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Are coffee capsules taking over the world? Global Market tendencies for 2020/21 and the future
The situation with the pandemic in 2020 has largely impacted our daily routines, and one that has probably changed the most is the way we consume our coffee. It has become almost essential for every house to own a machine that combines the convenience of domestic coffee with the quality of a coffee in an Italian espresso bar
Modern times ask for modern solutions. Nobody was prepared for what 2020 had brought us, and each and every industry had to find a way to survive that very challenging period. Coffee industry has probably felt the consequences the most, but the desire and the love for this non-alcoholic beverage has only grown. The habit of drinking a hot cup of coffee has remained strong and nobody was ready to give it up. Almost every coffee bar and restaurant were suddenly shut, and coffee lovers started to show their interest in the coffee pods and capsules for instant coffee beverages at home. All these changes resulted in a high sales share of coffee pods and capsules via online distribution channels during the pandemic period.
Coffee Capsule Global Market Report 2020: COVID- 19 Growth And Change
In the next couple of paragraphs, we are reporting the snippets of some news regarding the subject, and if you would be interested more in this report or in any information mentioned in the article, make sure to contact directly the sources you can find in the bibliography.
Due to lockdowns all around the world, the demand for coffee capsules and at-home coffee consumption has increased drastically. The global coffee capsules market is expected to grow from $4.2 billion in 2019 to $4.3 billion in 2020 at a growth rate of 1.5%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach $5.2 billion in 2023 at CAGR of 6.77%. (The Global News Wire, 2021a).
Some of the reasons they mention in this report that might interest you are:
This is not where the list stops. Besides the many motives for making a purchase, in this report you’ll find answers on questions such as: Where is the largest and fastest growing market for the coffee capsule? How does the market relate to the overall economy? etc. The report is a never-ending source of very valuable data that covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscapes, market shares, trends and strategies. (The Global News Wire, 2021b)
The biggest names in the coffee capsules market are Nespresso, Keurig, Gloria jean’s Coffees, Nescafé, Nestlé, Lavazza A Modo Mio, Starbucks, Bestpresso, Kissmeorganics, and Gourmesso. For example, in the summer of 2020, in the middle of the Covid-19 pandemic, Nespresso reported a small increase in their production. A spokesperson for the company reported a “mid-single-digit growth,” and will add 10 new production lines to its Romont coffee pod production facility in Switzerland. (The Guardian, 2021)
The regions covered in the coffee capsules market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the coffee capsules market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. (The Business Research company, 2021)
To sum up…
In April 2020, Nestlé reported its strongest global quarterly sales in five years, with its Starbucks, Nescafé and Coffee Mate packaged coffee ranges contributing to 7.4% organic sales growth across its Americas (AMS) business.
The same month, JAB Holdings-controlled Keurig Dr Pepper reported a 6% increase in the retail consumption of its single-serve coffee pods during the first quarter of 2020. The strength of the global coffee at-home segment was further underlined in June 2020, when fellow JAB Holdings coffee at-home and café business, JDE Peet’s, raised $2.5bn. On the other side of the Atlantic, in June 2020 Europe’s biggest coffee chain, Costa Coffee, announced the expansion of its packaged coffee offer. Some of the players in the coffee community did not cope as well in the beginning of last year, so they tried to make their business survive by finding alternative methods. UK-based coffee and food-to-go chain, Pret a Manger, was hit hard and their strategy extends their offer and reaches out through the at-home coffee market, launching a packaged coffee offer on Amazon e-commerce platform.
As the COVID-19 outbreak led to a complete and global lockdown for a few months, markets such as North America and Europe shut down a lot of coffee shops, but their numbers in online sales of coffee capsules and pods also grew significantly.
Nowadays, an image of drinking coffee with a friend at a bar has definitely become a symbol of a better future to come and it gives people hope that soon we will be able to come out freely, gather around a table, chat and enjoy a fresh cup of our favorite drink.
