Report Published: "Cafes/Bars in Norway"

New Food research report from Euromonitor International is now available from Fast Market Research

[ClickPress, Fri Aug 07 2015] Increases in cosmopolitanism and urbanised lifestyles in Norway are contributing to the increased popularity of specialist coffee shops. Although Norwegians have always been enthusiastic coffee drinkers, drinking coffee as a social activity is relatively new in Norway with the first major chained specialist coffee shops only making an impact in major cities like Oslo around 20 years ago. This has changed dramatically as many Norwegians now see specialist coffee shops as favourable venues for meeting friends and socialising. This is reflected in the strong rise of specialist coffee shops like Starbuck’s and Espresso House in Norway over the past two years, as well as the continued expansion of entrenched brands like Kaffebrenneriet. Norwegians are increasingly favouring specialist coffee shops over, for example, bars and pubs which would have been the traditional venues for social activities in the past and the growth of chains shows that the market is responding positively to these trends.

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Competitive Landscape

Kaffebrenneriet AS was the leading company in cafés/bars in Norway in 2014 with current value sales of NOK224 million giving it an overall value share of 3%. For chained outlets alone, this share rises to 40% which represents more accurately the position of prominence that the Kaffebrenneriet brand holds in Norway. Despite the growing threat posed from international brands on the coffee market in Norway, Kaffebrenneriet has gone from strength to strength, opening up three new outlets in 2014 and increasing current value sales by 13%. The Norwegian chain was a pioneer on the market when it first opened up 20 years ago and this longevity is now one of its greatest strengths. Norwegian consumers love familiar, indigenous brands and Kaffebrenneriet now commands some of the loyalty and nostalgia that other domestic brands benefit from.

Industry Prospects

Micro-breweries are on the rise in Norway and are expected to account for an even greater portion of the Norwegian pubs/bars industry over the forecast period. Norway is behind the rest of Western Europe and the US when it comes to the amount of micro-breweries on the market with around 3% of pubs/bars in Norway considered micro-breweries as opposed to around 10% in the US, for example. Nonetheless, these figures are getting larger in Norway as interest in beers, particularly amongst younger men in their twenties and thirties, intensifies. Growing amounts of Norwegian men have an interest in beer, and even home brewing, as a kind of hobby with a major part of this being the visiting of micro-breweries to try different variations. This is expanding a lot and is set to become even more popular over the forecast period.

Report Overview

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