product factsheet - coffee drinkware in europe
TRANSCRIPT
CBI | Market Intelligence Product Factsheet Cloves in Germany | 1
CBI Product Factsheet:
Coffee Drinkware in Europe
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 2
Introduction
Coffee drinkware holds a prominent place in all European consumers’ cupboards, with some everyday basics as well as
specials. There is considerable competitive pressure from brands with a long heritage and a sharp positioning. New
entrants coming in with designs, materials and techniques linked to their local origin have a good chance of success. The
hand-made segments, in particular, are especially favourable to new entrants. The fair and sustainable segments are still
open to convincing new product offers, too.
Product description
Coffee cups and saucers and mugs are coffee utensils, as well as sugar bowls and milk jug, coffee pots and spoons. These
all range under tableware. Related implements such as coffee grinders and makers, and water kettles, usually come under
kitchenware. This document covers coffee mugs, cups and saucers.
Refer to Annex I for the classification of coffee mugs, cups and saucers.
Quality
Functionality
Coffee cups and mugs are typically made of glazed ceramic, allowing them to hold the hot coffee (the ideal serving
temperature is 68 to 79 °C) and providing insulation to the beverage. Cleansing is easy, as glazed ceramics are
dishwasher-safe.
The most common coffee types preferred by Europeans are:
a standard black or white coffee – served in a cup and saucer, of which the cup must be able to have a volume of
between 20 to 26 cl.; or a mug, of which the volume ranges from 20cl. to 40cl.
a cappuccino – served in a cup and saucer with a volume of 15 to 18 cl.
an espresso – served in a so-called ‘demitasse’, a cup with a volume of 5 to 6cl., usually on a saucer (picture 2).
Handles are optional, but do allow additional insulation for the hands as well as portability.
Material
Besides glazed ceramic, other materials which have been used to make coffee cups are: clay, wood, glass, metal and
porcelain. Porcelain, an equally frequent material for coffee containers, allows for heat retention but cools down quickly
due to air bubbles in the cup.
Design
The cylindrical form is the most common for mugs and cups and saucers, with any deviations from the ‘perfect’ cylinder
adding value to the cups and mugs in terms of aesthetics. Any decoration is possible, ranging from hand-painted
decorations to transfers. Glazing techniques and colours add further design elements to the coffee sets (picture 3).
Labelling
The labelling on the export packing of coffee cups and saucers and mugs facilitates the logistical process.
Product labelling is a function of marketing communication.
Information on the outer packing of the cups, saucers and mugs should correspond to the packing list sent to the
importer. The labels on the outer carton or packing should include the following:
o Producer
o Consignee
o Material used
o Quantity
o Size
o Volume
o Caution signs
For all pottery and porcelain articles it is strongly recommended that all boxes be labelled with warning notices such
as “FRAGILE!” or “Handle with care!”.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 3
Fragile! This side up!
On the product label, EAN or Barcodes are widely used within Europe.
Use the English language for labelling of the outer packing to facilitate transportation handling. Use the language of the
destination market for the consumer packaging. That is, unless your buyer has indicated otherwise.
Please note, your buyer will specify what information they need, both on the outer cartons, the product labels or the item
itself (logos, 'made in...'). This forms part of the order specifications.
Information on the product or product label usually supports the reseller in communicating to the end consumer. If the
importer or reseller has a brand identity (e.g. logo, strap line), the importer is likely to prefer that information on the
product label to any exporter’s brand identity.
Packing and Packaging
Export packing serves to facilitate the logistical process; consumer packaging is a function of marketing communication (to the end consumer). Proper packing of the coffee containers and saucers minimises the risk of breakage and scratches through
shocks. The fragility of the item determines the type of extent of the packing of the products for shipment. Ceramic
cups and saucers or mugs are generally quite fragile. Packing should prevent the individual items inside a carton from
damaging each other and the cartons themselves when they are stacked inside the container.
Packing needs to be of easy-to-handle dimensions and weight. Standards here are often related to labour
regulations at point of destination and will have to be specified by the buyer. Cartons are usually palletised for air or
sea transport and exporters are requested to maximise pallet space.
