Hot Drinks in the United Kingdom
Euromonitor International's Hot Drinks in the United Kingdom 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: 85 | 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
Ethical hot drinks products prove increasingly popular with UK consumers
Be it Fairtrade, sustainable development or other initiatives such as the Ethical Tea Partnership, hot drinks products which tapped into the ethical consumerism trend proved hugely successful in 2007, particularly in coffee. In tea, the question of supply still remained an issue, with an insufficient number of Fairtrade estates producing branded or even private label Fairtrade tea products. During the review period, many UK consumers came to see the purchasing of Fairtrade products as their way of making a small contribution to the fight against global poverty. Recognising the growing public support for ethical consumerism and sustainable development, major retailers like Marks & Spencer and Co-Op decided to only offer Fairtrade coffee and tea products in their outlets. The launch of a Fairtrade organic Mayan chocolate-based flavoured powder drinks product under premium chocolate confectionery brand Green & Black’s in 2007 confirmed that the ethical consumerism trend is still gaining momentum in the hot drinks market.
UK consumers trade up to more indulgent hot drinks products
Rising disposable incomes encouraged many UK consumers to trade up to higher quality, more expensive hot drinks products during the review period. Rising demand for premium positioned fresh ground coffee, specialty tea and chocolate-based flavoured powder drinks products continued to drive growth in retail hot drinks current value sales in 2007. Higher spending on premium lines also helped to compensate for sluggish growth in retail volume sales. Premium hot drinks products were increasingly viewed as affordable luxuries, and with more money in their pockets, many UK consumers were prepared to pay a little extra to indulge themselves. With rising demand for higher quality products evident in all packaged food and beverage categories, consumer interest in the provenance and traceability of hot drinks products also increased. This trend was closely linked to the trend towards ethical consumerism, and saw UK consumers become more well informed about coffee blends or the origins of tea and cocoa-based products.
Health and wellness trend is strongest in the tea sector
As was the case in other UK packaged food and beverage categories, the health and wellness trend continued to play an influential role in the development of hot drinks in 2007. Decaffeinated tea and coffee products proved increasingly popular with consumers seeking to live healthier lifestyles. Manufacturers focused on developing new decaffeinated tea and coffee variants that compared favourably with standard products in terms of taste and quality. Strong growth in demand for decaffeinated products in both sectors is testament to their success. Tea also benefited as green and fruit/herbal tea showed robust growth in retail volume and current value sales. Younger urban professionals leading busy lifestyles proved especially receptive to fruit/herbal tea products offering specific effects or health benefits, such as the ability to help the drinker relax, regain energy or detox. Demand for green tea products meanwhile (both standard and decaffeinated varieties) continued to grow thanks to widespread media coverage of their health benefits, specifically their high antioxidant content.
Development of the UK café culture shapes retail coffee offerings
The presence of speciality coffee shops outlets such as those in the Costa Coffee and Starbucks chains on nearly every high street in the UK continued to have a major influence on consumer attitudes to coffee in 2007. The ubiquity of espresso-based coffee varieties in such outlets encouraged many consumers to try and recreate the specialist coffee shops experience at home, boosting demand for speciality fresh ground coffee products at the retail level. In late 2006, Starbucks-branded fresh ground coffee products were made available in the outlets of major UK retailers, strengthening this trend. Coffee pods products meanwhile continued to provide a stepping stone between instant speciality and specialty fresh ground coffee for many consumers.
Despite increased consumer sophistication, traditional favourites dominate tea
Similar to patterns witnessed in packaged food and wine, during the review period trend-setting consumers started to experiment with more exotic and premium products in tea. In a reaction against the perceived commoditisation of the sector as a whole, single estate and fine tea products proved increasingly popular. In 2007, however, traditional favourites continued to dominate, with black standard tea bags accounting for 86% of retail tea volume sales.
