Austria Instant Coffee Market - Forecasts from 2022 to 2027

Austria instant coffee market is estimated to be valued at US$91.783 million in 2020 and is estimated to grow at a CAGR of 3.17% to reach a total market size of US$114.159 million in 2027. Coffee in Austria was introduced by the Ottoman Turks, and since then, coffee has become one of the most consumed beverages in the country. Hence, this is fueling the market growth in the forecast period. Vienna is considered to be the most common destination for coffee consumption. The prevalent coffee culture here is further supported by the presence of some of the most beautiful cafes in the city.

The substantial prevalence of coffee houses in the country is further adding to the increase in the sales of instant or soluble coffee products in this sector. These coffee houses serve an extensive range of coffee drinks, whether sweet or bitter, served with whipped cream, or with milk, extra-strong or light. Schwarzer, Brauner, Verlängerter, also known as Café Americano, Melange, Kaffe Verkehrt, also known as Latte Macchiato, Franziskaner, and Einspänner are some of the popular classic coffees found in Austrian coffee houses. However, due to the current novel coronavirus pandemic scenario, the market for instant coffee in these coffee houses is projected to decline in 2020. This is due to the shutting down of coffee houses and other public gathering places to prevent virus transmission. After recovery, the instant coffee market will continue to grow at a steady pace after 2020, along with practicing social distancing in order to promote workplace safety.

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

According to the Bank of Austria, retail sales in 2017 increased at an average growth rate of around 0.8% from January 2017 to September 2017. Improvement in consumer sentiment and a fall in the unemployment rate are contributing to supporting retail sales in 2018. Also, with internet penetration growth, retail sales are further projected to rise, further providing an opportunity for the market to proliferate in the forecast period. Currently, three groups dominate the Austrian food retail market. These include Rewe Austria, a German company, Spar, a domestic conglomerate, and Hofer, a subsidiary of Aldi. Together, these three companies account for around 80% of the total retail market in Austria. All three companies are highly profitable, thus, providing an attractive opportunity for instant coffee product sales growth in the region. The grocery retail sector in Austria is well-developed, consolidated, and professional. It is due to the consolidation; the Austrian food retail sector is quite mature. Food distribution in the country is secure and the grocery market is dominated by German groups. Additionally, the largest store chains in the country belong to Rewe Group. The growing popularity of grocery retail trends such as health messages, convenience foods, and individualism is gaining ground, further strengthening retail sales in the country. Also, with the rise of nearby supermarkets, the retail industry is continuing to bolster its position in Austria, further contributing to the market's growth during the forecast period. Furthermore, with the rise of the online retail trend, the market for instant coffee sales shows promising growth prospects in the forecast period.

Covid-19 Impact:

The COVID-19 Pandemic has slowed down the overall market growth during the first quarter of 2020 due to the lockdown restrictions imposed by the government of the country. The institutional sales suffered due to closed offices and public places, domestic consumption witnessed strong growth by the companies. However, the growth in online shopping has forced retailers and consumers to shop coffee from online websites which has contributed to the overall market growth.

Key Development:

Feb 2020.

Nestle has announced the launch of its Starbucks instant coffee in Europe, Asia, Oceania, the Americas, and African markets. The instant coffee is available in multi-serve tins and single-serve formats.

Segmentation:

By Type

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

By Distribution Channel

• Offline
• Retail
• Food Services
• Online

By Cities

• Vienna
• Graz