In the use of packing materials, the balance is between using maximum protection and avoiding excess materials
(waste disposal is a cost to the buyer) or shipping ‘air’. Exporters can reduce the amount and diversity of packing
materials by:
o partitioning inside the cartons using folded cardboard,
o wrapping corrugated cardboard around the items,
o matching inner boxes and outer cartons better and standardising the sizes of each,
o considering packing and logistical requirements already at the design stage of the products (e.g. avoiding odd
shapes or sculptural elements in the items),
o asking their buyer for alternatives.
Consumer packaging for coffee cups and saucers as well as mugs adds value to the product in the form of branding.
Usually, gift wrapping is then provided at point of sale. Quite often, the inner box can be used for this purpose
(picture 4).
Tips:
To facilitate the logistical process, be aware of your buyer’s position in the supply chain and the related needs
(e.g. importer-exporters may have different needs from on-line retailers). Make sure you receive and understand
the entire set of specifications as related to the product, its packing, packaging and labelling, all of which is part
and parcel of the Purchase Order. Offer the buyer any alternatives that may be more effective.
To facilitate marketing, be aware of the buyer’s needs in terms of design level, background stories and gift
tagging (branded or not).
European Packaging and packaging waste legislation restricts the use of certain heavy metals, among other
requirements. Europe also has requirements for Wood packaging materials used for transport materials (WPM)
such as packing cases, boxes, crates, drums, pallets, box pallets, and dunnage. Make sure your packing meets
these requirements.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 4
What is the demand for coffee mugs, cups and saucers in Europe?
Coffee consumption in Europe is relatively stable at around 2.5 billion kg p/a (International Coffee Association). In terms of
total coffee consumption, Germany is leading (540 million kg p/a) followed by France and Italy (European Coffee
Federation). Per capita, Scandinavian consumers drink the most coffee, up to 12 kg p/a in Finland!
Source: European Coffee Federation
Single-serve coffee, in pads and capsules, is becoming increasingly popular in Europe. Due to the success of concepts like
Senseo, Nespresso and Tassimo, according to Volcafé the European market share of single-serve coffee is currently about
15%. Within Europe, The Netherlands (34%) and France (23%) are leading single-serve coffee consumers (Coffidential).
Coffee shops are a growing market in Europe. In October 2013 the branded coffee shop market (across 23 European
countries) was estimated at around 14500 outlets (Project Café 13 Europe). Although the United Kingdom is the country
with the most of these shops, market growth is strongest in Turkey (Project Café 2015 Europe). Important international
market players are Costa Coffee, McCafé, Starbucks and Caffè Nero. As with at-home coffee systems, coffee shop
customers are increasingly consuming premium, specialty coffee.
Trade statistics
As of 2013, developing country suppliers are no longer Europe’s main source of imports of coffee mugs, cups and saucers. However, this shift is due to a decline in imports from China while imports from other developing countries are increasing. Europe’s largest importers of coffee mugs, cups and saucers, Germany, the United Kingdom and France are interesting target markets. The Netherlands are also promising due to a growing market for coffee mugs, cups and saucers from developing countries. These trade statistics give an indication of European trade in tableware and kitchenware of porcelain, china, ceramics or glass, including coffee mugs, cups and saucers. In this trade statistics chapter, references to “coffee mugs, cups and saucers” mean “tableware and kitchenware of porcelain, china, ceramics or glass”.
Tips:
As Europe’s main coffee consumers, Germany, France and Italy are interesting target markets for coffee mugs,
cups and saucers.
With the largest coffee consumption per capita in Europe, Scandinavia is also interesting.
Tip:
As European consumption of single-serve and specialty coffee is increasing, consider supplying coffee mugs, cups
and saucers suitable for serving these types of coffee (see Quality, up).
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 5
Figure 1: European imports of tableware and kitchenware of porcelain, china, ceramics or glass by main origin, € million
Source: Trademap
Figure 2: Main European importers of tableware and kitchenware of porcelain, china, ceramics or glass by main origin, 2014, €
million
Source: Trademap
Figure 3: Absolute developing country import growth 2010-2014 (€ million) (countries in range of largest importers)
Source: Trademap
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 6
After a considerable dip in 2013 (€ 2.1 billion), European imports of coffee mugs, cups and saucers recovered
strongly in 2014 with a 13% growth. This brought imports in 2014 back to the level of 2010, at € 2.4 billion. The
positive trend from 2014 is predicted to continue at a moderate rate.
