The gastro coffee market in the CEE countries (Hungary, Czech Republic, Slovakia, Slovenia, Croatia) has recovered significantly since the Corona pandemic. Last year, turnover in hotels, restaurants and coffee houses (HoReCa) increased by 41.6%, according to a study by Interconnection Consulting.

Part of the increase in turnover was due to inflation. Overall, average prices for the “whole bean”, the most important price indicator, rose by 9.2% in the countries surveyed. The increase in sales was 30% on the dot. After the pandemic-related declines in 2020, the recovery of the CEE market for gastro coffee started as early as 2021, at a time when the market in Germany and Austria was still stagnating. Despite the early recovery, however, the gastro coffee market will still not have reached the 2019 level in 2023. In 2023, sales will be around 10,400 tons, compared to 11,200 tons in 2019. The largest market among the countries surveyed is the Czech Republic, with sales of around 3,500 tons, followed by Croatia with around 2,400 tons. The countries showing the greatest growth potential for the next few years are Hungary and Slovakia. For Croatia, one fears stronger price increases after EU accession in 2023 and therefore a lower growth potential in volume.

 Bakery & Confectionery Do Not Play a Major Role

 Despite rising prices and saving households, coffee consumption in coffee shops remains an important social aspect of life in the CEE countries. With a share of 43.7%, the coffee house plays the strongest role. The share of coffee sales in the coffeehouse is even stronger than average in Croatia, at around 50%. Overall, restaurants with 24.7% and hotels with 23.6% are other important segments in the CEE region. The segment bakery & confectionery, plays with 7.9%, a minor role in gastro coffee. The restaurant share is highest in Slovenia, at around 30%. In Hungary, the hotel industry takes the highest share with around 29%.

 Barely Any Ground Coffee

 Whole bean leads the product segments in all five countries. In Croatia and Slovenia, the share is over 90%, and in CEE as a whole it is 89%. In contrast, the share of ground coffee in the CEE countries, compared to the Germany-Italy-Austria market, is extremely low at 8.3%. In this context, the “whole bean” benefits in the long term from the trend towards fully automatic coffee machines, and filter coffee machines with integrated grinders. Accordingly, the market share of ground coffee continues to decline. The segment with the greatest relative growth potential is the coffee capsule, which is benefiting from the recovery of the hotel industry.

 Julius Meinl Maintains a Strong Presence

The major players in the five countries surveyed are Jacobs Douwe Egberts, Franck, Julius Meinl and Darboven. While Julius Meinl has a strong presence in all five of the countries under investigation, Franck has a strong presence especially in Croatia and Slovenia. The analysis of the overall market shows a high market share of smaller players, which also means that the market barriers in the HoReCa segment are smaller than in the retail sector, as Laszlo Barla, the author of the study, explains.

03/03/2023

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.