Forecasting study

Italy to 2030: macro growth, the coffee market & Lavazza’s position

A defended five-year forecast for a coffee roaster’s Italian strategy. Three nested questions, the economy, the category and the brand, each modelled and cross-validated against out-of-sample error, then stress-tested with explicit prediction intervals.

  • MSc Business & Finance
  • IB9150 · Forecasting for Decision Makers
  • Euromonitor Passport · institutional benchmarks
01 Italy GDP growth mean-reversion, ex-pandemic
02 Coffee market size damped-trend ETS on log real
03 Lavazza share logit-bounded ETS
04 Brand revenue market × share, simulated

Italy real GDP growth

A flat 0.68% central path: the post-2010 mean once the pandemic is stripped out, sitting inside the IMF, OECD, EU and Bank of Italy consensus.

8 4 0 −4 −8 200520102015202020252030 forecast → 0.68% IMF · OECD · EU · BoI ≈ 0.5% % annual growth

Coffee market, real value

Damped-trend ETS on the log real series: about 1.2% a year as a maturing category decelerates.

€3.2b €2.8b €2.4b 20112015202020252030 forecast → €3,075m €m, constant 2025

Lavazza Italy revenue

20,000 Monte-Carlo draws combine market and share. Broadly flat near €500m, but share is the swing factor.

€640m €560m €480m 2016202020242030 forecast → €503m €m, constant 2025

Method

  • Rolling-origin cross-validation
  • ETS · damped trend
  • ARIMA
  • Logit transform
  • OLS income elasticity
  • Monte-Carlo simulation
  • 80 / 95% prediction intervals
  • ADF · KPSS break diagnostics

Models were chosen by out-of-sample rolling-origin error, not in-sample fit: the forecast you can defend, not the one that flatters the history.

2030 scenario summary

MeasureLowCentralHigh
Italy GDP growth −1.6% 0.68% 3.0%
Coffee market (real) €2,985m €3,075m €3,167m
Lavazza value share 15.6% 16.4% 17.1%
Lavazza Italy revenue €469m €503m €539m
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Curriculum Vitae
Forecasting Report: Italy 2026–2030