Until 2013, developing countries were Europe’s main source of imports of coffee mugs, cups and saucers. Since 2013
however, this has shifted in favour of intra-European imports. This is evident from a decline in imports from
developing countries with an average annual growth rate of -4.4% between 2010 (€ 1.3 billion) and 2014 (€ 1.1
billion). Although these imports showed a strong recovery with an 18% growth in 2014, this was not sufficient for
developing countries to regain their position as Europe’s main source of imports. The recovery from 2014 is expected
to continue at a moderate rate.
The decline in European imports of coffee mugs, cups and saucers between 2010 and 2014 was caused by declining
imports from China. Interestingly, imports from developing countries other than China increased with an average
annual growth rate of 4.3% from € 1.0 billion in 2010 to € 1.2 billion in 2014!
With € 446 million in 2014 Germany is Europe’s main importer of coffee mugs, cups and saucers, followed by the
United Kingdom (€ 303 million) and France (€ 275 million). When it comes to imports from developing countries,
Germany and the United Kingdom are also leading with € 236 million and € 225 million respectively, followed by the
Netherlands with € 115 million.
The strong performance of developing country suppliers of coffee mugs, cups and saucers in the Netherlands is
evidenced further by its growth of € 2.7 million between 2010 and 2014, where these imports declined relatively
strongly in the main importing countries.
European imports of coffee mugs, cups and saucers are dominated by China, with € 854 million in 2014. Other
leading suppliers from developing countries are Thailand with € 86 million and Turkey € 60 million. In Germany and
the United Kingdom, India is also performing well.
Figure 4: European exports of tableware and kitchenware of porcelain, china, ceramics or glass by main destination, € million
Source: Trademap
Tips:
Germany, the United Kingdom and France are Europe’s largest importers of coffee mugs, cups and saucers,
making them interesting target markets.
With a growing market for coffee mugs, cups and saucers from developing countries, the Netherlands are also
promising.
The shift away from Chinese imports makes room for suppliers of coffee mugs, cups and saucers from other
developing countries.
Benchmark your products against the strong competition from China, as well as Thailand and Turkey. Several
factors can be taken into account, such as market segments served, perceived price and quality level and
countries served. One source that could be used to find exporters per country is ITC Trademap.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 7
Figure 5: Main European exporters of tableware and kitchenware of porcelain, china, ceramics or glass by main destination,
2014, € million
Source: Trademap
European exports of coffee mugs, cups and saucers consist mainly of trade within Europe.
Germany is by far the leading European exporter of coffee mugs, cups and saucers with € 456 million, followed by the
United Kingdom with € 222 million.
Figure 6: European production of tableware and kitchenware of porcelain, china, ceramics or glass, 2009-2013, € million
Source: Prodcom
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 8
Figure 7: Apparent European consumption of tableware and kitchenware of porcelain, china, ceramics or glass, 2009-2013, €
million
Source: Prodcom
European production of coffee mugs, cups and saucers increased from € 2.7 billion in 2009 to € 3.0 billion in 2013,
with an average annual growth rate of 2.6%. Consumption also increased slightly, from € 2.9 billion in 2009 to € 3.0
billion in 2013 with an average annual growth rate of 0.6%. This means European production is catching up with its
demand. However, the aforementioned recovery of imports in 2014 indicates that consumption may be on the rise
again.
With € 925 million, Italy is responsible for 31% of Europe’s production of coffee mugs, cups and saucers, followed by
Germany (€ 600 million) and the United Kingdom (€ 313 million). These countries are also Europe’s main consumers,
with € 994 million, € 424 million and € 386 million respectively.
Macro-economic indicators
Figure 8: Real GDP, 2014-2016, % change from previous year
Source: Eurostat (2015)
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 9
Figure 9: Real private consumption expenditure, 2014-2016, % change from previous year
Source: Eurostat (2015)
Predictions of GDP and private consumption expenditure are important indicators for the European home decoration
market. The sector is closely linked to economic conditions; when money is tight consumers postpone replacing non-
essential items in the home until there is room in their disposable income again.
