Competitor Strategies in Hot Drinks

The global hot drinks industry continues to record strong growth, with greater consolidation of the industry through merger and acquisitions as well as partnership with retailers and foodservice players. At the same time, regional players from Asia Pacific have expanded their presence, challenging the global players for a share of the coffee market. Over the next few years, challenges remain for hot drinks companies navigating economic downturn, inflationary pressures and climate change.

Key Findings

Coffee is set to remain dominated by leading players while tea shifts towards fragmentation

The domination of coffee industry is seen through leading coffee companies such as Nestlé and JDE. While consolidation has slowed down considerably, this is still evident through acquisition of small established coffee brands which have been successful in innovation. On the other hand, with the breakup of Unilever, the tea industry is shifting towards greater fragmentation.

Hot drinks players vary to the extent of passing increasing costs on to consumers

Inflationary pressure continues to be the key concern for the industry, although it has stabilised in 2023. With the rising cost of coffee beans attributed to the impact of climate change, coupled with increased operating costs in supply chains, hot drinks companies have varied in the extent of passing on these costs to consumers.

Challenges and obstacles remain in sustainability journey for hot drinks players

Hot drinks companies are committed to pushing for sustainability, such as sustainable packaging and reaching net-zero emissions by 2050. While companies have been proactively taking steps through partnerships and enhancing sustainable practices, challenges remain due to the process of implementation and cost of sustainable materials.

New formats of coffee and tea are set to emerge over the forecast period

With climate change impacting the supply of coffee, new production methods for coffee are set to emerge to cater to rising demand, such as the usage of upcycled “beanless” products to mimic the taste of coffee. In tea, which has been associated with a strong health position, new innovations involving formulation enhancement, ranging from healthy ingredients such as vitamins to botanical ingredients, are set to emerge appealing to health-conscious consumers.

The Competitor Strategies in Hot Drinks 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.