Hot drinks in 2024: The big picture
In 2024, hot drinks in China is expected to see stable retail current value growth, with tea and other hot drinks rising, and coffee set to decline. Total volume consumption is expected to grow modestly, with foodservice volume growth set to marginally outpace retail.
2024 key trends
In 2024, health and wellness has remained a key trend in hot drinks, with a focus on sugar reduction, functional ingredients, and category shifts. Unsweetened black coffee is gaining popularity amongst health-conscious consumers, which is set to drive down total volume sales of instant coffee mixes in 2024, while boosting sales of fresh coffee.
Competitive landscape
In 2024, the competitive landscape in hot drinks in China is expected to remain highly fragmented, driven by diverse consumer needs, regional preferences, online-offline integration, and ongoing innovation. Brands compete not only through product and marketing differentiation, but also by winning loyalty in a fast-paced, personalised, and sustainability-focused market.
Retailing developments
Food/drink/tobacco specialists, supermarkets, small local grocers, and other offline channels remain essential for the distribution of hot drinks in China. However, as consumer behaviour is gradually shifting from offline to online, value sales have increased strongly via retail e-commerce.
Foodservice vs retail split
In 2024, retail sales are expected to overwhelmingly dominate total hot drinks volumes in China, accounting for the majority of revenue. However, the growth of foodservice sales is projected to slightly outpace that of retail in 2024.
What next for hot drinks?
Although total volume growth is expected to continue in hot drinks in the forecast period, with increases anticipated for both retail and foodservice, the pace of growth is set to slow as demand stabilises. Health and wellness and flavour innovation are likely to remain key drivers of growth, offering brands opportunities to counter market fatigue.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in China report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in China?
- To what extent are health considerations impacting consumption of Hot Drinks in China?
- What are the traditional preferences in Hot Drinks in China? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in China?
- Which are the leading brands in Hot Drinks in China?
- How are products distributed in Hot Drinks in China?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in China
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in China
KEY DATA FINDINGS
Fresh coffee beans is the driving force for volume growth in retail and foodservice
Instant standard coffee and instant coffee mixes continue to show divergent development trends in 2024
Local brands are rising in fresh coffee, while Nescafé maintains its lead in instant coffee
Instant standard coffee has growth potential, and functional product claims are expected to receive more attention
In addition to functional benefits, packaging innovation will attract consumers
As consumers demand high quality coffee, foodservice has growth potential
Tea in China
KEY DATA FINDINGS
Health and tradition emerge as key areas of consumer focus
Innovative tea products drive growth
Cross-category and -industry innovation as a key driver of growth
E-commerce platforms will continue to impact sales of tea
Tea culture likely to continue to evolve amongst younger consumers
Tea brands will continue to promote tea culture tourism, driving innovation in tea
Other Hot Drinks in China
KEY DATA FINDINGS
Healthy innovations and foodservice trends drive shifts
Innovation focuses on ingredients, formats, and health
Other hot drinks remains highly fragmented
Other plant-based hot drinks will drive growth through breakfast consumption
Retail e-commerce set to drive growth of other hot drinks through digital engagement
Shift toward healthier powder drinks will drive innovation
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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