Coffee Machines: The New Normal

Aspirational/lifestyle consumption will drive sales of pod coffee machines

Over 20% of the growth expected over 2013-2018 will come from non-coffee-drinking markets. The popularity of specialist coffee shops is fuelling demand for a premium coffee. In this context, ease of use and consistent brewing results are driving middle class consumers to switch from instant coffee to pod coffee machines to replicate the same experience at home.

Time to focus on premium standard machines in Western Europe

Increased competition and retailers discounting in Western Europe is pushing prices down. However, here consumers still pay more than anywhere else for fresh ground coffee, preferring quality and taste over brand loyalty. Individuality and localisation – key in the development of premium specialist coffee shops – also indicates that consumers are happy to pay a premium for locally brewed coffee. This shows it could be the right time for open coffee brewing systems to go premium.

Brazil and Russia will drive sales of standard coffee machines

Over 2013-2018, the Brazilian filter coffee machine market is set to double in value to become the world's second largest market after the US. Over the same period, Russian sales of espresso coffee machines are expected to post the world’s largest real value growth.

Nearly half of the coffee machines sold are purchased in the US

Sales of Keurig’s pod coffee brewers are boosting the overall growth of the US coffee machine market. The US is forecast to account for over 40% of real value growth and 55% of volume growth globally over 2013-2018.

In the US it is not just about the coffee size, it is about the business model

Nespresso’s business model (one brand, one drink) will continue having a hard time in the US. Consumers here are loyal to few hot drink brands. They will pay a premium for a Keurig coffee machine because it brews all their favourite branded drinks at the touch of a button and at a price that is still perceived as reasonable.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment