demand for instant coffee among Russians increased by 10.5%

Among Russians, the demand for instant coffee bags has noticeably increased: over the past year, purchase volumes of such products have increased by more than 10%. Sales of other types of hot drinks continue to decline. Experts attribute this to a new wave of consumer savings. Manufacturers expect that from next year Russians will once again pay attention to tea and coffee from premium brands.

As follows from the NielsenIQ presentation, which Kommersant has at its disposal, in February 2024, the demand for instant coffee bags increased by 10.5% year-on-year in physical terms. In general, in the hot drinks segment, only instant coffee shows growth, which in monetary terms increased by 1.6% year-on-year. Consumption of other types of hot drinks, on the contrary, is decreasing: insoluble coffee – by 0.5% in monetary terms and by 0.2% in physical terms, for tea – by 1.5% and 6.2%, respectively, for cocoa – by 1 .8% and 5.6%.

According to NielsenIQ, coffee as a whole accounts for over 63% of the entire hot beverage segment, of which instant accounted for 46.9% at the beginning of 2024. NielsenIQ emphasizes that coffee sales are growing mainly due to bagged products. Consumer interest in this drink is caused by its relative cheapness. Coffee in bags is 63% cheaper than instant coffee per 1 kg, notes a NielsenIQ presentation. It also states that demand for premium coffee brands is declining.

At the same time, sales of classic tea are declining: black – by 3.2% in monetary terms and by 7.3% in natural terms, green – by 0.4% and 2.6%, respectively. However, growth is observed in other tea segments, including herbal and fruit mixes: sales of such products in monetary terms increased by 12.2%, in physical terms by 5.7%, NielsenIQ notes.

The X5 Group (Pyaterochka, Perekrestok, Chizhik) calculated that in their food chains in the first quarter of 2024, coffee sales increased in all product segments by 11.7% year-on-year, while tea sales decreased by 1.5%. Demand is now growing for coffee capsules – interest in such products among young buyers has increased by 270% year-on-year, among adult consumers – by 190%, says Evgeniy Galimsky, director of loyalty and ecosystem products development at X5. He adds that older generations are predominantly giving up caffeine, with demand falling by 14% in this age group. Nestle (Nescafe, Purina, Friskies), Milfoods, and May declined to comment. Orimi did not respond to Kommersant’s request.

A Kommersant source among large coffee producers predicts that the growth trend in consumption of hot drinks in the middle price segment will grow until the end of 2024. And next year, consumers may once again return to purchasing premium brands, he adds.

Despite the fact that buyers are trying to save money, overall coffee consumption remains high compared to tea, confirms Alexey Popovichev, executive director of Rusbrand. He adds that urban populations prefer coffee to tea, largely due to the proliferation of takeaway drinks and coffee chains. Mr. Popovichev expects that sales of premium coffee in general will remain stable due to buyers who have long been accustomed to certain brands.

General Director of Infoline-Analytics Mikhail Burmistrov also believes that the popularity of inexpensive coffee bags is growing, including due to the trend towards saving. According to him, consumers remain very pragmatic, and in this regard, multi-packaging provides a certain convenience of consumption. The expert adds that the trend towards reducing the consumption of classic black and green teas will continue. Mr. Burmistrov notes that the rise in coffee prices changes the structure of the market and contributes to the development of the middle price segment and significantly limits the dynamics in the premium segment.

Vladimir Komarov