Coffee in Austria

PROSPECTS

Value growth sustained by migration towards higher-priced products

In 2018, coffee in Austria performed largely in line with the growth pattern established in recent years. Retail volume sales recorded a modest decline, as the favourable impact of temporarily higher population growth was not enough to offset reduced demand from declining consumer reach.

More subdued growth prospects for maturing coffee pods

Despite recording relatively strong value growth in 2017 and 2018, the forecast period performance predicted for fresh ground coffee pods is set to more subdued. Coffee pods evolved into a mature area within Austrian coffee over the review period and is unlikely to secure many new consumers.

Demand for instant coffee to benefit from migratory influx

While the popularity of traditional fresh ground coffee and instant coffee has been diminishing, both are expected to retain relevance as a second-choice type of coffee. Furthermore, fresh ground coffee remains popular with consumer groups of a more advanced age.

COMPETITIVE LANDSCAPE

Broad positioning allows Tchibo-Eduscho to stay ahead

Tchibo-Eduscho (Austria) GmbH stayed ahead of close rivals Nestlé Österreich GmbH and Jacobs Douwe Egberts AT GmbH in 2018 in value share terms, due to its broad positioning in the three main areas of fresh coffee beans, fresh ground coffee pods and fresh ground coffee. It did not have a presence in instant coffee in 2018.

Minor players expand into pods and traditional ground coffee

The share gain in fresh ground coffee pods by Tchibo-Eduscho exemplifies an approach to category management in Austrian coffee, ensuring the company’s solid presence across the three fresh coffee categories (fresh coffee beans, fresh ground coffee pods, and standard fresh ground coffee). This tendency is set to persist as it allows manufacturers to harvest the potential gains from growth in fresh coffee beans and fresh ground coffee pods, while also benefitting from surprisingly resilient demand in traditional fresh ground coffee.

Nestlé relaunches Nescafé Gold for its instant coffee brand

Nestlé Österreich remained somewhat of an outlier in its overall category strategy, as it owed its second ranking in overall coffee to its strong standing in only two coffee categories: fresh ground coffee pods and instant coffee. It remained the leader in both in value share terms, despite a growing number of Nespresso-compatible rivals and fierce private label competition (in instant coffee).

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