Euromonitor International
- Item successfully added to cart!
  
  Your cart is empty
  
  View Cart Check Out

Strategy Briefing

Traditional Consumption, Modern Convenience : Hot Drinks in Asia Pacific

Aug 2014

US$1,325

Add to cart Pay by invoice

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Asia Pacific is the world's largest hot drinks region, both in terms of market size and market growth. Market growth is an effect of consumer progression from unpackaged to packaged goods - a factor that depresses unit price, particularly in tea. However, value-added convenience products, such as tea bags and instant coffee, present new avenues for continued growth.

Files are delivered directly into your account within a few minutes of purchase.

Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

World’s largest hot drinks region

With 37% of the global retail hot drinks brewed volume and 29% of the global retail value, Asia Pacific is the largest hot drinks region in the world due to a long history of hot drinks consumption (particularly tea). Despite this dominant position, low per capita figures across most Asian emerging markets demonstrate that the category still has room to grow.

Shift from unpackaged to packaged/branded products drives volume growth

Strong economic growth amongst the emerging markets of Asia have driven both retail volume and value growth in the region. Volume growth in these markets are driven largely by consumers switching from unpackaged/unbranded products to consumer packaged goods. Traditional preference of tea in many markets has made this the dominant sub-category for many key countries like China and India.

Competition from unpackaged players keep prices low

Because many consumers are switching from cheap unbranded and unpackaged teas, packaged manufacturers have had to keep prices very low in order to reach the most rural of consumers. However, growing middle class economies, and the convenience of products like tea bags and instant coffee will continue to push value growth in the years to come.

Mix of global and regional brands highlight challenges

Because of the long history of tea consumption, tea remains a fairly fragmented market, aside from success by Unilever in India and Indonesia. Coffee, on the other hand, is dominated by Nestlé brands thanks to strong historical penetration.

High potential for value growth in key markets

Strong middle class growth will continue to push value sales in Asia as consumers venture beyond traditional flavours and formulations.

What this report includes

Top-level strategic analysis of how major consumer trends will influence global markets
Consumer insight
Impact across all relevant consumer markets
Unique graphics and case studies
Key market snapshots
Accompanying presentation to synthesise main findings

Why buy this report

Identify factors driving change now and in the future
Understand motivation
Forward-looking outlook
Briefings and presentation should provoke lively discussion at senior level
Take a step back from micro trends
Get up to date estimates and comment

Want to find out more about this report?

Request more information

Introduction

Scope

Key findings

Global Overview

Asia Pacific dominates global hot drinks market

Number one but room to grow due to low per capita figures

Tea dominance underscores historic preference

Coffee’s relative high value closes gap with tea

Large disparity in unit price reflects consumer purchasing power

China’s booming economic growth representative of region

Traditional and modern retailing emerging in Asia Pacific

Foodservice can be a source of value growth via modern formats

Summary

Volume Drivers

Historic and future growth in both volume and value terms

Tea dominates retail brewed volume growth

Local preferences boost tea to dominant growth

Growth in urban populations and income drive volume growth

New retailing experiences open door for branded products

China dominant, but other growth markets also have importance

Coffee growth limited by lack of history and lack of coffee makers

Case Study: Café Coffee Day grows a category in India

Coffee volumes outpacing tea

Youth movement

Other hot drinks should not be ignored

Summary

Value Drivers

Value growth demonstrates new opportunities across most markets

Tea value hampered by competition with unpackaged products

Top five value markets for tea by subcategory

Case Study: Instant milk tea in China rides youth culture wave

From street stalls and kiosks to supermarkets

Packaging draws in youth consumers

Price and promotion key to reaching demographic

Takeaways for other beverages categories

New coffee markets drive growth in Asia Pacific

Instant coffee mixes dominate in Asia Pacific

On-trade coffee culture drives South Korean instant coffee market

Low prices and new flavours drive growth in the Philippines

Summary

Competitive Landscape

Global brands lead highly fragmented field

Nestl é flexes its distribution muscle

Consumer preference for local brands fragments tea shares

Green tea brand performance a by-product of Chinese preference

Global brands tighten grip on India

Case Study: Building on success: Unilever’s battle for in India

A categorical shift for India?

Bollywood goes green

Future Prospects

China remains world’s most important market for hot drinks

Foodservice could drive coffee value in other markets

Increasing value in mature markets

Driving volume and value in the future

Why buy this report?

Want to find out more about this report?

Request more information

Megatrends

Strategy Briefing

Traditional Consumption, Modern Convenience : Hot Drinks in Asia Pacific

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

World’s largest hot drinks region

Shift from unpackaged to packaged/branded products drives volume growth

Competition from unpackaged players keep prices low

Mix of global and regional brands highlight challenges

High potential for value growth in key markets

What this report includes

Why buy this report

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Global Overview

Asia Pacific dominates global hot drinks market

Number one but room to grow due to low per capita figures

Tea dominance underscores historic preference

Coffee’s relative high value closes gap with tea

Large disparity in unit price reflects consumer purchasing power

China’s booming economic growth representative of region

Traditional and modern retailing emerging in Asia Pacific

Foodservice can be a source of value growth via modern formats

Summary

Volume Drivers

Historic and future growth in both volume and value terms

Tea dominates retail brewed volume growth

Local preferences boost tea to dominant growth

Growth in urban populations and income drive volume growth

New retailing experiences open door for branded products

China dominant, but other growth markets also have importance

Coffee growth limited by lack of history and lack of coffee makers

Case Study: Café Coffee Day grows a category in India

Coffee volumes outpacing tea

Youth movement

Other hot drinks should not be ignored

Summary

Value Drivers

Value growth demonstrates new opportunities across most markets

Tea value hampered by competition with unpackaged products

Top five value markets for tea by subcategory

Case Study: Instant milk tea in China rides youth culture wave

From street stalls and kiosks to supermarkets

Packaging draws in youth consumers

Price and promotion key to reaching demographic

Takeaways for other beverages categories

New coffee markets drive growth in Asia Pacific

Instant coffee mixes dominate in Asia Pacific

On-trade coffee culture drives South Korean instant coffee market

Low prices and new flavours drive growth in the Philippines

Summary

Competitive Landscape

Global brands lead highly fragmented field

Nestl é flexes its distribution muscle

Consumer preference for local brands fragments tea shares

Green tea brand performance a by-product of Chinese preference

Global brands tighten grip on India

Case Study: Building on success: Unilever’s battle for in India

A categorical shift for India?

Bollywood goes green

Future Prospects

China remains world’s most important market for hot drinks

Foodservice could drive coffee value in other markets

Increasing value in mature markets

Driving volume and value in the future

Why buy this report?

Want to find out more about this report?

Recently Viewed

Complete Catalogue

Strategy Reports

Country Reports

Recently Viewed

Complete Catalogue

Strategy Reports