Slovakia Instant Coffee Market - Forecasts from 2022 to 2027

Slovakia instant coffee market is expected to grow at a CAGR of 4.15% over the forecast period to reach a total market size of US$200.063 million by 2027, increasing from US$150.548 million in 2020.

The market is projected to grow at a significant pace owing to the rich coffee culture in the country. Previously, during the communist period, the only available coffee in Slovakia was a strong, dark Turkish-style brew. However, now the country is flooded with coffee lovers with a variety of coffee varieties. In Bratislava, a growing number of cafés indicates the potential growth opportunities for soluble coffee during the forecast period. In addition, the city is famous for its cozy coffee shops. However, in the current COVID-19 scenario, a slight market decline is projected due to lockdown measures leading to the closure of coffee shops, further restraining the sales of instant coffee products to these end-users.

Furthermore, with the increasing coffee consumption along with the increase in per capita coffee consumption, the market holds strong growth prospects during the forecast period.

It was observed that the hot drinks market experienced stagnation, but the sales of specific categories of coffee or tea were still growing. The consumers in Slovakia shifted from out-of-home consumption to at-home consumption. Moreover, despite the economic crisis, a cup of coffee remained in their everyday consumption. This is evident from the trend of diversification of consumer demand toward different coffee product varieties. Hence, this shows a robust market potential for the instant coffee market to proliferate during the forecast period as coffee is ingrained in their everyday life in households.

Also, it has been observed that Slovakians have the lowest levels of purchasing power in the European Union; hence, price is considered crucial when purchasing. Instant or soluble coffee is affordable and thus will continue to gain traction, further contributing to market growth during the forecast period. Additionally, many youths in the country claim that their low budget restricts them from eating outside. As per the OECD estimates, youth employment in Slovakia is high compared to the OECD average. In East Slovakia, the unemployment rate in 2017 was around 30%; this was over three times more than that in West Slovakia, around 9.8%.

Additionally, with time, out-of-home consumption rose with the emergence of multiple tea and coffee shops, with around 50% of coffee shop visits to socialize with friends and colleagues, further contributing to surging the sales of instant coffee products in these coffee shops.

With the growing health awareness among consumers, the market for high-quality instant coffee products holds high demand during the forecast period.

This is because of the fact that these consumers demand a product with clearly mentioned health benefits along with the country of origin. It was further noticed that roasted coffee from the regions of Colombia, Ethiopia, and Kenya gained popularity through off-trade (retail outlets) and foodservice retail.

The growing retail industry is further adding to soar coffee sales, propagating the market growth in the forecast period. The retail sector in Slovakia comprises private retail networks and wholesale businesses. Bratislava, having the largest metropolitan population in the country, is an important retail market with well-developed distribution channels. Hypermarkets, followed by supermarkets and convenience stores, hold a significant market share. On the other hand, discounters are projected to grow at a high CAGR during the forecast period. The gaining popularity of online retail will further surge coffee sales in the region with the growing global e-commerce industry.

Product Offerings by the market players in the Slovakia 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.

• Nescafe Classic Instant coffee is carefully prepared by roasting and grounding. The special double filtration technology employed by the Nescafe brings a refreshing taste and aroma. Apart from the Nescafe Classic, Nescafe Solvikia's instant coffee portfolio is also comprised of Nescafe Classic Crema, Nescafe classic decaffeinated, and Nescafe Gold Crema, among a few others.
• Slovakia-based Popradske is a popular local coffee and tree brand. The instant coffee offered by the brand offers a refreshing taste and is prepared using freeze-dried technology. Few of the products offered by the form include Popradska Extra Special and Popradska Standard premium brands. The Popradska Standard Both the flavours like 75 gms, 125 gms, and 250 gms.

COVID-19 Insights

The Slovakia instant coffee market was negatively affected. The wide spread of the virus and surge in infected patients led to the nationwide lockdown. Subsequently, multiple coffee houses, cafes, and production facilities witness a sharp decline in sales due to the closure of all brick-and-mortar stores. Additionally, several factors like a gap in the supply and demand chain and volatile prices of coffee also had a significant impact on the market. However, the e-commerce sector's quick rise helped the domestic segment's sales grow. The use of instant coffee had expanded due to lockdown and work from home. Hardcore filter coffee drinkers had also switched to much easier and more convenient instant coffee due to growing household responsibilities and time restrictions.

Segmentation:

By Type

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

By Distribution Channel

• Offline
• Retail
• Supermarket/Hypermarket
• Convenience Stores
• Food Services
• Online

By Cities

• Bratislava
• Kosice