Global Hot Drinks Market 2016-2020
An overview of the hot drinks market
Rising demand for hot drinks in emerging countries along with the launch of new variants has resulted in a projected CAGR of almost 5% for the global hot drinks market during the forecast period. The trend of drinking tea has deep-rooted cultural and traditional origins in many countries, which is one of the major drivers for the market growth. People in Asian countries, especially India, Japan, and China drink tea on a regular basis with China accounting for the largest market share in the overall tea market. Therefore, this tradition of drinking tea will have a positive impact on the tea market, thereby propelling the growth of the hot drinks market on the whole.
Extensive investments by companies on promotions and marketing is a fast growing trend in the global hot drinks market, which is another major factor expediting the growth of the market. Nescafé spent over 8% more on advertising in 2014 than in 2013. Likewise, Carte Noire, which launched Nespresso compatible pods in February, upped ad spend by 4.31% while Douwe Egberts increased its marketing and advertising budget by 350%.
Product segmentation of the hot drinks market
- Other hot drinks
In 2015, the hot drinks market was dominated by the coffee segment, accounting for a market share of more than 58%. The availability of coffee variants and rising consumer habits of coffee drinking are the factors supporting this growth. It was estimated and reported in 2013 that 19% of Americans drink at least two cups of coffee a day, and the average American worker spends more than $21 per week on coffee.
Geographical segmentation of the hot drinks market
The global hot drinks market was dominated by EMEA with a share of more than 35% in 2015, followed by APAC and the Americas. However, the market in EMEA is reaching maturity and is expected to register a slight decline of about 1% of its market share during the forecast period.
Competitive landscape and key vendors
The increasing competition among vendors may lead to the vendors reducing their product prices, which could negatively affect vendor margins and market growth. Therefore, companies are involving in constant research in their products and processes to stay up-to-date with the changing customer dynamics and industry scenario. In 2014, Nestlé introduced the VertuoLine at-home coffee and espresso maker, targeting the North American countries, thus posing a stiff challenge to leading players like Keurig and Tassimo.
The leading vendors in the market are -
- Associated British Foods
- Jacobs Douwe Egberts
- Tata Beverages
The other prominent vendors of the market include Apeejay Tea, Betty's and Taylors of Harrogate, Barry’s Tea, Cantarella Bros, Eight O'Clock Coffee, Fukujuen, Mondelez India, GlaxoSmithKline Consumer Healthcare, Keurig Green Mountain, Heinz India, Ito En, J. M. Smucker, McLeod Russel, Tenfu Group, and The Hain Celestial Group.
Key questions answered in the report
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global hot drinks market?
- What are the key market trends impacting the growth of the global hot drinks market?
- What are the challenges to market growth?
- Who are the key vendors in the global hot drinks market?
- What are the market opportunities and threats faced by the vendors in the global hot drinks market?
- Trending factors influencing the market shares for APAC, the Americas, and EMEA.
- Key outcome of the five forces analysis in the global hot drinks market?