Sweden’s instant coffee market is estimated to be valued at US$58.931 million in 2020 and is projected to decline by 1.84% during the forecast period.
Sweden is considered one of the countries in the European region after Finland and Scandinavia, which has one of the highest consumptions of coffee among the different age groups and the exuberance of its coffee culture. The workplaces in Sweden follow a common workplace culture, which is referred to by the term “fika”, which essentially translates to having a coffee. Working individuals take one break or two breaks around the time of 9 a.m. and 3 p.m. to consume a cup of high-quality coffee and it has even gained popularity as an ethical trend. Generally, whole bean coffee or coffee pods are preferred due and added to the Keurifg or other coffee machines by individuals. In addition, the consumption of coffee has even increased in some of the more developed and larger cities, such as Gothenburg and Stockholm. Thus, these factors have led to a fall in the demand for instant coffee and are slowing the growth of the instant coffee market over the forecast period.
Product Offerings by the market players in the Swedish instant coffee market
The offering of better and advanced varieties of instant coffee with enhanced flavor and aromas among others by existing and new players in the market
Löfbergs Lila AB, which is a coffee-producing and distributing company and is considered to be one of the famous brands of different types of coffee in Sweden, offers two types of instant coffee products under its vibrant portfolio. It offers products called “Bold Espresso Instant Coffee” and “Fair Fresh Instant Coffee”. The Bold Espresso Instant Coffee is a product that comes under the category of dark roasted and freeze-dried coffee. It is made using 100% Arabica beans, which are organic. and Fairtrade certified. The Fair Fresh Instant Coffee, on the other hand, belongs to the light roasted and freeze-dried variety, which is organic and fair trade certified and is made using 100% Arabica beans. Both of the coffees are offered in glass jars that are able to hold about 3.5 oz. or 100g of the product.
Robusta coffee is a type of coffee, that is more full-bodied and has a more earthy flavour as compared to other varieties available, known as Arabica. Due to Swedish consumers' preference for lighter and sweeter coffee, arabica-based fresh coffee is expected to hold a significant share over the forecast period.
Key Developments in the Market
COVID-19 Insights
COVID-19 had a negative impact on the Sweden instant coffee market. The surge in active cases and enforcement of lockdown led to the closure of the institutions, corporations, food outlets, coffee houses, and 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