Coffee in Spain

PROSPECTS

Fresh ground coffee pods drives overall growth in coffee

Coffee continued to post retail volume growth and even more dynamic retail current value growth in 2019, in the context of an improving economy and rising consumer confidence. Fresh ground coffee pods continued to boost overall growth in 2019.

Premiumisation and retail space are important for success

Product innovation and premiumisation were key drivers of growth within coffee at the end of the review period, and this is expected to continue over the forecast period. Companies engaged in the development of premium brands, such as Starbucks moving into the retail channel, as well as new flavours and high-quality blends.

Foodservice growth set to slow due to challenges to inbound tourism

Foodservice volume sales continued to increase in 2019, as rising disposable incomes and the declining unemployment rate boosted sales, favoured by Spanish consumers having breakfast outside of the home more frequently. Growth is expected to be maintained in the forecast period.

COMPETITIVE LANDSCAPE

Nestlé maintains its lead but Jacobs Douwe Egberts narrows the gap

The coffee giant Grupo Nestlé España remained the uncontested leader in coffee in Spain in value terms in 2019, despite seeing a slight share decline. Jacobs Douwe Egberts was the second-ranked branded player and consolidated its position.

Launches are mainly in fresh coffee

In 2019, Nestlé launched 24 new products under the Starbucks brand for the retail channel, including coffee beans, fresh ground coffee and coffee pods, and it is expected to strongly invest in the development of this brand. In fact, the brand did not show high growth rates in the last couple of years, due to the increasing competition from other players, especially in the double-digit growth category of fresh ground coffee pods.

Several environmentally-friendly launches in coffee pods

Players present in the increasingly popular fresh ground coffee pods category have been extremely active from an environmental perspective through the launch of biodegradable products, and the development of recycling initiatives. There were greater concerns that single-use plastic and other materials, such as aluminium, were likely to be negatively impacted by tougher legislation.

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