Rising prices and economic pressures continue to limit growth in hot drinks
Ongoing economic pressures continue to limit the growth hot drinks in the UK in 2025, with prices rising due to increased cost pressures for manufacturers and retailers. Despite this, players are focusing on offering added value products to sustain profit margins, including more indulgent, healthier and more sustainable options.
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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
Rising prices and economic pressures continue to limit growth in hot drinks
KEY DATA FINDINGS
Volume sales stagnate as consumers continue to battle with cost-of-living pressures
Players focus on offering quality products to sustain demand
Consumers look for indulgence without a higher price tag
Expansion of the UK’s HFSS regulations set to push healthier options
The digital market opening up opportunities for hot drinks
Producers under mounting pressure to adopt more ethical practices
Nestlé retains the lead through constant innovation and new product development
Keurig and JDE Peets merger expected to shake up the coffee market
Hypermarkets and supermarkets continue to dominate sales in 2025
Foodservice demand shaping the retail market
COUNTRY REPORTS DISCLAIMER
Coffee in the United Kingdom
KEY DATA FINDINGS
Coffee market focusing on added-value products as demand stalls
Focus shifts to value over volume growth in coffee
The search for healthy indulgence informing the growth and development of coffee
Coffee market set to focus on resilience, sustainability, and innovation
The future of coffee: automation, AI, and bean-less innovation
Functionality and flavour innovation will remain key for growth
Nestlé continues to lead with ongoing investment in its portfolio
Innovation playing a key role in driving competition in coffee
Supermarkets and hypermarkets remain dominant but e-commerce is thriving
On-trade sales remain buoyant despite rising prices
Tea in the United Kingdom
KEY DATA FINDINGS
Sales favour healthier and more indulgent tea offerings
The wellness wave is reshaping the UK tea market
Innovation rife in tea as players look to expand consumption occasions
Guilt-free indulgence and holistic wellness trends will reshape the tea market
Digital trends and personalisation helping to attract Gen Z to tea
Affordable sustainability set to drive growth in the UK tea market
Yorkshire Tea retains the lead with ongoing investment in innovation
Premiumisation and cold tea a focus on market innovation
Supermarkets and hypermarkets dominate sales while e-commerce makes inroads
Digital trends driving on-trade tea sales
Other Hot Drinks in the United Kingdom
KEY DATA FINDINGS
A tough year for other hot drinks with rising prices weighing on demand
Other hot drinks battling with rising prices and growing health concerns
Nostalgia and healthier options a focus of innovation
Non-traditional formats could revitalise the traditional market for hot chocolate
Personalisation and digital engagement offer growth opportunities
HFSS restrictions to accelerate health and wellness trends in other hot drinks
Mondelez leads a market that is rife with innovation
Knoops looking to expand
Little change in the distribution landscape as consumers look for the best value
The on-trade channel continues to see steady gains
COUNTRY REPORTS DISCLAIMER
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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