The market bars and cafés market. - Italy (2023)

1.2 The global market

In ****, the global café and bar market is estimated at $***.** billion. Between **** and ****, a compound annual growth rate (***) of *.* percent is expected under which the market could touch a total value of $*** billion by the end of the period.

Bar and cafe market World, ****-****, in billions of dollars Thebusinessresearchcompany

In ****, the European market represents the largest segment of the world café and bar market, with a share that stands at **.* percent. This is followed by the APAC region with a **.* percent market share and North America with **.* percent of the world total. Finally, the rest of the world garners **.* percent of the world market total.

Bar and coffee shop market, breakdown by geographic area World, ****, % Deloitte

Looking more specifically at the European market, Spain has the largest market value in ****, at **.** billion euros. In second place is the United Kingdom, with a value of just under ** billion euros. Italy represents the third largest market in Europe, with a value of ** billion euros. Germany and France round out the top * European markets, with market values of *.** billion euros and *.** billion euros, respectively.

Bar and café market in major European countries Europe, ****, in billion euros Deloitte

1.3 The Italian market

Italians' spending on food services, bars and similar activities is growing. Between **** and ****, total spending increased from **.** billion euros to **.** billion euros. The years characterized by the outbreak of the pandemic have greatly influenced the consumption habits of Italians. As shown in the graph below, spending on the services listed above decreased by **.*% between **** and ****. However, in the following two years the market returned to growth: while in **** there was a **.*% increase in spending, in **** this grew by **.*% over ****, surpassing pre-pandemic values (***). Total spending by Italians on food services, bars and the like Italy, ****-****, in billion euros Istat Relative to the sector of bars and similar establishments without a kitchen (***). In ****, turnover returns to an upward trend, growing by **.*% compared to ****, but total business turnover continues to register lower values compared to the three-year period ****-****.

Turnover of bars and other similar establishments without kitchens (***) Italy, ****-****, in billions of euros Istat

1.4 The consequences of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in consumer price indexes. The bar and café sector is not exempt from this increase. Between January **** and September ****, the consumer price index for cafes rose from ***.* to ***.* points, indicating a *.* percent increase in prices over ** months. Compared to ****, the increase in consumer prices in bars stands at **.*%.

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

The increase in consumer prices is merely a reflection of the increase in producer prices. In the case of bars and cafeterias, the increase generally relates to the supply of marketed products. In fact, the increase in producer prices results in higher supplier prices for business operators. Considering the beverages (***) segment, between January **** and September ****, the industry producer price index increased by **.* points, or an increase of **.* percent.

Beverage industry producer price index Italy, ****-****, base ****=*** Istat Finally, regarding the production of tea and coffee, two of the main products in demand at bars and cafeterias, again an increase in the producer price index can be seen. Between January **** and September ****, the production of tea and coffee for consumption rose by **.* percent in terms of industry costs. Compared ...

2.1 Demand in Italy

Between **** and ****, the average monthly expenditure of Italian households on food services, bars and the like appears to be on the rise (***). However, in **** the figure returns registers a net growth with +**.*% over ****, +**.*% over **** and even +*.*% over ****.

Average monthly household spending on food services, bars and the like Italy, ****-****, in euros Istat

Limiting the analysis to bars alone (***), it is plausible to estimate a growth in spending compared to ****.

Spending by Italians in daytime and late-night bars Italy, ****-****, in billions of euros *data available through June **** Retailinstitute Analyzing the different segments of out-of-home consumption in bars, for breakfast and mid-morning break Italians spent *.** billion euros in ****. Compared to ****, this spending increased by **.* percent, and again further growth can be expected in ****: between January and June, total spending touched a value of * billion euros. Turnover generated by eating out for breakfast Italy, ****-****, in billion euros * data available as of June **** Retailinstitute Then considering alcoholic and non-alcoholic aperitifs (***) between January and June. Considering the lack of data regarding the summer months and the trend toward higher spending in the second half of the year, it seems safe to predict an increase in spending between **** and ****. Turnover generated by consumption outside ...

