Hot drinks in 2024: The big picture
Hot drinks is in a small negative retail volume slump in Ireland and 2024, with value better supported by high unit prices and with foodservice seeing stronger sales. While inflation has come down and started to stabilise in 2024, the 2022-2023 period saw high levels of inflation which pushed up manufacturing costs across the board, thus leading to higher unit prices for the end consumer.
2024 key trends
While instant coffee remains a large size of category, sales are in a slight slump compared to fresh coffee which is seeing a stronger performance. There is a growing interest in high-quality coffee, which is boosting fresh coffee sales, and this trend reflects a broader shift towards premiumisation, with consumers willing to invest in enhanced coffee experiences at home, boosting sales of fresh coffee beans, fresh ground coffee, and even fresh ground coffee pods.
Competitive landscape
Mondelez Ireland Production Ltd is the overall company leader in hot drinks in Ireland, in NBO value terms. However, Nestlé Ireland Ltd is hot on its heels.
Retailing developments
While supermarkets continues to hold the largest distribution share in hot drinks in Ireland, discounters has been notably growing its share due to such outlets’ ability to offer goods at affordable prices – especially within an uncertain economic environment. Lidl and Aldi are noted here, with a large number of their stores shown on maps, especially in the Dublin area.
Foodservice vs retail split
Foodservice sales have fully recovered to pre-pandemic volume. The number of coffee shops and cafés has grown rapidly, with both international chains like Starbucks and Costa Coffee alongside local independent cafés.
What next for hot drinks?
Coffee is expected to continue to grow over the next five years, in both on-trade and off-trade channels. In particular, fresh coffee is likely to gain more shares from instant coffee, as well from traditional black tea.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Ireland 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 Ireland, 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 Ireland 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 Ireland?
- To what extent are health considerations impacting consumption of Hot Drinks in Ireland?
- What are the traditional preferences in Hot Drinks in Ireland? 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 Ireland?
- Which are the leading brands in Hot Drinks in Ireland?
- How are products distributed in Hot Drinks in Ireland?
- 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 Ireland
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 Ireland
KEY DATA FINDINGS
Premiumisation trend continues in coffee, despite recent inflationary pressures
Key players invest in the category
Sustainability remains at the forefront of developments
Café culture and premiumisation trends will continue to support coffee sales over the forecast period
The consumption of cold coffee is a gradually rising trend
Private labels and discounter brands expected to remain popular
Tea in Ireland
KEY DATA FINDINGS
Traditional black tea faces rising competition from coffee and other tea variants
Health-conscious consumers boost sales of green and herbal teas
There is a rising focus on sustainability in tea
The ongoing and growing popularity of coffee will continue to affect tea sales
Tea to explore more functionalities as the category evolves
Private label expected to expand further, as PL players embrace evolving tea trends
Other Hot Drinks in Ireland
KEY DATA FINDINGS
Chocolate-based flavoured powder drinks remains a large category, although facing challenges
Younger generations embrace other plant-based hot drinks but show a lack of interest in malt-based hot drinks
Foodservice sales benefit from rising café culture and increasingly sophisticated offerings
Convenience and new flavours set to support sales, while health and wellness trends will remain key
Sluggish birth rates could suppress sales of child-orientated other hot drinks
Potential competition from RTD chocolate milkshakes
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?
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- Track key industry trends, opportunities and threats
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This report originates from Passport, our Hot Drinks research and analysis database.
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