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Growing Markets

Talking of more trends, there has been a booming
coffee market for a while, which is Asia. Revenue in the
Coffee segment amounts to 105,555 million USD in 2021.
The market is expected to grow annually by 7.77% (CAGR
2021-2025). The market’s largest segment is the segment
Instant Coffee with a market volume of 57,645 million USD
in 2021. In relation to total population figures, per person
revenues of 23.69USD are generated in 2021. The average
Convenience at Home per capita consumption stands at 0.3kg in 2021.
We all know the trendy coffee spots in Asia: South
With the closed borders, but open social media ac-
Korea, Japan, China and Thailand. As Thomas shared with
counts, people tend to discover and spend money domesti-
us: “Korea has been a trend setting combination for several
cally, creating new content and interesting things to watch.
years now and have put the coffee culture on steroids, prob-
One of such coffee bangers is Dalgona coffee. Dalgona is a
ably like noting we have seen elsewhere. The other key
Korean whipped coffee trend first popularized on TikTok
markets I see, and one is mainly because of size is China.
in March of 2020 and was shared by millions in the next 8
The third country is Japan. Japan already has a quite devel-
months. Dalgona coffee contains four ingredients: instant
oped coffee culture but has still managed to continue devel-
coffee, sugar, water, and milk. While Dalgona coffee is sim-
oping it and take it to a new level.” Caleb also thinks the
ple in its composition, its pleasing presentation of fluffy
same way saying that Asian countries are highly ranked in
whipped coffee floating atop iced milk captured the public’s
competitions and it’s getting more and more competitive
attention. Now that consumers have mastered basic dalgona
every year. China mainland and Thailand continuously
coffee, specialty dalgona coffee recipes will emerge.
support their industry to grow and finally we hear about
Drinking and making coffee at home is one of the
positive results; Japan and Korea are a bit similar, where
biggest changes that happened this year, more and more
Japan is a little more conservative whereas South Korean
people get to know coffee they drink and create new drinks.
market is wide open and changes its trends very fast; Sin-
Thomas Perez, former CEO at Bodum, shared with us: “There
gapore, Hong Kong and Taiwan, China have been having
is one major thing that I believe will change, and that is the
strong landmarks based on a solid quality beverage culture
entire consumption in homebrewing of coffee. Even though
and it spreads quickly; Indonesia, Malaysia and Vietnam have
many people will return to their favorite coffee stores, a lot
significant development in R&D and will meet the new ex-
of people will continue to be working remotely. These cof-
pectations soon.
fee drinkers will need better solution for the home. They
The biggest contribution to the growth among Asian
will have an impact on coffee beans but also equipment and
countries is China. “I previously attended Jason Wang’s
machinery to brew coffee at home.”
presentation that said that 80% of population in China
That is why there is a growing demand for easy-to-make
was born after 1980 so they have younger buying power
coffee drinks. While some will hone barista skills to try
also the traditional tea culture has transferred to the
different types of coffee drinks and craft international cof-
coffee culture in China.” It means China has more buying
fee flavors, the majority are looking for simple ways to
power than any other country and also the customers
simulate a high-end coffee house experience by simply
there are much more open minded when it comes to try-
making a cup of flavorful instant coffee or getting a can of
ing new things and embracing a new coffee culture,
coffee. In 2021 canned coffee might replace soft drinks as
comparing to Europe, where there have been long-lasting
consumers become increasingly health-conscious. As far
traditions of coffee consumption so it is hard to create
back as 2018, marketing intelligence agency Mintel identified
and sell something new. “Coffee almost became an afford-
ready-to-drink (RTD) coffee as the fastest growing segment
able fashion lifestyle and there were really no limits in
in the retail coffee market and the fastest growing nonalco-
terms of what could be done and could not be done,” says
holic beverage product. Gen Z consumers (those born be-
Thomas. Nevertheless, being a new hot market, Asia still
tween 1995 and 2007) are the primary RTD coffee audience,
is influential mainly domestically: “I do not see a major
with 46% of this age group purchasing RTD coffee. Gen Z
trend impact from Asia transferring to markets like Eu-
consumers care about environmental impact, so 2021’s RTD
rope, Australia and North America,” Thomas adds.
coffee will be made of recyclable materials.
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