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The Growth of the EU Decaffeinated Coffee Market Lost its Momentum

decaffeinated coffee

The Growth of the EU Decaffeinated Coffee Market Lost its Momentum

IndexBox has just published a new report: ‘EU – Decaffeinated Coffee (Not Roasted) – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the decaffeinated coffee market in the European Union amounted to $1.6B in 2018, going down by -2.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Overall, decaffeinated coffee consumption continues to indicate a relatively flat trend pattern.

Consumption By Country in the EU

The countries with the highest volumes of decaffeinated coffee consumption in 2018 were the UK (59K tonnes), Germany (49K tonnes) and France (45K tonnes), with a combined 47% share of total consumption. These countries were followed by Spain, Poland, Belgium, the Netherlands, Sweden, Austria, Portugal, Italy and Finland, which together accounted for a further 42%.

From 2007 to 2018, the most notable rate of growth in terms of decaffeinated coffee consumption, amongst the main consuming countries, was attained by Spain, while decaffeinated coffee consumption for the other leaders experienced more modest paces of growth.

In value terms, the UK ($449M) led the market, alone. The second position in the ranking was occupied by France ($174M). It was followed by Germany.

The countries with the highest levels of decaffeinated coffee per capita consumption in 2018 were Belgium (1,201 kg per 1000 persons), Austria (1,159 kg per 1000 persons) and Sweden (1,133 kg per 1000 persons).

Production in the EU

In 2018, the amount of decaffeinated coffee (not roasted) produced in the European Union totaled 433K tonnes, flattening at the previous year. Overall, decaffeinated coffee production continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 with an increase of 5.5% against the previous year.

Production By Country in the EU

The country with the largest volume of decaffeinated coffee production was Germany (208K tonnes), accounting for 48% of total volume. Moreover, decaffeinated coffee production in Germany exceeded the figures recorded by the second-largest producer, the UK (55K tonnes), fourfold. France (42K tonnes) ranked third in terms of total production with a 9.7% share.

In Germany, decaffeinated coffee production remained relatively stable over the period from 2007-2018. The remaining producing countries recorded the following average annual rates of production growth: the UK (+1.0% per year) and France (-0.4% per year).

Exports in the EU

In 2018, the exports of decaffeinated coffee (not roasted) in the European Union stood at 180K tonnes, going up by 3.1% against the previous year. The total export volume increased at an average annual rate of +1.5% from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed over the period under review. Over the period under review, decaffeinated coffee exports reached their peak figure at 187K tonnes in 2013; however, from 2014 to 2018, exports remained at a lower figure. In value terms, decaffeinated coffee exports totaled $596M (IndexBox estimates) in 2018.

Exports by Country

Germany dominates decaffeinated coffee exports structure, resulting at 161K tonnes, which was approx. 89% of total exports in 2018. It was distantly followed by Spain (15K tonnes), committing an 8.2% share of total exports.

Exports from Germany increased at an average annual rate of +1.5% from 2007 to 2018. At the same time, Spain emerged as the fastest-growing exporter exported in the European Union, with a CAGR of +3.4% from 2007-2018. While the share of Germany (+13 p.p.) and Spain (+2.5 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Germany ($503M) remains the largest decaffeinated coffee supplier in the European Union, comprising 84% of total decaffeinated coffee exports. The second position in the ranking was occupied by Spain ($74M), with a 12% share of total exports.

Export Prices by Country

In 2018, the decaffeinated coffee export price in the European Union amounted to $3,303 per tonne. Overall, the decaffeinated coffee export price, however, continues to indicate a relatively flat trend pattern.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Spain ($4,989 per tonne), while Germany amounted to $3,134 per tonne.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Spain.

Imports in the EU

The imports stood at 69K tonnes in 2018, rising by 12% against the previous year. The total import volume increased at an average annual rate of +2.8% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2015 when imports increased by 13% year-to-year. The volume of imports peaked in 2018 and are likely to see steady growth in the immediate term. In value terms, decaffeinated coffee imports totaled $185M (IndexBox estimates) in 2018.

Imports by Country

Spain represented the major importer of decaffeinated coffee (not roasted) imported in the European Union, with the volume of imports finishing at 31K tonnes, which was near 45% of total imports in 2018. The Netherlands (11,908 tonnes) took a 17% share (based on tonnes) of total imports, which put it in second place, followed by Italy (9.7%), the UK (6.8%) and Belgium (6.7%). The following importers – France (2,912 tonnes) and Portugal (2,540 tonnes) – each accounted for a 7.9% share of total imports.

Spain was also the fastest-growing in terms of the decaffeinated coffee (not roasted) imports, with a CAGR of +12.1% from 2007 to 2018. At the same time, the UK (+3.2%), Portugal (+2.0%) and France (+1.7%) displayed positive paces of growth. The Netherlands experienced a relatively flat trend pattern. By contrast, Italy (-1.4%) and Belgium (-4.1%) illustrated a downward trend over the same period.

In value terms, the largest decaffeinated coffee importing markets in the European Union were Spain ($59M), the Netherlands ($36M) and Italy ($22M), with a combined 63% share of total imports.

