Bulgaria Instant Coffee Market - Forecasts from 2022 to 2027

Bulgaria's instant coffee market was evaluated at US$149.688 million in the year 2020, growing at a CAGR of 4.20% reaching the market size of US$199.605 million by the year 2027.

The growing food processing industry is contributing to surging 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's 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 leading food industry sectors include bakery and confectionery, dairy production and processing, poultry and eggs, sweets, and chocolate products, among others. Substantial amounts of foreign investments have gained significance in the country. It was observed that many Romanian companies were planning to shift their bases to Bulgaria in order to take advantage of the more favourable tax and business atmosphere. Even though the country dominates 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 steadily over recent years. A shift from bulk coffee to pre-packaged coffee consumers in the region has been noticed. Foreign companies in the coffee business are highly benefitted from the removal of excise duties on coffee products. Also, an increase in demand for fresh and quality instant coffee by 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 in the production of coffee and chocolate in Bulgaria. The company owns popular brands like Nova Brazilia, Jacobs, Milka, Toblerone Suchard, and Svoge. The popular Jacobs coffee brands produced by the company include Aroma, Espresso, Monarch, and Monarch intense.

The growth in food retail sales is further augmenting the market growth in the forecast period.

As per the USDA statistics, retail food sales in Bulgaria attained a value of US$6.6 billion in 2017. The sales through modern grocery retail were estimated to hold a significant market share of around 50%, followed by traditional grocery retail sales. In terms of value, modern retail sales accounted for the retail sales value of US$3.5 billion, while traditional sales accounted for the retail sales value of US$3.1 billion. The total retail outlets in the country were estimated to be around 41,872. Internet grocery retailing is developing slowly and is not very popular. Furthermore, the emerging demand for high-quality, healthy food due to the 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.

It is projected that the type of freeze-dried instant coffee will dominate the market.

The superior quality of freeze-dried coffee in comparison to regular coffee is the main element fueling the industry's expansion. As a result of the media's growing influence, particularly the various e-Commerce platforms, educational healthiness programs, events, and publications by international health administrations like the World Health Organization, there has been an increase in consumer awareness of wellness and health throughout the world. The most popular application for freeze-dried coffee is in travel pouches for coffee lovers. The preparation is quick, straightforward, and easy. Additionally, these freeze-dried ready-to-drink coffees are offered in a variety of packaging options, mostly in the form of bottles, cans, and tetra packs that come in a range of volumes and pack sizes to suit the requirements of varied customers.

Recent Developments and expansions

One of the tempting blends, Costa Coffee's Signature Mocha Italia Blend, was introduced in Bulgaria in June 2020 for consumption at home, on the go, and at work. Bulgaria is the first nation in the 28-market Coca-Cola HBC Group to introduce a new line of Costa Coffee goods.

COVID-19 Impact

Due to the country's restaurant and coffee shop closures, a modest fall in the instant coffee market is anticipated. Disruptions in the supply chain also hampered market expansion. However, it is projected that the market would recover due to the present trend of online shopping for consumption at home.

Segmentation:

By Type

• Freeze-Dried Instant Coffee
• Spray-Dried Instant Coffee

By Distribution Channel

• Offline
• Retail
• Food Services
• Online

By Cities

• Sofia
• Plovdiv
• Varna