£10 Espresso – Your havin a larf?!

Jun 12, 2012



Thirsty Espresso drinkers

It is common knowledge that our Nordic friends are the thirstiest coffee drinkers in the world…consuming upwards of 12 kilo per capita pa and that we poor and simple Brits lag some way behind consuming a paltry 3 > 4 kilo each year

But the sad reality is that in the EU27 the coffee market is largely stagnant, or declining, at perhaps 0.2% pa

Conversely, coffee consumption is growing very rapidly in the BRIC nations… Brazil (+2%) is now a major consumer of the once almost exclusively exported ‘black gold’ it produces…Russia is showing phenomenal and consistent double digit consumer growth both in and out of home…India is  also growing rapidly… Australia ( Not a BRIC nation!) is seeing staggering growth of +7%…but perhaps most  interesting , tantalising and mysterious of all these new and emerging consumer territories is China!

China is the one territory which the trade now views to be ‘at a tipping point’ with coffee the one commodity ‘with most to gain’

Current consumption is at 1m bags / 0.04 kg per person, which means that on average each of China’s 1338m inhabitants currently consumes three cups of coffee per year

This already represents exponential growth vs sales of a few years ago! And of course means that purely in tonnage terms China is now a commensurate coffee consumer vs many EU markets!

Year on year the Chinese coffee market place is growing 20% and has shown since 2006 a CAGR of nearly 100%!

This now values Chinese coffee sales at 6.25 B Yuan in 2011, or approximately £650m! WOW !!! for a nation many were sceptical would ever take to coffee, after a millennia of tea drinking culture!

Nestle lead the klondikers in the branded business gold rush – and have interestingly and rather perversely used famous Chinese blogger Han-Han in a traditional ATL ad campaign to push sales of their ‘introductory’  instant coffee product… whilst at the polar opposite of the market Nespresso boutiques are also being rapidly rolled out

Of course Starbucks are also present with 550 stores and big plans for 1500 stores by 2015..! No wonder really, with the most recent growth figures showing sales up a heady 38% and the price of a latte equivalent to £2.70 …doesn’t sound much, but is amazing when you consider that GDP per capita in China still ranks a lowly 92nd, at a tad over $8,000 USD per year, vs the UK at  $36,000 USD pa … making the same latte  and espresso shot here worth a tad under a tenner!

Makes you think eh?!

….And certainly makes our ESE easy serving espresso pods, Senseo coffee pods and nespresso compatible capsules seem a  great buy at 15 > 28 p each, depending upon your poision! Monkey is packing his bags now and off on a mission of mercy to introduce the Chinese to Aromo perfetto espresso and caffeine candy filter! Way to go!

This article was written by Guru who writes for aromocoffee.co.uk, the UK’s leading online retailer of ESE coffee pods , Senseo coffee pods and Dualit Nespresso compatible capsules