Coffee is a universal beverage, deeply embedded in the daily lives of the French. For a long time, its availability in supermarkets was limited to traditional options—instant, ground, or capsule coffee. But the landscape has drastically changed. Today, supermarkets are competing with innovative offerings, presenting an impressive diversity, particularly with the rise of specialty coffee beans. What does this market transformation reveal? After analysing the evolution of the wine market, it’s high time to delve into the fascinating changes in the coffee industry!
I. The evolution of the coffee category in supermarkets
1. A multifaceted market
In France, coffee reigns supreme: 91% of French people consume it, and 72% drink more than one cup daily. This daily ritual represents a colossal market worth €3.6 billion in 2023, with an average consumer budget of €120 for about 7 kg per year. On average, the French purchase coffee 15 times annually (Nielsen Consumers France Total MAT P03 2024).
Supermarkets capture 81% of at-home coffee consumption, followed by hard discounters (12%), e-commerce (4%), and convenience stores (3%). While the market is mature, it continues to evolve with products differentiated by taste and packaging.
Market Segments:
Capsules and pods (52% of market value): Dominant but losing momentum, these formats show modest growth (+2% and +0.6 penetration points in one year), hindered by environmental concerns.
Ground coffee (25% of market value): A declining category, mostly favored by those over 65.
Instant coffee (14% of market value): Another aging category in decline.
Coffee beans (10% of market value): The game-changer, with sales nearly doubling in two years. Fifteen percent of French households now own a coffee bean machine.
This boom is far from a passing trend. The market is projected to grow by over €1.5 billion by 2029, driven by increasingly curious consumers and bold new entrants.
2. Premiumisation and Innovation
Premiumization is central to current trends, further fueled by soaring coffee prices. Coffee is no longer just a casual drink; it has become a true gustatory experience.
The result? Consumers are more demanding and eager for information—especially those new to the coffee bean market, which saw over 800,000 new buyers in just one year.
Initiatives like Marks & Spencer’s program in the UK, where loyalty cardholders can sample coffee for free before buying, highlight efforts to guide buyers and enhance the shopping experience while gaining valuable behavioral insights.
3. The Rise of Online Shopping
E-commerce is reshaping buying habits. For example, click&collect services have grown impressively by 7.4%, with coffee bean sales skyrocketing by 27.4%. This trend reflects a consumer preference for both convenience and quality.
II. Why Is This Evolution Happening?
1. Growing Diversification
France, the fifth-largest coffee roaster in Europe, exports 56,000 tons of roasted coffee annually, with an average growth rate of 20%. This industry thrives on diversification: new flavor profiles, attractive packaging, and high-value products.
The outcome? Consumers face a wealth of choices, which can sometimes be overwhelming.
2. New Consumption Trends
The success of coffee shops in Europe, generating €7 billion in revenue across 21,000 locations, also impacts supermarkets. In France, these venues attract diverse customers and emphasize tailored experiences, such as customizable menus or personalized recommendations based on data analysis. However, coffee shops remain pricey, prompting many consumers to seek similar experiences at home. Supermarkets must adapt their offerings to meet this demand.
On the environmental front, innovations like energy-efficient equipment and sustainable materials are emerging, catering to a growing demand for eco-friendly products.
3. Retailers Aligning with Consumer Expectations
Supermarkets increasingly feature specialty and environmentally conscious coffee options to satisfy consumer preferences and stand out. Offering high-quality coffee not only fosters loyalty among enthusiasts but also diversifies offerings in competition with traditional brands.
III. How to Navigate Such a Complex Market?
For novice buyers, the wide array of options can be bewildering. Guidance becomes crucial. Here, innovative solutions—like artificial intelligence paired with human expertise—play a key role. For brands, the challenge lies in meeting these new consumer expectations while standing out on the shelves and introducing new products.
Tools like Matcha address these challenges by providing personalised recommendations for consumers and retail media solutions for brands, bridging the gap between both.
In Conclusion: A Coffee Market in Full Swing
The coffee market in supermarkets is undergoing a revolution fueled by premiumisation, the rise of coffee beans, and shifting consumer expectations. For retailers, this transformation presents both an opportunity and a challenge: simplifying complexity for consumers. As the market continues to evolve, those who can guide and retain customers will emerge as the true winners.
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