Hot Drinks in Romania

Changing attitudes to hot drinks continue to drive growth

Hot drinks recorded accelerating retail volume growth in 2019, largely driven by coffee, the staple hot drink in the country, although tea and other hot drinks also continued to register strong increases in consumption. Coffee is normally consumed as an energy booster in the mornings, and is still popular due to the periods of shortages during the Soviet era, while tea, traditionally used as a remedy for colds, is becoming increasingly popular as a hot drink in its own right, especially fruit/herbal varieties.

The healthy lifestyle trend is changing consumer perceptions

The trend towards healthy lifestyles is reshaping hot drinks in Romania. Premiumisation remains evident, with some shoppers not only willing to spend more but also to upgrade either to higher-priced products or to switch between product types.

The brand is becoming less significant

Consumers of hot drinks are becoming more sophisticated and although products such as coffee and tea will undoubtedly remain important, their volume and value growth is heavily dependent on how players adjust their communication techniques. Although the leading brands will doubtless retain their strong positions going forward, given their long-standing brand equity, some smaller brands may struggle to maintain share.

High levels of company activity in hot drinks

Hot drinks witnessed high levels of new product development and company activity in 2019. In coffee, Parmafood Group Distribution took over the distribution and imports of the Italian Kimbo brand on 1 May 2019.

Ongoing value growth expected due to more educated consumers

Hot drinks is expected to maintain its steady growth in current retail value and volume sales over the forecast period, driven by GDP growth, enabling consumers to spend a little more, whilst becoming increasingly aware of what they are consuming. Players are expected to take advantage of these factors, using innovative communication techniques to establish closer relationships with consumers and offering smaller packaging and healthier options which will translate into increasing value sales.

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