Coffee is not just a product. It is a tradition, a ritual, an image detail.
A young girl, late for work, carries plastic cups of Americano for her colleagues. Close friends finish their meal with a cup of strong espresso. A man of 55, who had solemnly promised his wife “not to drink anymore” the day before, secretly dilutes his coffee with cognac.
Photo. Coffee in cinematography
Why this product has gained mad popularity in the world, and how things are with caffeine in Ukrainians – read in the analysis of the coffee market from the branding agency “KOLORO”.
Classification of coffee
There are about 80 species of coffee trees in the world. But only 2 species are important to the industry: Coffee Arabica, and Coffee Canephora. Arabica produces the Arabica variety (surprise), while Canephora produces the Robusta variety.
Soluble coffee is made from Robusta beans. This coffee tree is unpretentious to growing conditions and, as a result, its products are cheaper than arabica. Robusta contains more caffeine, so instant coffee is usually stronger than a drink made from ground roasted beans.
There are three types of instant coffee.
- Powdered instant coffee. The roasted coffee beans are ground, then treated with hot water under pressure for 4 hours – the extractive substances are converted into a liquid state. The extraction liquid is filtered and dried. A fine powder is obtained, which instantly dissolves in water.
- Granulated instant coffee. The technology of obtaining the product differs in that at the last stage of production the powder is treated with hot steam. The particles are combined into granules.
- Sublimated instant coffee. The ground raw material is boiled for several hours. The filtered decoction is dried in a freeze dryer – water particles evaporate from the product, bypassing the liquid state. Coffee retains useful substances: vitamins B1, B2, PP, compounds with phosphorus, magnesium, sodium and iron.
Figure. Classification of coffee
Coffee beans are produced from both varieties of coffee : Arabica and Robusta. Arabica has a milder flavor, while Robusta produces a bitter, very rich coffee.
Customers have the option of buying coffee beans and grinding them at home, or buying ground coffee straight away. True connoisseurs of the drink advise to buy only coffee beans. Then you have a guarantee that you drink a drink without additives and surrogates.
Coffee production in Ukraine
Coffee trees do not and will not grow in Ukraine. Because of the climate. They feel much better in the countries of South and Central America, the Caribbean, Africa and Asia. But there is still coffee production in our country.
Ukrainian manufacturers buy raw materials from intermediary countries: Poland and Russia. Cooperation with producing countries is not so popular – only 23% of the total amount of orders. In our country they produce coffee of low or medium price segment.
The main player of the national market is the trade mark “Galka LTD”. In 2015, their profit amounted to UAH 37.65 mln. 67% of all products manufactured are coffee products (i.e. coffee-based drinks).
According to Gosstat data, the Ukrainian coffee market is very stable. Since 2013, the production of roasted coffee with caffeine has increased by 24.6% (from 3657 tons in 2013 to 4852 tons in 2016).
Since 2013, the volume of production of coffee extracts, concentrates, finished products based on them has remained almost unchanged – increased by 3%. The volume of production of coffee substitutes that contain coffee increased by 1.2%.
There are many companies in Ukraine that are engaged in coffee roasting. They buy beans abroad, and do the rest of the process of creating the product themselves.
Ukrainian companies involved in coffee roasting:
Gemini trademark. Sells bean and ground coffee to distributors, trains baristas, sells coffee equipment, and provides opportunities to open a franchise coffee shop under the Gemini brand.
Svit Kavy TM. Sells coffee, equipment, and various accessories (kettles, cups, thermoses, coffee machine cleaning powders). Also have a network of their own coffee shops.
Photo. A fragment of the Svit Kavy company’s website
Paradise TM. 17 years on the Ukrainian market. Produces (read roasts green beans) about 50 types of coffee, including mono varieties and specialty blends.
Photo. The Paradise brand buys grain in 25 countries around the world
TM LU’VE. It is part of the holding company Prince Turki Group Ltd. Unlike previous companies, the LU’VE brand offers assistance in opening a network of mini coffee shops on wheels in addition to selling coffee.
Ukrainian Coffee Company LTD positions itself as a brand with the cheapest prices on the market. The assortment includes more than 70 varieties of coffee from 30 countries.
