Keywords : Hot Drink, coffee, rtd tea, coffee shop, iced coffee, Tea culture, coffee price, tea, tea consumer
Product Synopsis This report offers a completely fresh look at consumer's Soft and Hot Drink habits, allowing marketers to understand people's consumption patterns like never before. This offers unique opportunities to effectively target new consumer groups, behaviors, and trends based on actual empirical data in Soft and Hot Drinks consumption across 10 core countries. Introduction and Landscape W...
More »
Search ReportLinker
The Largest Collection of Market Research Reports
» 1.2 Million Industry Reports
» 450,000 Company Profiles
» 850,000 Market Briefings
» 40,000 Country Guides
From +200,000 authoritative sources
Product Synopsis
This report offers a completely fresh look at consumer's Soft and Hot Drink habits, allowing marketers to understand people's consumption patterns like never before. This offers unique opportunities to effectively target new consumer groups, behaviors, and trends based on actual empirical data in Soft and Hot Drinks consumption across 10 core countries.
Introduction and Landscape
Why was the report written?
This report looks to test the stereotypes about beverage and consumption perceptions that the industry may have. The report illustrates that an in-depth study of the consumer exposes the trends to exploit and the anomalies to address. Only by looking at who is drinking, what they are drinking, when they are drinking, where they are drinking, and why they are drinking, can you put together the best marketing strategy to capitalize on the opportunities that exist in the Soft and Hot Drinks sectors.
What is the current market landscape and what is changing?
There is an assumption that Soft Drinks are drunk by the young and as consumers mature they drink more Hot Drinks. Many believe that there is a shift from Soft to Alcoholic drinks when consumers reach the legal age to drink. In fact, Older Consumers are a key age group to target in both Soft and Hot Drinks, particularly in the Non-BRIC region where aging populations limit volumes with younger consumers. Marketers risk underestimating the irresistible forces of demography.
What are the key drivers behind recent market changes?
The high growth rates seen in the developing world are an obvious attraction to beverage operators, but adding value to refreshment products in the developed world where growth rates are more sluggish provides just as appealing an opportunity. BRIC markets are often characterized by low margins and while Non-BRIC markets may be slowing, the affluence of drinkers provides them with the resources to pay more for their refreshment, despite the depressed economic climate.
What makes this report unique and essential to read?
The analysis provided is unique in the market as it tracks Soft and Hot Drinks behavior through to its actual impact on a product market. This provides readers with a unique analysis of the market, driven by survey-based data on consumer trends and groups, which is integrated with market data. This allows marketing tactics and strategies to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
Unique integration of survey and market data provides market sizing consumption by key consumer groups, both by age and by gender, quantifying the value of key consumer groups by country.
Concise case studies identify best practice on how to align marketing practices to effectively target consumer trends, and shows how targeting multiple trends can be a highly effective proposition.
The impact of consumer trends is quantified by market and country to show where hotspots to target exist and exactly which trends are most important to target.
Key Market Issues
Although often categorized together, consumers in each of the BRIC markets have very different tastes and characteristics; low per capita beverage consumption is probably the main factor that they have in common. For instance, Brazil is the most developed beverage market within BRIC and has consumer consumption patterns more closely aligned to the Non-BRIC region than anywhere else.
Defying the stereotype, the survey found that Older Consumers, those aged 55 and over, punch above their weight in Soft Drinks markets. Shrewd marketers can take advantage of this by assessing how they can better exploit the product vacuum for Older Consumers.
Whereas the Hot Drinks consumption of men and women is very similar, in the overall Soft Drinks market there is a small swing in favor of men. This can be accredited to China, where Chinese women make up 48% of the survey and just 44% of the consumption. If China is discounted, the balance swings in favor of female consumption.
Marketers need to address evolving lifestyles as consumers age. This is not just with regard to product but also to packaging and marketing. In the UK for instance, the expansion of access to higher education and social trends delays the age at which people tend to settle down and start families, which has created an important consumer group within the Early Young Adults, and even Older Young Adults, age group whose lifestyles more closely resemble a “youth” market than those of Early Young Adults twenty or thirty years ago.
The ten core countries covered in this report can be categorized as having either a Coffee drinking culture or a Tea culture. The opportunities for growth are directly related to which culture each country falls into: those with a Coffee culture will offer more opportunities for Tea operators and vice versa. In the BRIC region, both categories have the potential to grow, while in the Non-BRIC markets there is likely to be some cannibalization between the two.
Key Highlights
The poor quality of municipal water and the rising affluence of consumers in the BRIC region pushes Bottled Water volumes upwards, compensating for a slowdown in Non-BRIC markets where demand is maturing; however this growth has a low margin and high volume as BRIC consumers have less disposable income.
