Hot drinks in 2024: The big picture
Retail volume sales of hot drinks in the UK continue to decline in 2024, due to increasing price pressures, although the latter ensures further value growth. Unit prices are rising across all categories, influenced by higher raw material costs and climate-related disruptions, impacting supply availability.
2024 key trends
Some of the main trends shaping hot drinks in 2024 include premiumisation, the pursuit of value, a focus on health and wellbeing, and the search for convenience. As many local consumers continue to spend time at home post-pandemic, moments of indulgence have gained importance, encouraging their investment in more premium coffee options.
Competitive landscape
In 2024, Nestlé UK Ltd remains the leading player in hot drinks, largely due to its stronghold in coffee. On the other hand, the brand Costa Coffee is driving growth by prioritising value offerings and innovation amid economic challenges.
Retailing developments
Despite the dominance of supermarkets and hypermarkets in the distribution of hot drinks in the UK, discounters remains an attractive alternative, as inflation continues to pressure consumer spending and drive budget-conscious shopping. E-commerce also retains higher share than pre-pandemic levels, particularly with an increasing variety of premium hot drink options available online.
Foodservice vs retail split
The split between foodservice and retail continues to reflect similar trends to previous years. Foodservice volumes are recovering, driven by increased foot traffic in city centres and a stronger return to office work, while the retail channel is experiencing a decline in volumes.
What next for hot drinks?
Hot drinks in the UK is evolving rapidly, with the influence of rising costs leading to the greater search for value. The focus on sustainability and health and wellness is also expected to continue.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in United Kingdom 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 United Kingdom, 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 United Kingdom 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 United Kingdom?
- To what extent are health considerations impacting consumption of Hot Drinks in United Kingdom?
- What are the traditional preferences in Hot Drinks in United Kingdom? 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 United Kingdom?
- Which are the leading brands in Hot Drinks in United Kingdom?
- How are products distributed in Hot Drinks in United Kingdom?
- 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 the United Kingdom
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 the United Kingdom
KEY DATA FINDINGS
Premiumisation at home fuels growth of fresh coffee
Winners of instant coffee: Specialty mixes and private label
Costa Coffee is strongest performer, with a focus on value offerings, innovation and promotions
The future of coffee in the UK: Balancing cost pressures and the demand for value
The demand for decaffeinated options and the rise of health-conscious choices
Sustainability and recyclable packaging will remain key focus areas
Tea in the United Kingdom
KEY DATA FINDINGS
From tradition to innovation: The rise of fruit/herbal tea in the UK
Sustainability and ethical sourcing in focus
Yorkshire Tea is leading brand with innovative products and a focus on marketing
The refreshing appeal of cold tea in the UK
Driving volume growth through promotions amid economic uncertainty
Wellness in a cup: The future growth of mood-boosting and functional teas
Other Hot Drinks in the United Kingdom
KEY DATA FINDINGS
Health trend remains a challenge for chocolate-based flavoured powder drinks
The alarming rise of cocoa and sugar prices
Horlicks fuels value growth in malt-based hot drinks
Growth opportunities remain within the mature hot chocolate space
Guilt-free indulgence: Growing demand for plant-based and vegan hot drinks
Foodservice demand set to continue growing over the forecast period
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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