Between 2014 and 2016, European GDP and private consumption expenditures are expected to increase. This means
that consumption of luxury and decorative products is likely to rise. Especially in emerging markets, an increase in
GDP creates room for this type of spending. Due to saturation, growth in consumption will be moderate for mature
markets.
Please refer to CBI Trade Statistics for Home Decoration & Home Textiles for more information on the sector in general.
What trends offer opportunities on the European market for coffee mugs, cups and
saucers?
The End of the Set
The traditional coffee set is disappearing due to the increasingly individual way consumers drink their coffee, select their dinnerware and build a collection. Drinking Coffee
In 1963, one of the most iconic coffee services was created: Totem (picture 5). Today it is a vintage collectible and a symbol of the expressive (life)style of the 1960s and 1970s. At the time it was ‘trendy’, too, for its style. However, as a coffee service it was considered quite ordinary, with its cups and saucers, sugar bowl and milk jug, mugs, and a (towering)
coffee pot. At the time, a simple black or ‘white’ coffee was available to the average coffee drinker at home, perhaps produced by the cafetière or Bialetti’s moka pot. Having perhaps tried an espresso in a café, the average consumer in the Sixties would be a fairly unsophisticated coffee drinker, unaware of the richness of flavours available from a coffee made by percolation, pressing or espresso techniques. Today’s Home Barista, however, prefers his or her coffee brewed immediately before drinking and the coffee served not below 70 °C. This improvement of the European taste palate for coffee made the coffee pot obsolete, a process that was further accelerated by the entrance of more sophisticated home coffee machines. The coffee pot could not stop the coffee from deteriorating and prevented the consumer from having an individualised cup of coffee. Freedom of Choice
Today’s consumer’s taste buds have also changed when it comes to their choice in coffee cups and saucers and mugs. As a mature, independent consumer, he or she requires freedom of choice, rather than buy what everyone buys or the industry prescribes. Therefore, complete, matching sets of dinnerware, or coffee sets specifically, that are bought in one go seem a thing of the past. The modern-day consumer, as we will see below, is a moment consumer, matching different coffee ware to different emotions, and a prosumer, determined to compose and arrange their own coffee services.
Collecting
Many consumers feel a strong need to collect, to work towards a complete series of wall plates, figurines, or, indeed,
coffee cups and saucers, or mugs (picture 6). This may seem contradictory to the need to have freedom of choice and the
urge to avoid complete sets of anything. However, collecting is a gradual process, it does not lead to the purchasing of
complete sets in one purchase, as, indeed, the process of collecting is an important element in the excitement of
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 10
collection: to work towards a series of items, step by step. Also, the items collected do not necessarily form a standard and
uniform series: the collection can for instance comprise of just cups in one decor, or all the work of one brand or designer.
Collectors also freely combine vintage finds with newly-bought items.
‘Slow’ or ‘To Go’: The Moment Consumer
Developments in the category of coffee drinkware are directly related to coffee drinking habits, which have diversified and
have influenced the various positionings in the market for coffee cups and saucers, and mugs. Rather than demographics
(e.g. age, social status or income level), the value attached to coffee drinkware is determined by coffee user moments:
rush-time coffee cups and mugs are affordable convenience goods, whilst me-time drinkware can be considered specialty
goods with a higher intrinsic value.
Rush Time
Busy urban career and family lives often reduce breakfast to hurried food-intakes. Coffee drinking during early-morning
rush-time needs to be quick and convenient. Therefore, breakfast tableware, including the coffee sets, consists of every-
day basics, often with a mug instead of a cup and saucer. Inexpensive, unassuming crockery is used for this ‘to go’ user
moment.
Coffee at work falls into this category, because, although one or two a formal breaks may be available and, for a moment,
there is less time pressure, the coffee ware is often equally basic, sometimes disposable.
