Chennai: With people confined to their homes and spending most part of the day in front of their computers, they are drowning in cups of coffee, and instant coffee makers are reaping the rewards. Pressed for time and with increasing household chores, some hardcore “filter coffee” enthusiasts have moved to the faster and more convenient instant coffee, pushing the sales of instant coffee. While institutional sales suffered due to closed offices and public places, domestic consumption witnessed strong growth for many companies. Companies including Nestle, Levista Coffee, and ID Fresh are either ramping up distribution networks or innovating with coffee variants in instant form to meet rising demand and changes in consumption pattern. Levista, a coffee brand from Karnataka’s SLN Coffee said its top-line grew by over 50% during April to December 2020, and increased its retail presence from 26,000 points of sale in Feb to over 42,000 by December. Levista also launched four types of flavoured coffee — vanilla, chocolate orange, caramel and hazelnut — for the younger demographic. Though die hard “filter coffee” users or those who buy freshly ground coffee are hard to convert, we witnessed a number of consumers moving permanently from other leading brands to Levista during this period, said Shriram S, VP of Levista Coffee. “Due to continued work-related calls and video conferences, people had to keep consuming some beverage or the other, and preferably a hot beverage. So, overall coffee consumption increased leaps and bounds,” he said. Food company iD Fresh has seen sales for its instant filter coffee liquid product grow by almost 70% in 2020 compared to the previous year. Rahul Gandhi, CMO, iD Fresh Food, said that as food service joints and restaurants remained shut during the lockdown, consumers took to easier and faster coffee options at home due to kitchen fatigue. “An analysis of customer preference on e-commerce channels showed us that many filter coffee users shifted to our instant liquid option,” he said.
The surge in demand during The lockdown also prompted the company to create three new blends -Strong, Bold and Intense- for their instant filter coffee liquid.
Nestle India which holds one of the largest market share in the instant coffee spacesaid the faster and more convenient version of coffee “has seen a higher relevance during this time and the company has innovated with different recipes.” “We created different coffee recipes that could be easily made at home using Nescafe Classic and Gold. This resonated well with the consumers,” a spokesperson for the company said.However, the out-of-home coffee market took a hit in 2020 due to non-functioning of hotels, airports, and offices,that are traditionally the largest group of bulk consumers. Data from research firm Euromonitor showed that the market for fresh coffee (largely used institutionally and by traditional coffee drinkers) grew just by around 7% in 2020 to Rs 1,867 crore, while the instant coffee market grew almost 13% during the period and recorded at Rs 3,899 crore.
Multinationals Nestle and HUL have dominated the instant coffee market for years, and Tata’s beverage arm has also recently managed to make inroads in the segment with Tata Coffee Grand, a decoction crystals product.
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January 26, 2021 at 05:30AM
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Covid-19 boosts instant coffee consumption, instant coffee brands gain - Times of India
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