2.2 Demand drivers

To analyze the drivers of demand related to bars and cafeterias, the age and gender of consumers in relation to alcohol consumption outside meals are taken into consideration.

Age

Consumption of alcohol outside meals appears to be closely correlated with the age of the consumer. While among the youngest age group (***) nearly * in * people regularly consume alcohol outside meals, as the age of the consumer advances this share falls. Thus, while in the **-** age group **.* percent consume alcohol regularly, in Generation X the share drops to **.* percent on average. Finally, among the over-**s less than * in * people consume alcohol outside meals.

Consumption of alcoholic beverages outside meals, breakdown by age group Italy, ****, % Istat

The correlation just defined is also repeated in the analysis regarding the consumption of aperitifs at bars. In this case the population shares for each age group turns out to be higher than in the previous graph because aperitifs with non-alcoholic beverage consumption are also included in the analysis. However, it is still younger people who drive the demand: * in * young people consume an aperitif outside the home at least once a month (***). Finally, among the over-**s just **% go to the bar for aperitifs.

Share ...

2.3 Geographical distribution of demand

In order to visualize the geographical distribution of demand in Italy, a map was created with the average monthly household expenditure on food services, bars and the like. The data were aggregated by macro-region.

As shown in the map below, average monthly household spending on the services under consideration is extremely uneven along the peninsula. The Northeast and Northwest present the highest figures, ***.** euros monthly and ***.** euros monthly, respectively. Moving down the boot, in the Center households spend an average of ***.** euros per month on restaurants, bars and similar activities, while in the Islands the average monthly expenditure falls well below *** euros and stands at **.** euros per month. Finally, the South of the country has the absolute lowest spending with a monthly value of **.** euros per household, accounting for **.* percent of the average spending recorded in Northern Italy.

2.4 New demand trends: the alcohol free choice

After a pandemic surge in domestic alcohol consumption, the latest data tell of a reshaping of consumption globally. However, one specific segment of the beverage industry is growing sharply: that of non-alcoholic beverages, with the extended family including dealcolates, soft drinks and low-alcohol. According to the London-based market analysis institute Iwsr, no- and low-alcohol beverages reach *.* percent of total volumes in top markets. In ****, the increase reached * percent, and until ****, growth of * percent per year is projected.(***) and non-alcoholic liquors.

Globally, the non-alcoholic beer market reached a value of $**.** billion in ****. Between **** and ****, a compound annual growth rate of *.*% is expected, due to which the market value could reach and exceed $** billion.

Non-alcoholic beer market World, ****-****, in billions of dollars Futuremarkeinsights

The non-alcoholic liquor market also appears to be growing. In ****, the world market is estimated at $***.* million and this is expected to reach $***.* million by **** thanks to a compound annual growth rate (***) of *.** percent:

Non-alcoholic liquor market World, ****-****, in millions of dollars Maximizemarketresearch

3.1 The market structure

In order to analyze the market structure, activities under Ateco Code **.* "Bars and other similar establishments without kitchen" are considered. In particular, the number of enterprises, the number of employees in the sector and the legal form of the activities are highlighted.

Enterprises

Between **** and ****, the bar and café sector appears to be shrinking. During the period under review, the number of active enterprises decreased from ***,*** to ***,*** (***). The trend is negative during the entire period and the percentage change recorded between one year and the next is homogeneous. indicating a gradual decline in business.