Me (and You) Time
This trend applies to the more intense coffee drinking moments such as at the end of a meal, (normally with a dessert),
weekend breakfasts, or coffee parties or gatherings. Here, the enjoyment of coffee drinking takes a central place. These
are precious moments of ‘slow coffee’ drinking. The consumer here is both a mature coffee drinker and a mature lover of
coffee ceramics. Favourite cups and saucers, or (small) mugs will be on the table for this moment for oneself, alone or with
one’s nearest and dearest. The drinkware here can be quite eclectic, a mix-and-match of styles, or comprise of smaller
sets (e.g. cups, sugar bowl, milk jar, spoon) in one style. The idea is to drink your favourite coffee, from your favourite
cup or mug. This consumer can easily have a choice of coffee drinkware, to suit different emotions or occasions (picture
8).
In line with what we see in cooking, a number of (usually male) consumers develop themselves into real coffee
connoisseurs, and take pride in preparing and sharing specialty coffees with friends, and in doing so derive status
(admiration) from it. This Home Barista will grind (and sometimes even roast) the coffee himself and serve it out in the
most appropriate, extra-special cups or (less often) mugs (picture 9). This links to the Masterchef trend (see CBI Trends
for Home Decoration & Home Textiles).
Tips:
Cater for the diversified coffee drinking preferences of the European consumers. Mugs are the most versatile
containers, used for a variety of drinks (coffee, tea, other hot and cold liquids). Offer variety is sizes (20 to 40cl).
Cups and saucers are used for regular coffees and cappuccinos. Espresso coffees require a smaller cup (5 to 6 cl)
and matching saucer (or no saucer).
Refrain from offering coffee pots, as they have limited commercial appeal. (Those in production may have a
design- or marketing-strategic purpose or cater for tiny niches).
Offer flexible collections: cups and saucers than can be mixed and matched, with saucers optional.
Offer choice or options, such as patterns in different colourways or shapes (picture 7).
Be collectible: offer a variety of decors around one theme; add new items to your existing lines every new buying
season based on the same design element (a shape, decor, style etc). Mugs are especially suitable for this, as
they are also seen as stand-alone items in dinnerware and gift categories.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 11
Identity and Personality
In an overcrowded tableware market, authenticity becomes key. This translates in two ways: consumers want to express
themselves and stand out from the crowd and are able to do so by making individual choices in coffee drinkware as in
tableware generally. Equally, brands want to differentiate from others in their segment and need to show personality, an
own signature. Heritage is one way of doing so: showing your own history (the first Wedgwood dinner service was made in
1763) or your maker story builds trust. Origin is another: patterns or shapes that derive from local culture. Handmade,
too, is extremely valued in a market that craves for individuality. Consistency, too, helps create a fan base and allows
consumers to collect within a particular style group: Alessi represents inventiveness, Seletti humour, Bunzlau Castle cobalt
blue.
Made In Europe
Less a driver for the consumer, but an on-going trend is that a chunk of the production of coffee ware (and tableware
generally) is taking place on European soil. For mass market ceramics, this is driven by the need for lower quantities and
smaller runs, by logistical cost and a greater need for control over quality and the frequency of buying. But also by the
existence of a great European tradition in the production of tableware, especially in the United Kingdom, Germany, France,
Italy and Portugal, where experience can date back to the 18th and 19th centuries. High-volume production also takes place
in factories in Eastern Europe, where labour is cheaper than in North-Western Europe. On top of this, especially where
Tips:
As a supplier of coffee drinkware, study the developments in coffee consumption in Europe. Coffee drinking and
gifting trends directly influence consumer needs, and your marketing mix (four Ps: price, product, promotion and
place). Check the CBI Market Intelligence platform on coffee, also to investigate different coffee drinking cultures
across Europe.
Cater for the various coffee drinking moments and offer the right drinkware for the right occasion. Generally, ‘me-
time’ moment consumers will be less price-sensitive than rush-time users; the Home Barista group forms a small
but top segment in coffee drinkware. Be aware that the same consumer can feel the need for different drinkware
for each of the occasions and have a different price-value mix in mind for each.
Communicate the main values of your offer to the consumer’s various coffee drinking moments, rather than to the
type of person (demographically). Extend the number of moments to which your coffee drinkware offer solutions
by developing both ‘slow’ and ‘everyday’ coffee sets.
Extend your consumer market segment to include the coffee at work or in catering places. Such project market
marketing requires its own mix in terms of product features, price strategy, distribution and communication.
