A slow grind: Marginal revenue growth has disguised a significant level of volatility

Coffee is one of the most popular beverages in the world and one of the most globally traded commodities, providing employment for around 100 million people globally. According to the British Coffee Association, Britons consume approximately 55 million cups of coffee per day, with Defra finding that this figure is expanding year on year, owing to buoyant demand for ground coffee and coffee capsules. However, this is significantly less than other European nations. Finland, for instance, grinds its way through an exceptional 12.2 kilograms of coffee per capita per year, according to the International Coffee Organization. This indicates that there is substantial room for growth in the British market...read more.

Industry Statistics & Market Size
Revenue
£1.2bn
Annual Growth 13-18
0.3%
Forecast Growth 18-23
Profit
Employment
3,376
Businesses
63

Industry Threats & Opportunities

  • Britons consume approximately 55 million cups of coffee a day, supporting robust demand
  • Recently, more consumers have been prepared to pay a premium for speciality varieties of gourmet coffee
  • Employment growth is expected to be marginal as firms continue to seek expansion through capital investment
  • Industry Report - Industry Investment Chapter

    The level of capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate substantial investment in depreciable assets, resulting in high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity. IBISWorld estimates that operators in the Coffee Processing industry spend £2.35 on labour for every £1.00 they invest in capital. This indicates that the industry has a high level of capital intensity.Coffee cultivation is a highly labour-intensive process. According to the International Coffee Organization, 70% of the world's coffee is provided by seven million farmers on farms smaller than five hectares. How...purchase to read more.

    Additional Insights for the Coffee Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee Processing Industry are

  • Access to high quality inputs
  • Having an integrated operation
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from cafes and coffee shops and Demand from supermarkets in the Coffee Processing industry impact industry performance..

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    What's in this report

    What is the Coffee Processing Industry?

    Firms in this industry roast and process coffee into ground coffee, instant coffee, coffee pods and coffee extracts and concentrates.

    Industry Products
  • Instant coffee
  • Ground coffee
  • Decaffeinated coffee
  • Coffee pods and capsules
  • Coffee extracts, syrups and concentrates
  • Industry Activities
  • Ground coffee
  • Instant coffee
  • Coffee extract and concentrate
  • Decaffeinated coffee
  • Coffee substitute
  • Coffee pod
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from cafes and coffee shops
  • Demand from supermarkets
  • Real effective exchange rate
  • Real household disposable income
  • World price of coffee

  • Current Performance
  • Passing on prices
  • Premium coffee
  • Coffee pods
  • Chart: Revenue Growth

  • Industry Outlook
  • Artisanal coffee
  • Equality and sustainability
  • Coffee capsules
  • Table: Coffee Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Coffee, Tea & Spices Wholesaling
  • Supermarkets
  • Food-Service Contractors

  • Key Selling Industries
  • Beverage Crop Growing
  • Hollow Glass Manufacturing
  • Light Metal Packaging Manufacturing

  • Products & Services
  • Instant coffee
  • Ground coffee
  • Coffee pods and capsules
  • Coffee extracts, syrups and concentrates
  • Decaffeinated coffee
  • Chart: Coffee Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Wholesalers
  • Food manufacturers
  • Food-service industries
  • Other
  • Chart: Major Market Segmentation for the Coffee Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationAdvertising and marketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Coffee Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee Processing Industry

  • Industry Globalization
    Nestle UK Ltd, Jacobs Douwe Egberts GB Ltd,
  • Table: Nestle UK Ltd - financial performance
  • Table: Jacobs Douwe Egberts GB Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Coffee Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Arabica
  • Often called mountain coffee and indigenous to Africa, it is thought to produce better quality coffee than the other major commercially grown species, robusta.
  • Decaffeination
  • The act of removing caffeine from coffee beans, cocoa, tea leaves and other caffeine-containing materials.
  • Robusta
  • A species of coffee indigenous to Africa, robusta coffee is cheaper to produce and typically has a stronger, more bitter flavour than arabica.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coffee Processing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coffee Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coffee Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coffee Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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