Bars and other similar establishments without a kitchen (***) Italy, ****-****, in thousands Istat Confindustria

Employed With regard to the number of employed people in the sector, between **** and **** these are on the rise (***). However, the following years are characterized by a sharp recovery, with employment growing by **.* percent between **** and ****. Employee bar workers Italy, ****-****, in thousands Fipe Legal form Finally, looking at the legal form of business, sole proprietorships and self-employed workers account for the majority of businesses (***). Finally, other forms of business gather just *.*% of enterprises. Legal form of bars and other similar establishments without a kitchen Italy, ****, % Confindustria

3.2 The necessary requirements

Legal requirements for starting the business

Having a premises with commercial use (***) Opening a VAT number Registration with the Chamber of Commerce Business Registry Registration with INPS Submission of the SCIA (***) to the SUAP counter of the relevant municipality: the SCIA must be submitted before the start of the activity and will have to be completed with reference to regional laws. For the submission of the SCIA it is necessary to be in possession of: Copy of the professional requirement possessed Rental contract or deed of ownership of the premises Floor plan of the premises and cadastral view Health notification to the local health authority with jurisdiction

Certifications

Certificate of attendance at the HACCP course (***) Certification of attendance at SAB course (***) Certification of fire-fighting course Risk assessment document(***) A specific license must be obtained from the Customs Agency for the sale of alcohol and spirits.

Premises requirements

Have commercial use Comply with landscape and historical constraints (***) Comply with urban planning requirements Complying in work safety regulations Comply with hygiene regulations by applying to the Asl office for a Sanitary notification Being properly acoustically insulated

(***)

3.3 Geographical distribution of enterprises

Through the proposed map, it is possible to highlight the geographical distribution of activities under Ateco Code **.* "Bars and other similar establishments without kitchen" in ****. In particular, the concentration of enterprises in the sector in each macro-region in relation to the national total is highlighted.

The distribution of enterprises, unlike that of demand, is substantially homogeneous along the peninsula. The Northwest collects the largest number of activities, with **.* percent of the total while the South records a slightly lower value (***). The Northeast and Center have a substantially equal share of businesses at **.* percent and **.* percent, respectively. Finally, the Islands collect a significantly lower percentage of enterprises than the rest of the peninsula at **.* percent.

3.4 The main actors

In Italy, the bar and café market is characterized by a marked prevalence of traditional and independent coffee bars. The pronounced fragmentation of the market leaves little room for large Italian and foreign chains: between **** and ****, the number of chain businesses fell from *,*** to just over *,***.(***)

A list of the main players in the Italian market is offered below:

Large chains

Autogrill Italia s.p.a: the Autogrill brand was born in **** from the merger of the three business branches of Alemagna, Motta and Pavesi active in highway catering in Italy. Today Autogrill is present in ** countries including North America, Asia, Europe and Oceania, and operates about *,*** outlets with more than **,*** employees and a portfolio of more than *** owned and licensed brands.

Chef Express s.p.a: a brand founded in **** by the Cremonini Group, today it is one of Italy's leading operators in travel contexts, with more than *** points of sale between railway stations, airports and highway service areas. The brand is also present in * different countries, where it serves more than *** million people every year.

Sirio s.p.a: was founded in Ravenna in **** as a professional operator in the out-of-home commercial hospital catering sector, thanks to the know-how ...

4.1 Type of the offer

The café and bar market is a dynamic and diverse segment of the food and beverage industry, offering a variety of culinary and social experiences. Each type of venue has its own peculiarities and target clientele:

Traditional coffee shops: these establishments are the classic meeting places par excellence, where people can enjoy a wide range of coffee, tea, and hot or cold beverages. In addition to drinks, they also offer pastries, light snacks, and sometimes breakfast or lunch options. These coffee shops are ideal for casual get-togethers, relaxing moments, or computer work. Specialty Coffee Shops: here the focus is on the quality of the coffee. Baristas are often skilled in espresso brewing and latte art techniques, using coffee beans from sustainable sources. These establishments attract coffee enthusiasts and those who appreciate artisanal and detailed coffee preparation. Cocktail Bars: these bars stand out for their craft cocktail offerings. With experienced mixologists at the helm, these venues create customized and innovative drinks, often with unique ingredients and extravagant presentations. They are ideal venues for sophisticated evenings out or for those looking for a different drinking experience. Sports Bars: focused on sports fans, these bars are equipped with television screens to broadcast sporting events. ...

