The Netherlands instant coffee market is estimated to be valued at US$106.872 million in 2020 and is anticipated to decline by 1.12% during the forecast period.
According to the information provided by the Center for the Promotion of Imports (CBI), total coffee consumption amounted to approximately 1,404 tonnes in 2018. Out of this, the consumption of single-serve and coffee pods was recorded to be 31% in the Netherlands, where the retailers are expanding their single-serve assortments. One of the major reasons for the growth and rise in the consumption of single-serve and ready-to-drink coffee among Dutch individuals is the ease of use and convenience that is associated with these products. In addition, the popularity of the ready-to-drink variant of coffee is also rising, and many individuals are consuming it in place of soda, thus minimizing the ill effects of the former beverage on their health, and fueling the market growth over the forecast period.
Furthermore, some consumers are ready to spend on high-quality coffee as compared to others who just buy mainstream and standard quality coffee, which is attributed to the rise in their disposable income. Thus, this is another factor contributing to the surge in demand for instant coffee.
Some consumers prefer going to artisan and specialty cafes and drinking coffee out-of-home rather than using instant coffee.
Although branded coffee shop culture has spread more slowly in the Netherlands than in other European countries, some consumers prefer and appreciate artisan and specialty cafes and prefer to consume coffee in-store rather than making instant coffee at home. This preference for going to cafes for a cup of coffee is seen among adolescents more than the older individuals and stems from their evolving habits and other cultural influences. Moreover, there are a good number of artisan cafes opening up, and some of the famous cafes, such as 30ml Coffee Roasters, are expanding in different cities to cater to the changing demand. Hence, this factor limits the market’s growth to some extent over the forecast period.
Product offerings by market participants in the Dutch instant coffee market
The involvement and participation of the market players can be seen in the industry through the products being offered by them. BLASERCAFÉ AG, which is considered to be one of the most famous brands of different types of coffee and coffee-making equipment in the Netherlands, offers three types of instant coffees in its product portfolio. The varieties available are Blaser-Jet Standard, Blaser-Jet Calypso, and Blaser-Jet decaffeinated. All the variants are processed using the freeze-dried method. The calypso variant contains a mixture of 50% pure coffee extract with 20% chicory and 30% grain extract.
Key Development in the Market
COVID-19 Insights
COVID-19 had a negative Netherland instant coffee market. The rise in infected cases and enforcement of lockdown led to the closure of the coffee houses, food houses, institutions, and corporations, among many other public places, causing the sales to decline in these segments. The volatile prices of coffee also had a significant impact on the market.
Segmentation