New research from Mintel reveals that three out of the five fastest growing retail coffee markets are in Asia. Asia is playing a key role in its growth.
According to report, Indonesia is currently the fastest growing packaged retail coffee market with a CAGR of 19.6 per cent over the past five years, while India has had a CAGR of 15.1 per cent and Vietnam 14.9 per cent. Overall, the global coffee market continues to grow steadily, with expected retail volume growth of 2.7 per cent in 2016, following a 2.5 per cent rise in 2015.
Mintel research also reveals European and Australia markets are the slowest markets,Finland’s mature coffee industry declined the most between 2011 and 2016 with a CAGR of -3.7 per cent, followed by Australia (0 per cent), Poland (0.1 per cent), the Netherlands (0.5 per cent) and Belgium (0.5 per cent).
Report indicates the boom in Asia’s coffee market has been driven by a surge in innovation of coffee products and also Asia’s traditionally tea drinking consumers are converted slowly into coffee drinkers. A tea-drinking culture is the biggest barrier to coffee in Asia, and tea-coffee hybrids can be used to tempt consumers.
Currently Asia Pacific leads the way in launches of ready-to-drink cold coffee,29 per cent of all coffee launches in Asia Pacific were ready-to-drink cold coffee products, compared to just 10 per cent in Europe.However, instant coffee still dominates the retail market in Asia. Two in five (42 per cent) coffee launches in Asia Pacific were soluble coffee granule products, compared to just one in five (20 per cent) launches in Europe and a mere 6 per cent of launches in North America in 2016.
Read more here Coffee brews up success in Asia