The global hot drinks industry is enjoying strong growth, as the expansion of specialist coffee shops and tea specialists familiarises consumers with premium coffee and tea offerings. Rising health consciousness is also driving growth in functional hot drinks. The report identifies some of the most notable examples of global product development in hot drinks from Euromonitor International’s latest research.
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As specialist coffee shops, including Starbucks, Costa Coffee and others, have expanded globally, more consumers have become familiar with better quality coffee and speciality coffee drinks, such as cappuccinos and lattes. Consumers are looking for milkier products like cappuccinos and lattes they can make at home.
Coffee drinkers, especially millennials, increasingly want to know how, where and by whom their coffee was produced. Shoppers are looking for more transparency and are driving growth in coffee with an ethical label, such as Fairtrade, UTZ Certified, The Rainforest Alliance, or “direct trade”, where they can be assured that workers and the environment have been treated well.
Similarly to how coffee shops have raised consumer expectations about retail coffee, the expansion of tea specialists, such as Davids Tea, Teavana and T2, has served to educate consumers about quality in loose leaf tea, as well inspired unique flavour blends, such as Mango Fruit Punch and Pink Flamingo. In turn, makers of packaged tea have introduced multiple flavour blends and more premium offerings
Tea has been viewed as a traditional remedy for a long time. As consumer awareness of health and nutrition rises, tea makers are increasingly highlighting the inherent health benefits of tea, as well as adding functional ingredients, such as probiotics and maitake mushrooms, to market additional benefits.
Consumers are looking for additional functional benefits in coffee and other hot drinks, whether that is additional caffeine or antioxidants, or the addition of probiotics for digestive and immune system health.