Beverage sales are on rising and almost all segments in food & Beverage sector are experiencing an exponential growth rate along with a continuous change in consumer preferences. Rising demand for hot drinks in emerging countries coupled with the launch of new beverage variants has resulted in an increased demand for the global hot drinks during the forecast period. Hot beverages, such as, coffee, tea helps in elevating the mood of the consumers and increases their energy levels. Hot beverages have many health benefits such as coffee is known as the psychoactive substance because it contains a stimulant called caffeine. Hot beverage improves various aspects of brain function. This includes improved memory, & mood, rise in energy levels, and helps in improving general cognitive functions. Green tea, a type of hot beverage, aids in burning of body fats thus leading to the improved metabolic reaction of the body. Hot beverages help in improving physical performance of the consumers and can help in fighting depression. Taste, ingredients, convenience, and price represent the most influential factors that determine the demand for hot beverages.
Hot Beverage Market: Segmentation:
Global hot beverage market can be segmented on the basis of product type, end use, nature, distribution channel, and geography.
On the basis of product type, hot beverage can be segmented into tea, coffee, milk, and others. Tea can be further segmented into masala tea, green tea, and others. Coffee accounts for more than half of the global hot beverage market.
On the basis of end use, hot beverage market is segmented into HoReCa, beverage industry and food industry. The beverage industry holds a maximum share of the market.
On the basis of nature, hot beverage can be segmented into organic and conventional. The consumption of organic beverage is increasing among the health-conscious population because it helps to maintain their healthy lifestyle.
Hot beverage market is further segmented on the basis of distribution channel into a direct and indirect channel. Indirect channel is further segmented into modern trade, specialty stores, convenience stores, commercial, hotels/restaurants/bars, online retailers, and other retailing formats
Hot Beverage Market: Drivers, Restraints, and Trends
Increasing focus on health and wellness, rise of single pod coffee machines as the preferred at home alternative, rising popularity of on the go products, sensory experience and indulgent products, growing consumers interest in exotic flavors, the steady evolution of hot drinks customization and emergence of crossover and hybridized coffee and tea options is fueling the growth of hot beverage market. The increasing focus on health has led tea manufacturers to promote the benefits of antioxidants and flavonoids in the beverage. The preference for beverages with detox and de-stress benefits has also led to the emergence of specialist tea outlets. The immense popularity of instant coffee, particularly in developing nation, supported by the cost, convenience factors, and versatility localization, is also expected to offer lucrative growth opportunities. Too much consumption of coffee or tea can lead to isonomy and can even lead to formation carcinogens.
Hot beverage Market: Regional Outlook
Depending on the geographic regions global hot beverage market is segmented into five key regions: North America, Latin America, Europe, APAC, and MEA.
Europe is the leading consumer of the hot beverage and exports mostly to the American.
Asia Pacific Hot beverage market represents the largest market during the forecast period because consumers are expanding the population, burgeoning middle class, rising income levels, growing brand awareness and westernization represents key growth drivers in the region. The Middle East and Africa are also expected to grow during the forecast period.
The recent trend due to increasing urbanization and a growing middle-class population with disposable incomes will drive the market.
Hot beverage Market: Key Players
Key global market players producing hot beverage include Ajinomoto General Foods Inc., Hainan Haikou Lisheng Coffee & Foods Co Ltd, Tata Global Beverages, Celestial seasoning Inc, Costa Coffee, Starbucks, McDonald's, Caffe Nero, Tazo tea company and other.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.