Market Perceptions and Innovation Trends in the Coffee Machines and Grinders Industry: A Cross-Market Analysis

The Country-of-Origin Effect (COE) has long been recognized as a crucial factor shaping consumer perceptions and purchasing behaviour in international markets. In the coffee equipment industry, including both coffee machines and grinders, Italian brands have built a strong reputation by leveraging a unique combination of heritage, craftsmanship, and technological excellence. However, in an increasingly competitive global landscape - where countries like Germany, the United Kingdom, and the United States also play a dominant role in product innovation and engineering - technological expertise is no longer an exclusive advantage of Italian manufacturers. The present research aims to assess the extent to which Italian companies still retain a competitive edge in this field and how much of their historical advantage has now been disseminated among companies from other countries, including those mentioned above. This study empirically examines the impact of the Country-of-Origin Effect (COE) on consumer decision-making in both professional and home-use coffee machine markets, with a specific focus on brand equity, consumer ethnocentrism, and competitive differentiation. Through semi-structured interviews with key industry stakeholders and a subsequent thematic analysis, the research seeks to identify the strategic levers that Italian brands can leverage to strengthen their market leadership. In particular, the study explores three core dimensions: i) the influence of COE on consumer perceptions; ii) competitive brand positioning in a globalized market; and iii) the role of product innovation in sustaining long-term differentiation. Furthermore, this study explores how value co-creation through collaborations between coffee machine producers and specialty coffee suppliers can strengthen brand positioning and foster product innovation. The findings will provide critical insights into how companies can balance tradition and innovation to sustain a competitive advantage in the evolving global marketplace. The results aims to provide valuable insights into consumer preferences and industry trends, assisting manufacturers in making strategic decisions.