Italy instant coffee market is estimated to decline by 3.03% during the forecast period.Most of the domestic demand for coffee in Italy is met by imports, the country is the second-largest coffee importer (green coffee beans) in the European region after Germany. As per the CBI, Ministry of Foreign Affairs, in 2018, the country imported around 97% of the total imports from the producing countries. The three main green coffee supplying countries include Brazil, Vietnam, and India. These accounted for around 64% of the total supplies. However, the market for instant coffee in the country is on decline owing to the shift to fresh coffee and specialty coffees. The market for specialty coffee is currently a niche market but is creating strong opportunities for high-quality coffee exporters, further fueling the market growth for specialty coffee in the region.
Moving on to retail sales of coffee to end-users in Italy, it was observed that the Italian coffee-end market is categorized on the basis of in-home and out-of-home consumption. The consumption of coffee pods and capsules is accounted to be the largest growing segment in the end-user market. An exporter utilizes different modes of distribution channels in order to bring coffee products to the Italian market. The market entry varies according to the quality of coffee and supplying capacity. It has been noticed that the suppliers from the producing countries gain entrance to the European market via an importer, however, direct trade is gaining momentum.
The Italian coffee end market, on the basis of quality, is categorized as upper-end, high-end, middle-range, and lower-end. The upper-end quality is described as an excellent coffee type with a cupping score of 85 and above. The market is currently a small market but growing.
The lower-end quality coffee is mainly blended coffee, consisting of mainly Robusta beans (approximately 40% to 100%) and is mainly dominated by instant coffee in the country. These are sold in supermarkets and through service channels in offices and in the universities with minimum certification. However, the preference for fresh coffee is leading to a decline in consumption of instant coffee in Italy.
It is therefore concluded that the overall market in Italy is predicted to decline over the next five years due to a continuous decline in retail sales. This is due to the growing retail sales of fresh coffee and other high-end coffees in the region.
The current COVID-19 pandemic scenario is also projected to affect the market growth in the current year, due to the shutdown of cafés, coffee houses, hotels, restaurants, universities, and offices, further hampering the market growth in 2020, due to lockdown, self-quarantine, and work from home measures.