Hot Drinks in Australia

Café culture continues to support the growth of hot drinks in Australia

Australia’s growing café culture remained a positive driver of hot drinks in Australia in 2018. This culture is not only seeing consumers enjoy coffee and other hot drinks in cafés, but also looking to recreate the café experience at home.

Premiumisation and health and wellness key trends in hot drinks

Café culture is having a direct impact on hot drinks by encouraging the growth of more premium products. Health and wellness is a trend that is often intertwined with premiumisation, with products that are positioned as healthier alternatives often using more premium or natural ingredients.

Nestlé Australia the leading player in hot drinks 2018

Nestlé Australia continues to be the largest player in hot drinks by value share in Australia, with the company seeing its largest share within other hot drinks and coffee. Within coffee, the company remains the leader in fresh ground coffee pods and instant coffee, with both of these categories supported by the trend of Australians seeking to make coffee conveniently and quickly at home.

New product developments focus on premiumisation, indulgence and health and wellness

New product developments within hot drinks were influenced by inter-related trends, namely consumers searching for more premium products in the form of healthier alternatives for everyday consumption and more indulgent drinks that can serve as a treat. Other hot drinks saw new product developments in 2018 after not experiencing new product developments for a number of years.

Hot drinks to see recovery in volume growth

Hot drinks will see recovery in off-trade volume growth over the forecast period. While coffee will see relatively stagnant growth in the off-trade, on-trade volume sales of coffee are expected to see strong growth as café culture becomes further ingrained into everyday life.

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