consumption in Italy Italy, ****, in percent Source: ****

The pod is therefore increasingly consumed by Italians, also, and above all, due to the convenience of use. Taste is then also an important factor, thanks also to the high degree of customization available in the choice of different types of flavors.

The reasons for the success of pods Italy, ****, in percent Source: ****

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2.3 Geographical distribution of demand

Regarding the geographic distribution of coffee consumption, it can be seen that the values are almost similar across the peninsula. The highest expenditure value is concentrated in the Southern Italy(***) where consumption is around**.* € monthly; this is followed by theCenter, with a value of**,** €and, finally, thenorthern Italy, with an expenditure value of**,** €.

2.4 New demand trends

A 'Nespresso/Squadrati survey analyzed new trends in coffee pod and coffee consumption patterns in Italy. The first is the North European/American trend of consuming long coffee (***) in mugs, a trend that ** percent of respondents already follow or plan to adopt in the future.

Also increasing is the focus on sustainability issues. This has led both to having replaced disposable plastic cups with reusable cups, mugs, thermos but also to increased consumption of pods, which can be much more sustainable than other forms of coffee[***].

Pods have changed the consumption habits of Italians, as there has been a marked increase in home coffee consumption. As of ****, out of every *** coffees consumed ** are consumed at home.

And Nespresso, to name just one brand, is no stranger to this trend. The food giant, in fact, has been able to totally influence the image of coffee among consumers: from being a "mundane" and everyday product, it has managed to make it a luxury, refined and gourmet product.

Another trend is the hyper-personalization and differentiation of coffee pods. Consumers need unique solutions in terms of coffee varieties, including short pods, long pods, strong pods, decaffeinated pods, etc. The product needs to be special and ...

3.1 The market structure

To analyze the market structure in Italy, enterprises under Ateco Code **.** "Tea and coffee processing" are considered. In particular, the number of active enterprises, the number of employees in active enterprises and the legal form of different activities are analyzed.

Number of enterprises

There is a sustained increase in the number of active enterprises in tea and coffee processing between **** and ****. During the period analyzed, the total number of active enterprises increased from *** to ****, marking an important growth of ***.* percent. In particular, the growth is concentrated almost entirely between **** and ****, when within a single year the number of enterprises grew by ***.* percent.

Active enterprises under Ateco Code **.** "Tea and coffee processing" Italy, ****-****, in number Istat

Employees The total number of employees also shows a marked growth between **** and ****. During the period analyzed, the total number of employees grew by **.*%, from **** to *****. Again, the growth is concentrated between **** and **** when the number of employees grew by **.*%. Employment in active enterprises under Ateco Code **.** "Tea and coffee processing" Italy, ****-****, in thousands Istat Legal form Finally, analyzing the legal form of businesses, **.*% of businesses in **** are sole proprietorships or freelancers. This is followed by limited liability companies with **.* percent, general partnerships with ...

3.2 The value chain

3.3 The main manufacturers

The following is a list of major manufacturers of pods and capsules in Italy:

Nespresso: founded in ****, is a global espresso brand, famous for its coffee machines and single-serve capsules. The brand is distinguished by the quality of its machines, elegant design, and ease of use, making it popular in home and professional settings. Nespresso offers a wide range of coffee blends and flavors, appealing to a wide variety of preferences. it is also committed to sustainability, with initiatives such as capsule recycling. This commitment reflects their vision of responsible and environmentally friendly coffee consumption.

Luigi Lavazza s.p.a: founded in **** in Turin, Italy, is a renowned company specializing in coffee production. The company began as a small grocery store run by Luigi Lavazza, its founder. Through the years, Lavazza gained fame for its innovative blending of different types of coffee from various parts of the world. Today, it is recognized as a symbol of Italian espresso and coffee culture, with a significant presence in both domestic and international markets.

IllyCaffe s.p.a: founded in **** in Trieste, Italy, is a celebrated coffee company. The founder, Francesco Illy, contributed greatly to the coffee industry by developing innovations such as the ...

3.4 The distribution

As for the main distribution channels for coffee in Italy, **.* percent of sales in **** were within the large-scale retail channel. This is followed by the retail and e-commerce channel with **.* percent of the total. The Ho.Re.Ca and Vending channels collect **.*% and *.*% of total sales, respectively. Coffee sales by volume, breakdown by channel type Italy, ****, % Beverfood Analyzing the individual large-scale retail channel, supermarkets collected **.*% of total sales in ****, followed by discount stores with **.*%. In hypermarkets the sales occurred were **.*% of the total while in LSPs these were **.*%.

