Germany Coffee Market - Growth, Trends, and Forecasts (2023 - 2028)

Germany Coffee Market - Growth, Trends, and Forecasts (2023 - 2028)

The German coffee market is projected to register a CAGR of 3.09% over the forecast period.

In Europe, Germany is the largest country in terms of the consumption of coffee. The strong demand for freshly brewed coffee is driving sales in the market studied. Consumers’ demand for specialty coffee is rising owing to increasing awareness and knowledge about the product. Another factor contributing to this trend is the rise in the number of coffee bars, small resident brands, small roasters, and baristas. Moreover, consumers have initiated a new trend of roasting coffee at home. This increased the sales of green beans instead of roasted beans.

According to a report from the German Coffee Association (GCA) in 2021, the per capita amount of coffee consumed on the German market has risen from 168 liters to 169 liters. This positive growth in the market in 2021, according to the GCA, is primarily due to increased sales of roasted coffee in the food retail sector. Roasted coffee consumption is increasing in restaurants, workplaces, and other out-of-home sites such as bakeries, cafés, restaurants, hotels, coffee shops, and bars, which is driving market growth. In addition, food retailers are witnessing a demand for sustainably sourced products in the country. In this scenario of increasing demand, certification schemes play vital roles as they build consumers’ trust in products by providing transparency and traceability.

Key Market TrendsRising Demand for Freshly Brewed Coffee

There is an increase in the demand for freshly brewed coffee, primarily due to the growing preference for specialty coffee and freshly ground coffee pods. This is mainly due to the increased number of specialty coffee shops, coffee consumption in offices, and in-house brewing. Consumers’ increased inclination toward producing coffee at home from roasted whole beans often leads to preparing fresh batches of coffee. Furthermore, the trend of consumption of coffee at work is prominent in Germany. Key players prefer to serve freshly brewed coffee made from whole-roasted beans, especially in office spaces, primarily due to the increasing demand for whole-roasted coffee. The increasing demand for freshly brewed coffee is driving companies to opt for roasted whole beans. As reported by the German Coffee Association, the amount of roasted coffee consumed in the home increased by 2.1% (7,900 tonnes) in 2021. This is expected to impact the sales of roasted ground coffee.

Growing Popularity of Organic Coffee

Germany is one of the key importers of green coffee beans. German consumers prefer high-quality, light organic coffee. Organic coffee is prominent among German consumers as compared to other coffee. Companies such as Tchibo exclusively use this high-quality coffee bean in their coffee blends. Moreover, in the country, there has been a shift toward Brazilian natural and other mild flavors within the coffee segment. The organic food and beverage segment in the country is no longer considered a niche market. This segment has become a part of the conventional market due to the growing demand from consumers who look for products with value and quality, including health and wellness, fair trade, and organic products. Moreover, organic certification is no longer an option but a requirement for the producers of organic coffee in the country. There is a requirement for a thorough cleaning process to retain the organic status. Fulfillment of all the necessities attracts consumers, thereby increasing the sales of organic coffee products. Germany is the prime importer and consumer of organic coffee in Europe. Due to high consumer demand, led by the growing awareness of sustainable products and increasing health consciousness, an upsurge in the import of organic coffee is expected in the future.

Competitive Landscape

The German coffee market is competitive, with key players dominating the market and accounting for significant shares. The market is dominated by players like Nestle SA, JAB Holding Company, and Tchibo GmbH Coffee Company, among others. The major strategies adopted by key market players include product innovation, expansion of their production facilities, and mergers and acquisitions, primarily to expand their product portfolios. In Germany, increasing consumer demand has led to the expansion of production facilities by global manufacturers.

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• The market estimate (ME) sheet in Excel format
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