BIBLIOGRAPHY
The Global News Wire, 2021a. Retrieved from https://www.globenewswire.com/news-release/2020/05/12/2031739/0/en/Global-Coffee-Capsule-Market-Report-2020-to-2030-COVID-19-Growth-and-Change.html
The Guardian, 2021. Retrieved from https://www.theguardian.com/food/2020/jul/14/nespresso-coffee-capsule-pods-branding-clooney-nestle-recycling-environment
The Business research company, 2021. Retrieved from https://www.thebusinessresearchcompany.com/report-preview1.aspx?Rid=coffee%20capsule%20market%20global%20report%202020%2030%20covid%2019%20growth%20and%20change
The Global News Wire, 2021b. Global Coffee Capsule Market Report. Retrieved from https://www.globenewswire.com/news-release/2020/05/12/2031739/0/en/Global-Coffee-Capsule-Market-Report-2020-to-2030-COVID-19-Growth-and-Change.html
Yemeni coffee: restoring hope through an ancient coffee culture
Promoting the ancient Yemeni coffee culture is what is needed to restore hope in such a challenging time for Yemen and its people
Yemeni coffee: context overview
Yemen is a small coffee producing country that only grows Arabica plants, introduced into what is now Yemen over a thousand years ago. Coffee from Yemen was the first coffee introduced into Europe and was considered a highly valuable commodity (Coffee Quality Institute, n.d.). In fact, whilst the coffee tree has its roots in Ethiopia, the coffee drink originated in Yemen (Qima, n.d.-b).
Coffee Quality Institute began its work in Yemen in 2006 and was involved in a number of grants with several organizations concerned with the coffee sector as a whole, notably with vital factors such as production, processing, cupping, barista training and marketing (Coffee Quality Institute, n.d.).
Unluckily, in 2015 civil war broke out in Yemen and all international embassies were forced to leave, suspending and eventually ending projects that would have supported numerous Yemeni coffee farmers (Coffee Quality Institute, n.d.).
Source: Coffee Quality Institute – Yemen: Coffee Quality Conference
Yemen: a unique terroir and a diverse cup profile
Yemen hosts one of the world’s most diverse topographic profiles, with extreme desert plains in the east, large coastlines and coastal plains in the west and in the south, and large volcanic mountain ranges in the centre of the country. Owing to its topographic diversity, Yemen’s climate is quite diverse as well, with temperatures ranging from subzero to over 45°C (Qima, n.d.-b).
Most of Yemen’s specialty coffee is grown in the highlands at altitudes above 1,800 metres, which results in coffee beans embodying an unusually complex concentration of oils characterized by precious aromas and flavours (Qima, n.d.-b).
“The most exceptional coffees tend to express bright and complex acidity, with delicate notes of florals, candied fruit, citrus, berries, dark chocolate and a distinctive winey undertone with a lingering, heavenly finish. The profile displays excellent range and dimension and the fragrance and aromas are intensely exhilarating” (Qima, n.d.-b).
Yemeni coffee culture’s history
Coffee culture is deeply connected to Yemen’s history. Reportedly, the coffee bean was first consumed as a beverage in western Yemen in 1450 by the Sufi monk population, who used coffee to stay awake during their night meditations. By the early 1700s most of the country’s income came from coffee exports and the entire world’s coffee supply came from Yemen (Qima, n.d.-b).
Much of Yemen’s farming population therefore turned to growing coffee in the 17th and 18th centuries. As the global demand for coffee exploded, colonial trading companies began smuggling beans out of Yemen and planting them in countries under colonial rule, often forcing farmers to produce and sell coffee at prices imposed by the colonial trading company (Qima, n.d.-b).
The availability of cheaper coffee beans on the market made it difficult for Yemeni coffee to compete, so its market share began to shrink. By the 1800s Yemen was producing just 6% of the world’s coffee, while today it produces less than 0.1%. Yemen’s coffee industry was neglected and often considered as a relic of the past. Moreover, the civil war has made the Yemeni coffee industry’s future even more fragile (Qima, n.d.-b). Nevertheless, Yemen, with its unique terroir, cup profile and genetics, has much to offer the specialty coffee industry.
