Bulgaria instant coffee market is estimated to grow at a CAGR of 3.09% during the forecast period.The growing food processing industry is contributing to surging the market growth in the forecast period in Bulgaria. As per the USDA estimates, the food industry in Bulgaria is predicted to hold a significant share of around 20% of the total country industrial output. The food processing industry in the country is developing at a fast pace with around 6000 companies operating in the region. The sector also employs nearly 100,000 people in Bulgaria. Some of the leading food industry sectors include bakery and confectionary, dairy production and processing, poultry and eggs, sweets, and chocolate products, among others. The substantial amount of foreign investments has gained significance in the country. It was observed that many Romanian companies were planning about shifting their bases in Bulgaria in order to take advantage of the more favourable tax and business atmosphere. Even though the country holds dominance of the international food companies, a significant market share is held by a number of small and medium domestic companies in the region. The continued popularity of these domestic players in the region is supported by their price competitiveness.
Coffee is widely popular in Bulgaria and sales have increased in a steady manner over recent years. A shift from bulk coffee to pre-packaged coffees by the consumers in the region have been noticed. Foreign companies in the coffee business are highly benefitted by the removal of excise duties on coffee products. Also, an increase in demand for fresh and quality instant coffee by the consumers is further strengthening the market growth in the region during the forecast period. The instant coffee varieties in demand, specifically on-trade in Bulgaria include espresso and mocha blends. The prevalence of the American coffee shop chain, Starbucks is further fueling the market growth in the region.
Nestle and Kraft Foods have set up their production capacity in the country. Kraft Foods is a pioneer for the production of coffee and chocolate in Bulgaria. The company owns popular brands like Nova Brazilia, Jacobs, Milka, Tobleron Suchard, and Svoge. The popular Jacobs coffee brands produced by the company include Aroma, Espresso, Monarch, and Monarch intense.
However, with the onset of the novel coronavirus pandemic, the instant coffee market is predicted to experience a slight decline due to the closure of restaurants and coffee shops in the country.
The growth in food retail sales is further augmenting the market growth in the forecast period.
As per the USDA statistics, the food retail sales in Bulgaria attained a value of USD6.6 billion in 2017. The sales through modern grocery retail were estimated to hold a significant market share of around 50% followed by the traditional grocery retail sales. In terms of value, the modern retail sales were accounted for the retail sales value of USD3.5 billion, while the traditional sales accounted for the retail sales value of USD3.1 billion. The number of total retail outlets in the country was estimated to be around 41, 872. The internet grocery retailing at present is developing at a slow pace and is not very popular. Furthermore, the emerging demand for high-quality healthy food due to rising health consciousness of the consumers in Bulgaria will further continue to strengthen the market growth along with the growth of the food retail sector, specifically in the urban areas.