STiR coffee and tea magazine

Volume 6, Number 4

Issue link: https://read.dmtmag.com/i/853465

Contents of this Issue

Navigation

Page 24 of 67

STiR coffee and tea 25 Capsule Sales Accelerate in Asia he single-serve surge is finally slowing in North America and Europe as household penetration plateaus, but coffee drink- ers in Asia are picking up the pace. Outside of Asia, coffee pods account for a quarter of all global pod sales. Pod sales are showing positive signs of growth in Asia, with coffee pods taking 13% of all coffee launches in the region, an increase from 4% in 2011. According to Mintel's Global New Products Database, between 2011 and 2016 the number of new coffee products launched in Asia has almost doubled. Three of the five fastest growing coffee markets are in Asia with Indonesia reporting 19.6% annual growth since 2011. India grew at 15.1% and Vietnam at 14.% during the same period. "Asia has far more growth potential as traditionally tea drinking consumers are converted slowly but surely into coffee drinkers," said Jonny Forsyth, global drinks analyst at Mintel. Instant coffee pre- dominates but "as consumers trade up from instant coffee, pod, and capsule sales will increase," Forsyth added.According to the FAO, "as the middle classes of the developing world continue to swell, as their incomes rise and coffee remains affordable, the luxury of the oc- casional coffee has become a daily habit in an ever-growing number of countries." "Most emerging coffee markets remain in the 'first wave' of cof- fee; however, some are starting to enter the 'second wave' as food- service outlets and coffee shops aggressively push Western coffee lifestyles and local coffee shops pick up the baton," said Forsyth. There were an estimated 20 billion single-serve servings in 2016. While the rate of growth has slowed to under 2% in the US according to the National Coffee Association (NCA) Competition among suppliers continues to drive down costs with private label offerings for K-Cup machines nearing $0.25 a cup. In Europe, Aldi introduced the first Nespresso-compatible brew- er for $65 (£50). Capsules there sell for as little as $0.23 cents. Keurig, Nescafé Dolce Gusto, Nespresso, and Tassimo remain the market leaders. Branded capsules for all three cost around $0.50 cents per cup. T To move their products off the shelf, roasters and manufac- turers fare better if they understand the needs of their consum- ers. Packaging communicates not only the quality of the prod- uct, but the brand message, a message that will help to develop a relationship with their end user. Advances in digital printing enabled companies to experi- ment with packaging and labels that engage consumers. With so many competing products on shelves, manufacturers need to set themselves apart. Useful techniques include laser-etching, embossing, textured coatings, and speciality materials. Coffee houses and food service locations rely on packaging to deliver their brand message, but it does not stop there. This ex- tends to the color and style of vessel chosen to serve the beans or tea leaves, the cup for in-house café drinkers, and the take-away container, for consumers who want beverages on the go. Twenty years ago, LBP Manufacturing developed a large quantity pop-and-go container for use in catering and foodser- vice. The design has continued to evolve. With the original ver-

Articles in this issue

Links on this page

Archives of this issue

view archives of STiR coffee and tea magazine - Volume 6, Number 4