The review period saw sluggish volume growth in hot drinks; however, value sales grew moderately, thanks to increased demand for health and wellness positioned, premium and craft products. Company engagement in these products accelerated from 2016 onwards, as the Finnish economy improved.
Organic products saw the highest growth rates in hot drinks in 2018, and their presence has increased in all areas of hot drinks. A key reason for this strong growth is the fact that, unlike in some other categories, new organic hot drinks product launches have tended to have affordable unit prices – often only a little higher than the standards products.
Sales of hot drinks have been driven by the big coffee manufacturers Meira and Gustav Paulig. A better economic performance in the latter part of the review period boosted sales of new competitors, which offer new innovative brands.
The strengthening of the economy has encouraged manufacturers to offer added-value products. Key consumer trends in 2018 included health and wellness, ethical, premium and craft-positioned products with higher than average unit prices.
The forecast period will see volumes fall in coffee and other hot drinks, owing to declines in mainstream categories such as fresh ground coffee, black tea and chocolate powder drinks. Demand for added-value products will, on the other hand, remain positive, with organic, premium and craft products seeing positive volume demand.
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This industry report originates from Passport, our Hot Drinks market research database.