Hot Drinks in Italy
Euromonitor International's Hot Drinks in Italy 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: 88 | 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
Growing demand for flavoured powder drinks ensures volume growth
Hot drinks delivered a steady growth in volume terms in 2007, with total volume sales driven by “other” hot drinks, mainly chocolate-based flavoured powder drinks. Within coffee and tea, growth was driven by the increasing consumers’ demand for added-value categories such as Arabica coffee beans, green tea and “other” tea, which continued to benefit from the trend towards health and wellbeing. Meanwhile, hot drinks saw a much better performance in current value terms than volume terms, thanks to consumers’ increasing interest in high quality products and premium brands.
Looking for added-value products
In 2007, there was increasing interest in added-value products among both consumers and manufacturers. Italian consumers continued to look for convenience, quality, good taste and healthy properties. Within coffee this translated into an increasing demand for coffee pods at the expenses of standard coffee blends. Meanwhile, in tea consumers’ demand mainly focused on healthy herbal teas and infusions. Despite increasing demand, coffee pods remained a niche in 2007. Nevertheless, to capitalise on consumers’ interest and gain higher margins, manufacturers started to target a wider consumer base, using the internet as a preferred distribution channel for coffee pods and gaining a presence in supermarkets/hypermarkets.
Lavazza maintains leadership in 2007
Thanks to is strong position in coffee, Lavazza maintained its leadership in hot drinks in 2007, followed by Nestlé and Kraft Foods. Nestlé owes its second position to its dominance of instant coffee, through the well-known Nescafé brand. Apart from coffee, the multinational also operates in “other” hot drinks, leading chocolate-based flavoured powder drinks with Nesquik and malt-based hot drinks with Orzoro. Kraft is mainly focused on coffee, both fresh and instant, and is present with the Splendid and Hag brands, the second of which is only present in decaffeinated coffee. Important tea manufacturers include Star - Stabilimento Alimentare SpA and D&C SpA. Star - Stabilimento Alimentare owes its leadership in Tea to its Star Tea and Sogni d’Oro brands.
Private label maintained its position in overall hot drinks. Private label increased its value share mainly in coffee and tea, where smaller domestic companies failed to increase their differentiation from private label products.
Polarisation benefits discounters, small grocery and convenience stores
Supermarkets/hypermarkets remained the most popular distribution channels for hot drinks in 2007, despite a slight loss in off-trade volume share over the previous year. By contrast, discounters, small grocery retailers and convenience stores saw volume shares increase in 2007, benefiting from the ongoing polarisation of hot drinks. This is leading some consumers towards premium brands, while price-sensitive consumers are shifting to cheaper brands. This is because of the ongoing instability of the Italian economy during the review period. On the one hand, the uncertain economic conditions led to the widening of the price-sensitive consumer base, with consumers increasingly looking for less expensive products. On the other hand, despite the uncertain conditions, part of consumer base remained attached to premium products and to well-known brands. The polarisation did come, therefore, at the expenses of standard products.
Health and quality main drivers for the future
Sales of hot drinks are expected to continue to increase over the forecast period, although at very modest growth rates. Due to economic instability, the on-trade channel is very likely to perform sluggishly, while overall volume sales will be mainly driven by the off-trade channel. Within tea, healthy products such as green tea and fruit/herbal tea are expected to be the most dynamic. In coffee, consumers will continue to focus on coffee pods and high quality blends. To capitalise on the health trend, manufacturers may start to promote less healthy hot drinks such as black tea and coffee as healthy, on the grounds that no artificial ingredients have been added or because of their antioxidant properties.
Table of contents
HOT DRINKS IN ITALY : MARKET INSIGHT
EXECUTIVE SUMMARY
Growing demand for flavoured powder drinks ensures volume growth
Looking for added-value products
Lavazza maintains leadership in 2007
Polarisation benefits discounters, small grocery and convenience stores
Health and quality main drivers for the future
KEY TRENDS AND DEVELOPMENTS
Hot drinks increasingly premium
Targeting elderly consumers
Seeking healthy hot drinks
Increasingly hectic lifestyles
Weak consumer confidence to affect consumption patterns
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
Production/import/export data
Table 26 Imports of Green Coffee by Sector 2001-2006
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ITALY
CAFé DO BRASIL SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Café Do Brasil SpA: Key Facts
Summary 3 Café Do Brasil SpA: Operational Indicators
COMPANY BACKGROUND
PRODUTION
COMPETITIVE POSITIONING
Summary 4 Café Do Brasil SpA: Competitive Position 2007
CRASTAN SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Crastan SpA: Key Facts
Summary 6 Crastan SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Crastan SpA: Competitive Position 2007
GUABER SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Guaber SpA: Key Facts
Summary 9 Guaber SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Guaber SpA: Competitive Position 2007
KRAFT FOODS ITALIA SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Kraft Foods Italia SpA: Key Facts
Summary 12 Kraft Foods Italia SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Kraft Foods Italia SpA: Competitive Position 2007
LAVAZZA SPA, LUIGI - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Lavazza SpA, Luigi: Key Facts
Summary 15 Lavazza SpA, Luigi: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Lavazza SpA, Luigi: Competitive Position 2007
NESTLé ITALIANA SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Nestlé Italiana SpA: Key Facts
Summary 18 Nestlé Italiana SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 19 Nestlé Italiana SpA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 20 Nestlé Italiana SpA: Competitive Position 2007
SEGAFREDO ZANETTI SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Segafredo Zanetti SpA: Key Facts
Summary 22 Segafredo Zanetti SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 23 Segafredo Zanetti SpA: Competitive Position 2007
STAR - STABILIMENTO ALIMENTARE SPA - HOT DRINKS - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 24 Star - Stabilimento Alimentare SpA: Key Facts
Summary 25 Star - Stabilimento Alimentare SpA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 26 Star - Stabilimento Alimentare SpA: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 27 Star - Stabilimento Alimentare SpA: Competitive Position 2007
COFFEE IN ITALY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Coffee Machine Sales: 2002-2006
Table 28 Instant Coffee by Speciality Type 2004-2007
SECTOR DATA
Table 29 Sales of Coffee by Type: Volume 2002-2007
Table 30 Sales of Coffee by Type: Value 2002-2007
Table 31 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 32 Sales of Coffee by Type: % Value Growth 2002-2007
Table 33 Coffee Company Shares 2003-2007
Table 34 Coffee Brand Shares 2004-2007
Table 35 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 36 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 37 Forecast Sales of Coffee by Type: Value 2007-2012
Table 38 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 39 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
TEA IN ITALY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
Table 41 Other Tea by Type: % Off-trade Volume 2006-2007
Table 42 Sales of Tea by Subsector: Volume 2002-2007
Table 43 Sales of Tea by Subsector: Value 2002-2007
Table 44 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 45 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 46 Tea Company Shares 2003-2007
Table 47 Tea Brand Shares 2004-2007
Table 48 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 49 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 50 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 51 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
OTHER HOT DRINKS IN ITALY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 53 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 54 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 55 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 56 Other Hot Drinks Company Shares 2003-2007
Table 57 Other Hot Drinks Brand Shares 2004-2007
Table 58 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 59 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 60 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 61 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012