Where Consumers Shop for Hot Drinks

Delivery

This report comes in PPT.

Key findings

Spike in value sales hides increasingly concerning volume challenges

While global hot drinks revenue is seeing growth in 2025, much of this is being driven by inflation, not volume. Volume stagnation is attributable to the high cost of living environment, climate change and the impact of tariffs. As such, channels such as discounters and small local grocers have seen strong performances, due to the availability of affordable hot drinks products.

Discounters see strong growth in hot drinks

Discounters, such as HotMaxx in China, and Aldi and Lidl in Europe and North America, have seen strong growth, due to their massive outlet presence and ability to offer premium hot drinks at affordable prices. This poses stiff competition to other grocery channels, in particular supermarkets and hypermarkets.

E-commerce gains share rapidly at the expense of store-based channels

Between 2019 and 2024, e-commerce was the sole distribution channel to undergo significant change in the hot drinks market, with its share of total retail sales value increasing from 6% in 2019 to 11% in 2024. South Korea has become the first country to have a third of its retail sales be online.

Online marketplaces continue to be the key channel for hot drinks e-commerce sales

Online marketplaces like Amazon and JD.com dominate online hot drinks sales and continue to grow, due to technological innovations through social commerce and livestreaming, as well as last mile delivery services providing convenience to consumers.

E-commerce platforms thrive due to livestreaming, availability and price promotions

E-commerce platforms like Douyin and JD.com from China are seeing strong growth in tea. They are aided by livestreaming and social media promotions, which help increase brand awareness for tea. In addition, the range of tea varieties available online is much more extensive than in physical stores, while price discounts and time-limited offers appeal to price conscious consumers.