4.2 The prices

As for the coffee shop and cafeteria sector, between **** and ****, prices increased by an average of **.*%. The recorded increase is mainly concentrated between **** and ****, when over a period of * years prices increased by an average of *.*%.

Annual price changes in bars and cafeterias Italy, ****-****, % Fipe

Looking again at the consumer price index, between January **** and September ****, this increased by **.* points, representing a **.*% increase in prices. However, while between **** and **** there is an increase of * points in ** months, in the following ** months the consumer price index increases by *.* points.

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

Between **** and ****, the largest price increase is in the category of products related to ice cream and pastry (***). Alcoholic and non-alcoholic beverages also register a price increase in the period under consideration, *.*% and *.*%, respectively. Price increase in bars ****/****, breakdown by product category Italy, ****, % Fipe Analyzing the coffee segment, it is possible to show a substantial difference in prices as one goes down the peninsula. While in the North of the country prices range on average from *.** euros (***).

REGION/PROVINCE AVERAGE PRICE **** Aosta Valley €*.** Piedmont €*.** Liguria €*.** Lombardy €*.** Trenito-South Tyrol €*.** Veneto €*.** Friuli Venezia Giulia €*.** Emilia Romagna €*.** Marche €*.** Tuscany €*.** Umbria €*.** Latium €*.** Abruzzo €*.** Molise N/A ...

4.3 New supply trends

"Ready To Drink" (***) cocktails are pre-mixed drinks sold in bottles, cans or other containers. They are designed to be consumed directly from the container or poured into a glass, eliminating the need to prepare the cocktail from scratch. The use of RTD drinks by bars, especially those specializing in aperitifs and after-dinner drinks, has many advantages:

Time savings: RTD drinks, being pre-mixed or pre-packaged, are ready to serve immediately. This reduces waiting time for customers and increases service efficiency, especially during busy periods. Less manpower: RTD beverage preparation and service requires less specialized skills than traditional beverage preparation. This means that bars can operate with fewer staff, or they can redeploy staff to focus on other aspects of service. In addition, staff training becomes easier, as advanced skills in beverage preparation are not required. Reduced inventory: RTD beverages can help simplify inventory management. In fact, bars can limit themselves to a selected assortment of RTD beverages, reducing the complexity of inventory management and the risk of wasting unused ingredients.

(***)

To date, the RTD beverage market is growing rapidly. In ****, the global market was worth $***.* million and is expected to exceed $* billion by ****, thanks to a compound annual growth rate (***) of ...

5.1 The legislation

Regarding the activities of bars and cafeterias, national and European legislation merely delineate regulatory boundaries within which individual regions then maintain legislative autonomy. A list of the main regulations in force in Italy at the national level is proposed below:

Regulation (***) No. ****/****: on the provision of food information to consumers. Ministerial Decree No. *** of **/**/****: this is the regulation concerning the criteria for the surveillance of premises used as public establishments for the administration of food and beverages. Law of August **, **** No. ***: draws up the regulations on the establishment and activity of public establishments and applies to the activities of serving food and beverages to the public. Presidential Decree No. *** of **/**/****: establishes hygienic regulations on the production and sale of food and beverages. Law of **-**-****, No. ***: concerns the hygienic regulation of the production and sale of food and beverages. Article **, paragraph *, of the T.U.L.P.S: provides for a police license for the opening of a number of commercial establishments, including also bars, retail establishments selling wine and other beverages, including non-alcoholic beverages, and public halls used for this purpose.

As for individual regions, the following is a proposed list of regional laws to regulate the opening of ...

6.1 Segmentation

• Chef Express
• Autogrill
• Starbucks Italy s.r.l
• Camparino s.r.l
• Drink Kong s.r.l
• Pavè s.r.l
• Baratti e Milano s.r.l