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Hot Drinks in New Zealand
February 2022
Hot drinks in 2021: The big picture
COVID-19 caused significant disruption to hot drinks in New Zealand in 2020. After the first cases were reported in February 2020, a four-level alert level system was introduced on 21 March to manage the outbreak within the country.
2021 key trends
Lockdown presented a unique opportunity for consumers to hone their barista skills, with retailers recording record sales for at-home coffee machines. These investments by consumers have significantly influenced hot drinks in 2021, as these purchases by consumers have been a key driver behind off-trade sales growth, which has prevented on-trade sales from returning to pre-COVID-19 levels.
Competitive landscape
Nestlé New Zealand has continued to lead hot drinks in 2021, with a focus on new product development activity, a strong presence in the off-trade and relationships with supermarkets ensuring it has been able to capitalise on the changing consumption behaviour caused by COVID-19. The company led the category through its leading brands Nescafé in instant coffee and Milo in malt-based hot drinks.
Retailing developments
Supermarkets remains the dominant distribution channel in hot drinks. However, COVID-19 saw e-commerce sales almost double between April and May 2020 compared with the same period the previous year.
Foodservice vs retail split
COVID-19 had a significant impact on the performance of foodservice channels in 2020, due to government-imposed lockdowns and restrictions on gathering. The initial lockdown in late March 2020 meant that foodservice outlets were unable to open under Level 4 restrictions.
What next for hot drinks?
While 2021 saw people return to the office, many companies have taken the disruption caused by the COVID-19 pandemic as an opportunity to reassess their office space requirements, with businesses across the country looking to downsize their office footprints and promote working from home initiatives. This should in theory offer significant opportunities for growth in sales of hot drinks.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in New Zealand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
Coffee
Tea
Other Hot Drinks
If you're in the Hot Drinks industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in New Zealand report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic volume and value sizes, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent research methodology, conducted in-country
This report answers:
What is the market size of Hot Drinks in New Zealand?
To what extent are health considerations impacting consumption of Hot Drinks in New Zealand?
What are the traditional preferences in Hot Drinks in New Zealand? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in New Zealand?
Which are the leading brands in Hot Drinks in New Zealand?
How are products distributed in Hot Drinks in New Zealand?
How is the rise of e-commerce changing the retail and competitive landscape?
Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
Where is future growth expected to be most dynamic?
Hot Drinks in New Zealand
EXECUTIVE SUMMARY
Hot drinks in 2021: The big picture
2021 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
Chart 1 Hot Drinks Value Sales Growth Scenarios: 2019-2026Chart 2 Hot Drinks Impact of Drivers on Value Sales: 2019-2026
MARKET DATA
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2016-2021Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2016-2021Table 3 Retail Sales of Hot Drinks by Category: Volume 2016-2021Table 4 Retail Sales of Hot Drinks by Category: Value 2016-2021Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2016-2021Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2016-2021Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2016-2021Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2016-2021Table 9 Total Sales of Hot Drinks by Category: Total Volume 2016-2021Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2016-2021Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2017-2021Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2018-2021Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2016-2021Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2016-2021Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2021Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2021-2026Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2021-2026Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2021-2026Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2021-2026Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2021-2026Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2021-2026Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2021-2026Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2021-2026Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2021-2026Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2021-2026
DISCLAIMER
SOURCES
Summary 1 Research Sources
Coffee in New Zealand
KEY DATA FINDINGS
2021 DEVELOPMENTS
Consumers have become at-home baristas
Nestlé New Zealand drives new product development activity
Allpress Espresso acquired by Asahi
PROSPECTS AND OPPORTUNITIES
New ways of working to influence coffee over the forecast period
Millennial preferences likely to influence category dynamics
Conscious consumption likely to influence new product development
CATEGORY DATA
Table 26 Retail Sales of Coffee by Category: Volume 2016-2021Table 27 Retail Sales of Coffee by Category: Value 2016-2021Table 28 Retail Sales of Coffee by Category: % Volume Growth 2016-2021Table 29 Retail Sales of Coffee by Category: % Value Growth 2016-2021Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2016-2021Table 31 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2016-2021Table 32 NBO Company Shares of Coffee: % Retail Value 2017-2021Table 33 LBN Brand Shares of Coffee: % Retail Value 2018-2021Table 34 Forecast Retail Sales of Coffee by Category: Volume 2021-2026Table 35 Forecast Retail Sales of Coffee by Category: Value 2021-2026Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2021-2026Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2021-2026Table 38 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2021-2026
Tea in New Zealand
KEY DATA FINDINGS
2021 DEVELOPMENTS
Off-trade sales decline as restrictions ease
Increasing competition felt from competing categories
Black tea remains popular, but herbal/fruit tea is the better performer
PROSPECTS AND OPPORTUNITIES
Lingering impact of COVID-19 will offer opportunities for tea
New ways of working offer growth opportunities
Weak outlook for green tea
CATEGORY DATA
Table 39 Retail Sales of Tea by Category: Volume 2016-2021Table 40 Retail Sales of Tea by Category: Value 2016-2021Table 41 Retail Sales of Tea by Category: % Volume Growth 2016-2021Table 42 Retail Sales of Tea by Category: % Value Growth 2016-2021Table 43 NBO Company Shares of Tea: % Retail Value 2017-2021Table 44 LBN Brand Shares of Tea: % Retail Value 2018-2021Table 45 Forecast Retail Sales of Tea by Category: Volume 2021-2026Table 46 Forecast Retail Sales of Tea by Category: Value 2021-2026Table 47 Forecast Retail Sales of Tea by Category: % Volume Growth 2021-2026Table 48 Forecast Retail Sales of Tea by Category: % Value Growth 2021-2026
Other Hot Drinks in New Zealand
KEY DATA FINDINGS
2021 DEVELOPMENTS
Premiumisation trend drives growth in chocolate-based flavoured powder drinks
Health and wellness concerns drive a fall in sales of malt-based hot drinks
Nestlé New Zealand continues to dominate, although segmentation grows
PROSPECTS AND OPPORTUNITIES
Millennials likely to be a key customer segment
Focus on sugar to drive innovation and offer opportunities for niche players
Growth in flavoured products an opportunity for greater consumer choice
CATEGORY DATA
Table 49 Retail Sales of Other Hot Drinks by Category: Volume 2016-2021Table 50 Retail Sales of Other Hot Drinks by Category: Value 2016-2021Table 51 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2016-2021Table 52 Retail Sales of Other Hot Drinks by Category: % Value Growth 2016-2021Table 53 NBO Company Shares of Other Hot Drinks: % Retail Value 2017-2021Table 54 LBN Brand Shares of Other Hot Drinks: % Retail Value 2018-2021Table 55 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2021-2026Table 56 Forecast Retail Sales of Other Hot Drinks by Category: Value 2021-2026Table 57 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2021-2026Table 58 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2021-2026
The following categories and subcategories are included:
Hot Drinks
Fresh Coffee Beans
Fresh Ground Coffee Pods
Standard Fresh Ground Coffee
Regular Instant Standard Coffee
Decaffeinated Instant Standard Coffee
Regular Instant Coffee Mixes
Decaffeinated Instant Coffee Mixes
Loose Black Tea
Tea Bags Black
Fruit/Herbal Tea
Green Tea
Instant Tea
Other Tea
Chocolate-based Flavoured Powder Drinks
Malt-based Hot Drinks
Non-Chocolate-based Flavoured Powder Drinks
Other Plant-based Hot Drinks
Hot Drinks
This is the aggregation of Coffee, Tea, and Other Hot Drinks.