German coffee drinkers move towards out-of-home consumption

Specialty coffee sales are increasing in Germany with out-of-home operators discovering the “opportunity of coffee”, according to a recent Allegra Strategies report. Traditional bakeries are driving a percentage of that growth, with a shifting focus towards coffee motivated by increasing competition from retailers for bread sales. Consumers of the traditionally filter coffee drinking nation are seeking more variety, with 62 per cent willing to try something different, compared to just 47 per cent three years ago. “Although still strong, there is a trend away from a traditional filter coffee led culture to a more diverse and experience-centered out of coffee consumption,” said Anya Marco, Director of Insight at Allegra Strategies World Coffee Portal. Germany’s travel industry, expected to increase at annual rate on 1.1 per cent over the next five years, will continue to generate growth in take-away coffee sales for coffee-focused chains, Allegra found. “German consumers have become increasingly mobile and seek convenient places to have a coffee,” said Marco. “This presents an excellent opportunity for businesses to expand their coffee offer in locations with high footfall or at traffic hubs.” The German branded coffee shop market, which includes American-style chains, large bakery chains, travel operators and fast food outlets, totals more than 25,000 outlets and is valued at almost US$4 billion in 2015. Allegra Strategies, Project Kaffee2015 Deutschland found that while outlet growth has dropped overall in the last five years, turnover increased by 2.2 per cent annually. The top bakery chains were found to be a fundamental traditional-force, despite nearly 450 outlets closing between 2010 and 2015.

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