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Global hot drinks market: $130 billion industry in 2012
Hot Drinks in 2013: Creating an Experience, Finding the Value - a new market research report on 2014-04-22 09:18:02
The global hot drinks market is currently valued at around $130 billion, although it is still dwarfed by both soft drinks and alcoholic drinks. In terms of volume in 2012, the hot drinks industry reached 514 billion RTD litres, which is split into three categories; coffee at 162 billion RTD litres; tea at 290 billion RTD litres; and other hot drinks at 63 billion RTD litres.
Though far smaller in value terms, the global hot drinks market accounts for almost one third of global beverage volume consumption (excluding tap water and unpackaged beverages), reflecting the age-old importance of tea and coffee to social life across the globe.
Hot drinks consumption as a percentage of total liquid consumption continued to grow between 2007 and 2012, as consumption of packaged hot drinks (versus unpackaged, bulk products) continued to expand in markets like China. Indeed, the push for branded products is a key theme of this report, and will continue to serve as a primary means of adding value going forward.
Key Findings
- Establishing familiarity is not the problem, instead the story is one of maintaining relevance and building value add amidst a growing sea of choices; however, the opportunities are there.
- While coffee and, to a lesser extent, other hot drinks have become highly value-added consumer products, heavily influenced by branding and often serving very specific use occasions, tea remains far more of an artisanal product.
- Far more than coffee or other hot drinks, global tea sales are driven by demand from a select few markets, China above all. Value opportunities remain in the world´s core tea-dominated markets, as consumers continue to trade up to bagged teas, instant teas and other value-added products.
- While young people in emerging markets are important to growth for almost any global packaged goods manufacturer, they are absolutely central in other hot drinks, and will remain so going forward.
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