The total volume of other hot drinks declined moderately as a result of the huge sales drop in foodservice caused by COVD-19. In order to tackle the pandemic, the Hong Kong government imposed a number of measures on on-trade outlets.
COVID-19 aside, there was little change in the overall dynamics of hot drinks in 2020. Malt-based hot drinks remained the largest category due to its longstanding presence in the territory, with many younger generations of consumers (i.
Nestlé Hong Kong managed to maintain its lead with its Milo and Carnation brands in other hot drinks in 2020. Under the pandemic, out of concern over product safety and quality, consumers tended to opt for large and established brands.
The total volume of other hot drinks is forecast to decline further in 2021 before a modest positive growth beginning in 2022. It is expected that with the COVID-19 situation stabilising in 2021, consumption of other hot drinks in foodservice is likely to pick up due to the consumer psychology of ‘revenge shopping and spending’, whilst the stay-at-home trend will lose its momentum, resulting in less consumer demand for other hot drinks in retail channels.
There is a continued lack of product innovation in other hot drinks, presenting a challenge for the category to retain its growth momentum. Like many other beverage categories, other hot drinks have been suffering from a constant contraction in retailer support as merchants like supermarkets and convenience stores were reducing resources on low-profit-margin categories and shifting their focus to high-margin categories such as bottled water.
Prior to the outbreak of COVID-19, other hot drinks players already started focusing on foodservice for business opportunities and this focus should be brought back as the industry seeks to recover from the pandemic. It was increasingly difficult for manufacturers to expand in retail channels as other hot drinks was failing to meet retailers’ expectations on revenues and profits before COVID-19.
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Understand the latest market trends and future growth opportunities for the Other Hot Drinks industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Other Hot Drinks research and analysis database.
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