Coffee in the Czech Republic

2021 DEVELOPMENTS

Mixed results seen in 2021 as foodservice outlets remained closed until May

With the closure of foodservice outlets prolonged until May 2021, consumers continued to purchase fresh ground coffee pods during the first half of the year as they looked to recreate the coffeeshop taste experience at home. Furthermore, fresh ground coffee pods continued to be aggressively promoted during 2021 with the majority of these products being purchased at promotion prices.

Private label the big winner as incomes come under pressure

More Czech households started to economise in 2021 as the economic impact of the country’s COVID-19 measures intensified. With disposable income under pressure private label was one of the big winners in coffee, with it seeing double-digit growth in current value terms.

E-commerce an increasingly important channel for fresh ground coffee pods

E-commerce witnessed dynamic growth in coffee in 2020 and the channel continued to see strong growth in 2021, although at a slower rate. The country’s COVID-19 restrictions have eased since May 2021 and as such many consumers have returned to shopping in store-based grocery retailers.

PROSPECTS AND OPPORTUNITIES

Veganism trend could drive new product development

Coffee is likely to see ongoing innovation and new product development over the forecast period as players look to stand out from the competition. For example, in 2021, Nestlé Cesko launched vegan Nescafe Dolce Gusto Flat White fresh ground coffee pods in two flavours – Coconut and Almond – with these being produced with plant-based milk alternatives.

Retail demand set to soften as foodservice activity resumes

Foodservice outlets were hugely disrupted by the COVID-19 pandemic with restrictions not being eased until May 2021. Retail coffee consumption benefited from this period of home seclusion but as consumers return to the workplace sales through foodservice are picking up, detracting from retail demand.

Coffee enthusiasts full of beans

Another trend that is likely to develop over the forecast period is the increasing demand for fresh coffee beans. Households purchased more coffee machines in 2020 and 2021, with this helping to fuel demand for fresh coffee beans.