Qishir: an energy boost with a ginger flavour
Qishir is a traditional Yemeni drink which combines coffee and ginger. It is a natural energy boost that is usually offered in minutely decorated cups with honey sweets. The union of coffee and ginger enhances the organoleptic features of each ingredient and creates a 100% Middle-Eastern atmosphere (Cescotto, 2018).
According to the principles of natural medicine, regularly drinking this unique and peculiarly spicy coffee positively affects health and well-being. In fact, qishir reportedly helps digestion, tackles nausea and prevents gastric issues. Moreover, it controls the glycaemia and cholesterol levels and helps to strengthen the immune system. Furthermore, qishir is considered a natural painkiller and an anti-inflammatory which also boosts your metabolism (Cescotto, 2018).
Will you give it a try? Take a look at the recipe below, then!
Source: Dersut Magazine (Cescotto, 2018)
Qishir: how to prepare the ginger coffee at home
If you are willing to taste qishir and to feel the Middle-Eastern atmosphere you don’t have to fly to Yemen: you can prepare it directly at home! To make it, you’ll need very high-quality ground coffee, granulated sugar, water, powder of dried ginger and a small saucepan.
If you want to feel closer to the tradition, you should use a briki, the traditional small pot that is used in the Arab countries to make coffee. When you make qishir, make sure you are concentrated and your movements are slow and careful, as it is a real ritual.
For two qishir coffee cups we recommend using the following ingredients:
You’ll just need to mix all the ingredients in a small pot and wait for it to start simmering. Then, you’ll have to let the liquid cool a little bit and make it simmer afterwards. You should do this at least 3 times so that your qishir will become a bit thicker. When your coffee drink is ready, you should pour it into the traditionally decorated cups and wait a minute so that the powder settles. Finally, sip it and feel the embrace of the Arab atmosphere.
Recipe’s credits: Cescotto, 2018.
Source: Dersut Magazine (Cescotto, 2018)
Yemeni specialty coffee: Qima Coffee
Qima Coffee aims at using coffee as a vehicle to improve lives and livelihoods sustainably. Qima Coffee, which promotes innovation as the future of specialty coffee, works exclusively with fresh cherries to ensure that every step of the post-harvest process is carefully managed and controlled. It also underlines the importance of the human dimension behind the coffee cup, and that is why Qima Coffee operates directly at farm-level, to ensure full traceability. Finally, the core purpose of Qima Coffee is to rebuild Yemen’s specialty coffee industry and restore hope, also through education and agriculture projects (Qima, n.d.-a).
Private collection Auction: Alliance for Coffee Excellence and Qima Coffee
The Best of Yemen 2021 auction is supposed to take place online in August, with approximately 3,000 smallholder coffee farmers. The Alliance for Coffee Excellence and Qima Coffee are willing to extend the competition to any Yemeni farmer who wishes to submit coffees, and also to extend the platform in order to include Yemeni exporters.
The Best of Yemen 2021 is part of ACE’s ongoing Private Collection Auction series, that is to say a private companion to the ongoing Cup of Excellence series of countrywide auctions.
Qima Coffee photo from the Al-Ruwad Coop in Yemen. Source: (Brown, 2021)
The previous two Best of Yemen auctions presented by Qima and ACE presented amazing prices for premium Yemeni microlots, including US$207.15 per pound for the top lot in 2020, where the average price for all 20 lots scoring 87+ was $54.43 per pound (Brown, 2021).
Amal Yemen Movement
Amal Yemen – which means “hope for Yemen” – is a manifestation of collective energy, drawn from a global community of people from diverse backgrounds who share a common interest in assisting others and in celebrating culture. It is a movement aiming at illuminating Yemeni coffee history, culture and arts. This movement is meant to be a way to connect an international audience to Yemen’s past, present and future in its famous and legendary coffee sector. In such a challenging time, in which Yemen is devastated by civil war, a movement like Amal Yemen may be a vehicle to raise awareness and to mobilise communities towards understanding and supporting the coffee sector’s role in giving hope to Yemeni people. All funds raised will be addressed to humanitarian relief efforts, as they will be donated to Médecins Sans Frontières and Mercy Corps (Amal Yemen, n.d.).
