Italy Coffee Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Italy Coffee Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Italian coffee market was valued at USD 3.16 billion in 2020, and it is projected to register a CAGR of 2.3% during the forecast period (2021-2026).

Coffee is an integral part of Italian culture. According to Eurostat statistics, Italy is the second-largest importer of green coffee beans in Europe, after Germany.

Owing to the lockdown, which was in effect in the country by the end of the first quarter of 2020, all non-essential businesses were ordered to remain closed, with a particular focus on the on-trade channel. The market was negatively impacted by COVID-19 in 2020, and it is expected to decline by around 6-8%.

Despite restrictions being eased, a full recovery to pre-COVID levels in the on-trade channel is not expected before 2022. Over the long term, the increased demand is expected from the off-trade channel, as consumers were growing comfortable with consumption at home during the lockdown.

As in-house consumption represents a major share of the coffee market, this segment is becoming increasingly diverse at a steady pace, with a wide range of options available in terms of quality (standard and specialty coffee), origins, blends, and product forms (whole beans, ground, capsules, pods, coffee extracts, instant coffee, and others).​

In Italy, the increased personalization within the coffee industry, from coffee beans to standard ground coffee and coffee pods, and the availability of different ranges of products offering high-quality coffee pods and capsules are expected to support the market growth.​

Key Market TrendsLifestyle and Culture Drives Coffee Market in Italy

Coffee is an integral part of Italian culture. Italians tend to value high-quality coffees, and they are loyal to specific flavors and Italian brands. Coffee is consumed at various moments of the day, usually with sugar and no milk, except cappuccino, macchiato, marocchino, and caffè latte. 75% of the coffee consumed by Italians was at home. Coffee has become an integral part of Italian culture, with around 8 million bags imported annually. The availability of a wide range of coffee types, flavors, and brewing styles and growth in the number of food outlets and retail stores are the drivers fuelling the growth of the coffee market.

International Players Disrupting the Traditional Coffee Chain

With the strong heritage of traditional coffee-drinking culture, Italians prefer to drink coffee from local independent coffee shops. Italy is the leading country in the number of out-of-home coffee servings in Europe. With the growing consumer trends for convenience, healthier eating is going to disrupt the traditional coffee market in the country. Coffee quality is considered a leading success factor for a coffee shop in Italy. There is a relative lack of knowledge about what constitutes quality. To give a third-wave coffee culture, Starbucks opened its first store in Milan, Italy, in 2018. With growth primarily expected from traditional brands of local specialty shops and Starbucks, the imminent arrival into the market helps the growth of the coffee market during the forecast period. The incoming of Starbucks in Italy is expected to increase the availability of different types of coffee products in the market studied.

Competitive Landscape

The market is highly competitive, with key players operating in the market, including Nestle SA, Kimbo SpA., and Luigi Lavazza SpA. The sustainable competitive advantage through differentiation is high. Manufacturers are increasingly introducing product innovations in terms of offerings, price, and packaging, leading to a high degree of competition in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.