Hot Drinks in Switzerland
Euromonitor International's Hot Drinks in Switzerland 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: 71 | Publication date: Feb 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
Shift to premium products
Whilst hot drinks as a whole is suffering from slow product innovation cycles, manufacturers and retailers are increasingly improving their selection of premium products. This development may surprise the observer who saw a rising prominence of low-cost products during the late 1990s and early and mid-2000s. However, the two dominant product categories, coffee and tea, are characterised by a stagnating selection of low- and medium-cost products and a fast-growing premium segment. Due to the stable economic situation, which supports not only the wealthy, but also the middle and lower classes, Swiss consumers are willing to pay extra for quality products.
Increased concentration in Swiss packaged food
The two leading Swiss retailers, Migros and Coop, discouraged by their unsuccessful attempts to diversify into other European countries, are the only surviving independent retailers. The two German retailing giants that recently entered the Swiss market or plan to do so in the near future, Aldi and Lidl, have not yet reached significant market shares. Therefore, Migros and Coop control about 80% of domestic packaged food sales. For commodities such as coffee and tea, this share may be even higher. Compared to other European retailers, both Migros and Coop rely heavily on private label products. With very few exceptions, Migros does not sell any branded products at all. This puts Coop in a powerful situation. Every manufacturer, Swiss or foreign, has to win Coop’s cooperation in order to successfully launch a branded product in the Swiss market. Apart from the many advantages this duopoly brings to the Swiss consumers, it also causes stagnation and slow innovation in many product areas.
Fast growth of hypermarkets and convenience stores
Swiss retail, for decades dominated by medium-size supermarkets, is changing fast, adapting to the European trend towards larger outlets and increased opening hours. During the economic downturn at the beginning of the 21st century, Migros and Coop had to close down many smaller outlets, primarily in the rural and mountainous areas, but also in the larger cities. Private shops suffered even more. The increasing mobility of the Swiss consumers made these shops more and more unattractive due to the small product selection and the limited opening hours. The shift to hypermarkets was observed first. From 2004 to 2006, the sales area of hypermarkets increased by 25%. The number of hypermarkets is forecast to increase further by 10% in 2008-2010. On the other hand, Migros and Coop have started to build a net of convenience stores all over the country. The gaps in that net are still wide, but there is no doubt that the two giants will also dominate convenience stores as they dominate supermarkets/hypermarkets today. This largely affects hot drinks because innovative companies face growing difficulties in finding sales partners for their products.
Limited growth expectations
Swiss hot drinks shows limited growth expectations for the 2007-2012 forecast period. The market is saturated. Value growth will mostly follow inflation and the limited shift to premium products. However, the distinctions between categories within hot drinks are noteworthy. Coffee is expected to grow by 17% in constant value terms over the 2007-2012 forecast period, primarily due to the shift to premium products such as coffee pods. Tea will benefit from the shift from carbonated soft drinks to healthy alternatives, whilst other hot drinks shows a pessimistic outlook: the main target group, schoolchildren, prefers ready-to-drink (RTD) products or soft drinks.
Table of contents
HOT DRINKS IN SWITZERLAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Shift to premium products
Increased concentration in Swiss packaged food
Fast growth of hypermarkets and convenience stores
Limited growth expectations
KEY TRENDS AND DEVELOPMENTS
Shift to private label products
The increasing importance of health and wellness
Coop versus Migros – the last survivors
Growth for consumption of on-the-go products
The Swiss are getting older
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
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SWITZERLAND
COOP SCHWEIZ - HOT DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Coop Schweiz: Key Facts
Summary 3 Coop Schweiz: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Summary Coop Schweiz: Competitive Position 2007
MIGROS GENOSSENSCHAFTSBUND EG - HOT DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Migros Genossenschaftsbund eG: Key Facts
Summary 6 Migros Genossenschaftsbund eG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Migros Genossenschaftsbund eG: Competitive Position 2007
NESTLé SUISSE SA - HOT DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Nestlé Suisse SA: Key Facts
Summary 9 Nestlé Suisse SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
WANDER AG - HOT DRINKS - SWITZERLAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Wander AG: Key Facts
Summary 11 Wander AG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Wander AG: Competitive Position 2007
COFFEE IN SWITZERLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Sales of Coffee by Type: Volume 2002-2007
Table 27 Sales of Coffee by Type: Value 2002-2007
Table 28 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 29 Sales of Coffee by Type: % Value Growth 2002-2007
Table 30 Standard Vs Coffee Pods 2004-2007
Table 31 Coffee Company Shares 2003-2007
Table 32 Coffee Brand Shares 2004-2007
Table 33 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 34 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 35 Forecast Sales of Coffee by Type: Value 2007-2012
Table 36 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 37 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
Table 38 Coffee Machine Sales: 2002-2006
TEA IN SWITZERLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Sales of Tea by Subsector: Volume 2002-2007
Table 40 Sales of Tea by Subsector: Value 2002-2007
Table 41 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 42 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 43 Tea Company Shares 2003-2007
Table 44 Tea Brand Shares 2004-2007
Table 45 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 46 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 47 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 48 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
Table 49 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
OTHER HOT DRINKS IN SWITZERLAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 50 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 51 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 52 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 53 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 54 Other Hot Drinks Company Shares 2003-2007
Table 55 Other Hot Drinks Brand Shares 2004-2007
Table 56 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 57 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 58 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 59 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012