The emergence of the pandemic in New Zealand saw a transference of demand across hot drinks from foodservice to retail, due to restrictions imposed by the national lockdown in March 2020. While this resulted in strong retail demand for coffee, the lack of a strong foodservice presence for other hot drinks meant that demand witnessed a lower channel shift, with retail sales experiencing an upturn in demand, although on a much lower scale compared to coffee; while chocolate-based flavoured powder drinks continued to perform well, there was a more notable improvement in demand for malt-based hot drinks, appealing to adults who spent longer in the home and were searching for a non-caffeine alternative to coffee or tea.
Sales of other hot drinks remain highly seasonal in New Zealand as consumers tend to drink greater quantities of malt-based hot drinks and chocolate-based flavoured powder drinks during the colder months. During New Zealand’s long, warm summers on the other hand, consumers are generally more interested in cooler, refreshing drinks and although malt-based hot drinks are often mixed with cold milk and sometimes ice cubes during the summer months, sales of Milo (Nestlé) and Ovaltine (Associated British Foods) tend to peak strongly during winter.
Nestlé New Zealand Ltd retained its dominance of hot drinks in 2020 due to the strong presence of its Milo brand. Over the review period, health and wellness trends placed a greater focus on the brand’s high sugar content, resulting in declining sales.
Health and wellness attributes have become a key driver behind consumers’ decision making within other hot drinks in New Zealand, and the effects of COVID-19 are likely to amplify this over the forecast period. For instance, turmeric lattes have developed a niche following among younger health-conscious consumers, having first emerged in smaller channels before appearing on supermarket shelves as they became increasingly mainstream.
Nestlé is expected to continue to dominate other hot drinks over the forecast period, owing to its brand portfolio mainly consisting of leading brand Milo. The company enjoys strong distribution capabilities, being one of the leading FMCG companies in New Zealand, with strong relationships with the major supermarket chains.
Supermarkets is likely to remain the dominant distribution channel for other hot drinks over the forecast period. An increasing number of consumers working from home is expected to provide some upward movement on sales growth, although the aforementioned dominance of Nestlé is expected to result in optimal conditions for local disruption.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Other Hot Drinks industry in New Zealand 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.
If you're in the Other Hot Drinks industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Other Hot Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page