Hot Drinks in Germany
Euromonitor International's Hot Drinks in Germany 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: 72 | Publication date: Aug 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
Growing demand for coffee ensures hot drinks volume growth
Volume sales of hot drinks grew slightly in 2006. Growth was caused by the recovery of coffee, which accounts for by far the largest proportion of hot drinks’ volume sales. Growth in coffee was driven by additional demand for espresso, fresh coffee beans and coffee pods, while traditional filter coffee continued to decline in 2006. Due to a lack of innovation, tea sales declined in 2006, with the shift in demand from black tea to herbal tea continuing. Sales of other hot drinks, which are mainly targeted at children, are also declining, mainly due to a falling birth rate and the unhealthy image of these products.
Growing coffee prices cause value growth
A strong price increase for fresh coffee led to strongly growing value sales of coffee in 2006. Price increases for coffee were necessary, as the prices for green coffee on the world market continued to increase in 2006. Value growth in the coffee environment shows that most consumers do not want to do without coffee and therefore accept higher coffee prices. Although all manufacturers raised prices, the coffee environment is highly competitive and prices are still under pressure. Coffee is a product that is typically featured in a significant number of promotions in Germany. Discounters and supermarkets use large price cuts for coffee to attract consumers into their stores. Due to the strong competition in the retail environment, supermarkets and discounters try hard to undercut each other. Around 80% of fresh coffee sales are made via price promotions.
Coffee pods double sales
Coffee pods continue to perform strongly in the coffee sector. Demand for coffee pods almost doubled in 2006. In a mature coffee environment, volume sales of coffee pods more than quadrupled over 2004-6, albeit from a low base. An increasing number of consumers prefer coffee pods to standard coffee due to pods’ inherent convenience. A coffee pod machine is not only much quicker than a standard coffee machine, but manufacturers also emphasise the better taste and the individuality of coffee pods. In 2005 and 2006 volume sales of coffee pods were also boosted by the introduction of several individual pod systems by the leading coffee companies. Manufacturers are very interested in the success of coffee pods as they are much more expensive than filter coffee, and consumers of these products are less price sensitive. However, as the failure of Melitta’s “My Cup” system shows, competition in the coffee pod niche is increasing.
Health aspects become more important
The growing health awareness of German consumers and the ongoing wellness trend are influencing the market for hot drinks. While demand for products with a healthy image is growing, unhealthy hot drinks are suffering. Wellness is therefore becoming an important part of marketing strategies for manufacturers of hot drinks. In the declining tea environment, herbal tea in particular benefits from the growing health consciousness of German consumers. In recent years leading tea manufacturers have discovered a new and increasingly sophisticated marketing strategy to convince consumers to buy their products, labelling new tea mixes with fancy names associated with wellness and well-being.
However, demand for such new products is approaching saturation. According to industry sources, it has become difficult to attract new health conscious consumers, as most people are well aware of the fact that they do not become happy and healthy just by drinking a cup of herbal tea. For manufacturers of coffee, it is even more difficult to emphasise health and wellness aspects, as coffee is perceived as an unhealthy product. Chocolate-based hot drinks are also affected by the increasing public focus on issues of health and obesity, especially among children. Increasingly health conscious parents are becoming more concerned about their children’s diets and sugar intake, and are therefore buying alternatives to chocolate-based drinks for their children, such as herbal tea products.
Table of contents
HOT DRINKS IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
Growing demand for coffee ensures hot drinks volume growth
Growing coffee prices cause value growth
Coffee pods double sales
Health aspects become more important
KEY TRENDS AND DEVELOPMENTS
Growing health awareness
Fewer children, ageing population
Consumers remain parsimonious
Convenience appeals to younger consumers
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 - GERMANY
BüNTING TEEHANDELSHAUS GMBH & CO - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Bünting Teehandelshaus GmbH & Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 2 Bünting Teehandelshaus GmbH & Co: Competitive Position 2006
JJ DARBOVEN HOLDING AG & CO - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 3 JJ Darboven Holding AG & Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 JJ Darboven Holding AG & Co: Competitive Position 2006
KRAFT FOODS DEUTSCHLAND GMBH & CO - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Kraft Foods Deutschland GmbH & Co: Key Facts
Summary 6 Kraft Foods Deutschland GmbH & Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Kraft Foods Deutschland GmbH & Co: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 8 Kraft Foods Deutschland GmbH & Co: Competitive Position 2006
MELITTA UNTERNEHMENSGRUPPE BENTZ KG - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Melitta Unternehmensgruppe Bentz KG: Key Facts
Summary 10 Melitta Unternehmensgruppe Bentz KG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 11 Melitta Kaffee GmbH: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 12 Melitta Unternehmensgruppe Bentz KG: Competitive Position 2006
NESTLé DEUTSCHLAND AG - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Nestlé Deutschland AG: Key Facts
Summary 14 Nestlé Deutschland AG (inc Nestlé Waters Deutschland): Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Nestlé Deutschland AG: Competitive Position 2006
OSTFRIESISCHE TEE GESELLSCHAFT - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Ostfriesische Tee Gesellschaft: Key Facts
Summary 17 Ostfriesische Tee Gesellschaft: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Ostfriesische Tee Gesellschaft: Competitive Position 2006
TCHIBO GMBH - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Tchibo GmbH: Key Facts
Summary 20 Tchibo GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 21 Tchibo GmbH: Competitive Position 2006
TEEKANNE GMBH - HOT DRINKS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 22 Teekanne GmbH: Key Facts
Summary 23 Teekanne GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 24 Teekanne GmbH: Competitive Position 2006
COFFEE IN GERMANY
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 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 GERMANY
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 Tea Company Shares 2002-2006
Table 33 Tea Brand Shares 2003-2006
Table 34 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 35 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 36 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 37 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 39 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 40 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 42 Other Tea by Type: % Off-trade Volume 2005-2006
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