Where do people drink coffee in Ukraine
Neither economic crises nor changes in political regimes reduce the level of demand for coffee. However, consumers have begun to visit restaurants and coffee houses less frequently, preferring home-made coffee. 70% of cups are drunk at home, 25% in catering establishments, and 5% at the workplace.
50% of coffee lovers buy a new pack once a month, 31% – once every 3 weeks, 17% – about once every 2 months and only 2% visit the supermarket for a flavored drink every 2 weeks.
When choosing a drink, consumers are guided by price and flavor characteristics. Packaging and label design also play an important role.
Foreign trade: coffee imports
Most of the coffee that can be seen on Ukrainian shelves is imported. Most of the supplies come from Germany, Italy, Poland, Australia, Vietnam and India. In 2016, Ukraine imported 29735 tons of coffee, which is 20.5% more than in 2015. Imports are carried out by large retailer chains.
Foreign trade: coffee exports
Export volumes are 184 times less than import volumes. In 2016, 162 tons of coffee were exported from the country, which is 17.3% more than in 2015, but 57.4% less than in 2014. Traders from Moldova, Belarus, Georgia and Armenia buy Ukrainian coffee.
During the period from January 1, 2017 to June 30, 2017, 12455 tons of coffee worth 41746 thousand dollars were imported to Ukraine. During the same period, only 84 tons of coffee worth 490 thousand dollars were exported from the country.
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Trends in coffee packaging design
African motifs
The main trend of 2017 in coffee packaging design is geometric patterns. Colorful patterns are associated with traditional household items of African and South American tribes, thus reminding under what sun coffee trees grew.
Also worth noting is the nice warm color scheme of the packaging.
Photo. Coffee Inn brand packaging design
Fewer words
On the packaging you can find a single word – the name of the country supplying the coffee beans. The creators of Atlas Coffee admit that they were inspired by the traditional landscapes of Colombia, Indonesia, Guatemala and other countries before designing the label.
The Koloro branding agency recognizes that the idea of packaging without text (or almost without text) is original, but it may not work for retail sales. The lack of a verbal identity complicates the process of brand positioning in the market.
Photo. Atlas Coffee brand packaging design
Local food
The packaging of Ritual coffee says: “This coffee was grown by our partner, farmer Joao Souza aka Zinho”. This phrase seems to indicate to the buyer that the company is not engaged in mass production “to copy”, but carefully prepares each batch in a homemade manner.
Consumers are also reminded that coffee has been made in San Francisco since 2005 (read support a local producer).
The red and white color scheme refers us to Mexico, where communist sentiments are still strong.
Photo. Packaging design of the coffee brand “Ritual”
Coffee with a face
The package design is simple and modern. The welcoming face of Agrus the dog makes the packaging “open”, without a single hint of elitism. The designers used the flat style – flat graphic elements – popular in 2017.
Photo. Coffee Lab brand packaging design
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Ukrainian coffee market development forecasts
Demand will grow
Over the last 10 years, the level of coffee consumption in Ukraine has grown by 23.6%. The invigorating drink is especially popular in big cities, where it can be found in every alley / passage / park. The country is gradually forming a culture of coffee consumption. Soluble coffee is still in the greatest demand, but increasing public awareness will contribute to the popularization of the bean product.
The price will go up
Raw materials are becoming more expensive, the hryvnia is devaluing, winter is still coming after autumn, which means that coffee drinkers will have to splurge for the sake of their favorite beverage. Compared to 2014, the cost of coffee has increased by 40%. And this is not the limit.
The level of competition will increase
It is already the third market indicator that will systematically increase. This shows that the coffee market is a promising and profitable for investment. Before you give up your position as an accountant and open your own coffee MAF, think about how your business will differ from competitors.Trade mark simply must have a quality UTP.
Soluble coffee will be losing ground
Consumers are increasingly thinking about the quality of the product they consume. With each passing year, the popularity of instant beverages will fall, but bean coffee, on the contrary, will grow. Proof of this is a lot of coffee shops on wheels in the city. People prefer to pay 30 UAH for a quality drink than to drink instant liquid for free at home or in the office.
If you want to get into the coffee business, the branding agency “KOLORO” will conduct for you desk research, develop packaging and suggest what brand positioning will be the most effective.
