Market analyses for coffee on Romanian market

Worldwide, coffee is the second most consumed beverage, after water. In economic terms it is an important market, and for developing countries it is the second largest export commodity (after crude oil), with an export value estimated to USD 19 billion in 2010. The international trade policy of the „80s in Romania was centered on the repayment of the foreign debt by increasing the exports and reducing as maximum as possible all imports. The first “victims” of the import cuts were the agri-food products that were not produced domestically and originated from abroad only, such as citrus fruit, bananas, coffee, tea, cocoa, spices etc. As a consequence, coffee, a beverage traditionally consumed in Romania for more than two centuries (due to the presence of the Ottoman Empire), disappeared almost completely from the markets. Along with the shift of political and economic regime, since the beginning of the „90s, coffee was imported again and consumption resumed, such as it doubled in 2005 as compared to 1990.

Market Area

On the behalf of a series of studies it has been noted that the coffee global market is growing, observing that in countries with a high development level, coffee consumption is much bigger than those still in development.

In Romania, coffee consumption started growing after 1990, reaching now to be consumed on a daily basis by more than half of the adults in the country. Coffee is sold throughout the country but most of the sales are being registered in urban environment. Unfortunately, it’s impossible for the moment to have a detailed analysis of coffee market at a national level which prevents research of the product on different regions because of lack of information. All studies done until now have been made only in urban environment, noting that 76% of urban environment population use coffee. The lack of data about coffee consumption in rural areas can be blamed on the fact that the manufacturers of coffee are not interested to invest in that direction, maybe because the profits would be smaller than the costs.

Market Structure

Following some studies, it results that only 9% of townspeople don’t use coffee. These studies have been focused on the consumption of coffee, ness and cappuccino; it was accomplished in urban environment, on a national level representative sample, constituted of 1200 people over 15 years old. The results show that 76% drink coffee, 21% cappuccino and 17% ness. According to the studies, women drink coffee in a higher proportion than men. Also it was observed that young people between 15 and 19 consume coffee in a lower quantity, 45% compared to the average at the urban level of 76%.

Main market segments

-Social-demographic segment

After analyzing the above table we observe the main market segments to which the product and the frequency of consumption is addressed. We note that on the segment between 15-19 years old, those that use coffee represent 26% unlike 55% of those who don’t. The highest coffee consumption is registered among those of ages between 35-39, 78% consuming coffee at least once a day. Thus, at a national level, 62% of Romania’s urban population frequently consume coffee.

-Behavioral segment

Jacobs is the favorite brand in Romania. 29.54% drink Jacobs. ELITE is on second place with 19.54%. Tchibo, Amigo and Lavazza have 7.21%, 4.54%, respectively 5.36% of users. 10.74% prefer another brand not mentioned above and 23.07% don’t drink coffee.

When the decision to purchase coffee arrives, only 8.44% Romanians choose coffee depending on the price and 30.61% depending on the brand. 60.95% have their buying decision influenced by the aroma and the coffee strength.

Romanians prefer natural coffee. Thus, 52.34% drink use natural coffee, 11.49% cappuccino, 8.62% instant coffee and decaf 2.47%. 68.54% Romanians purchase coffee out of markets, supermarkets and hypermarkets. Stores specialized in coffee distribution are visited with intent to purchase by 20.36% and only 11.10% buy from the market stall.