Coffee in Azerbaijan

PROSPECTS

Development of tourism supports coffee sales

Coffee posted stronger current value than volume growth in 2018, fuelled by rising unit prices and increased concerns about the quality of coffee products. Coffee-drinking culture is incipient in Azerbaijan, being driven by global coffee trends and the development of tourism.

Coffee distributors use non-grocery retailers to raise brand recognition

During the review period, the rapid development of modern retailers had a significant impact on coffee volume and value sales, with the growing number of supermarkets, hypermarkets, convenience stores and discounters helping to boost coffee sales.

Coffee to benefit from busier lifestyles during forecast period

Over the review period, the busier lifestyles of local consumers and better-for-you claims shaped the dynamics of coffee in Azerbaijan. For example, green coffee such as Illy Green Coffee appeared on the shelves of supermarkets and hypermarkets, claiming to provide health and wellness and to meet the needs of increasingly busy modern consumers.

COMPETITIVE LANDSCAPE

Nestlé remains in pole position

Nestlé continues to lead coffee sales in Azerbaijan, with the company owning the Nescafé brand, which is strongly positioned in the large instant coffee area and popular among local consumers thanks to its long history and widespread advertising through local and Russian TV channels. Furthermore, the product is also widely available in grocery retailers, including traditional and modern grocery retailers.

International brands lead coffee in Azerbaijan

During the review period, the number of local coffee manufacturers remained limited, allowing international brands to benefit from higher prices and better positioning in retail channels. Key importers of coffee to the local market in 2018 were Turkey, Italy, Russia, France, Ukraine and Germany.

New products with rich flavours promoted via special events

Due to the development of coffee-inspired breakfasts in Azerbaijan, manufacturers were active during the review period, promoting products with deep flavours, freshness and strength claims. Nestlé continued to launch new innovative products, introducing Nescafé Sensa and Nescafé Gold Dolgun Dad to local consumers.

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