Hot drinks continues growth momentum
Hot drinks continues grow as rural consumers switch from loose to branded tea. Additionally, consumers are also picking other hot drinks including malt-based hot drinks mainly, due to the nutritional benefits claimed by the various brands. Most leading companies, including GlaxoSmithKline and Cadbury, continue to push their brands through TV commercials and with in-store advertisements and promotions. In addition, leading manufacturers are also targeting rural consumers, by introducing small sachets of brands such as Horlicks and Brooke Bond Red Label tea to boost consumption, so consumers can purchase these brands in quantities they can afford.
Hot drinks move towards premiumisation
As consumers continue to look for healthier varieties and new flavours of tea and coffee, hot drinks increasingly moves towards premiumisation. Premiumisation trends have been clearly evident in the double-digit growth of green tea, speciality tea, and other malt-based hot drinks in 2013. To leverage this growth, several manufacturers such as Tata Global Beverages introduced new green tea flavours. Interestingly, the premiumisation trend has started to take off in second-tier and third-tier three cities as well, with consumers becoming more willing to spend extra on new brands and flavours.
Multinationals maintain lead
Leading multinationals, including Unilever, GlaxoSmithKline, and Nestlé maintained the lead in hot drinks in 2013. The long-established presence, trusted brand name and wide distribution network of these companies enabled them to maintain strong value sales. In addition, multinational players have brands at each price point, which makes them popular and more widely available to consumers throughout the country.
Modern retailers increase penetration and gain further popularity
Traditional small grocery retailers remained the leading channel for hot drinks sales in 2013. Most consumers buy tea, coffee and other hot drinks from traditional kirana stores, located within their neighbourhoods. However, modern grocery retail stores, including hypermarkets and supermarkets, have become increasingly popular due to the wide range of brands they offer. Additionally, modern retail stores offer a one-stop shop, greater levels of convenience and more competitive prices.
Hot drinks promises positive growth over the forecast period
Hot drinks is likely to continue to record strong value growth over the forecast period, driven by an increasing number of people switching to branded tea and coffee. In addition, many consumers are likely to move towards more highly-priced tea, coffee and other hot drinks in the belief they offer nutritional benefits. To leverage this trend, leading manufacturers, including Unilever and Tata Global Beverages are likely to introduce new variants of coffee and tea, which can be expected to stimulate growth.
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The Hot Drinks in India market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Hot Drinks in India?
- What are the major brands in India?
- How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinks industry in India?
- Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?
- How have changing demographics (for example an aging population) affected the hot drinks market in India?
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This industry report originates from Passport, our Hot Drinks market research database.