Coffee sales in modern distribution, breakdown by type of outlet Italy, ****, % Beverfood

A list of the main players active in the large-scale retail sector is proposed below:

Conad: founded in **** as a consortium of consumer cooperatives, with the aim of offering its members high quality products at competitive prices. Over the years, Conad has continued to expand, opening new stores throughout Italy and collaborating with other food and non-food companies to offer its customers a wide range of products and services.

Coop:founded in Milan in ****, is a system of Italian cooperatives that operates a network of supermarkets, superstores and hypermarkets. In ****, the branded product revolution is unveiled, five thousand new products on ...

4.1 Product overview

Coffee capsules and pods have become popular for their convenience and ease of use, allowing a cup of coffee to be brewed quickly without the need for complicated equipment or messy cleanup. There are many different types of capsules and pods available on the market, each with unique characteristics. Some of the main formats available on the Italian market are:

Soft pods: these are flat, round discs wrapped in a paper filter. They are compatible with various types of coffee machines and allow for better water flow, resulting in tastier coffee Hard pods: these are small containers made of plastic or aluminum. They preserve the freshness of coffee and offer a high level of consistency in brewing. However, they can be less environmentally friendly than soft pods. Capsules: a specific type of hard pod, often made of aluminum. They are known for their ability to produce high-quality espresso with a wide range of flavors and intensities. Compostable pods: made from plant-based materials, they offer the same convenience as traditional pods but with reduced environmental impact. Compatible pods: designed to work with a variety of coffee machines, not just a specific brand, offering greater flexibility and often at a lower price. Specialty ...

4.2 Price Analysis

Prices for some product types are shown below. Specifically, prices are for products are analyzed for large-scale retail and e-commerce channels:

Large-scale retail trade

E-commerce

4.3 New supply trends: sustainability at the core

The supply of coffee capsules made from sustainable and reusable materials is increasing as a result of growing environmental concerns related to single-use capsules. These sustainable capsules are generally made from materials such as stainless steel or compostable bioplastics. Evergreen Caps ules offers a range of reusable coffee capsules compatible with various coffee machine systems, such as Nespresso, Dolce Gusto, and Vertuo. These capsules, designed to reduce waste and promote more sustainable coffee consumption, are made of durable materials. Evergreen Capsules is committed to creating zero waste and allows consumers to choose their own coffee, promising significant savings on coffee costs. The supply of sustainable and reusable coffee capsules has increased significantly for several reasons:

Environmental awareness: there is a growing awareness of the environmental damage caused by single-use capsules, which has led to an increased demand for sustainable alternatives. Innovative materials: reusable capsules are often made of stainless steel or compostable bioplastics. These materials are durable and reduce waste. Coffee customization: reusable capsules offer consumers the freedom to choose their own coffee, rather than being limited to pre-packaged blends. Waste reduction: reusable and compostable capsules help to significantly reduce waste generated. Recycling initiatives: some companies have implemented recycling programs for ...

5.1 Regulation

International standards exist for coffee production, trade and consumption. The International Coffee Agreement, concluded among the ** members of the International Coffee Council in **** and entered into force in ****, aims to promote international cooperation in the coffee market in order to develop a sustainable coffee economy and promote coffee quality and consumption. It also provides for the establishment of quality standards for exports and the promotion of transparency in the sector through the publication of more information and statistics on the world coffee market

Italy is affected by regulation at the European level. European Directive ****/*/EC covers product guidelines. The scope includes, for example, labeling. In addition, the import of organic coffee into Europe falls under a separate framework, namely Regulation (***) No. ***/****

We list below the articles of law and regulations that apply to the coffee sector in Italy and that also apply to coffee pods.

Regulation No. ***/**** of **.**.****, laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in the field of food safety Regulation No. ***/**** of **.**.**** on the hygiene of foodstuffs Law No.***, **.**.****, and its implementing regulations, concerning the hygienic regulation in the production and marketing of food and beverages Circular ...

6.1 Segmentation

• Luigi Lavazza s.p.a
• IllyCaffe s.p.a
• Caffè Borbone s.r.l
• Gruppo Gimoka s.p.a
• Caffè Trombetta s.p.a
• Kimbo s.p.a
• Nestlé Nespresso