Import Prices by Country

In 2018, the decaffeinated coffee import price in the European Union amounted to $2,698 per tonne, waning by -11.6% against the previous year. Over the period under review, the decaffeinated coffee import price continues to indicate a relatively flat trend pattern. The import prices for decaffeinated coffee (not roasted) attained their peak level of $4,621 per tonne in 2011. From 2012 to 2018, the growth in terms of the import prices for decaffeinated coffee (not roasted) remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was France ($4,154 per tonne), while Spain ($1,926 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by France, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

coffee and tea market

U.S. Coffee And Tea Market Enjoys the Second Year of Solid Gains, Peaking At Almost $16B

IndexBox has just published a new report: ‘U.S. Coffee And Tea Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the coffee and tea market in the U.S. amounted to $15.9B in 2018, picking up by 3.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +4.2% from 2013 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2015, with an increase of 13% against the previous year. Over the period under review, the coffee and tea market attained its maximum level in 2018, and is expected to retain its growth in the near future.

Coffee And Tea Production in the U.S.

In value terms, coffee and tea production totaled $14.5B in 2018. The total output value increased at an average annual rate of +4.7% from 2013 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. The most prominent rate of growth was recorded in 2015, when the output figure increased by 15% against the previous year. Coffee and tea production peaked in 2018, and is expected to retain its growth in the near future.

Exports from the U.S.

In 2018, approx. 9.6K tonnes of coffee and tea were exported from the U.S.; falling by -11.2% against the previous year. Overall, coffee and tea exports continue to indicate a relatively flat trend pattern. In value terms, coffee and tea exports stood at $50M (IndexBox estimates) in 2018.

Exports by Country

China (936 tonnes), the United Arab Emirates (913 tonnes) and South Korea (870 tonnes) were the main destinations of coffee and tea exports from the U.S., together comprising 28% of total exports. Japan, Belgium, Singapore, the UK, the Philippines, Ireland, Belize, Latvia and the Netherlands lagged somewhat behind, together comprising a further 40%.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by Belgium (+107.1% per year), while the other leaders experienced more modest paces of growth.

In value terms, Belgium ($8.4M), China ($4.3M) and South Korea ($4M) appeared to be the largest markets for coffee and tea exported from the U.S. worldwide, together accounting for 34% of total exports.

Export Prices by Country

In 2018, the average coffee and tea export price amounted to $5,190 per tonne, growing by 2.2% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +4.4%. Export prices varied noticeably by the country of destination; the country with the highest export price was Belgium ($14,823 per tonne), while the average price for exports to Japan ($3,408 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of export prices was recorded for supplies to Belgium, while the export prices for the other major destinations experienced more modest paces of growth.

Imports into the U.S.

In 2018, the amount of coffee and tea imported into the U.S. totaled 305K tonnes, going down by -4.5% against the previous year. Over the period under review, coffee and tea imports continue to indicate a mild setback. The growth pace was the most rapid in 2015, when imports increased by 1% against the previous year. Imports peaked at 330K tonnes in 2016; however, from 2017 to 2018, imports stood at a somewhat lower figure. In value terms, coffee and tea imports stood at $1.4B (IndexBox estimates) in 2018. Overall, coffee and tea imports continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2015, with an increase of 0.7% year-to-year. In that year, coffee and tea imports attained their peak of $1.5B. From 2016 to 2018, the growth of coffee and tea imports failed to regain its momentum.

Imports by Country

Argentina (51K tonnes), Germany (39K tonnes) and Brazil (32K tonnes) were the main suppliers of coffee and tea imports to the U.S., together accounting for 40% of total imports. Viet Nam, Colombia, China, India, Italy, Switzerland, Sri Lanka, Mexico and Indonesia lagged somewhat behind, together comprising a further 43%.

From 2013 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Switzerland, while the other leaders experienced more modest paces of growth.

In value terms, Switzerland ($227M), Brazil ($158M) and Germany ($139M) were the largest coffee and tea suppliers to the U.S., with a combined 36% share of total imports.

Import Prices by Country

In 2018, the average coffee and tea import price amounted to $4,737 per tonne, going up by 3.2% against the previous year. Overall, the coffee and tea import price continues to indicate a relatively flat trend pattern. There were significant differences in the average import prices amongst the major supplying countries. In 2018, the country with the highest import price was Switzerland ($19,925 per tonne), while the price for Argentina ($1,353 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of import prices was attained by Switzerland, while the import prices for the other major suppliers experienced more modest paces of growth.

Companies Mentioned in the Report

Peet’s Coffee & Tea, Community Coffee Company, Royal Cup, Reily Foods Company, S. & D. Coffee, R.C. Bigelow, Boyd Coffee Company, Keurig Green Mountain, New England Partnership, Imperial, Atlantic Coffee Industrial Solutions, Farmer Bros. Co., F. Gavina & Sons, Coffee Holding Co., Tc Global, The Folger Coffee Company, Celestial Seasonings, East West Tea Company, Millstone Coffee, Jbr, Wm. B. Reily & Company, Tetley US Holdings, CCC Holding, Hie Holdings, Twinlab Corporation, Refreshment Product Services, Inter American Products

Source: IndexBox AI Platform