Myriad Factors Driving Frequency of Consumption Including Launch of New Flavors, & Aromas to Drive the Global Market for Hot Beverages
Growing
publicity over health benefits of tea and coffee, popularity of single cup
brewers, and launch of innovative exotic new flavors and formats including nutritive
protein-fortified, organic ‘better-for-you’ varieties are poised to drive the global market for Hot
Beverages (Coffee and Tea) in terms of volume to exceed 19 million tons by 2024.
Hot
beverages represent one of the most integral components of the foodservice
market. As a healthy, refreshing and affordable beverage, tea and coffee
continuous to benefit from consumer diversion from carbonated beverages, diet
soda, fruit beverages, and milk. 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. Another noticeable trend in the market has
been the prominence of borrowing among categories and also blurring of the line
of differentiation. There is immense ‘borrowing’ taking place right now between
not just tea and coffee categories but also from other drinks like beers and
cocktails, among others, leading to what can be termed as the craft-beverage
movement.
Future
growth in the market will be driven by increasing popularity of tea across all
age groups, especially health-conscious consumers. Tea has emerged as a bright
spot in the beverage market due to its numerous health benefits in terms of
rich in antioxidants that minimize damage caused by free radicals, preventing
and even treating various ailments such as degenerative and cardiovascular
diseases as well as esophageal, colon, and stomach cancer. Supported by
scientific research, these health benefits have established tea as an
attractive beverage option among sophisticated and informed consumer
demographics. Other important factors driving market growth include rising preference
for on-the-go tea and coffee products; rise of single-pod coffee machines as
the preferred at-home alternative; unabated popularity of green tea; 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. 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 are also expected benefit market prospects in the
near term. Immense popularity of instant coffee, particularly in the developing
countries, supported by the cost, versatility, localization, and convenience
factors will add further impetus to market growth.
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 volume CAGR of 5.0% 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 are also expected to offer lucrative market
growth opportunities.
Key players in the market include Celestial Seasonings,
Inc., Costa Limited, Dilmah (Ceylon Tea Services PLC.), Harney & Sons, JAB
Holding Company, JDB (China) Beverages Ltd., Jacobs Douwe Egberts, J.M. Smucker
Company, Kraft Heinz Company, Luigi Lavazza S.p.A., McCafé, Nestlé S.A., R.
Twining and Company Limited, Segafredo Zanetti SpA, Starbucks Corporation,
Strauss Group Ltd., Tata Global Beverages, Tchibo GmbH, Tim Hortons Inc., UCC
UESHIMA COFFEE CO., LTD., Unilever PLC, and Yorkshire Tea, among others.
The
research report titled “Hot Beverages (Coffee and
Tea) – Market Analysis, Trends, and Forecasts” 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.
For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com.
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