Off-trade sales of coffee continued to exhibit strong growth in 2021, despite the country’s success at managing the COVID-19 pandemic, which resulted in on-trade trading restrictions being fully removed. Lockdown presented a unique opportunity for consumers to hone their barista skills and trial different coffee brands, as well as experiment with various machines, techniques and flavours, resulting in sales of coffee machines performing exceptionally well.
Key to translating growing consumer demand for off-trade coffee into increased sales has been strong new product development activity in the category, with Nestlé New Zealand one of the more prominent players in this regard, particularly in fresh ground coffee pods, which experienced significant growth in the number of players present in recent years. With single-blend coffees becoming increasingly popular due to their quality, and also influenced by the growing provenance trend, New Zealanders were amongst the first in the world to try the five single-origin coffees and blends in the Nescafé Farmers Origins range, launched in 2021.
Popular local on-trade brand Allpress Espresso was acquired by the Japanese drinks giant Asahi, attracted by its premium branding, commitment to flavour, quality customer service and track record of growth. Although the company does not yet have an off-trade presence within coffee, the capabilities of its parent company in terms of sales potential, marketing and distribution mean opportunities exist for Asahi to leverage the popularity of the Allpress brand in the off-trade channel – similar to what Nespresso did with its licensing of the Starbucks brand.
Historically, the competition for coffee has come from competing categories within hot drinks. However, millennials are not bound by traditional ideas of how coffee should be consumed and are more open to innovation.
Coffee drinkers are increasingly aware of the impact that their consumption has on the environment – both at home and abroad – and this trend is likely to grow over the forecast period as more people are drinking coffee at home. Ethically and sustainably sourced coffee has long been in demand, with single-source provenance holding increasing appeal, as evidenced by Nestlé’s new product development activity in fresh ground coffee pods in 2021.
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This is the aggregation of fresh coffee and instant coffee. Please note that foodservice sales of coffee are volumes sold to the on-trade (foodservice) sector and not those sold to the consumer.See All of Our Definitions
This report originates from Passport, our Coffee research and analysis database.
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