Austria instant coffee market is estimated to be valued at US$96.104 million in 2019 and is estimated to grow at a moderate pace during the forecast period. Coffee in Austria was introduced by Ottoman Turks and since then coffee became one of the most consumed beverages in the country. Hence, this is fueling the market growth in the forecast period. Vienna is considered to be the most common destination for coffee consumption. The prevalent coffee culture here is further supported by the presence of some of the most beautiful cafes in the city.
The substantial prevalence of coffee houses in the country is further adding to increase the sales of instant or soluble coffee products in this sector. These coffee houses serve an extensive range of coffee drinks, whether sweet or bitter, served with whipped cream, or with milk, extra-strong or light. Some of the popular classic coffee found in the Austrian coffee houses include Schwarzer, Brauner, Verlängerter, also known as Café Americano, Melange, Kaffe Verkehrt, also known as Latte Macchiato, Franziskaner, and Einspänner.
However, due to the current novel coronavirus pandemic scenario, the market for instant coffee in these coffee houses is projected to decline in 2020. This is due to the shutting down of coffee houses and other public gathering places for preventing virus transmission. After recovery, the instant coffee market will further continue to grow at a steady pace after 2020 along with practicing social distancing in order to promote workplace safety.
The growth in retail sales is further augmenting the market growth in the forecast period.
According to the Bank of Austria, the retail sales in 2017 increased at an average growth rate of around 0.8% from January 2017 to September 2017. Improvement in consumer sentiment and a fall in the unemployment rate are contributing to support the retail sales in 2018. Also, with internet penetration growth, the retail sales are further projected to rise, further providing an opportunity for the market to proliferate in the forecast period. Currently, three groups dominate the Austrian food retail market. These include Rewe Austria, a German company, Spar, a domestic conglomerate, and Hofer, a subsidiary of Aldi. Together these three companies account for contributing around 80% of the total retail market in Austria. All three companies are highly profitable, thus, providing an attractive opportunity for instant coffee product sales growth in the region. The grocery retail sector in Austria is well-developed, consolidated, and professional. It is due to the consolidation; the Austrian food retail sector is quite mature. Food distribution in the country is secure and the grocery market is dominated by German groups. Additionally, the largest store chains in the country belong to Rewe Group. The growing popularity of grocery retail trends such as health messages, convenience food, and individualism are gaining ground, further strengthening the retail sales in the country. Also, with the rise of nearby supermarkets, the retail industry is further continuing to bolster its position in Austria, further contributing to surging the market growth during the forecast period. Furthermore, with the rise of the online retail trend, the market for instant coffee sales shows promising growth prospects in the forecast period.