Turkey: The Place to Be (or Go)

 
With an advanced economy (one largely recovered from the devaluation crisis of 2001), a booming population of young people, and growing integration with the European Union, Turkey is fast becoming one of the world’s most promising consumer foodservice markets, in terms of both size and potential for growth. Foodservice sales of all kinds have seen overall expansion since 2002, reaching YTL43.4 bn (€24.5 bn) in 2007. Apart from rising domestic demand, market growth is also significantly stimulated by great numbers of tourists. Country portrait by Michael Schaefer, Consumer Foodservice Industry Analyst, Euromonitor Inter national.
 
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Chained operations, particularly chained specialist coffee shops, have done especially well, more than tripling since 2002 to reach YTL2.1 bn (€1.2 bn). While Istanbul remains both the economic centre and the cultural trendsetter, demand has also been strong from secondary cities such as Ankara, Izmir, and Bursa, as disposable incomes across the country continue to rise. Compared to the developed economies of Western Europe, the population of Turkey is very young – fully half of the population is under the age of 28, according to recent census data, with 25% under the age of 15. Put another way, the mean age of the Turkish population is just 29, compared with Germany and Italy, where it is 42, and the UK and France, where it is 39. As in other markets, young people are the most soughtafter demographic by chained CFS operators for a number of reasons. Often better- educated than their parents, they tend to be more open to trying the newest foreign brands, while also spending a greater proportion of their income on luxuries like dining out. What’s more, a full-scale educational revolution is underway in Turkey - according to official figures, the number of females with a high school level of education or above increased by 60%, from 14 m to 25 m, between 1990 and 2005.
 

 
Many of these women are marrying later and working more, a major development in a country where cooking and childrearing are still often considered women’s responsibilities, particularly in more conservative rural areas. As more women enter the workforce, a whole new consumer class is being created, one with both a greater awareness and greater need for CFS offerings. In terms of growth, no other sector has seen the kind of success specialist coffee shops have enjoyed. Spurred by growing foreign investment and strong demand from young people, sales more than doubled in 2007, reaching YTL300 m (€170 m). While international titans Starbucks and Gloria Jean’s lead all competitors with 95 and 57 outlets, respectively, they are joined by fast-growing domestic players such as Kahve Dünyası and Café Crown, both of whom operate more than twenty outlets. To a certain degree, the rapid success of specialist coffee shops is understandable: while coffee is a popular beverage in Turkey, much of this is lower-quality instant coffee, with traditional Turkish coffee a relatively expensive luxury, though this is shifting. Specialist chains have carved out a niche as an ‘affordable luxury,’ while also offering an appealing atmosphere for young people seeking a place to study, relax or socialise. The coffee available at a Starbucks, Gloria Jean’s, or Kahve Dünyası is generally of higher quality than instant, while a number of chains, both foreign and domestic, have added Turkish coffee and traditional desserts to their menus.
 

 
| 13 November 2008 |