Table of contents
HOT DRINKS IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
Ethical hot drinks products prove increasingly popular with UK consumers
UK consumers trade up to more indulgent hot drinks products
Health and wellness trend is strongest in the tea sector
Development of the UK café culture shapes retail coffee offerings
Despite increased consumer sophistication, traditional favourites dominate tea
KEY TRENDS AND DEVELOPMENTS
Ethical shoppers are spoilt for choice in the UK
UK consumers demand authenticity and luxury
Specialist coffee shops boom changes consumer attitudes to coffee
On-trade establishments adapt to introduction of UK smoking ban
Rising health awareness continues to influence the development of hot drinks
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 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2001-2005
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - UNITED KINGDOM
BETTYS & TAYLORS GROUP LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Betty & Taylors of Harrogate Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 3 Betty & Taylors of Harrogate Ltd: Competitive Position 2007
CAFéDIRECT LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Cafédirect Ltd: Key Facts
Summary 5 Cafédirect Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Cafédirect Ltd: Competitive Position 2007
KRAFT FOODS UK LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Kraft Foods UK Ltd: Key Facts
Summary 8 Kraft Foods UK Ltd: Operational Indicators 2006
COMPANY BACKGROUND
PRODUCTION
Summary 9 Kraft Foods UK Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 10 Kraft Foods UK Ltd: Competitive Position 2007
NESTLé UK LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Nestlé UK Ltd: Key Facts
Summary 12 Nestlé UK Ltd: Operational Indicators 2004-2005
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Nestlé UK Ltd: Competitive Position 2007
TETLEY GB LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Tetley GB Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 15 Tetley GB Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 16 Summary Tetley GB Ltd: Competitive Position 2007
TWINING & CO LTD, R - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Twining & Co Ltd, R: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 18 Twining & Co Ltd, R: Competitive Position 2007
TYPHOO TEA LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Typhoo Tea Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 20 Typhoo Tea Ltd: Production Statistics
COMPETITIVE POSITIONING
Summary 21 Typhoo Tea Ltd: Competitive Position 2007
UNILEVER BESTFOODS UK LTD - HOT DRINKS - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 22 Unilever Bestfoods UK Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 23 Unilever Bestfoods UK Ltd: Competitive Position 2007
COFFEE IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Sales of Coffee by Type: Volume 2002-2007
Table 28 Sales of Coffee by Type: Value 2002-2007
Table 29 Sales of Coffee by Type: % Volume Growth 2002-2007
Table 30 Sales of Coffee by Type: % Value Growth 2002-2007
Table 31 Standard Vs Coffee Pods 2004-2007
Table 32 Coffee Company Shares 2003-2007
Table 33 Coffee Brand Shares 2004-2007
Table 34 Foodservice Sales of Coffee by Distribution Format 2002/2007
Table 35 Forecast Sales of Coffee by Type: Volume 2007-2012
Table 36 Forecast Sales of Coffee by Type: Value 2007-2012
Table 37 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
Table 38 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
Table 39 Coffee Machine Sales: 2002-2006
Table 40 Instant Coffee by Speciality Type 2004-2006
TEA IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Sales of Tea by Subsector: Volume 2002-2007
Table 42 Sales of Tea by Subsector: Value 2002-2007
Table 43 Sales of Tea by Subsector: % Volume Growth 2002-2007
Table 44 Sales of Tea by Subsector: % Value Growth 2002-2007
Table 45 Tea Company Shares 2003-2007
Table 46 Tea Brand Shares 2004-2007
Table 47 Forecast Sales of Tea by Subsector: Volume 2007-2012
Table 48 Forecast Sales of Tea by Subsector: Value 2007-2012
Table 49 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
Table 50 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
Table 51 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
Table 52 Other Tea by Type: % Off-trade Volume 2005-2007
OTHER HOT DRINKS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
Table 54 Sales of Other Hot Drinks by Subsector: Value 2002-2007
Table 55 Sales of Other Hot Drinks by Subsector: % Volume Growth 2002-2007
Table 56 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
Table 57 Other Hot Drinks Company Shares 2003-2007
Table 58 Other Hot Drinks Brand Shares 2004-2007
Table 59 Forecast Sales of Other Hot Drinks by Subsector: Volume 2007-2012
Table 60 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
Table 61 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2007-2012
Table 62 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2007-2012