Italy Coffee Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2018 - 2022 |
| CAGR | 3.35 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Italy Coffee Market Analysis
The Italian coffee market is projected to register a CAGR of 3.35% over the next five years.
In Italy, the increased personalization within the coffee industry, from coffee beans to standard ground coffee and coffee pods, and the availability of different ranges of products offering high-quality coffee pods and capsules are expected to support the market growth. As in-home consumption represents a significant share of the coffee market, the segment is becoming increasingly diverse at a steady pace, with a wide range of options available in terms of quality (standard and specialty coffee), origins, blends, and product forms (whole beans, ground, capsules, pods, coffee extracts, and instant coffee).
Italians have a robust coffee-drinking culture and prefer to drink coffee from local independent coffee shops. Increased personalization within coffee in Italy, from coffee beans to standard ground coffee and coffee pods, along with the availability of different products offering high-quality coffee pods and capsules, is expected to support the market growth. Global players have undertaken comprehensive marketing campaigns to position the new developments in the Italian market. Many 16 to 34-year-old Italian coffee drinkers are interested in trying cold-brew coffee, and the slow-brewed concept is likely to appeal to the market.
Italy Coffee Market Trends
This section covers the major market trends shaping the Italy Coffee Market according to our research experts:
Lifestyle and Culture Drives Coffee Market in Italy
Coffee is an integral part of Italian culture. Italians value high-quality coffees and are loyal to specific flavors and Italian brands. Coffee is consumed at various moments of the day, usually with sugar and no milk, except cappuccino, macchiato, marocchino, and caffè latte. In recent years, there's been a sharp rise in single-person households. Also, young Italian professionals have a higher disposable income than in the past. Due to pessimism about the future, they're keen to spend it because saving is seen as a pointless pursuit. They are particularly eager to spend on high-quality products and luxury brands.
According to the United Nations Comtrade database on international trade, Italy imported coffee, tea, mate, and spices worth USD 1.95 billion in 2021. The availability of a wide range of coffee types, flavors, and brewing styles and growth in the number of food outlets and retail stores are the drivers fuelling the development of the coffee market. According to the BEVERFOOD Edizioni Srl, between 2017-2021, Americano, Cappuccino, and Espresso were the most popular coffee varieties in the country.
Increasing Out-of-Home Coffee Consumption Boosting the Market
With the strong heritage of traditional coffee-drinking culture, Italians prefer to drink coffee from local independent coffee shops. Italy is the leading country in the number of out-of-home coffee servings in Europe. With the growing consumer trends for convenience, healthier eating will disrupt the country's traditional coffee market. Coffee quality is considered a leading success factor for a coffee shop in Italy. According to Federazione Italiana Pubblici Esercizi, nearly 6.6 million people visited Italian restaurants in 2021, and the country's out-of-home food and beverage consumption including the coffee business generated sales of about USD 65.23 billion.
There is a relative lack of knowledge about what constitutes quality. With growth primarily expected from traditional brands of local specialty shops and Starbucks, the imminent arrival into the market helps the growth of the coffee market during the forecast period. The incoming of Starbucks in Italy is expected to increase the availability of different coffee products in the market studied.
Italy Coffee Industry Overview
The market is highly competitive and fragmented, with several players operating, including Nestle SA, Kimbo SpA., and Luigi Lavazza S.p.A. The sustainable competitive advantage through differentiation is high. Manufacturers are increasingly introducing product innovations in terms of offerings, price, and packaging, leading to a high degree of competition in the market. Due to the high growth potential of coffee in European countries, most companies are trying to establish themselves in these regions by expanding their production lines to serve the increasing need for coffee across the region. Advanced marketing strategies used by the key players and the wide variety of flavors have contributed to their growing popularity in Italy and other European countries.
Italy Coffee Market Leaders
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Nestlé S.A.
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Kimbo S.p.A.
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Massimo Zanetti Beverage Group
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Luigi Lavazza S.p.A.
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Gruppo Illy SpA (Illycaffè S.p.A.)
*Disclaimer: Major Players sorted in no particular order
Italy Coffee Market News
- In January 2022, Starbucks inaugurated its first drive-thru in Italy in Erbusco, Lombardy, as part of a new collaboration between Percassi, Starbucks' sole licensee partner in Italy, and the Q8 service station company.
