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: 68  |  Publication date: May 2009
Cost: 
GBP800.00

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  • 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

Performance of hot drinks ignited by consumers’ sophisticated taste buds

Australia has a rising population of coffee drinkers who have advanced to become coffee connoisseurs. Seeking a café experience in the comfort of one’s own home, the aroma of fresh coffee beans brewing in coffee machines is taking the place of convenient instant coffee. In a similar fashion, tea drinkers are beginning to select fruit/herbal tea variants over others for their accompanying health benefits. As the sophisticated taste buds of consumers encourage them to trade up to more premium offerings, the overall performance of hot drinks is being ignited and the market is continuing to see healthy growth.

Emerging innovations compete to win consumers’ hearts in 2008

In 2008 innovations were a common sight in hot drinks, springing up across coffee, tea and other hot drinks to capture the hearts of consumers. Over the review period Nestlé Australia Ltd filled the shelves with unprecedented hot drinks such as Milo B-Smart as well as Nescafé Greenblend, which originates from a unique combination of green and roasted coffee beans. This stream of innovations tended to focus on healthy product attributes and added health benefits. As such, competition between manufacturers intensified and consumers became spoilt for choice.

Awareness driven by multi-million dollar marketing campaigns

Backed by the financial support of well-established parent companies, new products such as Twinings Simply Tea, Bushells Australian Breakfast Tea and Nescafé Greenblend were all supported by multi-million dollar marketing campaigns. This support drove the performance of these leading players and led to increased pressure on smaller manufacturers which had to find other means to attract consumer awareness in such an intense competitive environment.

Dominance of supermarkets makes product placement a priority

Supermarkets continued to be an increasingly important distribution channel as more consumers chose to purchase their groceries from such outlets. As such, it is crucial that brands are distributed in supermarkets and are able to obtain a prominent shelf position as there are countless of brands competing for the same target audience. This shifts the power from the manufacturers to the retailers and this is likely to remain the case as supermarket chains continue to evolve and expand in Australia.

Enhanced product attributes will sustain growth

Across hot drinks in Australia, leading manufacturers have been extremely active in terms of new product development. Enhanced product attributes such as indulgent flavours or increased health benefits are several methods which have been utilised in an attempt to sustain growth in the face of rising competition. Even for smaller manufacturers, enhanced product attributes are necessary and evidently in use, for example offering organic produce or being a supporter of fairtrade and sustainability. These different product attributes are being used to entice and gain a larger share of consumer sales.

Table of contents

HOT DRINKS IN AUSTRALIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Performance of hot drinks ignited by consumers’ sophisticated taste buds

Emerging innovations compete to win consumers’ hearts in 2008

Awareness driven by multi-million dollar marketing campaigns

Dominance of supermarkets makes product placement a priority

Enhanced product attributes will sustain growth

KEY TRENDS AND DEVELOPMENTS

Innovations ride on rising health-consciousness

Sophistication continues to unravel in consumer preferences

Economic slowdown drives popularity of larger pack sizes

Leading manufacturers sustain leadership via significant advertising budgets

Sustainability is the key to robust growth

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008

Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008

Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008

Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008

Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008

Table 7 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008

Table 8 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008

Table 9 Hot Drinks Company Shares by Value 2004-2008

Table 10 Hot Drinks Brand Shares by Value 2005-2008

Table 11 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 12 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 13 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 14 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 15 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 16 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 17 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 19 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 20 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 21 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 22 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

APPENDIX

Published Data Comparisons

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - AUSTRALIA

AUSTRALIAN FRUIT TEA CO 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 2008

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 2008

COMPETITIVE POSITIONING

Summary 6 Cantarella Bros Pty Ltd: Competitive Position 2008

MYERTON HEALTH PRODUCTS PTY LTD - HOT DRINKS - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Myerton Health Products Pty Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

Summary 8 Myerton Health Products Pty Ltd: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 9 Myerton Health Products Pty Ltd: Competitive Position 2008

NERADA TEA PTY LTD - HOT DRINKS - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Nerada Tea Pty Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

Summary 11 Nerada Tea Pty Ltd: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 12 Nerada Tea Pty Ltd: Competitive Position 2008

COFFEE IN AUSTRALIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 23 Coffee Machine Sales: 2002-2007

Table 24 Instant Coffee by Speciality Type 2004-2008

Table 25 Retail Sales of Coffee by Type: Volume 2003-2008

Table 26 Retail Sales of Coffee by Type: Value 2003-2008

Table 27 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 28 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 29 Standard Vs Coffee Pods 2004-2008

Table 30 Coffee Company Shares 2004-2008

Table 31 Coffee Brand Shares 2005-2008

Table 32 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 33 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 34 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 35 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA IN AUSTRALIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 36 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008

Table 37 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 38 Retail Sales of Tea by Subsector: Value 2003-2008

Table 39 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 40 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 41 Tea Company Shares 2004-2008

Table 42 Tea Brand Shares 2005-2008

Table 43 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 44 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 45 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 46 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS IN AUSTRALIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 47 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 48 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 49 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 50 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 51 Other Hot Drinks Company Shares 2004-2008

Table 52 Other Hot Drinks Brand Shares 2005-2008

Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013

Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013

Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013

Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013