Other Hot Drinks in Estonia

2020 IMPACT

Other hot drinks trails in comparison to coffee and tea, as consumers remain concerned about nutritional value

Other hot drinks in Estonia remains hampered by the enduring popularity of coffee and tea and consumer concerns about the nutritional value of many types of other hot drinks, particularly chocolate-based hot drinks, the most popular subcategory in this product area. These concerns have increased in 2020 as Estonians become more aware of the link between obesity and susceptibility to the COVID-19 pandemic and seek to limit household consumption, especially among children who have been forced to stay at home during lockdown.

Nestlé maintains the lead thanks to efforts to add value to its leading Nesquik brand

Nestlé SA retained overall leadership of other hot drinks in 2020 due to the strong presence within chocolate-based flavoured powder drinks of its well-known global brand Nesquik. The brand offers a range of packaging formats and sizes, such as small 13g packages for one cup and larger 200g, 400g and 600g packages, all at competitive prices.

Grana Sp zoo consolidates its lead in other plant-based hot drinks in 2020, with its popular Inka brand

Other plant-based hot drinks is still regarded as a niche product area in Estonia. Sales remain moderate within this subcategory, and the vast majority of local consumers do not include these products in their daily lives.

RECOVERY AND OPPORTUNITIES

Compatible hot chocolate pods can offer consumers a café experience

Pod coffee machines such as those by Nespresso are enjoying growth in Estonia due to the ongoing convenience trend and the desire to recreate the café experience at home, and this offers chocolate-based flavoured powder drinks some potential for growth. Nespresso has recently developed Espresso compatible Hot Chocolate Pods, which are offered by Podista.

Slowing demand for chocolate-based flavoured powder drinks despite efforts from leading brands

Other hot drinks is set to remain a fairly small category in Estonia over the forecast period in current value and volume terms, partly as a result of lower unit prices compared with tea and coffee. The category continues to be mainly represented by chocolate-based flavoured powder drinks, which are usually consumed by children in Estonia as a treat.

Other plant-based hot drinks will remain a niche area with plenty of opportunity for growth thanks to the growing health trend

Other plant-based hot drinks remained underdeveloped over the review period and these products still tend to be perceived as low-quality, comprising roasted grain beverages and chicory-based hot drinks. However, retail volume sales are set to strengthen over the forecast period due to the increasing health trend, as chicory-based hot drinks are largely consumed as a healthier alternative to coffee.