Increasing consumption in the 3in1 segment
According to data from GfK ConsumerScan, the number of consumers in the 3in1 segment has been growing at a double digit rate in recent years. Consumption of ground-roasted coffee was down by 8 percent in the first half of 2008, compared to the same period last year. As a result of an 8 percent price increase, sales showed stagnation in terms of value. The number of households buying traditional ground-roasted coffee was down to 66 per cent from 69 percent in 2007. The quantity purchased was also down to 2.29 kilograms from 2.42 kilograms. 3in1 products are the most successful in the market. Demand has continued to grow in this segment. While 26.5 per cent of households had purchased 3in1 products in the first half of 2007, this figure was 29.1 per cent in January–June 2008. Though growth in the number of consumers is slowing down, sales were up by 18 per cent in the first six months, owing to larger quantities purchased. Hyper markets and discount stores are the leading distribution channels in both the roasted and 3in1 segments. The market share of discount stores and of chains of small stores is significantly higher than their overall share in the FMCG market. The market share of private labels remains low in the ground-roasted segment, with only 8 percent. However, private labels have continued to improve their position in the instant and 3 in 1 segments, accounting for nearly-one third of total sales.
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