In developed markets, Older Consumers are the most important age group in the Juices market: they account for over one-fifth of the volume of Juices consumed. Traditionally, children have been the main target audience for Juices, and to an extent they are an important consumer: Kids and Babies make up 15% of consumption; however, population dynamics mean that Older Consumers will remain the most important market in terms to total volumes.
Older Consumers account for more than a quarter of Sparkling Soft Drinks volumes in the surveyed markets, compared to just over a fifth for overall Soft Drinks. This age segment is notably important in developed markets, where they account for in excess of three in every ten liters of Soft Drinks consumed.
There is a direct correlation between age and the consumption of Hot Drinks: the older a consumer is, the more Hot Drinks they are likely to consume. In contrast to Soft Drinks, encouraging younger age groups, particularly Kids and Babies, to increase their consumption or even to take up Tea and Coffee drinking is more challenging. Other Hot Drinks, such as Hot Chocolate, generally provide more of an opportunity to get younger consumers to drink hot drinks.
In contrast to Tea, Coffee is seen as Indulgent worldwide; it is the second-most important consumer trend for Coffee, behind Personal Space and Time. Rising world coffee prices have contributed to this sense of Indulgence and Coffee's popularity has been boosted by the coffee shop phenomenon. Furthermore, Coffee can be made more indulgent through the addition of syrups, toppings, and creams, which has helped raise the profile of Coffee and educate consumers on the diverse range of Coffee products on the market.
Hot Drink Industry in Spain
Table of Contents
1 Executive Summary
2 Industry Dynamics
2.1 Definitions
2.1.1 Market coverage definitions
2.1.2 Defining consumer trends
2.2 Country Growth
2.2.1 Soft Drinks: Russia is the odd one out in the otherwise fast-growing BRIC region
2.2.2 Brazil is the key Hot Drinks growth market
2.3 Market Growth
2.3.1 Bottled Water to record the largest absolute growth in Soft Drinks
2.3.2 Coffee to lag behind Tea in Hot Drinks
2.4 Opportunity Maps
2.4.1 Brazil records the highest per capita consumption of Soft Drinks in BRIC
2.4.2 Functional Drinks to record the fastest growth in the Non-BRIC region
2.4.3 Coffee in Brazil the best Hot Drinks opportunity
3 Soft Drinks Markets
3.1 Soft Drinks: BRIC delivers volume and Non-BRIC value
3.1.1 Increased refrigeration will drive soft drinks in BRIC
3.1.2 Quality Seeking and Trust divide BRIC and Non-BRIC
3.1.3 Older Consumers slip under the radar
3.1.4 Occasions are critical to Soft Drinks growth
3.2 Bottled Water: Quality is paramount in the key BRIC region
3.2.1 BRIC markets drive growth in Bottled Water
3.2.2 Quality and Trust are needed to develop brands in BRIC markets
3.2.3 China shows that Bottled Water should be targeted at men
3.2.4 Adding value is challenging
3.2.5 Bottled Water is consumed more frequently than other Soft Drinks
3.3 Concentrates: Value for money is key in a mature market
3.3.1 Concentrates lack momentum in both the BRIC and Non-BRIC regions
3.3.2 Consumers concentrate on value for money
3.3.3 Adults should not be forgotten about
3.3.4 Adult women drink more concentrates than men
3.3.5 Kids want fun from Concentrates that meet needs specific to their age
3.4 Functional Drinks: Young men are driving rapid growth
3.4.1 Strong performance from Functional Drinks in the BRIC region
3.4.2 Products with tangible benefits appeal to customers
3.4.3 Women shun Functional Drinks
3.4.4 Early and Older Young Adults are the main audience
3.4.5 Demand from Older Consumers will grow
3.4.6 Taste and refreshment is an obstacle for Functional Drinks to overcome
3.5 Juices: Consumers are opting for less, but better quality
3.5.1 Volumes squeezed
3.5.2 Older Consumers are the key age group to target in the Non-BRIC region
3.5.3 Natural enhancement provides opportunities
3.6 Ready to Drink Tea and Coffee: Innovation drives the market
3.6.1 Iced Tea and Coffee are hot
3.6.2 Flavors limit options for Kids and Babies and Tweens and Early Teens
3.6.3 Iced teas and coffees are Indulgent in the Non-BRIC region