Tips:
Check the following identity elements and see where you could create an image in the market:
o History of your organisation, process or industry – what story can you tell helping the consumer to add a
dimension to your product features (picture 10)?
o Maker or Making stories: what materials, techniques, cultural meanings do your products have that are a
source of learning and inspiration to a consumer eager to hear and tell new stories? Origin is good, but
don't be too ethnic. At the level of your product lines, make sure the binding factor is clear; this can be a
shape, colour, or literally, a story. Ilkkka Suppanen describes his design for the Everyday Holy mug (see
picture 11) as follows:
o "I wanted to create something different from the iconic coffee mug with handle found in office cubicles
around the world. Modern people don't just have coffee; They have espresso, cappuccino, tea. So I wanted
a mug which would look and work equally well no matter the content. On a more emotional level I was
thinking that the time we share over a cup of tea or coffee is often a sacred break from our hectic
everyday lives. Among other things this inspired me to work with the iconic Holy Grail in the shaping of the
mug". (Source: Muuto)
o Hand-made: hand-thrown, hand-painted, hand-stencilled, hand-formed, an individual maker’s name or
even impression of a thumb: it all adds to the personal touch of the product, and as such adds value to the
consumer looking for a personal touch in a category (tableware) that is otherwise quite industrialised
(picture 12). Bring the hand-made out in your design and marketing communication. Trigger the
consumer’s senses (texture, colour, combinations of materials).
o Be consistent in your concept: try and focus and become known for one special feature, look and feel,
story, instead of being everything for everybody if your aim is to add value to your marketing concept. This
does not mean you cannot change or innovate. Le Creuset, famous for their cooking pots are convincingly
extending into tea and coffee, as their signature style remain the same (see picture 13).
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 12
coffee drinkware for the higher segments are concerned, small studios are active throughout Western Europe, servicing
their small niches with hand-made pottery. This has implications for manufacturers from outside Europe.
Going Green
Increasingly, in ceramic tableware, certifications are embraced related to socially and environmentally cleaner production.
However, in this category, this forms a BtB value more than a relevant additional buying motive for the consumer. This is
also because ceramics, as a raw material, does not carry associations about a possible depletion of raw materials (as in
wood) or environmental pollution (as in plastics) in the consumer’s mind. Professional buyers demand certification to
ensure proper working conditions, to meet their own codes of conduct. However, they will only communicate this
passively, through their website, mostly, rather than on the product.
An exception is formed by the fair trade value set. This is a consumer value, too, and fair trade distributers prominently
communicate their principles towards their customers. In ceramic tableware, including coffee sets, most fair traders, with a
few exceptions, are offering their wares into the original fair trade segment of fair trade importers and resellers, which is a
niche (picture 14).
Please refer to CBI Trends for Home Decoration & Home Textiles for more information on general trends in the sector.
What requirements should coffee mugs, cups and saucers comply with to be allowed on
the European market?
Please refer to CBI Buyer Requirements for Home Decoration & Home Textiles for the requirements applying to coffee mugs, cups and saucers.
What competition do I face on the European coffee mugs, cups and saucers?
As the competition for coffee mugs, cups and saucers does not differ significantly from the Home Decoration & Home Textiles sector in general, please refer to CBI Competition for Home Decoration & Home Textiles and CBI Top 10 Tips for Doing Business with European Buyers for a general overview.
What do the trade channels and interesting market segments look like in Europe for
coffee mugs, cups and saucers?
Market channels
Coffee mugs and cups and saucers are widely available at off- and online retail places, ranging from hypermarkets, garden centres, general home stores to department stores and kitchen specialists (picture 15).
Tips:
Operational excellence. Be lean in your production, constantly study and (re-)negotiate logistical costs, offer
flexibility in production runs, reduce costs of packing, offer margin differentials for longer-term customers.
Differentiate on design, story, identity (see ‘Identity and Personality’, up). Study your importer. Anticipate your
importer’s cycle of product development and take initiative in offering new design ideas or directions based on an
intimate knowledge of your buyer’s positioning and best sellers.
Offer one-stop-shopping benefits: concepts for different categories (e.g. dinner- and kitchenware), consumer
packaging, or even food and non-food. This can be done by offering a broad collection based on a particular raw
material (e.g. porcelain or stoneware), by teaming up with colleagues in your area, or by horizontal integration.
