The global coffee market containues to brew up a storm and Asia is playing a key role in its growth. New research from Mintel Research reveals that three out of the five fastest growing retail coffee markets are in Asia. Indonesia is currently the fastest growing packaged retail coffee market with a CAGR of 19.6% over the past five years, while India has had a CAGR of 15.1% and Vietnam 14.9%. Overall, the global coffee market continues to grow steadily, with expected retail volume growth of 2.7% in 2016, following a 2.5% rise in 2015. The boom in Asia’s coffee market has been driven by a surge in innovation of coffee products. According to Mintel’s Global New Products Database (GNPD), between 2011 and 2016 the number of new coffee products launched in Asia has risen by 95%. In comparison, the number of tea products launched has risen by a comparatively low 55% in the same time period. In terms of local tastes, currently Asia Pacific leads the way in launches of readyto- drink cold coffee. In 2016, 29% of all coffee launches in Asia Pacific were ready-to-drink cold coffee products, compared to just 10% in Europe Additionally, coffee mixes are a huge part of the retail coffee landscape. In the same year, ‘x’-in-1’, (i.e. 2-in-1, 3-in-1 or 4-in-1 mixes) accounted for 16% of all retail coffee launches in Asia, up from 12% in 2014. However, instant coffee still dominates the retail market in Asia. Two in five (42%) coffee launches in Asia Pacific were soluble coffee granule products, compared to just one in five (20%) launches in Europe and a mere 6% of launches in North America in 2016. As emerging market consumers develop their taste for coffee, innovation is stepping up a notch as drinkers trade up from instant to fresher-tasting coffee. However, despite increased premiumisation in the global coffee market, the most commodified form of coffee – soluble coffee granules – remains a hugely important segment, especially in Asia. As consumers trade up from instant coffee, pod and capsule sales will increase. Moving forward, the humble coffee bean is likely to be receiving a premium makeover. While growth has already been seen in this market, with 15% of coffee products launched in Asia in 2016 carrying a premium claim up from 11% in 2013, the ‘third wave’ coffee movement is likely to propel this further. As defined by Mintel, the ‘third wave’ coffee movement is taking coffee appreciation a step further, focusing intensely on where beans are sourced and how they are roasted, with a renewed focus on brewing methods. Most emerging coffee markets remain in the ‘first wave of coffee; however, some are starting to enter the ‘second wave’ as foodservice outlets and coffee shops aggressively push Western coffee lifestyles and local coffee shops pick up the baton. Many Asian countries are now making the progression from ‘first wave’ to ‘second wave’, while some nations such as South Korea, Japan, Singapore and Indonesia, are moving towards a ‘third wave’ lifecycle development.