Coffee in Kazakhstan

PROSPECTS

A growing number of coffee shops raise demand for coffee consumption

Although coffee is not considered the main hot drink among the Kazakhstani population, the culture of coffee consumption is growing steadily. This is mostly supported by the increasing number of cafés and specialist coffee shops in Kazakhstan, especially in large towns such as Almaty and Astana.

Instant coffee continues to dominate, but fresh coffee sales are rising

Instant coffee remained the main coffee type for Kazakhstanis in the review period. The significance of this segment is expected to continue in the forecast period due to the well-known brands, established patterns and consumption inertia.

Fresh ground coffee posts the fastest growth

In 2018, fresh ground coffee recorded the highest increase in sales for several reasons. The first is that its sales are developing from a niche base, due to the nascent coffee culture and strong prevalence of instant coffee.

COMPETITIVE LANDSCAPE

Dominance of foreign companies continues in Kazakhstan

In the review period, coffee continued to be dominated by international players: the strong shares held by Nestlé SA and Jacobs Douwe Egberts remained unshakeable. They have retained their leading positions thanks to the high quality of their brands, their company strategy, frequent marketing activities through television, billboards and the internet, and strong presence on store shelves.

Manufacturers work on the introduction of convenient and money-saving packaging

During 2018, established brands offered consumers more of their products in more convenient plastic pouch format, in line with consumers’ growing demand for packaging that is easy to transport, store and use. Plastic pouches with zip locks are also a way for manufacturers to promote their new editions in a trial size for consumers.

On-trade sales outperform off-trade sales

On-trade volume sales of coffee in Kazakhstan grew faster than off-trade volume sales in 2018 due to the rising popularity of coffee shops and cafés and consumers increasingly preferring to drink coffee when out from home. However, on-trade sales face barriers because of operational costs and the high costs of higher-value raw materials.

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