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UK coffee market driven by the need trend towards the gourmet coffee experience at home during recent years
Coffee in the United Kingdom - a new market research report on 2014-05-01 08:18:05
Coffee machines became increasingly popular in homes during 2013 as a rising number of consumers sought to recreate the gourmet coffee experience at home, with Nestlé´s Nespresso coffee capsule machines proving particularly popular. With machines costing between £120-450, the brand projects an upmarket image, with small capsules of coffee presented in boxes like expensive chocolates. Over 600,000 coffee pod machines were sold in 2012, with Kraft´s Tassimo and Nestlé´s Dolce Gusto machines dominating sales as cheaper alternatives to Nespresso. As a result, fresh ground coffee pods recorded the strongest growth in current value terms in 2013, driving overall coffee value sales up by 12%.

Nestlé UK Ltd continued to dominate the category in 2013 with a 36% retail value share and a 29% retail volume share, although the company´s overall share is gradually declining. The company´s best performing brand in 2013 was Nescafé Dolce Gusto with an impressive 46% value share of fresh ground coffee pods, while Nespresso enjoyed a 26% share despite being at the higher end of the price spectrum. Nescafé also led instant coffee, with its Nescafé brand commanding a 37% value share. Although instant coffee is a very competitive category, Nescafé has been able to maintain its number one ranking largely down to a series of promotions within supermarkets. The company has also been successful with the launch of its new instant barista-style coffee, Nescafé Azera, which is now drunk in 2.2 million households, according to Nestlé.

Coffee is expected to post a retail constant value CAGR of 6% and a volume CAGR of 4% over the forecast period. The healthy prospects for the category are largely down to the expected rise of fresh ground coffee pods as consumers look to recreate the café experience at home.

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