Hot Drinks in Sweden

COVID-19 impact on hot drinks

The outbreak of COVID-19 in Sweden is expected to result in a double-digit decline for all foodservice sales, with consumers avoiding socialising in public. However, retail value and volume sales are set to move from negative growth in 2019 to positive growth in 2020; with volume sales moving from a decline of 1% in 2019, to a prediction of 3% growth in 2020.

COVID-19 country impact

There have been no restrictions or lockdowns in Sweden, except for a ban on gatherings of more than 50 people that was introduced on 29 March (except for schools and workplaces). There have been recommendations from the Public Institute of Health that people should not travel outside of the country or even inside the country, unless absolutely necessary, but no strict rules were in place to limit this.

Company response

Jacobs Douwe Egberts SE AB is set to retain the lead of the landscape in 2020, leading sales of coffee, the largest area in hot drinks. The player offers Gevalia and Tassimo coffee and is followed by Nestlé Sverige AB, which offers Zoégas and Nescafé.

Retailing shift

In response to the outbreak of COVID-19, the government did not require any retailers to close or install reduced opening hours, and foodservice venues remained open. Despite this, many consumers were very wary of socialising in public, especially those more vulnerable to the virus, and as such, sales through foodservice are set to drop, recording a double-digit volume decline.

Foodservice vs retail split

Despite foodservice outlets remaining open across the country, there is a clear shift towards retail sales from foodservice sales in 2020. Only those facilities that offered capacity for over 50 guests could not function as normal, and this impacted plans for weddings, business events and other large gatherings.

What next for hot drinks?

Predicted to record a double-digit decline in 2020, foodservice sales are expected to recover from 2021, predicted to record volume growth for the year. These positive results will be driven by consumers feeling confident to socialise in public once more, returning to cafés, restaurants and bars, to enjoy hot drinks.

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