Hot Drinks

Tea has continued to record positive growth rates in volume terms in recent years, but has also seen declining sales in real value terms in Middle East and Africa. With consumers struggling in a difficult economic climate, many have been trading down…

This report examines inflation levels and drivers globally and in key countries. In 2023, global inflation is expected to ease from its peak in 2022, but remaining significantly above-trend. Geopolitical risks and uncertainty in the energy market are…

Now in its seventh edition, this report explores the top digital shopper trends that will redefine commerce the most in the year ahead. Some of the trends included in this edition touch on topics such as second-hand shopping, community group buying,…

Coffee dominates retail volume sales of hot drinks in Ethiopia. Coffee has a long history in Ethiopia and is regularly consumed by most adults. Retail volume sales of coffee continued to expand in 2022, with the economic shock of the pandemic having…

Hot drinks in 2022: The big picture

Hot drinks sales continued to decline in retail volume terms in 2022 albeit at a slower pace than in the previous two years, while foodservice sales struggled to recover to pre-COVID-19 levels. High inflation and other economic pressures resulted in…

During the review period prior to the onset of the pandemic, retail volume sales of hot drinks were expanding at a robust rate, supported by urbanisation, population growth, and a buoyant economy, but they were flat in 2020 and 2021 as the economic…

Hot drinks returned to growth in 2022 as the impact of COVID-19 on the economy and consumer mobility subsided. Nonetheless, high unemployment and high inflation is limiting stronger growth, with many consumers remaining price sensitive. Strong…

Kenya is one of the main global tea exporters and as a result, it is no surprise that Kenyans love their tea, in particular black tea, though in 2022, fruit/herbal tea registered the highest current value growth. Overall, though tea registered…

Other hot drinks continued to be a sizeable product area in Kenya and accounted for significantly more value sales than coffee. Other hot drinks also outperformed both tea and coffee in 2022, with healthy constant value growth. Though inflation was…

Hot drinks registered double-digit current value growth, though constant value growth was very low. The war in Ukraine led to an energy crisis, which in return led to high inflation. However, the full impact of the global oil price rises and other…

Coffee registered double-digit current value growth, though constant value growth was very low. The war in Ukraine led to an energy crisis, which in return led to high inflation. However, the full impact of the global oil price rises and other…

While the majority of tea sales in South Africa occur in the mid and lower price bands, premium tea is experiencing increasing demand in 2022. One of the driving factors is the greater penetration of retail e-commerce in the category. This is…

In 2022, Unilever Nigeria Plc remained the largest player in tea in retail value terms. The company’s Lipton brand has established itself as the brand of choice for many consumers. Moreover, Unilever is taking advantage of the ongoing expansion of…

Innovation within other hot drinks in 2022 has been primarily focused on new vegan-friendly and plant-based alternative offerings, across chocolate-based, malt-based and other plant-based drinks. However, these innovations are largely being driven by…

Nestlé Nigeria Plc remained the dominant player in other hot drinks in terms of off-trade value sales in 2022. The company supports its Milo brand through significant investment in marketing and advertising campaigns. The use of billboards, radio,…

Following the removal of all travel and regulatory restrictions in early 2022, the largest development within hot drinks in South Africa has been the resumption of foodservice, reaching comparable levels to pre-pandemic demand. However, COVID-19 has…

In 2022, hot drinks manufacturers’ ability to deliver in the Nigerian market was still being affected by the negative impact of the COVID-19 crisis. The devaluation of the local currency and rising inflation, which led to high unit prices, saw…

Following significant declines in demand in 2020 in line with pandemic-related restrictions on foodservice establishments, foodservice volume sales of coffee, particularly of fresh coffee beans and standard fresh ground coffee, continue to grow in…

In 2022, Nestlé Nigeria Plc remained the dominant player in terms of off-trade coffee value sales. The company maintained its lead in instant coffee due to the strong reputation of its Nescafé brand. Nescafé benefits from an established and popular…