Tips:
Be ‘green’: make a difference environmentally and/or socially to satisfy the European consumer’s need to
contribute to a better world. Be specific about the green features of your concept; add visual content; certify if
and when it adds clear benefits. (See: CBI Trend Special on CSR).
Consider fair trade certification. It is a growing trend at consumer end. Assist your fair trade distributor in
marketing by offering an attractive product, price and story. (see: CBI Trend Special on Fair Trade and ‘Useful
Sources’ below).
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As otherwise the market channels for coffee mugs and cups and saucers do not differ significantly from the Home Decoration & Home Textiles sector in general, please refer to CBI Market Channels and Segments for Home Decoration & Home Textiles for a general overview.
E-commerce in home decoration is increasing, often as a multi-channel approach combining online and offline retail. Coffee mugs and cups and saucers are well suited to this due to their functional and gift nature and their limited weight and volume.
Market segments
As we saw (see Trends), the market for coffee sets can be broadly segmented into: ‘rush-time’ and ‘me-time’ users. The former segment is found in the lower segments (low and mid-low markets), consisting of every-day basics, where price/design are both accessible and distribution intensive – through one-stop-shopping places such as supermarkets and garden centres, department and large home stores and on-line. Communication is mostly on value for money. Particular European manufacturer brands and retailer own brands occupy this segment, and are used to offering competitive ‘me-too’ coffee drinkware. Moment consumers with ‘me-time’ values are found in mid to mid-high segments, as well as in the luxury end of the market. In mid segment, the (mid-market) department store (off- and online) is the place, offering plenty of diversity in brands with trendy and affordable coffee sets. Communication is on the user moment (‘breakfast’, ‘moment for yourself’, socialising) and on gifting. At the mid-high to higher end of the market, specialist coffee and tea shops, kitchenware specialists and premium department and design stores are the channel, offering a hand-made item, sometimes limited edition. Communication is on the craftsmanship and on the idea of the gift-to-yourself and to your near-and-dear.
As coffee drinking has become mainstream, and coffee sets (especially in its ‘me-time’ use) part of the overall look and feel of the home, distributers of general Home collections, such as Bloomingville and House Doctor are now also offering coffee sets, too. Such ‘lifestyle’ brands have broadened the landscape for coffee drinkware, therefore, moving it away from tableware specialists. This offers more opportunities for entering the market, especially in mid market, but possibly less volume per order, as such lifestyle brands will not stock dinnerware too deeply.
Table 1: Market segments coffee cups and saucers and mugs
Low: functional everyday
basics
Mid-Mid to Mid-High:
decorative and on trend High: design, craftsmanship,
prestige
Coffee Cups
and Saucers
Source: Könitz
Source: Marimekko
Source: Villeroy & Boch
Tips:
Study the CBI Trend Special on E-Commerce in Home Decoration & Home Textiles for more information.
If you can offer the additional requirements relating to e-commerce, such as individual packing and labelling and
limited minimum order requirements, and your process is capable, targeting e-tailers could be a viable strategy.
Tips:
Define your segment and target it well by formulating a clear marketing mix, with all four Ps (price, product,
promotion and place) aligned. Study your target segment and keep following the developments, to offer relevant
values. Do this online, when you travel to Europe and during trade fairs.
Extend your sourcing from the coffee and tea specialists to the lifestyle brands in Home Decoration, to take
advantage of the broadening market. Be aware that minimum order quantities might be less and design demands
higher. Study consumer trends in interior as a whole rather than in coffee consumption, only.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 14
What are the end market prices for coffee mugs, cups and saucers?
