Economic malaise tends to affect every sector of the retail environment. When people have less money to spend, they buy fewer goods that are not absolute necessities. Fortunately for the hot beverage industry, people still consider things such as coffee and tea as daily necessities. Hot beverage growth around the world remains positive – even in geographic regions where other industries have stagnated.
Every year, Euromonitor International publishes a comprehensive report outlining how well the hot beverage industry is doing. Their 2015 report was very positive. Not only are hot beverages continuing to enjoy a modest growth year after year, but consumers are becoming even more specific in the kinds of coffee and tea drinks they are looking for.
Below is a snapshot of some of the most important data from the 2015 Euromonitor report:
- Overall Growth – After peaking in 2010, the hot beverage industry has been attempting to recover from two-and-a-half years of lower volume and market value between 2011 and 2013. In 2015, overall growth rose 7% in off-trade value fueled primarily by hot tea. Also performing very well were malt-based hot drinks and certain coffees and teas that are deemed healthier.
- Strongest Markets – The strongest market for growth in 2015 for both coffee and tea was China. Their astonishing 5% growth was completely unexpected. Rounding out the top five were Brazil, the U.S., India, and Germany.
- Coffee Affordability – Data shows that coffee continues to do very well even in countries still suffering economically, primarily because it is so affordable. Brazil is a great example. Because Brazilian growers produce almost all of the coffee consumed in their country, growth continues even without hefty exports and a strong overall economy.
- Total Consumption – The 2015 data suggests that top line volume consumption of hot beverages should remain stable or grow slightly through 2016. Between now and 2020, indicators suggest additional growth of at least 3%.
Maturing Consumer Preferences
While growth in the hot tea category is being driven mainly by consumers looking for healthier alternatives, growth in coffee is still being dictated by the pod concept. Worldwide, coffee pods grew by 13% in 2015 – mainly due to the American preference for single cup brewers. However, ‘third wave’ coffee is coming on strong.
Think of third wave coffee as the hot beverage equivalent of micro-brewed beer. Craft coffees are enjoying very robust growth in the U.S., the UK, and Japan particularly. These new kinds of coffees are addressing the consumer’s desire for better tasting coffee that can be enjoyed in the same way as a fine wine or gourmet chocolate.
Hot beverages continue to be popular around the world regardless of geographic region or economic status. That is a good thing for us, being that we proudly serve the greater New York area with the region’s finest hot and cold beverage service. We hope you will consider Galaxie Coffee as your beverage service provider. We would welcome the opportunity to serve you and your staff.