In 2018, hot drinks in Switzerland recorded stronger current value and volume growth in both the retail and foodservice channels. Overall, coffee achieved the strongest current value growth, attributed to the continuing high demand of fresh ground coffee pods.
Consumer interest in premium products continued to play a crucial role in hot drinks growth in 2018. In hot drinks collectively, current retail value growth outpaced the static overall retail volume growth, meaning consumers continued to migrate towards more premium brands, driving up value sales.
Swiss hot drinks remains consolidated, with the top six largest brands accounting for more than 80% of the retail value sales in 2018. Considering the country’s strong coffee culture and the corresponding dominance of coffee in hot drinks, it is not surprising that the largest manufacturers in hot drinks in Switzerland all hold leading positions in coffee.
The convenience and variety of capsule products, particularly coffee pods, helped these products retain their appeal in 2018 – particularly as more premium coffee pod products become available, such as Nestlé’s Nespresso On Ice limited edition. With the high levels of growth within coffee pods, manufacturers have released other types of pod products.
Hot drinks is expected to post better performance in retail volume terms over the forecast period. Swiss consumers will continue to seek out premium hot drink products that can be created at home.
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This industry report originates from Passport, our Hot Drinks market research database.