Hot Drinks in Australia
Euromonitor International's Hot Drinks in Australia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 76 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks growth continues
In 2007, hot drinks in Australia continued to grow with total volume growth of over 3%. On-trade volume sales posted stronger growth than off-trade volume sales in 2007 due to the rising number of on-trade specialist coffee shops and other cafés/bars in Australia. The 2007 result was driven mainly by coffee, where the trend toward fresh coffee continued.
Premiumisation changing the face of hot drinks
Across hot drinks, there is evidence of a trend towards premiumisation, particularly in tea and coffee. The traditional category leaders – black standard tea and instant coffee – are gradually but continuously being eroded by premium-priced other tea products and fresh coffee.
Major suppliers continue to increase dominance
In hot drinks, where new topical concerns, such as fair trade and quality and authenticity, are emerging, suppliers devoted to these issues are making very little impact as the major suppliers continue to dominate and even improve their positions. During the review period, Nestlé Australia Ltd led hot drinks in terms of value sales, followed by Unilever Australia Ltd. Multinationals continued to lead hot drinks, as they offer a wide variety of hot drinks products.
Café culture aids new product adoption
The café culture, whilst often attributed with being part of the reason for the strong growth in off-trade fresh coffee, has also served as a catalyst for the growth in specialty tea products. This is especially true of black speciality tea, such as Chai, where consumers’ first experience has often been in the on-trade. This is an example of off-trade growth being influenced by a trend first seen in the on-trade channel.
Supermarkets/hypermarkets continued to dominate hot drinks, while other grocery retailers, including tea specialty retailers, grew its volume share of hot drinks in 2007.
Hot drinks to achieve total volume CAGR of over 2% during the forecast period
The key drivers of growth during the forecast period will continue to be premiumisation and indulgence. Renewed interest in tea – through products such as green tea, white tea and chai – will stimulate growth, as will the proven ability of fresh coffee to attract younger consumers into off-trade coffee consumption. Similarly, other hot drinks growth will be driven by innovative products, such as those offering greater indulgence, and also fortified products.
Table of contents
HOT DRINKS IN AUSTRALIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks growth continues
Premiumisation changing the face of hot drinks
Major suppliers continue to increase dominance
Café culture aids new product adoption
Hot drinks to achieve total volume CAGR of over 2% during the forecast period
KEY TRENDS AND DEVELOPMENTS
Supermarkets/hypermarkets dominates hot drinks
Private label products move to new quality levels
Consumers opt for healthier hot drinks
Fair trade emerges
Consumers move towards premium brands
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2002-2007
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2002-2007
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Hot Drinks Company Shares by Value 2003-2007
Table 12 Hot Drinks Brand Shares by Value 2004-2007
Table 13 Penetration of Private Label by Sector 2003-2007
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2007
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2007-2012
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2007-2012
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2007-2012
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2007-2012
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2007-2012
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2007-2012
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2007-2012
APPENDIX
Published Data Comparisons
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - AUSTRALIA
AUSTRALIAN FRUIT TEA COMPANY PTY LTD - HOT DRINKS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Australian Fruit Tea Co Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 Australian Fruit Tea Co Pty Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
CANTARELLA BROS PTY LTD - HOT DRINKS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Cantarella Bros Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 Cantarella Bros Pty Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Cantarella Bros Pty Ltd: Competitive Position 2007
MADURA TEA ESTATES AUSTRALIA PTY LTD - HOT DRINKS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Madura Tea Estates Australia Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 8 Madura Tea Estates Australia Pty Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Madura Tea Estates Australia Pty Ltd: Competitive Position 2007
MYERTON HEALTH PRODUCTS PTY LTD - HOT DRINKS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Myerton Health Products Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Myerton Health Products Pty Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 Myerton Health Products Pty Ltd: Competitive Position 2007
NERADA TEA PTY LTD - HOT DRINKS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Nerada Tea Pty Ltd: Key Facts
Summary 14 Nerada Tea Pty Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Nerada Tea Pty Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Nerada Tea Pty Ltd: Competitive Position 2007
COFFEE IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Sales of Coffee by Type: Volume 2002-2007
Table 27 Sales of Coffee by Type: Value 2002-2007
Table 28 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 29 Sales of Coffee by Type: % Value Growth 2002-2007
Table 30 Standard Vs Coffee Pods 2004-2007
Table 31 Coffee Company Shares 2003-2007
Table 32 Coffee Brand Shares 2004-2007
Table 33 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 34 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 35 Forecast Sales of Coffee by Type: Value 2007-2012
Table 36 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 37 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
Table 38 Coffee Machine Sales: 2002-2006
Table 39 Instant Coffee by Speciality Type 2004-2007
TEA IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Sales of Tea by Subsector: Volume 2002-2007
Table 41 Sales of Tea by Subsector: Value 2002-2007
Table 42 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 43 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 44 Tea Company Shares 2003-2007
Table 45 Tea Brand Shares 2004-2007
Table 46 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 47 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 48 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 49 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
Table 50 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
OTHER HOT DRINKS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 51 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 52 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 53 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 54 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 55 Other Hot Drinks Company Shares 2003-2007
Table 56 Other Hot Drinks Brand Shares 2004-2007
Table 57 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 58 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 59 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 60 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012