Other hot drinks is a category which has been impacted by the sugar tax, due to the high sugar content in many of its beverages. December 2019 saw the implementation of the 50% tax on Sugar Sweetened Beverages (SSBs), being beverages which include water and sugar, sweeteners, concentrated liquids, powders or extracts converted to beverages, but excluding products containing at least 75% milk, infant formula, drinks containing natural sugar such as fruit juices, and drinks for medical purposes.
While other hot drinks is expected to return to growth during the forecast period, rising consumer health-awareness and, particularly, the negative image of sugar, will remain a key obstacle to category development – especially as parents become more concerned about limiting their children’s sugar intake. As a result, health and wellness is likely to be a focal point for innovation in other hot drinks over the forecast period.
Busy lifestyles and the attraction of affordable price points will all help to support the ongoing growth of e-commerce in other hot drinks – inclusive and regardless of the reopening of foodservice in a post-pandemic landscape.
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Other Hot Drinks
This is the aggregation of Flavoured Powder Drinks and Other Plant-based Powder Drinks. Products can be served hot or cold, and can be mixed with water, milk, or other liquids. Bottled, ready-to-drink flavoured milk drinks are NOT included here and are included in Passport Packaged Food.
See All of Our DefinitionsThis report originates from Passport, our Other Hot Drinks research and analysis database.
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