Fresh ground coffee pods continued to record dynamic growth in 2018, driven by the increased accessibility and affordability of pod coffee machines. While most purchases of fresh ground coffee pods are still made through internet retailing or forecourt retailers, supermarkets and hypermarkets are also beginning to gain share.
Standard fresh ground coffee is also on the rise. The category is comprised mostly of black or Turkish coffee, while a small share is also accounted for by ground coffee for espresso machines.
Instant coffee saw a further decline in both retail volume and current value terms in 2018 as consumption of fresh coffee at home continued to rise, with this decline set to continue throughout the forecast period. Instant coffee is a rather basic category, with only a few products offering interesting flavours.
Strauss Group Ltd leads coffee in terms of both retail value and volume share with its Elite brand, which is present in all of the major coffee categories. The brand holds frequent campaigns for its various types of coffee, targeting different audiences in each.
Until 2018, most Nespresso-compatible fresh ground coffee pods available in the market were plastic capsules. These are considered to be of a lower quality than aluminium pods which are more effective in preserving the coffee's flavour and aroma.
Local player Joe Gourmet Coffee Ltd has seen a rapid rise since launching its range of high-quality fresh ground coffee pods, with it once again recording double-digit retail value and volume growth in 2018. The company launches new limited edition fresh ground coffee pods every year with unique flavours and aromas, with this helping to build and sustain interest in the brand.
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This industry report originates from Passport, our Hot Drinks market research database.