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TRENDS AND INSIGHTS IN THE GLOBAL HOT DRINKS

MARKET
2014
POWERED BY PASSPORT FROM EUROMONITOR INTERNATIONAL
WHAT IS PASSPORT
NEW INSIGHTS: EMERGING MARKETS
PREMIUMISATION ACROSS THE BOARD: THE HOUR OF THE
POD
TEA OFFERS OPPORTUNITY
PASSPORT: HOT DRINKS DATA UPDATE FOR 2014
EUROMONITOR INTERNATIONAL 3

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WHAT IS PASSPORT
NEW INSIGHTS: EMERGING MARKETS
PREMIUMISATION ACROSS THE BOARD: THE HOUR OF THE
POD
TEA OFFERS OPPORTUNITY
PASSPORT: HOT DRINKS DATA UPDATE FOR 2014
NEW INSIGHTS 6

Global Hot Drinks in Excess of US$138 Billion and Growing

Global hot drinks increased by 7% in retail value in 2013. Preferences vary sharply
across regions, requiring a multi-tiered approach.

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NEW INSIGHTS 7

Emerging Markets Have Room to Grow

Asia Pacific, Latin America and the Middle East and Africa accounted for nearly 50%
of global hot drinks sales in 2013, yet their potential is far from fully realised. Overall
per capita hot drinks consumption in these regions still significantly lags the rest of the
world.

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NEW INSIGHTS 8

Consumers Switching from Unpackaged to Packaged

Urbanisation and busier lifestyles are driving consumption of packaged hot drinks,
especially tea, driving sales higher.

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WHAT IS PASSPORT
NEW INSIGHTS: EMERGING MARKETS
PREMIUMISATION ACROSS THE BOARD: THE HOUR OF THE
POD
TEA OFFERS OPPORTUNITY
PASSPORT: HOT DRINKS DATA UPDATE FOR 2014
NEW INSIGHTS 10

Consumers Eager to Spend More for a Premium Experience

Growth in value-added hot drinks is being driven by growing disposable incomes,


increased awareness of a wide range of tea and coffee options and busier lifestyles
around the world.

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NEW INSIGHTS 11

Premium Products Emphasise Convenience and Quality

Instant coffee and fruit/herbal teas in particular are seeing strong growth based on
premium positioning - the former driven by a need for quality and functionality, the
latter due to rising popularity in wealthy regions.

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NEW INSIGHTS 12

Pods Have Become the Main Value Driver in Global Coffee

Coffee pods increased by 22% in value in 2013, accounting for 54% of the years
absolute value growth in global coffee. Growth is being driven by the appeal of
combined ease of use and quality of flavour.

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NEW INSIGHTS 13

Opportunities Remain, Despite a More Consolidated Landscape

Patent expirations among pod leaders such as Nestl and Green Mountain Coffee
Roasters have opened the door to new players and private label products.

Euromonitor International
WHAT IS PASSPORT
NEW INSIGHTS: EMERGING MARKETS
PREMIUMISATION ACROSS THE BOARD: THE HOUR OF THE
POD
TEA OFFERS OPPORTUNITY
PASSPORT: HOT DRINKS DATA UPDATE FOR 2014
NEW INSIGHTS 15

Black Tea Leads, but Other Types Show Stronger Growth Potential

Black tea remains the most-consumed tea type, but green tea and fruit/herbal teas are
enjoying rapid growth due to health and wellness demand in wealthy, traditional
coffee-drinking regions such as Western Europe and North America.

Euromonitor International
NEW INSIGHTS 16

Tea Holds Strong Potential for Foodservice Players

The versatility and malleability of flavour and format in tea make it an ideal new menu
addition for foodservice operators. Likewise, a wider variety of teas and tea-based
beverages on restaurant menus translates to greater awareness and stronger retail
sales.

Euromonitor International
WHAT IS PASSPORT
NEW INSIGHTS: EMERGING MARKETS
PREMIUMISATION ACROSS THE BOARD: THE HOUR OF THE
POD
TEA OFFERS OPPORTUNITY
PASSPORT: HOT DRINKS DATA UPDATE FOR 2014
PASSPORT: HOT DRINKS DATABASE UPDATES 18

Hot Drinks Product Hierarchy


The market is broken down by hot drink type, including coffee, tea and other hot drinks.

