The Ho.Re.Ca coffee market in Italy, Germany and Austria reached 94,315 tons in 2023, marking a 2.9% increase compared to the previous year. While Italy and Germany showcased continued recovery with moderate growth levels, Austria recorded a slight decline of 1.7% in 2023. The aggregated market’s value surged by 10.4% to 1.55 billion EUR in 2023, propelled by rising sales prices, as a recent study by Interconnection shows.

Highest Price Increase in Austria

Notably, Austria experienced the highest price increase among the three countries, with whole bean coffee prices surging by 18.4% between 2023 and 2021. Germany closely followed with a 16.8% increase, while Italy recorded a comparatively lower increase of 13.3%. The price for whole bean coffee is particularly relevant as the product has an aggregate market share of 86.1% (2023); however the dominance varies across the countries. The figures of the latest market report indicate distinct market dynamics in Italy, Germany, and Austria.

Italy’s Coffee Culture Is Different

Noteworthy country-specific differences include the higher market share of ground coffee in Germany (2023: 19.5%) and Austria (2023: 15.2%), in contrast to Italy (2023: 6.3%). The aggregated market share for ground coffee is 13.0% in 2023 but will continue to decline to 10.5% by 2027. Additionally, the bakery and confectioner market segment plays a significant role in Germany, constituting 14.8% of the Ho.Re.Ca market, while in Italy, it accounts for only 5.3%. In Italy, coffee in a bar is as much a part of life as pasta and Chianti.

Delayed Increase in Real Income as Market Driver

Looking ahead, the delayed increase in real income is expected to enhance purchasing power, providing a growth impetus for the Ho.Re.Ca coffee market in 2024. While above-average growth is not anticipated in the medium term, Interconnection predicts a compound annual growth of +2.6% annually in terms of quantity for the period 2023 to 2027. Laszlo Barla, Senior Market Analyst at Interconnection Consulting, commented on the findings, saying, “The insights from our report underscore the resilience of the Ho.Re.Ca coffee market in the face of economic challenges. Understanding the country-specific dynamics is crucial for businesses operating in these markets.”

When it comes to the market players, Italy is firmly in Italian hands with illycaffè, Lavazza, and Segafredo Zanetti, among others, although these players are also important in Austria and Germany, although there are also very important local players such as Dallmayr, Darboven, Melitta, Tchibo, which, however, do not play a relevant role in Italy. Julius Meinl has a strong presence in Austria.

29/01/2024

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