Prices
As we saw, price is very much an integrated part of the marketing mix and directly related to the sets of values offered by your product offer as a whole. Generally, in lower segments, price is a more important factor in the mix than in higher segments, where consumers will be less price sensitive if the design levels increase. At the lower end, €10 euros seems a maximum amount for a cup and sauce that is used as an everyday basic. For mugs in this segment, this may even stop at around €7,50 (depending on size). Usually, one expects coffee drinkware to be offered in set at the lower end (‘more for less’). With little by the way of originality or novelty, this drinkware just does it job. In mid market, consumers generally prefer their tableware to be a bit more trendy and decorative, but are still conscious of their spending. Prices around €25 only occur at mid-high, where some hand-made comes in; generally, in mid-mid one still expects a friendly price, of around €12,50 to 17,50 for a cup and saucer, and closer to €12,50 for a mug. Design and packaging (making it more of a gift) adds to the consumer’s value perception in this segment. In the upper end of the market, items become really special, for their design (esp. shape and material), scarcity or brand name. This makes the coffee drinkware less price sensitive, in extreme cases going to way over €100 for a single mug or cup and saucer – for the happy few!
Table 2: Indicative market prices for Coffee Cup and Saucer, Mug
Low End Mid End High End
Coffee Cups & Saucer,
Mug
Up to € 10
€ 10 to € 25
€ 25 and more
These are indicative consumer prices, but, again, they will differ according to the specific marketing mix in any segment. The following figure gives an indication of a price breakdown for coffee drinkware. Roughly, your FOB price may end up
multiplying 5 (to 7) times to what the consumer will finally pay, depending on the length of the chain.
Coffee Mugs
Source: Karstadt
Source: Kinto Ceramics
Source: SUS Gallery
Tips:
Pitch your prices well, in line with your positioning in the market. As one of your four Ps, you must study which
price bandwidth is appropriate for your segment.
Avoid simply adding a fixed percentage of margin on top of your cost price to calculate your price, as this may be
either too high or too low for your target market. Rather, study what your coffee drinkware can take in the
market, based on the value perception of the consumer.
If your wooden tray forms part of a wider collection of trays and serveware, make sure price points between the
items in your collection are logical and acceptable.
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 15
Figure 10: Indicative price breakdown for coffee cups & saucers and mugs, mark-ups in %
Useful sources
These trade associations and fairs are useful sources for finding trading partners and further product and market information in Europe. Cerame-Unie, European Ceramic Industry Association
ECF, European Coffee Federation
EFTA, European Fair Trade Association
ICC, Chamber of Commerce for international trade and business
NCA USA, National Coffee Association of USA
SCAE, Specialty Coffee Association of Europe
WFTO, World Fair Trade Organisation
Trade fairs
Trade fairs are important venues for exporters, wholesalers and brands to offer their new collections to retail, as part of
their home decoration collections, generally, or specific categories such as kitchen- and tableware. Main trade fairs
relevant for coffee drinkware are:
Ambiente, Frankfurt, February
Christmasworld, Frankfurt, January
HOMI, Milan, January and September
Maison et Objet, Paris, January and September
Spring Fair International, February; NEC Birmingham, UK
Salone del Mobile, Milan, April (designer)
Tendence, Frankfurt, August
Trendset, Munich, January and July
Wholesaler Retail Logistics
FOB price
CBI Market Intelligence
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www.cbi.eu/market-information
This survey was compiled for CBI by Globally Cool :: creative solutions for sustainable business
in collaboration with CBI sector expert Kees Bronk
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
December 2015
CBI | Market Intelligence Product Factsheet Drinking Coffee in Europe | 17
Annex I: Classification of coffee mugs, cups and saucers
Harmonised System (HS)
Within the EU/EFTA, the following HS codes are used for trade in coffee mugs, cups and saucers: 691110 - Tableware and kitchenware of porcelain or china
691200 - Ceramic tableware, kitchenware, other household & toilet articles not elsewhere specified
701399 - Glassware not elsewhere specified (other than that of 70.10 or 70.18)
Prodcom
The following Prodcom codes are used to indicate European production of coffee mugs, cups and saucers: 23411130 - Porcelain or china tableware and kitchenware (excluding electro-thermic apparatus, coffee or spice mills
with metal working parts)
23411210 - Ceramic tableware, other household articles : common pottery
23411230 - Ceramic tableware, other household articles : stoneware
23411250 - Ceramic tableware, other household articles : earthenware or fine pottery
23411290 - Ceramic tableware, other household articles : others
23131160 - Glass containers for beverages and foodstuffs of a nominal capacity < 2.5 litres (excluding bottles, flasks
covered with leather or composition leather, domestic glassware, vacuum flasks and vessels)