Is freshly ground coffee about to beat instant coffee? Who will take over the 100 billion coffee market?

European news:

Drinking coffee is a refreshing drink for everyone who is tired from work. People used to drink instant coffee, but now they drink freshly ground coffee. This change is due to Luckin Coffee's stores in first- and second-tier cities. Luckin Coffee has stirred up the instant coffee market, which accounts for 71.8% of the market share. So, can the freshly ground coffee market really beat instant coffee?

Drinking instant coffee is for convenience, and the instant coffee market is monopolized by foreign brands such as Nestle and Maxwell House. However, last year, Nestle's market growth rate was only 3.19%. Therefore, in order to solve the problem of not being able to sell, instant coffee has been upgraded to boutique instant coffee. Its coffee beans are freeze-dried to remove water from the coffee liquid, forming a coffee extract that is soluble in water and retains more flavor. Consumers can mix it with milk, soy milk, ice water, etc. according to their preferences to get a personalized cup of flavored coffee.

The domestic instant coffee brand Santonban stood out on Double 11, with its sales volume ten times that of the same period last year, becoming the number one brand in the coffee category and the first domestic brand to top the coffee rankings. Santonban's success is inseparable from the support of e-commerce platforms and the Internet, and its balance between instant coffee and freshly ground coffee is also one of the factors for its success.

However, the trend of getting freshly ground coffee more and more convenient has begun to force these instant coffees to start considering optimization and upgrading. In terms of packaging, Starbucks and Luckin often launch new packaging according to holidays, and then launch new products, but their main colors remain unchanged, and green and blue are deeply rooted in people's hearts. Instant coffee, on the other hand, only has the same packaging that is consistent with fast-moving consumer goods, and some have not launched new products for six years.

In fact, the rapid growth of my country's coffee consumption market is inseparable from the new retail model. The huge market development space has attracted the pursuit of capital. Internet + coffee represented by Luckin Coffee has entered the list strongly, and capital has poured in. Moreover, Luckin has broken the boundaries of coffee consumption by combining online and offline methods, which has extended the service area of ​​coffee shops. Even Starbucks has cooperated with Alibaba to open up a series of cooperation including instant service, smart store system, and membership system.

It is worth mentioning that not only the old coffee brands are making efforts in the 100 billion coffee market, but also new tea drink brands such as Heytea and Nayuki's Tea have begun to make efforts, launching tea drinks made from coffee, which have won the favor of consumers. After all, the scale of China's coffee market in 2018 was 56.9 billion, a year-on-year increase of 31.1%. It is expected that by 2022, the scale of the coffee market will exceed 100 billion.

Of course, if we want to further stimulate the potential of the domestic coffee market, we must focus on both the quantity and quality of coffee consumption. First, we must do a good job in coffee chains that focus on selling space, boutique coffee chains and emerging coffee brands, improve product quality, and stimulate total consumption. Whether it is freshly ground coffee or instant coffee, the market is huge. It depends on who has the greater ability to capture the hearts of consumers.

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