Brits are brand snobs when it comes to coffee pods – 81% of users claim they only use the official manufacturer’s pods in their beloved machines.
The Grocer’s exclusive research, conducted by Harris Interactive, found that, of 2,088 Brits polled, 22% own a coffee pod machine, with the Bosch Tassimo favoured by a third of users followed by the Nescafé Dolce Gusto. Nespresso, which has Hollywood hunk George Clooney as an ambassador, came in third place. However, it is far more popular with 16 to 24-year-olds: 38% of pod machine owners have a Nespresso one.
Following the expiration of Nespresso’s patent, a multitude of Nespresso-compatible pods have hit the market, but with only one fifth of consumers willing to use them, the jury is out on how much potential they have. With this in mind, it is perhaps unsurprising that Tassimo has secured a staggering 47.8% growth in value over the past year [IRI 20 June 2015].
Nearly a quarter of respondents believe coffee pods are worth the premium as they make better quality coffee than instant, and 9% think they’re better than ground coffee.
But for those yet to become part of the so-called pod generation, the main barrier is price. While the humble tea bag costs on average 2p, coffee pods can be upwards of 25p in supermarkets and over 35p direct from the manufacturer. Of all the respondents, 35% felt that coffee pods are far too expensive (a view that became more prominent with age), while 18% said they would buy a machine if they were cheaper.
When it comes to tea, consumers are willing to pay more – but not too much more. Although nearly a quarter of consumers are only willing to pay 1p per bag (less than the current average price), 28% are happy to pay 5p and a further 13% 10p. The line, it seems, is drawn at 20p and over.
This may be because 42% of consumers believe tea is a simple pleasure, meaning they’re not interested in ‘fancy varieties’, but 23% say they would be willing to pay more if the quality was better.