The Ho.Re.Ca coffee market in the CEE countries—including Poland, Romania, Hungary, Czech Republic, Slovakia, Slovenia, Croatia, Serbia, and Bosnia—has shown significant recovery from the impacts of the COVID-19 pandemic. After a sharp decline of 34.3% in 2020, falling to 20,142 tons, the market is now on a recovery path. In 2024, the CEE Ho.Re.Ca coffee market grew by another 2.8% to 28,683 tons, approaching the pre-crisis level of 2019 (30,661 tons). Manufacturer revenues, however, rose by 8.3% in 2024 to €504.7 million, significantly surpassing the pre-crisis level of 2019 (€426.6 million), according to a recent study by Interconnection Consulting.

Resilience Despite Price Pressure

Despite facing strong price pressures over the past three years, the Ho.Re.Ca coffee market in CEE countries continues to demonstrate resilience and growth. Particularly impressive is the performance of Romania’s market, where manufacturer revenues grew from €45.5 million in 2019 to €62.6 million in 2024. Similarly, the Croatian market expanded from €48.6 million to €60.6 million in the same period. Croatia is currently one of the fastest-growing economies in the EU, with rising real wages and private consumption driving demand in the hospitality sector. In Romania, out-of-home consumption is supported by increasing private consumption, a robust labour market, and rising wages and pensions. In Poland, the Ho.Re.Ca coffee market grew by over 12% in 2024 to €186.2 million, fuelled by continued price increases of over 8% during the year.

Coffee Pods & Capsules as a Niche Product in the Hospitality Sector

Coffee pods and capsules (single servings) play a minor role in the overall CEE market, accounting for just 1.9% of the market by volume. However, due to their significantly higher average prices compared to ground coffee and whole beans, they represent 5.0% of the Ho.Re.Ca coffee market in value. Whole beans remain the dominant product, holding a 93.9% market share by volume. Pods and capsules are particularly popular in the hotel sector, especially for in-room amenities and breakfast areas. The hotel segment has seen a marked recovery in recent years and held a 20.8% market share by volume in 2024. This makes it only slightly smaller than the restaurant and catering segment, which holds a 22.9% share. The largest customer segment remains coffeehouses, with a 49.9% share. Bakeries and pastry shops play a minor role, accounting for 6.4% of the market, according to market analyst Laszlo Barla.

Strong Players and Growing Competition from Small Providers

Julius Meinl maintains a strong presence across all nine countries, while Atlantic Grupa and Franck are particularly successful in Croatia, Slovenia, and Bosnia. The Strauss Group from Israel has a strong presence in Poland and Romania. Alongside these dominant market players, the competitive analysis also reveals a significant market share for smaller providers, indicating lower barriers to entry in the Ho.Re.Ca segment compared to the retail sector.

19/02/2025

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.