The The Dynamics of Growth in Global Tea global briefing offers an insight into to the size and shape of the Hot Drinks market, highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues and white spaces. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change and criteria for success. The analysis can focus on both retail and foodservice.
Product coverage: Coffee, Other Hot Drinks, Tea.
Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.
Why buy this report?
- Get a detailed picture of the Hot Drinks market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
The next few years will see a considerable slowdown in the growth rate of pods globally
The pods category grew at an average annual rate of 18% in real value terms over 2011-2016. This astounding growth rate was unsustainable, and slowed to single digits in 2016, which is predicted to continue for the foreseeable future. Even so, pods remain the best performing category not only in coffee, but in hot drinks in general.
The woes of Keurig in North America are the major reason for this slowdown
Consumers in Canada and the US fell in love with the Keurig system and its compatible K-cups during the early years of the review period, but a botched follow-up machine led to both the company and the category in general falling out of favour with consumers. Market maturity also played a major role in slowing North American growth. Because of this, Western Europe will resume being the central region for global growth, as was the case prior to 2010.
The high price of pod coffee remains a significant problem for the category
Coffee made from pods is comparatively much more expensive than alternative options. While this has made for healthy profit margins for companies, it has restricted the category’s appeal and made it vulnerable to disruption from newer, value-oriented products, especially private labels.
Prices are falling as a result of more brands entering the category
Patent expirations affecting the Nespresso and Keurig systems have opened the category up to a large number of new, value-oriented competitors. This has made the category more affordable, but has posed a challenge to the category’s model of getting the machines into the hands of consumers and profiting from high mark-up pods.