Hot drinks in 2024: The big picture
Hot drinks in Hong Kong is experiencing polarisation amid rising price inflation, with premium tea and coffee brands gaining traction alongside an increase in private label offerings. To attract consumers, brands are introducing smaller packaging sizes and new products with lower entry costs, even if they come in reduced volumes.
2024 key trends
The premiumisation trend within fresh ground coffee pods continues to evolve, despite a slowdown in coffee machine purchases as outdoor activities increase post-pandemic. Demand for fresh ground coffee pods continues to grow, fuelled by innovative product developments that encourage consumers to make the most of their existing coffee machines.
Competitive landscape
As the cost of living and everyday expenses continue to rise, local consumers are increasingly turning to private label goods. Euromonitor International’s Voice of the Consumer: Lifestyles Survey (fielded January to February 2024) identified an increase in the number of respondents who purchased private label from 20.
Retailing developments
Convenience retailers continues to regain retail volume share by increasing shelf space for hot drinks which meet the rising demand for DIY solutions. Products such as UCC’s The Blend instant coffee exemplify this trend, offering convenient single-serve packaging that allows consumers to prepare coffee on the go.
Foodservice vs retail split
Foodservice is significantly enhancing brand experiences, as tourists are often willing to spend extra on premium experiences while on holiday, particularly in popular café destinations. Local consumers, while also favouring premium offerings, tend to seek options within a comfortable price range.
What next for hot drinks?
Coffee and tea are mature categories in Hong Kong but maintain a stable outlook due to long-term cultural demand. However, brands must innovate to thrive in this highly competitive environment.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Hong Kong, 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 Hong Kong, 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 Hong Kong, 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 Hong Kong, China?
- To what extent are health considerations impacting consumption of Hot Drinks in Hong Kong, China?
- What are the traditional preferences in Hot Drinks in Hong Kong, 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 Hong Kong, China?
- Which are the leading brands in Hot Drinks in Hong Kong, China?
- How are products distributed in Hot Drinks in Hong Kong, 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 Hong Kong, 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 Hong Kong, China
KEY DATA FINDINGS
Premium instant coffee on the rise, driven by convenience factor
Gradual shift to foodservice presents risk to at-home demand
Resurgence of RTD coffee poses heightened competition to coffee players
Health and wellness trends expand into coffee
Heightened competition offered by incoming foodservice players from northern cities
Coffee set to become increasingly polarised over forecast period
Tea in Hong Kong, China
KEY DATA FINDINGS
Flavour and product innovation thrive in highly competitive landscape
Novel formats generate interest to further drive growth
Functional teas generate consumer interest amid health and wellness trends
Smaller packaging sizes or “shrinkflation” on the rise
Specific benefits of tea offer value growth potential over forecast period
Brands attempt to revamp image of instant tea in Hong Kong
Other Hot Drinks in Hong Kong, China
KEY DATA FINDINGS
Health and wellness trend influences performance of other hot drinks
RTD chocolate and malt-based beverages pose heightened competition
Ovaltine refreshes image through partnerships with other brands
Innovation is needed to drive growth of other hot drinks over forecast period
Specialty options potentially on the rise
Foodservice to be growth area for product 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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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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