The sharp reduction in consumption occasions in away-from-home channels has completely changed the operating landscape for hot drinks. Channel shifts, accelerated by the COVID-19 pandemic, have required significant and strategic business changes to adapt to new consumer demands. This report explores the state of play in the global hot drinks distribution environment.
Retail hot drinks sales recorded significant growth in 2020, as a result of the Coronavirus (COVID-19) pandemic. The sharp reduction in consumption occasions in foodservice and increasing working from home completely changed the operating landscape for hot drinks.
Modern grocery retailers continue to lead the distribution landscape, holding 53% of retailing volume sales. Convenience stores and forecourt retailers, as well as food/drink/tobacco specialists, faced complicated market dynamics in 2020.
E-commerce in hot drinks recorded substantial growth during the pandemic. The digital shift is one of the most profound changes unfolding in commerce. As consumers continue to isolate during the COVID-19 pandemic, this period has accelerated e-commerce adoption, with many consumers experimenting with, and even becoming reliant on the digital channel.
The COVID-19 pandemic’s impact on foodservice spending was severe in 2020, with social distancing regulations closing millions of outlets globally. The pandemic has, unsurprisingly, forced many foodservice players to pivot to delivery services to stay afloat and serve consumers who were largely staying at home in 2020.
One of the most outstanding features of the “new normal” will be an increased reliance on e-commerce. Retail consumption is expected to record growth in sales over the next five years. The evolution of delivery services, subscription models and contactless vending solutions will support this growth.
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