1 Industry Overview -- Value/Sales/Volume/Growth in recent times
2 Market Forecasts
several Macro -- environment research of the market
4 Geographical Spread of Market/ Design of Demand
5 Evaluation of Key Competitors
6 Barriers to entrance
7 Cost sensitivity
almost 8 Customer Account
1 Market Overview -- Value/Sales/Volume/Growth lately
The espresso industry is continuing to grow rapidly considering that the 1990s; before Starbucks surfaced, people were used to drinking poor coffee from tins. Starbucks introduced clean coffee made from top quality beans that have exceptional taste and drinks like the caffe latte and cappuccino, which have helped to gasoline the development of the coffee market into a multi million pound industry. The size of UK branded coffee organizations have in excess of from 99 to 2004, with a market turnover of over ВЈ1 billion.
2 Industry Forecasts
The coffee market is forecast for continued development and expansion, without menace of saturation in the near future. In 2004 the coffee industry was approximated at having around two, 299 wall plug units and it 2006 it is forecasted that the quantity of units may have increased for an estimated 2, 965, together with the growth of the branded coffee sector predicted to increase by 11% among 2004 and 2006. Without a doubt, branded cycle outlets include accounted for most of the coffee industry growth in accordance to forecasts by sector analysts Allegra Strategies. Allegra claims that although there are usually more independents than branded caffeine chains, in 2005 and 2006 it truly is expected that more branded than independent chains will be starting. Indeed, a few independents. including Bewley's in London, have had to close down.
3 Macro - environment analysis in the market
The coffee industry must adjust to a change in consumer behaviour or else it may be threatened by simply health and lifestyle issues. In the year 2003 the hot beverages market dropped by around 2 . 3%. Consumers, especially young people, have become more health-conscious which makes coffee a less attractive choice; the elevating number of alternatives available such as health and energy drinks have become competitors inside the coffee industry. Research carried out by Mintel implies that there is a greater diversification of tea, having a trend to premium and herbal green teas. The caffeine industry will be responded to this change in frame of mind by provision of de-caf drinks, alternatives such as mi nombre es milk, and alternative beverages such as recently squeezed fresh fruit juices, chai lattes and organic teas.
Folks are now functioning harder than in the past but have even more leisure time; now they use coffee shops to socialise. Allegra research promises that house time in caffeine shops has increased; 44. 9% of consumers stay for longer than 30 minutes, in comparison with 38. five per cent in 2003.
High requirements relating particularly to coffee producing strategies are becoming more important in the industry and could gain political prominence. There is increasing pressure for businesses to trade ethically, that is, socially, environmentally, and economically dependable. This is shown in the caffeine industry by an increased require and rising market value intended for sustainable coffees such as qualified coffee and fair control coffee, which usually guarantees a fair price to producers. The fair control market which is now well worth ВЈ100 million, is growing with developments including Tesco's release of their own Good trade selection. Fair trade is also a way by which the coffee shop market can identify their products and gain a socially accountable reputation; Starbucks customers surely have the option to get fair control coffee. Oxfam have said there is a В‘niche' in the cafe market and have responded by launching their own brand of Reasonable trade caffeine В‘Progresso' which is sold about already founded premises just like bookstores.