Coffee Espresso Machine Industry Analysis. Includes a select group of Italian & Spanish machine builders and the key suppliers of solenoid pumps & valves used. Several Key Trends are also identified.
3. BACKGROUND INFORMATION – COFFEE ESPRESSO MACHINES
With the continuing growth of the Coffee Espresso industry, the leading pump and valve manufacturers are
introducing higher performance solutions, alongside aggressive go-to-market strategies. Beyond natural market
growth for machines, we see component companies gaining power in the marketplace via acquisitions. One
example is the CEME Group. Who continues to execute a well defined ‘roll-up’ acquisition strategy to become the
global leader in the solenoid pump and valve space. A second example is, A.R.S. that acquired the solenoid pump
business of Invensys Controls Italy in 2011. Parker Hannifin a global leader in fluidic valves, has chosen not to enter
the pump business and remain only a solenoid valve supplier to the industry. Whereas KOGE of Taiwan (KOGE
Europe GmbH) have re-segmented the market to address specific machine types with their new long-life pump
technology. During our customer discovery interviews we identified the following key factors for success in the
future:
MARKET INSIGHTS
1) Commercial HoReCa end-users are seeking-out greater control and connectivity solutions; 2) and Eco-friendly
‘Sleep Mode’ power management capabilities for off-peak energy savings; 3) increasing tea sales drives the need for
independent water circuits; 4) the need for lower wattage solenoid pumps and valves; 5) the need for an improved
water filtration solution, to improve machine performance, availability and flavor profile.
BACKGROUND INFORMATION
Page 2
Coffee Espresso Machine Market Overview +1.269.364.1070 richmcdon129@gmail.com
5. KEY SUPPLIER COMPARISON – COFFEE ESPRESSO MACHINE INDUSTRY
Compan
y
Corporate
Strategy
Brand
Recognition
Pump & Valve
Product
Range
Product
Differentiatio
n
Product
Quality
Company Type Holding
Company
Diversified
Company
Diversified
Company
Single
Business
Company
Stron
g
Stron
g
Average
Stron
g
Above
Average
Average
Above
Average
Narro
w
Broad
Broad Narro
w
Narrow
Narro
w
Broad
Differentiation
Focus
5% > 32 % Global Share
Market
Share
6% < 3%
Above
Average
Above
Average
Above
Average
Stron
g
Stron
g
Average Average
Above
Average
Stron
g
Stron
g
Average Average Average
Preemptive Move: Roll-up Acquisition Strategy Differentiation
Coffee Espresso Machine Market Overview +1.269.364.1070 richmcdon129@gmail.com
Figure: 1.2
Above
Average
6. SWOT ANALYSIS – SELECT COMPETITORS
COMPAN
Y
Strengths Weaknesses Opportunitie
s
Threat
s
A focused competitor supplying
solenoid pumps and valves to
the Coffee & Espresso machine
industry. The acquisition of the
Invensys business, strengthens
manufacturing skills & know-
how.
Limited penetration in the
solenoid valve market.
Competitors maximizing market
penetration by bundling pumps,
valves, and accessories into a multi-
year ‘Preferred Supplier’
Agreement.
Dominant solenoid pump
and valve supplier to the
coffee & espresso machine
industry. Growth through
roll-up acquisition model
(ODE March 2021).
Coffee & Espresso Machine:
Competitors offer new eco-
friendly power management
technologies for use in
pumps and valves; weak
coffee / espresso machine
market would lead to major
loss.
Seek-out larger-scale
merger/s for scaling up the
Refrigeration or Water
Management Business Units.
Adoption of Smart Valve techs
(condition monitoring) in fluid
control markets.
Predominately focused on
coffee & espresso industry;
scope for expansion into
fluid control industry. Lacks
the end-user relationships
and specifications to scale
the business.
KOGE Tiapei, Tiawan based.
KOGE EU – Germany. Increasing
penetration of the miniature
pump market. New Innovative
long-life (20k/hrs) centrifugal
pump for Coffee Espresso
Machines.
Minimal solenoid valve range
available in product range.
Expansion into adjacent
micro-fluidic pumps, valves,
and accessories.
USA reshoring of manufacturing
may hinder future growth
prospects in Asia; Lack of a strong
EU & USA presence will hinder
future OEM penetration.
Coffee Espresso Machine Market Overview +1.269.364.1070 richmcdon129@gmail.com
Leverage manufacturing skills
and know-how to reduce part
count, increasing profitability,
and product reliability.
Figure: 1.3
7. COMPETITIVE LANDSCAPE FOR COFFEE ESPRESSO MACHINE COMPONENTS
Differentiation
Low Cost
Focus
Synergy
Preemptive Moves
Strategic
Thrusts
Product Breadth
Narrow Range Full Range
Coffee Espresso Machine Market Overview +1.269.364.1070 richmcdon129@gmail.com
Figure: 1.4
8. Multi-boiler technology
‘Sleep Mode’ Eco-friendly Power Management Control
Independent Water Circuits (Coffee/Tea)
Programmable Water Temperature Control
Wi-Fi / USB Connectivity
EMERGING COFFEE ESPRESSO OPERATOR MACHINE CONTROL FUNCTIONS
Time
OEM
Percent
of Adoption
Rate of Adoption
S – Shaped
Diffusion Curve
Coffee Espresso Machine Market Overview +1.269.364.1070 richmcdon129@gmail.com
Figure: 1.5