Hot drinks in 2024: The big picture
In 2024, hot drinks in New Zealand is set against the backdrop of inflation, which has reached more than 20-year highs, peaking at over 6% in recent years. While some inflationary pressures have started to ease due to reduced consumer spending amid the cost-of-living crisis, coffee prices remain notably elevated.
2024 key trends
The cost-of-living crisis has led more consumers to choose home-brewed beverages over frequenting cafés, with many hospitality venues closing due to shrinking household budgets in 2024. In response, some cafés are introducing creative offerings to attract customers, leveraging social media for visibility.
Competitive landscape
Competition remains intense within hot drinks in New Zealand. Nescafé, under Nestlé New Zealand Ltd, maintains a leading position, though closely trailed by Moccona from Jacobs Douwe Egberts NZ, with Avalanche Coffee Ltd in third place.
Retailing developments
Supermarkets continue to be the dominant retail channel for coffee, though the pandemic’s influence has fostered enduring growth in e-commerce. Although post-pandemic online sales growth has slowed, e-commerce remains a vital channel as consumers increasingly turn to digital platforms to compare prices amid the cost-of-living crisis.
Foodservice vs retail split
New Zealand’s high inflation and elevated interest rates have curbed consumer discretionary spending, impacting hospitality. Statistics NZ reported a 3% drop in electronic card spending on hospitality during the first half of 2024, resulting in closures of numerous restaurants, bars, and cafés.
What next for hot drinks?
In 2024, New Zealand faces a recession driven by high interest rates, with both private and public sectors reducing spending and headcount. However, tax relief introduced by the newly elected National Government, along with declining inflation rates, provides some relief for consumers.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in New Zealand 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 New Zealand, 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 New Zealand 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 New Zealand?
- To what extent are health considerations impacting consumption of Hot Drinks in New Zealand?
- What are the traditional preferences in Hot Drinks in New Zealand? 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 New Zealand?
- Which are the leading brands in Hot Drinks in New Zealand?
- How are products distributed in Hot Drinks in New Zealand?
- 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 New Zealand
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 New Zealand
KEY DATA FINDINGS
Cost of living pressures drive shift from foodservice to at-home coffee consumption
Inflationary pressures begin to ease, but coffee prices remain high as consumers seek affordable options
E-commerce continues to expand as online shopping gains popularity
On-trade sales expected to recover as economic conditions improve
Recovery in fresh ground coffee pods anticipated as instant coffee mixes lose momentum
Rising competition from ready-to-drink coffee
Tea in New Zealand
KEY DATA FINDINGS
Cost of living pressures drive shift from foodservice to off-trade
Broader inflationary pressures begin to ease, yet tea prices continue to grow
Zealong Tea gains international recognition
On-trade expected to rebound as the economy recovers
Threat of RTD tea amidst a broader shift away from hot drinks
Artisanal blends set to drive growth in loose leaf tea
Other Hot Drinks in New Zealand
KEY DATA FINDINGS
Cost of living pressures drive shift from foodservice to off-trade
Increasing global chocolate prices drive unit price growth
Local hospitality outlets emphasise experiential offerings to attract customers
Premiumisation trends to drive growth
Environmental considerations to boost demand for plant-based alternatives
Increased importance of digital engagement
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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