The COVID-19 pandemic may have faded from public consciousness over 2022, but the changes to the lifestyles of New Zealanders during the crisis have largely remained. New Zealanders are only slowly returning to their official places of employment, with many still home working or hybrid working, which is contributing to the continued consumption of hot drinks at home.
The stress of the COVID-19 pandemic led New Zealanders to search for two seemingly contradictory qualities in their hot drinks: decadent treats and health benefits. New Zealanders looking for decadent treats have embraced chocolate-based flavoured powder drinks, particularly those with a premium positioning, which is set to help drive strong retail current value growth in 2022, as well as both instant tea and instant coffee mixes.
As New Zealanders were unable to travel overseas during the pandemic, and were less able to go out to restaurants, the funds they saved allowed them to trade-up in terms of their formats and brands of hot drinks. The investment of many New Zealanders in a coffee machine, for example, turned many consumers from instant coffee drinkers to fresh coffee drinkers.
The distribution of hot drinks has long been dominated by supermarkets, particularly the big three supermarket chains, Countdown, Pak‘nSave and New World. During the pandemic however – and especially during the long Auckland lockdown of late 2021 – New Zealanders found it less appealing to shop in physical stores, and gravitated instead to retail e-commerce, which consequently made significant gains, and this is set to continue in 2022.
New Zealanders avoided foodservice channels during the worst of the pandemic in 2020 and 2021, but now that the country is opening up again in 2022, they have partially returned. After two years of strong decline, foodservice volume sales of hot drinks are set to see double-digit growth in 2022, but this is still not expected to be sufficient for a return to the pre-pandemic level of sales.
Retail volume sales of hot drinks may have been given a boost by the lifestyle and workplace changes made necessary by the COVID-19 pandemic, but this does not mean that as the pandemic ends there will be a reversion to pre-pandemic patterns. Many lifestyle changes, such as more consumers continuing to work at home than before the pandemic, are likely to endure.
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This is the aggregation of Coffee, Tea, and Other Hot Drinks.See All of Our Definitions
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