Coffee in Belgium

2021 DEVELOPMENTS

Retail volume sales decline as consumption patterns normalise, while current value sales are driven by ongoing premiumisation

Coffee declined in retail volume terms in 2021. This comes after the boost seen in 2020 because of the enormous amount of consumption occasions that moved from foodservice and institutional channels to retail, forcing consumers to prepare coffee at home.

Popularity of coffee pods poses serious challenge to Douwe Egberts

Douwe Egberts SA maintains its clear lead in terms of retail value in 2021, some way ahead of closest competitor, Nestlé Belgilux SA. Nestlé Belgilux brands Nespresso, Nescafé Dolce Gusto and Nescafé followed, in that order.

Sustainability trend impacts development in fresh ground coffee pods

Rising environmental consciousness continue to impact product choices –green consumers either avoid buying coffee pods and capsules altogether or select those which are easy to recycle. However, in a bid to attract more consumers, players responding to ecological concerns with new product developments; for example, Belgian brand Café Liégeois launched 100% biodegradable coffee pods during 2020.

PROSPECTS AND OPPORTUNITIES

Recovery will continue in the on-trade, while fresh coffee beans will drive growth in the off-trade

Overall, on-trade volume sales of coffee are expected to return to 2019 levels in 2023. All product areas within coffee will continue to see positive year-on-year growth in volume terms in the on-trade over the forecast period as consumers frequent cafés and bars again, albeit still somewhat cautiously and less frequently in 2021 than in pre-pandemic times.

Players set to face increased pressure from rising sustainability concerns

Players in capsules and pods face increased pressure from rising sustainability concerns which carry significant impact across several industries and sectors. Players will increasingly invest in recyclable aluminium or plastic pods and capsules to tempt the growing numbers of ecologically aware consumers, while Café Liégeois’ move to 100% biodegradable capsules is likely to motivate competitors to accelerate their shift towards more sustainable options.

There is set to be a growing polarity between premium coffee and private label

Over the forecast period we anticipate a growing polarisation between premium coffee and private label. Belgian consumers show growing interest in the origin of the coffee they consume, seeking more and more single origin coffee with a clean label.