Ellen Codd, Amsterdam Office, Bord Bia - The Irish Food Board
Image by: Littleangell on Pixabay
Home to Jacobs Douwe Egberts, the coffee market in the Netherlands has traditionally been dominated by big players. Although JDE and Nestlé remain the top brands in the market, private label and speciality coffees are increasingly popular amongst Dutch consumers (Euromonitor, 2019), while premiumisation and sustainability drive innovation in the category.
As the household disposable income rises in the Netherlands, so too does the consumer drive for premium products. Although volume sales are under pressure, increased prices and consumers purchasing more premium products have resulted in 7.2% growth in the market over the last four years. Market leader Albert Heijn recently overhauled their coffee range, focusing increasingly on beans and capsules to tap into this trend.
Younger consumers are a driving force in both the out of home and ready to drink coffee markets. Specialist coffee and tea shops are growing at a rapid pace, as young urban adults look for sleek, modern design, high-quality coffee, and a broad range of meals or snacks. This reflects Bord Bia’s Global Consumer Lifestyle Trend ‘Engaging Experiences’, as consumers seek out moments of discovery and delight that enhance my day, sharing exciting stories and spaces with others’. Similarly, speciality coffees and micro roasters are becoming increasingly popular, as consumers are interested in the story behind their coffee, and seek out brands with authentic stories.
Millennial and Gen Z consumers are also driving the ready to drink coffee range, as it introduces younger consumers to the coffee market by acting as an alternative energy boost to energy drinks. The growing plant based trend has also manifested itself within ready to drink coffee, with Starbucks recently launching almond milk ready to drink coffees, tapping into both the consumer demand for convenience and the increasing interest in plant-based diets.
Sustainability in coffee production, too, is increasingly important to consumers in both the retail and out of home channels. Albert Heijn is addressing the demand for more transparent and traceable supply chains through the implementation of sustainability labels on private label products. The Fairtrade Original Community Coffee, which comes directly from the farmer, has also been introduced into the range.
Opportunities exist for Irish suppliers to display their sustainability credentials in both the branded and private label spheres in the Dutch market.