MARKET VIEW: Andrew Walsh

04 March 2010

Andrew Walsh, a domestic appliances analyst at GfK, examines the coffee machine market...

The recent recession in the UK has had a significant impact on many domestic markets as consumers have looked to rationalise spending. In terms of the kitchen must-have items like kettles and toasters continue to prevail while demand for non-essential, luxury products has faded.

However, one product group that is making the transition from luxury to must-have, is hot beverage makers. Although the hot beverage maker market remains stable overall, it is actually based on a large contrast between strong growth in major categories, like espresso and filter coffee machines, offset against large value declines in minor categories like soluble beverage makers and tea makers.

The major driving force behind the increased popularity and growth of the coffee maker market has been espresso machines. This area has grown by 6% in value, contributing £28 million to the market alone and accounting for 61% of the total hot beverage maker market value.

Even the very high end fully automatic market, which holds around 10% of the total value of the hot beverage maker market, is showing growth. This product sector, which includes total bean to cup machines - where prices per machine can reach in excess of £1,500 - saw a 9% rise last October. This is good proof that consumer taste for professional machines is getting stronger.

This demonstrates that consumers are still willing to purchase high-ticket items in the midst of a recession. The growth of fully automatic machines is a prime example of the successful transition to a must-have kitchen appliance that coffee machines achieved in 2009.

GfK contact: 0870 603 8100

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MARKET VIEW: Andrew Walsh	Back
04 March 2010 Andrew Walsh, a domestic appliances analyst at GfK, examines the coffee machine market... The recent recession in the UK has had a significant impact on many domestic markets as consumers have looked to rationalise spending. In terms of the kitchen must-have items like kettles and toasters continue to prevail while demand for non-essential, luxury products has faded. However, one product group that is making the transition from luxury to must-have, is hot beverage makers. Although the hot beverage maker market remains stable overall, it is actually based on a large contrast between strong growth in major categories, like espresso and filter coffee machines, offset against large value declines in minor categories like soluble beverage makers and tea makers. The major driving force behind the increased popularity and growth of the coffee maker market has been espresso machines. This area has grown by 6% in value, contributing £28 million to the market alone and accounting for 61% of the total hot beverage maker market value. Even the very high end fully automatic market, which holds around 10% of the total value of the hot beverage maker market, is showing growth. This product sector, which includes total bean to cup machines - where prices per machine can reach in excess of £1,500 - saw a 9% rise last October. This is good proof that consumer taste for professional machines is getting stronger. This demonstrates that consumers are still willing to purchase high-ticket items in the midst of a recession. The growth of fully automatic machines is a prime example of the successful transition to a must-have kitchen appliance that coffee machines achieved in 2009. GfK contact: 0870 603 8100