Coffee in Azerbaijan

2020 IMPACT

Takeaways and social media marketing keep coffee in consumers’ minds during quarantine

Foodservice volumes will show a dramatic decline in 2020, mitigated only slightly by some cafés and restaurants continuing to offer takeaway coffees. Coffee consumption increased slightly in retail volume terms.

Barista shortages during lockdown harm foodservice sales

Local businesses report that foodservice sales in value terms will be significantly lower in 2020 than the levels of previous years. During the lockdown period, the government ordered foodservice outlets to have only half their usual number of staff on shift at any one time.

The shift to home working provides a boost to fresh coffee

Consumption of coffee at home has increased in 2020, as Azerbaijani consumers have been placed under a strict quarantine, needing permission to leave their homes. At the end of the quarantine period, many people in Bau and other cities have continued to work from home.

RECOVERY AND OPPORTUNITIES

Coffee volumes in foodservice to stagnate as outlets struggle with restrictions

Foodservice is not expected to recover to its pre-2020 levels before the end of the forecast period. The outlet closures that were experienced during 2020 will be compounded by further closures at the beginning of 2021.

Fresh coffee to reap rewards of increased marketing

Fresh coffee is predicted to show very strong retail volume and current value growth during the forecast period, supported by increasing marketing efforts by both international and local companies, targeting younger consumers. Fresh coffee is mainly sold in the capital city Baku, as well as other densely populated areas.

Instant coffee to face a battle to hold on to its consumer base

Retail volumes and current value sales of instant coffee will continue to decline for the duration of the forecast period, as consumers continue to move to fresh coffee. forecast period, gradually losing the popularity due to consumer shift to fresh coffee categories.