Hot Drinks in Azerbaijan
Euromonitor International's Hot Drinks in Azerbaijan 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: 16 | Publication date: Mar 2007
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Executive summary
Gradually changing consumer preferences
The hot drinks market in Azerbaijan is very large due to the country’s strong tradition of tea consumption. Coffee is popular, but to a far lesser extent. Tea is consumed on a daily basis, although coffee is considered to be more of an occasional daytime drink. During the Soviet era Azerbaijan was one of the largest tea-producing nations in the region. Since the country’s independence Azerbaijan has continued to develop its tea production, and both volume and value sales continued to grow over the review period.
Loose black standard tea dominates sales
All varieties of tea are popular, although sales of fruit/herbal tea also increased at the end of the review period. Black standard tea remained the most popular tea type in 2005, accounting for almost 73% of total tea value sales. Value sales of green tea and fruit/herbal tea increased due to increasing health awareness among consumers, although they remain somewhat niche products. Consumers in rural areas prefer loose black standard tea, primarily because it is cheaper.
Coffee demand increases
Fresh coffee remains the most popular product type in the coffee environment, and continued to experience value growth in 2005. However, instant coffee also experienced growth because of its convenience and ease of preparation. Despite increased sales of coffee, tea will continue to be the preferred hot drink for the majority of the population. Coffee is an imported product and is available in a wide variety of formats, including fresh beans, ground and instant. However, higher quality coffee is more expensive, and thus tends to be consumed more by coffee connoisseurs, largely in urban areas. Cheaper coffee brands account for the majority of sales, although such products tend to be of a lower quality.
Television marketing boosts sales
Television advertising is an effective tool in shaping consumer choice and boosting sales. However, most marketing campaigns continue to focus on tea and associated products. In addition to television marketing other promotional activity included point-of-sale discounts and in-store product sampling for consumers, often conducted in supermarkets as a means of direct customer contact.
Economic factors to influence hot drinks’ performance
Over the forecast period sales of hot drinks are expected to increase, although the performance will be heavily dependent on increasing disposable incomes among consumers. In a positive economic climate higher priced items will become more affordable, driving sales accordingly. If individual disposable incomes remains weak then consumers will continue to be price sensitive and therefore purchase lower priced products. Also, the increasingly hectic lifestyles of consumers in urban areas is likely to boost demand for coffee, while awareness of health issues will stimulate sales of products such as green tea.
Table of contents
HOT DRINKS IN AZERBAIJAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. HOT DRINKS SALES
2.1 Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
2.2 Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
2.3 Leading Company Profile – Sun-Tea Azerbaijan ATSC
Summary 1 Sun-Tea Azerbaijan ATSC (Azersun Holding): Operational Indicators 2004
Summary 2 Sun-Tea Azerbaijan ATSC (branch of Azersun Holding): Production Statistics 2005
2.4 Leading Company Profile – Beta Tea Group of Companies
Summary 3 Beta Tea Group of Companies: Operational Indicators 2004
2.5 New Product Launches
Summary 4 Major New Product Launches 2004-2005
2.6 Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
2.7 Retailer Activity and Private Label Trends
2.8 Forecast Market Performance
Table 9 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
3. DEFINITIONS