Source: Amal Yemen
Bibliography
Amal Yemen. (n.d.). Amal Yemen Movement. Retrieved May 2, 2021, from https://amalyemen.com/
Brown, N. (2021). ACE and Qima Coffee Expanding Best of Yemen Auction for Fall 2021. Daily Coffee News. Retrieved from https://dailycoffeenews.com/2021/04/20/ace-and-qima-coffee-expanding-best-of-yemen-auction-for-fall-2021/
Cescotto, K. (2018). Il Qishir yemenita: caffè e zenzero uniti in un connubio di profumi e aromi unico. Dersut. Retrieved from https://www.dersutmagazine.it/cucina/il-qishir-yemenita-caffe-e-zenzero/
Coffee Quality Institute. (n.d.). Overview. Retrieved May 2, 2021, from Yemen website: https://www.coffeeinstitute.org/coffee-places/yemen/
Qima. (n.d.-a). Welcome to the coffee revolution. Retrieved May 2, 2021, from https://www.qimacoffee.com/
Qima. (n.d.-b). Welcome to Yemen. Retrieved May 2, 2021, from https://www.qimacoffee.com/yemen-1
Picture credits a: A variety of fresh and roasted coffee grains are on display at an event organised on the International Coffee Day in Yemen’s capital Sanaa, MOHAMMED HUWAIS/AFP or licensors. Retrieved May 7, 2021, from: https://www.euronews.com/2020/10/02/the-treasure-of-yemen-international-coffee-day-is-celebrated-in-sana-a
What is Re:co Symposium?
Re:co is the abbreviation of the title “Regarding Coffee“ and it is a virtual event created for those particularly interested in the world of specialty coffee.
It is a gathering of leaders and emerging leaders in coffee, where they will be addressing the most pressing topics of the industry. Re:co is one of many upcoming virtual events organized by the SCA organization, as you can see on their website calendar of events. We already talked about the Re:co Symposium in our articles Specialty Coffee and Coffee Retail Summit and Make Coffee better, which you can find here on our blog.
There are two important dates this year:
Speakers
Re:co (Regarding: Coffee) is organised by the Specialty Coffee Association – a non-profit, membership-based organisation that represents thousands of international coffee professionals.
This year a quite extraordinary range of speakers will be talking about innovations, strategies that will be implemented in the industry, as well as about sustainability, coffee production methods, legacy, quality etc. We will list only some of the speakers. If you want to see the complete schedule of the events, click here.
On May 6th these will be the topics, among many others:
Illy Caffè and Ernesto Illy Foundation – 2021 Fellowship Program
This event offers an opportunity for many who want to attend, participate, and contribute in any way, but for various reasons might not have had the possibility of doing so before. Because of the generosity of illycaffè and Ernesto Illy Foundation, there is now the Re:co Fellowship program that offers the chance for many to become Fellows and join in the adventure in the magnificent world of coffee. As they claim on their website, a Re:co Fellow is a future or current leader in specialty coffee, driving the future of coffee. A Fellow might be a community leader building an organization, a graduate student who is focusing on coffee research, a hard-working barista, the producer/co-op leader whose community cares about coffee quality, an entrepreneur who is starting his/her company around a great idea, or anyone that thinks that he/she can make a difference and help the industry. (Re:co Symposium, 2021b)
Podcast and Youtube channel
If you are interested in learning more and hearing some of the talks from last year’s Re:co Symposium, there are many interesting podcasts and a Youtube channel for you to explore and enjoy while drinking a nice cup of coffee.
Registration
Registration is open now for the event, May 12-13, held in the Pacific time zone.
Bibliography
Re:co Symposium, 2021a. Retrieved from https://recosymposium.org/
Re:co Symposium, 2021b. The Fellowship. Retrieved from https://recosymposium.org/fellowship