Market leaders drive outlet growth

Strong growth is expected in the coffee industry for the Nordic countries according to the new Project Café2015 Nordics report released by Allegra Strategies World Coffee Portal.

By the end of 2015, the coffee shop market in the Nordic countries (Denmark, Finland, Norway and Sweden) is expected to reach a total of 1,023 outlets, with an estimated value of €436 million.

Sweden displays the strongest growth with 11.4% annual outlet growth over the last five years and an estimated 403 outlets. Norway and Finland are not far behind, with 269 and 205 branded coffee shops respectively, while Denmark remains fairly underdeveloped with 146 outlets.

Part of this growth stems from recent merge and acquisition activity within the industry, with Sweden’s Espresso House and Denmark’s Baresso both being acquired by JAB Holding Company this year and private equity group Valedo attaining a share of Danish chain Joe & the Juice.

The continued investment and expansion by these market leaders is also helping to drive outlet growth across the four countries, with Espresso House, Wayne’s Coffee and Joe & the Juice now sharing 40% of the market.

The coffee shop market in the Nordic countries is expected to reach a total of 1,023 outlets, with an estimated value of €436 million by the end of 2015.

Consumer trends are changing

While the Nordics are among the highest consumers of coffee in Europe (the average consumption in Finland is 12 kg per annum per capita), traditionally coffee is drunk at home or at work.

However, the rise of the branded coffee shop market shows that more people are choosing to drink coffee out and currently 25% of Norwegians and Swedes visit coffee shops at least once a week, despite drinking more than 20 cups of coffee a week at home and work.

However, an average of 18% of consumers are expecting to increase the number of times they visit coffee shops, enhancing the prediction that the coffee shop market will continue to expand.

The future of the Nordic industry

As interest and awareness of speciality coffee increases, the future coffee shop marketplace is likely to be shaped by consumer desire and expectation for high-quality coffee as they increasingly drink coffee out of home.

While the market will continue to be dominated by brands, independent coffee shops will still influence the direction of the sector.

The Project Café2015 Nordics report is now available to purchase from Allegra Strategies World Coffee Portal Limited.

Data may not be reproduced without permission.