Hot drinks in 2024: The big picture
The frugality of the “less but better” trend has persisted in the US since the inflationary woes of 2022, with many consumers choosing to maintain or increase their at-home consumption of hot drinks, even as more opportunities arise for foodservice consumption occasions. Coffee and tea have maintained price inelasticity, while the attachment to coffee shops has started to drift.
2024 key trends
Cold coffee and tea continues to be the dominant theme in hot drinks in 2024, as younger generations show seasonal agnosticism about their desire to consume chilled offerings. RTD tea has long been the dominant form of cold consumption, but RTD coffee and yerba mate are increasingly growing their volume shares.
Competitive landscape
The fallout of Unilever’s exit from hot tea is still playing out, with Ekaterra transforming into Lipton Teas & Infusions, and hoping to revive the struggling black tea bags category. Unilever is still betting on the potential of tea in the US, but largely within both the non-alcoholic and alcoholic segments of RTD tea through its partnerships with PepsiCo and FIFCO respectively.
Retailing developments
E-commerce has continued to be the key story in retailing in 2024, but less so than it was during previous years. The pandemic period was a massive accelerant for the adoption of e-commerce in retailing in general, and in grocery categories specifically.
Foodservice vs retail split
Even as consumers are looking to reduce their spending, sales of hot drinks in foodservice soldier on, and volume sales are expected to continue to rise slightly in the US in 2024. In spite of surging prices, driven by labour shortages in foodservice, coffee and tea in restaurants and cafés have strangely benefited from these circumstances.
What next for hot drinks?
Retail and foodservice volume sales of hot drinks are expected to remain relatively stable in the US in the forecast period, given that the consumption of such products is essential to many people’s daily routine, and the low price floor for caffeination gives access to all. While the industry has weathered the high inflation and commodity costs of the last two years, the future remains uncertain without a clear solution to supply chain problems and the climate crisis.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in USA 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 USA, 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 USA 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 USA?
- To what extent are health considerations impacting consumption of Hot Drinks in USA?
- What are the traditional preferences in Hot Drinks in USA? 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 USA?
- Which are the leading brands in Hot Drinks in USA?
- How are products distributed in Hot Drinks in USA?
- 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 US
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 US
KEY DATA FINDINGS
Instant coffee sees a renaissance
Cold coffee drives innovation and new consumer gains
Coffee shortages loom large amidst climate crisis
Uncertain economic headwinds will grow at-home consumption
Lingering need to address supply chain issues, but solutions will slow
Cold coffee applications alone cannot provide a future for single-serve coffee
Tea in the US
KEY DATA FINDINGS
Lipton Teas & Infusions maintains its lead amidst shuffling
Innovation flourishes in tea
Supply chain braces for trade war
Expanding the ecosystem of need states will help drive growth in tea
Cost consciousness will add volatility to where tea is consumed
E-commerce strategy will be key to growth
Other Hot Drinks in the US
KEY DATA FINDINGS
The brief peak in growth for malt-based and chocolate-based hot drinks recedes
A record low birth rate signals waning potential
Malt-based and chocolate-based hot drinks lag tea and coffee, with little likely shift
Functional ingredients will be a necessity for flavoured powder drinks
Coffee’s crisis is an opportunity for niche categories
Yaupon remains esoteric
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
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This report originates from Passport, our Hot Drinks research and analysis database.
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