Fresh Coffee
Coffee
Instant Coffee

Black Tea

Fruit/Herbal
Tea

Hot Drinks Tea Green Tea

Instant Tea

Other Tea

Flavoured Powder
Drinks
Other Hot
Drinks
Other Plant-Based Hot
Drinks
Euromonitor International
PASSPORT: HOT DRINKS DATABASE UPDATES 19

Further Segmentation

Some types are then further broken down by flavour, variety, and presentation.

Chocolate-Based Loose Black


Flavoured Powder Standard Tea
Drinks Black
Standard Tea Tea Bags Black
Standard
Flavoured Powder
Malt-Based Hot Drinks Black Tea
Drinks Loose Black
Speciality Tea
Non-Chocolate-Based Black
Flavoured Powder Hot Speciality Tea Tea Bags Black
Drinks Speciality

Fresh Coffee
Instant Standard Beans
Coffee Fresh
Instant Coffee Coffee Fresh Ground
Coffee Pods
Instant Fresh Ground
Decaffeinated Coffee Coffee
Standard Fresh
Ground Coffee
Euromonitor International
PASSPORT: HOT DRINKS DATABASE UPDATES 20

Measures, Shares and Pricing Data Add Nuance

Other measures and


shares can be accessed
using colour-coded
buttons within any data
set.

Shares

Off-trade vs on-trade
Pricing
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PASSPORT: HOT DRINKS DATABASE UPDATES 21

Country Coverage

AT, BE, DK, FI, FR, BY, BA, BG, HR, EE, CZ,
DE, GR, IE, IT, NL, NO, PT, GE, HU, LV, LT, MK, PL, RO,
ES, SE, CH, TR, GB RU, RS, SK, SI, UA

CA, US
AZ, CN, HK, IN,
ID, JP, KZ, MY, PK, PH,

DZ, CM, EG, IR, IL, KE, SG, KR,TW, TH,

MA, NG, SA, ZA, TN, AE UZ, VN

AR, BO, BR, CL,


CO, CR, DO, EC, GT,
MX, PE, UY, VE
Euromonitor International covers top- AU, NZ
level global and regional data in
addition to 80 countries in all world
Euromonitor International regions.
PASSPORT: HOT DRINKS DATABASE UPDATES 22

Data Types Give a Full View of the Market

Retail volume
Tonnes
Foodservice volume
Total volume

Retail value rsp US$ million


Retail value msp

Retail cups volume


Million cups
Foodservice cups volume
Total cups volume

Retail brewed volume


Million litres
Foodservice brewed volume
Total brewed volume

Euromonitor International
PASSPORT: HOT DRINKS DATABASE UPDATES 23

Unit Prices Put the Data to Work for You

The data can also be viewed as unit prices (rsp):

US$13.8 US$25.8
Per kg of global fresh vs Per kg of global instant
coffee in 2013 coffee in 2013

Euromonitor International
PASSPORT: HOT DRINKS DATABASE UPDATES 24

Strategic Analysis for Greater Insight

Global Briefings Competitor Analysis

Datagraphics Videocasts

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PASSPORT: HOT DRINKS DATABASE UPDATES 25

System Changes for 2014

The terminology for certain key data


types has changed. Beginning in 2014,
the term brewed will be used instead of
RTD (ready-to-drink):

Retail RTD volume =

Retail brewed volume

Foodservice RTD volume =

Foodservice brewed volume

Total RTD volume =

Total brewed volume

Euromonitor International
PASSPORT: HOT DRINKS DATABASE UPDATES 26

Company and Global Reports


Unilever Group
Tata Global Beverages Ltd (TGBL)
Associated British Foods Plc (ABF)
Mondelez International Inc
Strauss Group Ltd
Nestl SA
DE Master Blenders 1753 NV
Lavazza, Spa Luigi
Sara Lee Corp

Tea Global Corporate Strategy: Adding the Value and


Creating the Demand
Fresh Ground Coffee Pods: Niche or Mainstay?
Hot Drinks in 2013: Creating an Experience, Finding
the Value
Beverages in Consumer Foodservice: The Best
Portfolio Wins
Global Caf Culture: The Continuing Evolution of
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the Third Place
PASSPORT: HOT DRINKS DATABASE UPDATES 27

Tell the Whole Story with Euromonitor International Data


Survey Cities

CAMI Consulting

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