Hot Drinks in Switzerland

COVID-19 impact on hot drinks

Consumer foodservice outlets were forced to close for all but takeaway and delivery services as part of the strict lockdown measures to combat the spread of the Coronavirus (COVID-19) pandemic. The foodservice channel is significant in sales of hot drinks in Switzerland and this will obviously have a devasting impact on consumer foodservice volumes of hot drinks products, all of which are set to record steep double-digit declines over 2020.

COVID-19 country impact

On 13 March, the Swiss government introduced controls at all of its Schengen borders. Entry into Switzerland from Italy from this date was only allowed for Swiss citizens, people with a residence permit or people travelling to Switzerland for professional reasons, with this extended to the German, French and Austrian borders from 16 March.

Company response

Manufacturers and retailers have introduced a number of initiatives during the pandemic in order to support their customers and ensure they have been able to continue to enjoy hot drinks.

Retailing shift

Some retail channel shifts have been observed within sales of hot drinks as a direct result of the measures taken to combat the spread of the COVID-19 virus. Forecourt retailers, for example, are set to lose sales over 2020 as a direct result of the severe travel restrictions and home seclusion, while the retail volume share of vending will decline for much the same reasons, as well as the closure of locations such as offices.

Foodservice vs retail split

The foodservice share of total volume sales of hot drinks had been in steady decline throughout the review period. The trend in retail had been towards premiumisation, with many consumers seeking to recreate the café experience at home.

What next for hot drinks?

Retail volume sales of hot drinks are likely to return to steady, if accelerating growth, over the course of the forecast period. Fresh ground coffee pods is unlikely to lose its momentum over the forecast period as consumers continue to seek an authentic and, increasingly, natural and sustainable coffee experience at home.

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