As British consumers have continued to turn away from tea and towards coffee, the latter is set to experience stronger retail current value growth in 2022, and will drive growth in overall hot drinks in the UK. Value sales in all three hot drinks categories are benefiting from premiumisation, with widening flavour profiles being a key element.
The overarching premiumisation trend in all hot drinks categories in the UK is comprised of numerous sub-trends. The most intriguing of these is the exploration trend, which has seen consumers become more adventurous in their purchasing choices, trialling niche flavours.
Nestlé UK is expected to maintain its lead in hot drinks in retail value terms in 2022. This can largely be attributed to the player’s success in coffee.
Vending is set to be the major winner in terms of distribution channels for hot drinks in 2022, benefiting from investment by major players such as Costa and Lavazza during the pandemic. The channel’s convenience, as well as its inherent digitalisation, suits fast-paced and technologically-savvy British consumers.
Similar to 2021, 2022 has seen volume recovery in foodservice and the decline of retail in hot drinks in the UK. The return to more normal working patterns and commuter footfall has invariably contributed to the rebound for foodservice.
In hot drinks, foodservice volume growth is anticipated to outpace retail. Although in the early half of the forecast period this growth will reflect recovery from the decline seen in 2020, in the latter half of the forecast period it reflects the return to the more orthodox consumption channel in which British consumers choose to drink their hot brews.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in United Kingdom with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This is the aggregation of Coffee, Tea, and Other Hot Drinks.See All of Our Definitions
This report originates from Passport, our Hot Drinks research and analysis database.
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