It’s easy to see how the pandemic might have chilled world coffee consumption.
Yes, the at-home drinking segment gained. But it would have had to pedal hard to make-up for the losses in the out-of-home segment, which is three times the size.
… at least, according to Nestlé, and using 2021 values, ie after the worst of the pandemic damage was done.
While the world’s biggest coffee group sees expansion in the world market resuming growth of some 5% a year by value, it stopped short of giving details of damage from 2020 Covid restrictions.
Nestle claims 22% of the overall coffee market which, given it reported a 15% share of the out-of-home sector, implies a share of more than 40% of the at-home segment.
It also claims top rank “across every geography”, ie across all five regional breakdowns shown. That said, these breakdowns do not tally neatly with continental borders. Coffee-mandering (of even cherry-mandering) perhaps?
Key findings of the group’s coffee presentation, from its investor day, are given below.
For a commentary on the presentation, click here.
|World coffee market value, split between at-home out-of-home sectors|
||Market value (bn Swiss francs)
||Out of home
||Market value (bn Swiss francs)|
|Roast and ground||28||Cafes and bars||113|
|Instant||25||Hotels and restaurants||97|
|Ready to drink||22||Workplace||36|
|Total||about 100||about 300|
|World’s top coffee CPG* companies
|Company||Market share (%)|
|Source: Nestlé. *CPG stands for “consumer packaged goods”
|Global consumer spending on coffee, per head
|Year||Spending (Swiss francs)|
|Geographical divide in coffee consumption
|Geography||Consumption (cups per person per year)|
|Africa, China, India||32|
|Rest of the world||>200|
|Nestlé share of regional markets
|Region||Market share (%)|
|Europe, Turkey, former Soviet Union||24.9|
|Africa, other Asia, Oceania||18.0|