From Luxury to Commodity

Posted by Karl Purdy on Oct 07, 2010

This excerpt is taken from the Euromonitor International's Hot Drinks in Ireland report, published March 2010.
In the face of a crippling recession, many consumers have sought to make cuts in their spending, often focused on luxury and non-essential items. The market for coffee and tea though continues to be shaped by the more sophisticated tastes formed over the review period, during which many Irish consumers experienced increasing affluence. Whilst standard offerings still account for the majority of the volume, coffee and tea have mostly been driven by premium end offerings, as palates have become more demanding and refined alongside the proliferation of fresh coffee choices both in the off-trade and on-trade and the emergence of new speciality teas and herbal infusions. The fact that these parts of the market continue to represent the most important sources of value and volume growth in spite of the recession, reveals a changing perception of products once perceived as clearly premium, as they increasingly move into the mainstream and are more often considered an acceptable standard option, or even basic commodity as part of an average grocery shop or morning run to work.