The Covid-19 epidemic has wreaked havoc on the global and local coffee industry since early 2020. Consumers who are remaining at home due to pandemic-related limitations but still want to enjoy their favourite coffee beverages have seen an increase in demand in the coffee business. As a result, more customers are looking for at-home coffee options, as well as brewing tips and equipment, to improve their at-home coffee experience.
Is South Africa’s coffee business heating up as a result of at-home consumption?
Based on the most recent intelligence and research, Insight Survey’s newest South African Coffee Industry Landscape Report 2021 meticulously exposes the global and local coffee markets (including the influence of Covid-19). It analyses the most recent global and local market trends, as well as innovation and technology, as well as drivers and obstacles, in order to provide an impartial view of the South African coffee industry’s environment and future.
In 2020, the worldwide coffee market was estimated to be worth $465,9 billion dollars. Furthermore, as seen in the graph below, the market is anticipated to expand at a compound annual growth rate (CAGR) of roughly 6.2 percent, reaching a value of approximately $668,4 billion by 2026.
In South Africa, the local coffee market grew by 2.1 percent year on year in terms of off-trade retail value RSP at constant 2020 pricing, compared to the previous year. The market is anticipated to expand at a CAGR of 2.5 percent between 2021 and 2025, indicating that the upward trend will continue. Several reasons, including a rise in at-home coffee drinking, are driving this expansion, both internationally and locally.
Consumers, both internationally and locally, are searching for methods to improve their at-home coffee experience and continue to enjoy their favourite coffee beverages without having to leave their homes as a result of the Covid-19 epidemic. To meet this demand, a number of major coffee companies have launched at-home versions of their goods.
Out-of-home coffee stores such as Costa Coffee, Pret A Manger, and Starbucks in collaboration with Nestlé have all increased existing at-home offers or introduced new at-home product lines.