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Learn moreOct 2019
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This report examines the changing distribution environment for global hot drinks, identifying the shifts across traditional and modern grocery retailers, specialist shops and e-commerce. With the preferences of consumers continuing to evolve, it is important for hot drinks players to understand consumer needs and leverage the opportunities in various channels to boost their sales.
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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.
Channel distribution within hot drinks remained broadly stable in 2018, with store-based retailing accounting for the bulk of sales, due to its wide distribution network and availability of hot drinks, especially traditional grocery retailers in developing markets, which offer hot drinks at affordable prices targeted at low-income consumers.
With growing consumer demand for premium products, there has been an expansion of coffee specialist stores, particularly in Asia Pacific. Such outlets seek to appeal to higher income consumers looking for premium quality coffee.
E-commerce is exerting a growing influence on the industry, as more brands experiment with new retail models, such as subscription services, and partner with internet retailing companies to boost sales. For instance, in late 2018, Unilever partnered with JD.com to boost the reach of its Lipton tea in China.
Foodservice companies have sought to provide consumers with the convenience of hot drinks being delivered for at-home consumption. Innovations in this area include Starbucks in China partnering with Alibaba’s Tmall to offer consumers a voice order delivery service – Tmall Genie.
With foodservice being an innovation hub for coffee and tea, it is important for hot drinks players to leverage the opportunity by translating these trends into the retail scene, through partnerships and investment in the higher value, higher growth foodservice channel.
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.