We love Coffee!
A staggering 30 billion cups of coffee are consumed in the UK each year, 70 per cent of which was bought at retail and consumed at home. In-home consumption is worth £1.6bn, growing +9.8 per cent year on year and bought by 87 per cent of households.
Coffee still has great potential to stimulate retail sales, and Nestle’s latest report backs up our love of coffee consumption.
While Nescafe Original is still the favourite, NESCAFÉ Azera is the brand to recruit the next generation, already attracting the youngest shopper in pure soluble coffee. The brand drives resonance with younger shoppers, by setting new standards in coffee expertise and being the most different and unique brand in instant coffee. Azera’s powerful credentials in both quality and trendsetting has driven another year of strong growth at +14 per cent. NESCAFÉ Azera is now worth over £70m. In 2020, NESCAFÉ Azera is investing a further £5m in their hugely successful ‘stay curious’ campaign, encouraging viewers to embrace their curious side and try something new.
Coffee bags for on the move
Since launching in summer 2019, NESCAFÉ Azera Coffee Bags have demonstrated their unique category role. The typical coffee bags shopper is older and already drinking Roast & Ground, consuming coffee bags incrementally when they don’t have time/desire to make a full pot of ﬁlter coffee. In contrast, the NESCAFÉ Azera instant coffee shopper is much younger and trading-up from instant coffee, with coffee bags as their ﬁrst foray into Roast & Ground.
Big growth in cold coffee
The Ready to Drink Cold Coffee segment is the largest coffee category growth opportunity. In 2019, it was the fastest growing segment within soft drinks at +28.7 per cent. Fuelled by the momentum of the cold coffee trend, it is expected to more than double in size by 2025 to £270m becoming bigger than smoothies. Despite high levels of on-the-go consumption, the category has remained remarkably resilient in the current climate – despite slowdown across April and May, it was back in double-digit growth in June.