- In June 2021, Coca-Cola Hellenic Bottling Company (HBC) increased its presence in the international coffee market by acquiring a 30% stake in the upscale Italian retailer Casa Del Caffè Vergnano.
- In March 2021, Massimo Zanetti Beverage Group, a key player in the coffee industry, announced the launch of Segafredo Storia, a new sustainable coffee series. The newly launched coffee made global traceability and transparency possible by utilizing blockchain technology.
Italy Coffee Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Degree of Competition
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Whole-Bean
- 5.1.2 Ground Coffee
- 5.1.3 Instant Coffee
- 5.1.4 Coffee Pods and Capsules
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5.2 Distribution Channel
- 5.2.1 On-Trade
- 5.2.2 Off-Trade
- 5.2.2.1 Supermarket/Hypermarket
- 5.2.2.2 Convenience Stores
- 5.2.2.3 Specialist Retailers
- 5.2.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Luigi Lavazza S.p.A.
- 6.3.2 Nestlé S.A.
- 6.3.3 Kimbo S.p.A.
- 6.3.4 Massimo Zanetti Industries S.A.
- 6.3.5 Gruppo Illy SpA (Illycaffè S.p.A.)
- 6.3.6 Maxingvest AG (Tchibo GmbH)
- 6.3.7 Italmobiliare S.p.A. (Caffè Borbone)
- 6.3.8 Caffè Trombetta S.p.A.
- 6.3.9 Gruppo Gimoka S.p.a.
- 6.3.10 Casa del Caffe' Vergnano S.p.A
- 6.3.11 Starbucks Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityItaly Coffee Industry Segmentation
Italy's coffee market is segmented by product type and distribution channel. By product type, the market is segmented into whole-bean, ground coffee, instant coffee, coffee pods, and capsules. By distribution channel, the market is segmented into on-trade and off-trade. The off-trade channel is segmented into supermarkets/hypermarkets, convenience stores, specialist retailers, and other distribution channels. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Product Type | Whole-Bean | |
| Ground Coffee | ||
| Instant Coffee | ||
| Coffee Pods and Capsules | ||
| Distribution Channel | On-Trade | |
| Off-Trade | Supermarket/Hypermarket | |
| Convenience Stores | ||
| Specialist Retailers | ||
| Other Distribution Channels |
Italy Coffee Market Research FAQs
What is the current Italy Coffee Market size?
The Italy Coffee Market is projected to register a CAGR of 3.35% during the forecast period (2024-2029)
Who are the key players in Italy Coffee Market?
Nestlé S.A., Kimbo S.p.A., Massimo Zanetti Beverage Group, Luigi Lavazza S.p.A. and Gruppo Illy SpA (Illycaffè S.p.A.) are the major companies operating in the Italy Coffee Market.
What years does this Italy Coffee Market cover?
The report covers the Italy Coffee Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Italy Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key challenges for e-commerce platforms entering the Italian Coffee Market?
The key challenges for e-commerce platforms entering the Italian Coffee Market are a) Established coffee culture b) Brand loyalty & preference for in-store experience as potential hurdles for online retailers
Italy Coffee Industry Report
The Italian coffee market is flourishing, deeply rooted in a culture that cherishes coffee consumption, making Italy a pivotal player in Europe's coffee landscape and a leading importer of green coffee. Italian coffee companies are navigating an evolving market where consumers' loyalty to high-quality coffee and traditional brands is juxtaposed with a growing demand for personalized and higher quality coffee variants, including specialty coffee. This burgeoning trend towards lighter roasts and innovative products like coffee pods and capsules signifies a shift in consumer preferences and a move towards diversification and quality enhancement. As the market evolves, the dominance of Robusta beans underscores Italy's love for strong coffee flavors, even as new market developments and collaborations among Italian coffee companies aim to cater to changing tastes and a younger demographic's inclination towards convenience and healthy lifestyles. This dynamic landscape suggests a vibrant future for coffee consumption in Italy, characterized by innovative offerings that honor the country's rich coffee heritage while embracing modern trends. Statistics for the Italy Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Italy Coffee analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
