Hot Drinks in the US
Euromonitor International's Hot Drinks in the US 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: 78 | Publication date: Apr 2009
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
Introduction of premium products fuels sales
Hot drinks value growth surpassed volume growth during 2008. This discrepancy can be attributed to higher coffee prices and increasing demand for premium products such as fair trade, single source, organic, and Rainforest Alliance brands.
JM Smucker enters coffee
The US coffee landscape underwent a transformation in 2008 when Procter & Gamble decided to sell Folgers Coffee Co to JM Smucker Co in a US$3 billion deal. JM Smucker gained the Folgers, Millstone, and Dunkin Donuts coffee brands in the deal and has immediately become the largest US coffee manufacturer by off-trade volume sales. JM Smucker’s existing spreads and dry mixes operations are seen as being complementary to its new coffee business and the company has nearly doubled in size as a result of the transaction.
Major brands facing competition from two directions
Multinationals such as Kraft, Unliever, Nestlé, and ConAgra account for the leading brands within all hot drinks categories. However, such companies are now facing significant competition from premium specialty and private label brands.
Chained coffee specialists become testing ground
Although hot drinks distribution continues to be dominated by supermarkets/hypermarkets, on-trade outlets, especially specialist coffee chains, increasingly lead the way with regard to innovation. For example, Starbucks continuously rolls out new blended drinks utilizing teas and hot chocolate as well as coffee and added fruit flavours. In addition, foodservice outlets were the first to offer products containing functional ingredients. Off-trade versions of on-trade coffee brands such as Dunkin Donuts, Starbucks, and Peet’s were amongst the most dynamic coffee brands over the forecast period.
Slowdown anticipated
Hot drinks performance over the next five years is projected to be somewhat muted. Categories which have been in long-term decline, such as instant coffee and chocolate-based flavoured powder drinks, are not expected to fare any better over the forecast period whilst growth within more dynamic areas like fresh coffee beans and other tea is expected to suffer due to increasing saturation. In addition, value growth will be negatively effected by the economic slowdown and the fact that consumers are consequently shifting away from premium brands towards cheaper alternatives.
Table of contents
HOT DRINKS IN THE US : MARKET INSIGHT
EXECUTIVE SUMMARY
Introduction of premium products fuels sales
JM Smucker enters coffee
Major brands facing competition from two directions
Chained coffee specialists become testing ground
Slowdown anticipated
KEY TRENDS AND DEVELOPMENTS
Increasing health awareness fuels sales
Trading up to premium brands
Hot drinks appeal to fast paced lifestyles
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Horecavolume1000 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Horecavolume1000 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Table 25 Manufacturer Shipments of Hot Drinks by Category 2001-2006
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - USA
EIGHT O'CLOCK COFFEE CO - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Eight O’Clock Coffee Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Eight O’Clock Coffee Co: Competitive Position 2008
HAIN CELESTIAL GROUP INC, THE - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Hain Celestial Group Inc, The: Key Facts
Summary 5 Hain Celestial Group Inc, The: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 Hain Celestial Group Inc, The: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 Hain Celestial Group Inc, The: Competitive Position 2008
JM SMUCKER CO, THE - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 JM Smucker Co, The: Key Facts
Summary 9 JM Smucker Co, The: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 JM Smucker Co, The: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 JM Smucker Co, The: Competitive Position 2008
KRAFT FOODS INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Kraft Foods Inc: Key Facts
Summary 13 Kraft Foods Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Kraft Foods Inc: Competitive Position 2008
MASSIMO ZANETTI BEVERAGE USA - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Massimo Zanetti Beverage USA: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Massimo Zanetti Beverage USA: Competitive Position 2008
RC BIGELOW INC - HOT DRINKS - USA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 RC Bigelow Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 RC Bigelow Inc: Competitive Position 2008
COFFEE IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Coffee Machine Sales: 2002-2007
Table 27 Instant Coffee by Speciality Type 2004-2008
Table 28 Retail Sales of Coffee by Type: Volume 2003-2008
Table 29 Retail Sales of Coffee by Type: Value 2003-2008
Table 30 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 31 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 32 Standard Vs Coffee Pods 2004-2008
Table 33 Coffee Company Shares 2004-2008
Table 34 Coffee Brand Shares 2005-2008
Table 35 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 36 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 37 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 40 Other Tea by Type: % Off-trade Volume 2005-2008
Table 41 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 42 Retail Sales of Tea by Subsector: Value 2003-2008
Table 43 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 44 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 45 Tea Company Shares 2004-2008
Table 46 Tea Brand Shares 2005-2008
Table 47 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 48 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN THE US
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 51 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 52 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 55 Other Hot Drinks Company Shares 2004-2008
Table 56 Other Hot Drinks Brand Shares 2005-2008
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013