The Nordic coffee market is divided into many different segments based on product quality and consumption, according to the Vietnam Trade Office in Sweden.
Specifically, the market segments by quality include the low-end, mid-end, high-end and upper-end. Based on consumption places, there are in-home and out-home consumption segments.
Low level
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This type of coffee is mainly used to blend and produce instant coffee, usually Robusta (40-100%) and does not require much certification.
This segment has a large, albeit declining, market share and is mainly sold in supermarkets, offices, and universities. Retail prices range from 6.67 – 7.5 EUR / kg.
Intermediate level
This is a good quality coffee, often consisting of a blend of both Arabica and Robusta, such as a high quality espresso.
Coffee in this segment requires at least Rainforest Alliance / UTZ certification, some of which require organic and / or fair trade certification.
This segment has a large and stable market share. Coffee in this segment is sold in supermarkets and sold to food service companies. Retail prices range from 11.88 – 13.05 EUR/ kg.
High level
High quality coffee is mainly wet processed Arabica coffee, the test score is from 80 – 85.
These coffees are often from a single origin and have a story attached. This segment is sold through special channels. Small but growing market share.
upstream
The upmarket segment includes specialty coffees of excellent quality, with test scores above 85, often undergoing creative processing such as wet, natural or honey processing.
These coffees are usually of single origin and traceable, and are often sold directly by specialty roasters or specialty coffee shops. Small but growing market share.
The retail price of high-end and high-end coffee is about 53.59 – 105.16 EUR/ kg.
The price of green beans for export is normally about 5-25% of the retail price, depending on the quality, size of the bean, and the relationship between the buyer and the seller.
Consumption in-home
Most coffee consumption in the Nordic region takes place at home.
In 2018, retail sales in Denmark accounted for about 75% of the country’s coffee sales.
In Sweden, retail sales make up about 71% of total coffee sales.
In Norway, home consumption accounts for 47% of coffee sales.
Tablets have a very low market share in the Nordic region, accounting for only 4% of the retail market for coffee in Denmark and 1% in Sweden.
In-home consumption is usually purchased at supermarkets, specialty stores, and online websites.
Out-home consumption
Out-home consumption is booming in Northern Europe, where consumers are increasingly looking for unique, high-quality coffees in coffee shops.
In 2018, about 53% of total coffee sales in Norway were consumed out-home; of which 29% is consumed at work, and 23% in coffee shops, restaurants and hotels.
Food services market share in Sweden reached 29% of total coffee sales in 2018; while in Denmark, out-home consumption accounts for 25% market share.
Denmark is the country with the highest rate of growth in new cafes in Europe in 2018, reaching 14.5%. Out-home consumption is usually purchased at coffee shops, restaurants, hotels, bakeries, and offices.
