Inflationary pressures, shifting household priorities and values-driven purchasing shape market performance in 2025
Hot drinks in New Zealand expanded in value terms in 2025, although growth was overwhelmingly the result of sustained price inflation rather than meaningful increases in consumption. Demand remained broadly stable across all major categories, but households continued to navigate a challenging economic environment characterised by rising living costs, soft wage growth and elevated interest rates. These pressures constrained discretionary spending and limited opportunities for volume expansion, particularly among families and middle-income consumers who prioritised essentials. While baseline consumption of coffee and tea remained resilient, price sensitivity shaped purchasing decisions throughout the year, with many consumers trading down or seeking promotions to manage household budgets more effectively.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
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
Inflationary pressures, shifting household priorities and values-driven purchasing shape market performance in 2025
KEY DATA FINDINGS
Health and wellness trends reshape category innovation and influence purchasing behaviour
Sustainability commitments strengthen brand credibility and reinforce premium positioning
Hot drinks are set to record modest value growth as inflation eases and consumers refocus on purposeful premiumisation
Wellness shifts from a trend to an embedded expectation across all major categories
Sustainability, traceability and responsible packaging become mandatory components of brand credibility
Jacobs Douwe Egberts NZ strengthens category leadership through portfolio breadth, home-brewing relevance and strategic innovation
Coffee remains the most dynamic category as home-brewing habits accelerate premiumisation and innovation
Supermarkets consolidate their role as the dominant retail channel as households prioritise value, convenience and reliable availability
E-commerce emerges as the fastest-growing channel as digital ecosystems evolve and specialty roasters expand direct-to-consumer reach
Foodservice demand remains subdued as cost pressures persist and consumers shift café habits into the home
Retail channel benefits from home-brewing culture and rising demand for premium and functional formats
COUNTRY REPORTS DISCLAIMER
Coffee in New Zealand
KEY DATA FINDINGS
Inflation, global supply pressures and home-brewing culture shape category performance
Retail value sales of coffee increased in 2025, driven primarily by pricing dynamics and selective premium trading-up
Fresh coffee beans lead category dynamism as home-brewing culture deepens and premium quality expectations rise
Coffee expected to record steady value growth supported by premiumisation, home-café routines and diversified format innovation
Cold formats, concentrates and RTDs reshape usage occasions as younger consumers shift toward convenience and portability
Ethical sourcing and sustainability commitments continue to shape brand credibility and premium positioning
Nestlé maintains leadership through portfolio breadth, strong household penetration and health-aligned innovation
Coffee Supreme emerges as the most dynamic company as it broadens accessibility and deepens consumer loyalty
Supermarkets remain the dominant channel as value-seeking shoppers favour consolidated grocery missions and strong promotional cycles
E-commerce continues to expand as digital grocery growth and specialty roaster direct-to-consumer models reshape purchasing behaviour
Tea in New Zealand
KEY DATA FINDINGS
Premiumisation, wellness routines and provenance-led purchasing shape tea consumption in a year of elevated but stabilising prices
Retail value sales of tea increased in 2025 as premium cues, wellness positioning and provenance claims drove engagement despite cost pressures
Black tea reclaims momentum as provenance, authenticity and ethical sourcing strengthen consumer trust
Moderate value growth ahead as premium blends, ethical sourcing and wellness narratives underpin category resilience
Functional, benefit-led blends gain traction as consumers seek targeted health outcomes from everyday beverages
Iced and cold-brew tea expected to reshape consumption occasions as younger audiences embrace refreshing, café-inspired formats
Dilmah deepens its market leadership through provenance, purpose-driven branding and strong emotional resonance with New Zealand consumers
Supermarkets retain dominance as value, familiarity and in-store discovery drive purchase behaviour
E-commerce emerges as the fastest-growing channel as convenience, speciality curation and subscription models gain traction
Other Hot Drinks in New Zealand
KEY DATA FINDINGS
Macroeconomic pressure, elevated cocoa costs and shifting wellness trends shape a constrained yet evolving category
Retail value sales of other hot drinks increased in 2025 as inflation offset volume softness and wellness-oriented formats gained traction
Matcha latte mixes emerge as the most dynamic segment as functional energy and social media influence drive rapid growth
Moderate value growth expected as price stabilisation, wellness diversification and premium lifestyle positioning support category resilience
Holistic wellness and functional positioning will drive the next wave of innovation as indulgent beverages evolve beyond sugar reduction
Plant-based hot drink powders gain momentum as sustainability, carbon awareness and dietary shifts reshape consumer expectations
Nestlé maintains category leadership as Milo balances nostalgia, energy and better-for-you reformulation
Morning Made emerges as the most dynamic player through matcha-led innovation and lifestyle-driven brand building
Supermarkets remain the leading channel as consumers favour in-person discovery and impulse-driven treat purchases
E-commerce is the most dynamic channel as consumers adopt digital grocery shopping and seek personalised, convenient replenishment
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
-
-
- Fresh Coffee Beans
-
- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
-
- Instant Standard Coffee
- Instant Coffee Mixes
-
-
-
- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
-
-
-
- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
-
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.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!