Hot Drinks in Belgium
Euromonitor International's Hot Drinks in Belgium 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: 60 | Publication date: Jul 2007
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
Coffee pods, health and wellness and premiumisation boost further hot drinks sales
For the third consecutive year, retail sales of hot drinks continue to rise. Before 2003, the market bore the brunt of the competition from more convenient soft drinks and a lack of innovation and marketing support. Nonetheless, the penetration of Senseo coffee pods and the wave of similar products that followed is so impressive that the coffee sector, in particular, has seen rejuvenated growth. Drinking coffee is already a strong and well-established tradition in Belgium and the coffee pod revolution has positively impacted growth further.
Even so, there are also improvements in the sales of tea and other hot drinks largely as a result of the growing trend for health and wellness products such as fruit/herbal tea, chocolate powder and chicory, as well as a strong premiumisation movement, especially in terms of packaging and flavoured mixes, in black speciality tea. With continuous price growth in coffee and upgrading in tea, the value increase still outstrips the volume performance of the market.
Retail outlets dominate the market at the expense of foodservice
Off-trade still largely leads the way in hot drinks and looks to remain thus given the trend toward home consumption. In this channel, multiple retailers dominate but have to face competition from convenience stores and the aggressive marketing and price advantages offered by hard discounters. Such outlets cut prices in coffee and notably coffee pods. Specialist tea and coffee outlets that consolidated consumer loyalty with their wide choice of specialities and ability to advise their customers now have more difficulty doing so due to the upsurge in mass distribution.
Although foodservice benefits from continuous price increases, it nonetheless has much lower sales than off-trade in volume terms.
Douwe Egberts SA still leader in an unchanged competitive environment
Being the clear leader in coffee and the first mover in coffee pods, Douwe Egberts SA remains the leading player in hot drinks value sales in 2006. The Sara Lee Corp subsidiary took a somewhat radical step with the launch of Senseo in the latter part of the review period, but in 2007 it is no longer alone in the coffee pods subsector. Private label is increasingly strong in this niche, while other coffee manufacturers are also following the trend. In this highly competitive climate, Nestlé Begilux SA aims to appeal to both ends of the coffee-drinking demographic, with its Nespresso machine, largely targeted at upper-middle classes at one end, and instant coffee targeted at young consumers at the other. However, this strong activity in coffee does not prevent tea players from progressing too. Unilever Bestfoods Belgium NV, for example, has achieved growing sales thanks to its breakthrough in fruit/herbal tea, while and R Twining & Co Ltd has seen strong growth in black speciality tea.
Continuous volume growth anticipated despite price erosion
In combination with less intense competition from soft drinks, the further development of coffee systems will continue to popularise coffee pods in a market that should benefit from continuous product development, which in turn will boost coffee sales and thus hot drinks as a whole. However, the intense price competition that has developed following Douwe Egberts SA lost its court case against rival coffee pod manufacturers will undermine the value potential of coffee. Tea and other hot drinks will take advantage of the ongoing success of premium specialities and fruit/herbal tea.
Table of contents
HOT DRINKS IN BELGIUM : MARKET INSIGHT
EXECUTIVE SUMMARY
Coffee pods, health and wellness and premiumisation boost further hot drinks sales
Retail outlets dominate the market at the expense of foodservice
Douwe Egberts SA still leader in an unchanged competitive environment
Continuous volume growth anticipated despite price erosion
KEY TRENDS AND DEVELOPMENTS
More favourable outlook despite the competition from soft drinks
More convenience for single people and those with increasingly hectic lifestyles
Private label could erode the added value of coffee pods
Health and wellness should play an increasing role
On-trade to yield market share to off-trade
Mass distribution outlets increasing dominant presence
Mainstream players will focus on the best concepts
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Penetration of Private Label by Sector 2002-2006
Table 8 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 9 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 10 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 13 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - BELGIUM
CAFéS LIéGEOIS SA - HOT DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Cafés Liégeois SA: Key Facts
Summary 2 Cafés Liégeois SA: Operational Indicators
COMPANY BACKGROUND AND PRODUCTION
Summary 3 Cafés Liégeois SA: Production Statistics 2006
COMPETITIVE POSITIONING
DELHAIZE 'LE LION' SA - HOT DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Delhaize Le Lion SA: Key Facts
Summary 5 Delhaize Le Lion SA: Operational Indicators
COMPANY BACKGROUND AND PRODUCTION
COMPETITIVE POSITIONING
EDEL SA - HOT DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Edel SA: Key Facts
Summary 7 Edel SA: Operational Indicators
COMPANY BACKGROUND AND PRODUCTION
Summary 8 Edel SA: Production Statistics 2006
COMPETITIVE POSITIONING
ROMBOUTS KOFFIE NV - HOT DRINKS - BELGIUM
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Rombouts Koffie NV: Key Facts
Summary 10 Rombouts Koffie NV: Operational Indicators
COMPANY BACKGROUND AND PRODUCTION
Summary 11 Rombouts Koffie NV Production Statistics 2006
COMPETITIVE POSITIONING
Summary 12 Rombouts Koffie NV: Competitive Position 2006
COFFEE IN BELGIUM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Coffee by Type: Volume 2001-2006
Table 15 Sales of Coffee by Type: Value 2001-2006
Table 16 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 17 Sales of Coffee by Type: % Value Growth 2001-2006
Table 18 Standard Vs Coffee Pods 2004-2006
Table 19 Instant Coffee by Speciality Type: % Off-trade Volume 2004-2006
Table 20 Coffee Company Shares 2002-2006
Table 21 Coffee Brand Shares 2003-2006
Table 22 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 23 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 24 Forecast Sales of Coffee by Type: Value 2006-2011
Table 25 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 26 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN BELGIUM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of Tea by Subsector: Volume 2001-2006
Table 28 Sales of Tea by Subsector: Value 2001-2006
Table 29 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 30 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 31 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2006
Table 32 Other Tea by Type: % Off-trade Volume 2005-2006
Table 33 Tea Company Shares 2002-2006
Table 34 Tea Brand Shares 2003-2006
Table 35 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 36 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 37 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 38 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN BELGIUM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 40 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 42 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 43 Other Hot Drinks Company Shares 2002-2006
Table 44 Other Hot Drinks Brand Shares 2003-2006
Table 45 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 46 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 48 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011