state of the hot drinks market in 2014

TRENDS AND INSIGHTS IN THE GLOBAL HOT DRINKS MARKET2014

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PASSPORT: HOT DRINKS DATA UPDATE FOR 2014

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Global hot drinks increased by 7% in retail value in 2013. Preferences vary sharply across regions, requiring a multi-tiered approach.

Global Hot Drinks in Excess of US$138 Billion and Growing

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Asia Pacific, Latin America and the Middle East and Africa accounted for nearly 50% of global hot drinks sales in 2013, yet their potential is far from fully realised. Overall per capita hot drinks consumption in these regions still significantly lags the rest of the world.

Emerging Markets Have Room to Grow

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Urbanisation and busier lifestyles are driving consumption of packaged hot drinks, especially tea, driving sales higher.

Consumers Switching from Unpackaged to Packaged

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Growth in value-added hot drinks is being driven by growing disposable incomes, increased awareness of a wide range of tea and coffee options and busier lifestyles around the world.

Consumers Eager to Spend More for a Premium Experience

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Instant coffee and fruit/herbal teas in particular are seeing strong growth based on premium positioning - the former driven by a need for quality and functionality, the latter due to rising popularity in wealthy regions.

Premium Products Emphasise Convenience and Quality

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Pods Have Become the Main Value Driver in Global Coffee

NEW INSIGHTS

Coffee pods increased by 22% in value in 2013, accounting for 54% of the year’s absolute value growth in global coffee. Growth is being driven by the appeal of combined ease of use and quality of flavour.



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Patent expirations among pod leaders such as Nestlé and Green Mountain Coffee Roasters have opened the door to new players and private label products.

Opportunities Remain, Despite a More Consolidated Landscape

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Black tea remains the most-consumed tea type, but green tea and fruit/herbal teas are enjoying rapid growth due to health and wellness demand in wealthy, traditional coffee-drinking regions such as Western Europe and North America.

Black Tea Leads, but Other Types Show Stronger Growth Potential

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The versatility and malleability of flavour and format in tea make it an ideal new menu addition for foodservice operators. Likewise, a wider variety of teas and tea-based beverages on restaurant menus translates to greater awareness and stronger retail sales.

Tea Holds Strong Potential for Foodservice Players

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Hot Drinks

Coffee

Fresh Coffee

Instant Coffee

Tea

Black Tea

Fruit/Herbal Tea

Green Tea

Instant Tea

Other Tea

Other Hot Drinks

Flavoured Powder Drinks

Other Plant-Based Hot Drinks

Hot Drinks Product Hierarchy

PASSPORT: HOT DRINKS DATABASE UPDATES

The market is broken down by hot drink type, including coffee, tea and other hot drinks.



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Fresh Coffee

Fresh Coffee Beans

Fresh Ground Coffee

Fresh Ground Coffee Pods

Standard Fresh Ground Coffee

Instant Coffee

Instant Standard Coffee

Instant Decaffeinated Coffee

Flavoured Powder Drinks

Chocolate-Based Flavoured Powder

Drinks

Malt-Based Hot Drinks

Non-Chocolate-Based Flavoured Powder Hot

Drinks

Black Tea

Black Standard Tea

Loose Black Standard Tea

Tea Bags Black Standard

Black Speciality Tea

Loose Black Speciality Tea

Tea Bags Black Speciality

Some types are then further broken down by flavour, variety, and presentation.

Further Segmentation




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Measures, Shares and Pricing Data Add Nuance


Other measures and shares can be accessed using colour-coded buttons within any data set.

Shares

Pricing

Off-trade vs on-trade



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AT, BE, DK, FI, FR,

DE, GR, IE, IT, NL, NO, PT,

ES, SE, CH, TR, GB

BY, BA, BG, HR, EE, CZ,

GE, HU, LV, LT, MK, PL, RO,

RU, RS, SK, SI, UA

AZ, CN, HK, IN,

ID, JP, KZ, MY, PK, PH,

SG, KR,TW, TH,

UZ, VN

AU, NZ

DZ, CM, EG, IR, IL, KE,

MA, NG, SA, ZA, TN, AE

AR, BO, BR, CL,

CO, CR, DO, EC, GT,

MX, PE, UY, VE

CA, US

Country Coverage


Euromonitor International covers top-level global and regional data in addition to 80 countries in all world regions.



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Data Types Give a Full View of the Market


Retail value rsp

Retail value msp

Retail volume

Foodservice volume

Total volume

Retail cups volume

Foodservice cups volume

Total cups volume

Retail brewed volume

Foodservice brewed volume

Total brewed volume

Tonnes

US$ million

Million cups

Million litres



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The data can also be viewed as unit prices (rsp):

Unit Prices Put the Data to Work for You


US$13.8Per kg of global fresh coffee in 2013

US$25.8Per kg of global instant coffee in 2013

vs



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Strategic Analysis for Greater Insight


Global Briefings Competitor Analysis

Datagraphics Videocasts



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The terminology for certain key data types has changed. Beginning in 2014, the term “brewed” will be used instead of “RTD (ready-to-drink)”:

System Changes for 2014


Retail RTD volume =

Retail brewed volume

Foodservice RTD volume =

Foodservice brewed volume

Total RTD volume =

Total brewed volume



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Unilever Group

Tata Global Beverages Ltd (TGBL)

Associated British Foods Plc (ABF)

Mondelez International Inc

Strauss Group Ltd

Nestlé SA

DE Master Blenders 1753 NV

Lavazza, Spa Luigi

Sara Lee Corp

Tea Global Corporate Strategy: Adding the Value and Creating the Demand

Fresh Ground Coffee Pods: Niche or Mainstay?

Hot Drinks in 2013: Creating an Experience, Finding the Value

Beverages in Consumer Foodservice: The Best Portfolio Wins

Global Café Culture: The Continuing Evolution of the “Third Place”

Company and Global Reports




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Tell the Whole Story with Euromonitor International Data


Survey Cities

CAMI Consulting



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state of the hot drinks market in 2014

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