The Global Market for Hot Beverages (Coffee and Tea) in Terms of Volume is Projected to Exceed 17.5 Million Tons by 2022

Growing Demand for Instant Coffee and Ready-to-Drink (RTD) Tea Drives the Global Hot Beverages Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Hot Beverages (Coffee and Tea) market. The global market for Hot Beverages (Coffee and Tea) in terms of volume is projected to exceed 17.5 million tons by 2022, driven by the rising demand for instant coffee and RTD tea, and growing consumer interest in retail and foodservice channels.

Taste, convenience, price, and ingredients represent the most influential factors that determine demand for hot beverages. Although demand for hot beverages varies with region, several factors are driving growth at the global level including increasing health-consciousness, convenience, wide range of options, and customization to local tastes, among others. With consumers increasingly preferring novel, innovative and sophisticated products, premium tea and fresh coffee beans have taken center stage. Convenience is the most important factor driving growth in retail outlets and food service outlets. With the global consumption of tea rising at a rapid pace, especially among the young and busy population, demand for RTD tea has registered a rise over the years. Although conventionally touted as a beverage for slow and relaxed consumption, there is a rise in preference for on-the-go tea, leading to the emergence of single-serve pod tea, usually reserved for coffee consumers. Demand for RTD tea beverages is also gaining traction from the wellness and health claims made by popular brands.

Healthy growth is projected for the market in the coming years driven by increasing focus on health and wellness; rising popularity of on-the-go products; rise of single-pod coffee machines as the preferred at-home alternative; growing consumer interest in exotic flavors, sensory experiences and indulgent products; emergence of crossover and hybridized coffee and tea options; and the steady evolution of hot drinks customization. Other important factors that are expected to benefit market prospects include innovative packaging formats that are portable, easy-to-use, and easy-to-consume; and alarming rise in the global obesity epidemic that require functional beverages that offer health benefits as well as target weight loss. The increasing consumer focus on health has led tea manufacturers to promote the benefits of antioxidants and flavonoids in the beverage. The preference for beverages with detox and de-stress benefits has also led to the emergence of specialist tea outlets. Immense popularity of instant coffee, particularly in the developing countries, supported by the cost, versatility, localization, and convenience factors, is also expected to offer lucrative growth opportunities in the near term.

As stated by the new market research report on Hot Beverages (Coffee and Tea), Asia-Pacific represents the largest and the fastest growing market with a CAGR of 5.3% over the analysis period. Presence of two of the leading producers and consumers of coffee and tea, China and India; expanding population; burgeoning middle class; rising income levels; rapid urbanization; growing brand awareness; Westernization and preference for lifestyle products; and mushrooming specialty coffee outlets, represent key growth drivers in the region. The lower penetration level of premium and specialty coffee and tea varieties, improving retail infrastructure and the growing markets in the second tier cities in most Asian countries is also expected to contribute to significant market growth.

Key players covered in the report include Celestial Seasonings, Inc., Dilmah, Dunkin’ Donuts, Harney & Sons, JDB (China) Beverages Ltd., Jacobs Douwe Egberts, J.M. Smucker Company, Keurig Green Mountain, Inc., Luigi Lavazza S.p.A., Mcleod Russel, Nestlé SA, O'Coffee, Parry Agro Industries Ltd., R. Twining & Company Limited, R.C. Bigelow, Inc., Starbucks Corporation, Tazo Tea Company, Strauss Group Ltd., Tata Global Beverages, Tata Coffee, Tetley, The Republic of Tea, Unilever, and Yorkshire Tea (UK), among others.

The research report titled “Hot Beverages (Coffee and Tea): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions, and other strategic activities of major companies. The report provides market estimates and projections in value and volume for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America (Brazil, Mexico and Rest of Latin America), and Rest of World. Product categories analyzed include Coffee and Tea.

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