Given the closure of consumer foodservice outlets for all but takeaway and delivery services as part of the efforts to restrict the spread of COVID-19, a significant shift towards at-home consumption of coffee is anticipated for 2020. This is set to drive a strong retail performance for coffee over the course of the year, with many consumers continuing to avoid consumer foodservice establishments even after they have reopened as they continue to practice social distancing.
Consumer foodservice volumes of coffee, on the other hand, are set to witness devasting double-digit declines in 2020 as these outlets have been forced to close for table service for long periods during the COVID-19 pandemic. Coffee shops have long been popular among consumers for work-related reasons, such as alternative workplaces to office spaces, as well as a source for on-the-go coffee when travelling to and from work.
Coffee shops have driven premiumisation in coffee globally for some time, and manufacturers of fresh ground coffee pods have positioned their machines and pods as convenient ways to replicate the coffee shop experience at home. This is resonating well among Swiss consumers during the pandemic as they seek to taste their favourite coffee shop versions of coffee at home, leading to strong double-digit retail volume growth of fresh ground coffee pods in 2020.
Coffee is set to return to more normal, yet accelerating, retail volume growth rates throughout the forecast period. The at-home coffee experience is set to become increasingly popular going forward as some employees continue to work at home, at least for part of the time, after the global success of remote working during the COVID-19 epidemic, whilst manufacturers will likely continue to focus on boosting retail values by offering products which recreate the coffee shop experience at home.
Although consumer foodservice volumes are expected to return to growth as early as 2021, growth rates will be minor and sales will remain significantly below pre-pandemic levels even by 2025. As coffee generally has high margins in consumer foodservice, this is likely to lead to severe financial difficulties for many operators.
Nespresso fresh ground coffee pods have enjoyed enormous success in Switzerland, taking the leading position immediately upon their launch and maintaining their strong lead despite the increasing competition. Until 2019, these products had only been available through Nespresso shops, the company’s e-commerce site and its app or telephone ordering service.
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Understand the latest market trends and future growth opportunities for the Coffee industry in Switzerland with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Coffee research and analysis database.
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