Magazine: Five consumer reactions to the increase in coffee prices

In the long term the price of coffee keeps rising in the world market. In the June 2016-May 2017 period the prices of most major coffee brands increased, some by 15-20 percent, others by only 3-5 percent. The segment of roasted and ground coffee was affected by the price increase the most. Consumers reacted to this trend by following 5 different strategies.

Albert Szőke
senior product consultant
GfK

1. They purchased 10 percent less coffee in the examined period than in the preceding year, consuming 4.5kg per person a year instead of the former 4.9kg.

2. In the roasted and ground coffee segment the volume share of private label coffees grew from 12 to 16 percent.

3. The weight of certain coffee segments changed: the market share of roasted and ground coffee reduced and more 3in1 products were sold.

4. In the roasted and ground coffee segment the role of ‘100-forint/1-euro shops’ became more important.

5. Some shoppers didn’t start drinking less coffee of buying cheaper products: they quit drinking coffee instead. The penetration of the coffee category decreased by 2.6 percentage points, and this means that in the last year 110,000 household left the category. //