Hot Drinks - Worldwide

The Hot Drinks market is experiencing significant growth worldwide, driven by changing customer preferences and local special circumstances.

Customer preferences: Consumers are increasingly seeking out hot drinks as a way to relax and unwind, and to indulge in a comforting and enjoyable experience. Hot drinks such as coffee, tea, and hot chocolate are not only popular for their taste, but also for their ability to provide a sense of warmth and comfort. In addition, the growing health consciousness among consumers has led to a rise in demand for herbal teas and other healthy hot beverages.

Trends in the market: One of the key trends in the hot drinks market is the increasing popularity of specialty and premium products. Consumers are willing to pay a premium for high-quality and unique hot drinks that offer a superior taste and experience. This trend is particularly evident in developed markets, where consumers have a higher disposable income and are more willing to experiment with different flavors and varieties. Another trend in the market is the growing demand for convenience. Busy lifestyles and the need for on-the-go consumption have led to an increase in demand for instant hot drinks and single-serve options. This trend is particularly prominent in urban areas, where consumers are looking for quick and easy solutions that fit their fast-paced lifestyles.

Local special circumstances: In certain regions, there are specific local circumstances that are driving the growth of the hot drinks market. For example, in countries with colder climates, such as Nordic countries, hot drinks are an integral part of the culture and daily life. Similarly, in countries with a strong tea-drinking tradition, such as China and India, the demand for hot drinks is driven by cultural factors.

Underlying macroeconomic factors: The growth of the hot drinks market is also influenced by underlying macroeconomic factors. Rising disposable incomes, particularly in emerging economies, have led to an increase in consumer spending on premium and specialty hot drinks. In addition, urbanization and the growing middle class in many countries have resulted in a larger consumer base for hot drinks. Overall, the hot drinks market is experiencing strong growth worldwide, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. As consumers continue to seek out unique and convenient hot drink options, the market is expected to continue to expand in the coming years.

Data coverage:
The data encompasses B2C enterprises. Figures are based on private Household spendings on Hot Drinks. At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments.
In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as production data, region, and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Hot Drinks market with a projected steady growth.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.