3.6.4 Innovation drives the US market
3.6.5 Wellbeing provides healthy rewards in China
3.6.6 'Cold hot tea' puts off UK drinkers
3.7 Smoothies: Substantial differences between regions
3.7.1 Smoothies are an important part of consumers' diets in the BRIC region
3.7.2 Smoothies are a treat in developed markets, but not always for operators
3.7.3 Kids and Babies are largest consumers of Smoothies
3.8 Sparkling Soft Drinks are under pressure from other Soft Drinks
3.8.1 Choice, health, and maturity slows demand in Non-BRIC markets
3.8.2 Older Consumers drive the Sparkling Soft Drinks market
3.8.3 Men drink more Sparkling Soft Drinks than women
4 Hot Drinks Markets
4.1 Hot Drinks: culture determines opportunities
4.1.1 Demand for Hot Drinks increases with age
4.1.2 Hot and Soft Drinks have similar consumer trends
4.2 Tea: Big in BRIC and growing in Non-BRIC Coffee cultures
4.2.1 Tea promises strong volume growth
4.2.2 Tea is indulgent in Coffee cultures
4.2.3 Women drink more Tea in the Non-BRIC region
4.3 Coffee: More indulgent than Tea, but less healthy
4.3.1 Coffee growth sluggish
4.3.2 Coffee is seen as more indulgent than Tea
4.3.3 Coffee not seen as being as healthy as Tea
4.3.4 Heavy usage stunts growth
4.4 Other Hot Drinks: Increasing consumption frequency is key
4.4.1 Age is less important for Other Hot Drinks than for Tea and Coffee
4.4.2 Opportunities exist to increase how often Other Hot Drinks are consumed
4.4.3 Non-BRIC markets are a good bet
5 Country Profiles
5.1 Key Features of Soft and Hot Drinks Markets by Country
5.2 Brazil
5.2.1 Brazil combines rapid growth and high per capita consumption rates
5.2.2 Soft Drinks
5.2.3 Hot Drinks
5.3 China
5.3.1 There is a significant male bias in the Chinese Soft Drinks market
5.3.2 Soft Drinks
5.3.3 Hot Drinks
5.4 France
5.4.1 Indulgence is important in the Soft Drinks market in France
5.4.2 Soft Drinks
5.4.3 Hot Drinks
5.5 Germany
5.5.1 Premiumisation a key feature of German Hot Drinks markets
5.5.2 Soft Drinks
5.5.3 Hot Drinks
5.6 India
5.6.1 Hot Drinks and Bottled Water are the key markets in India
5.6.2 Soft Drinks
5.6.3 Hot Drinks
5.7 Italy
5.7.1 Indulgence is not the key trend for Italian consumers
5.7.2 Soft Drinks
5.7.3 Hot Drinks
5.8 Russia
5.8.1 The climate in Russia plays a key role in promoting Hot Drinks consumption
5.8.2 Soft Drinks
5.8.3 Hot Drinks
5.9 Spain
5.9.1 Austerity is making Indulgence more important, but boosting consumption of private labels
5.9.2 Soft Drinks
5.9.3 Hot Drinks
5.1 UK
5.10.1 Decline in Sparkling Soft Drinks has exposed opportunities in other Soft Drinks markets
5.10.2 Soft Drinks
5.10.3 Hot Drinks
5.11 US
5.11.1 Weakness in the Sparkling Soft Drinks market has resulted in opportunities for other Soft Drinks
5.11.2 Soft Drinks
5.11.3 Hot Drinks
6 Appendix
6.1 Supplementary Data
6.1.1 Supplementary Data for Figure 5: Key Opportunities in Sparkling Soft Drinks and Bottled Water in Brazil and Bottled Water in China and India
6.1.2 Supplementary Data for Figure 6: Soft Drinks markets in the Non-BRIC region offer high per capita consumption or rapid growth – but not both
6.1.3 Supplementary Data for Figure 7: Coffee in Brazil offers the best opportunity
6.1.4 Supplementary Data for Figure 44: Countries have either a Coffee culture or a Tea Culture
6.2 Survey Methodology
6.3 Definitions
6.3.1 Consumer Trends Framework
6.3.2 Age Group Definitions
6.3.3 Country Coverage and Region Definition
6.4 About Canadean
6.5 Disclaimer
List of Tables
Table 1: Soft Drinks Consumption by Country 2011, 2006–2016 CAGR (%), 2011 Per Capita Consumption (liters per head), and Market Volume (liters million)
Table 2: Hot Drinks Consumption by Country, 2011 Market Volume (Kg million), 2006–2016 CAGR (%), and 2011 Per Capita Consumption (Kg per head)
Table 3: Soft Drinks Consumption (liters million) and Growth (%) by Market, 2006–2016
Table 4: Hot Drinks Consumption (Kg million) and Growth (%) by Market, 2006–2016
Table 5: Soft Drinks Volume Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 6: Top 10 Consumer Trends by Market Volume Influenced, BRIC vs. Non-BRIC, 2011
Table 7: Relative Importance of the Better Value for Money and Quality Seeking Consumer Trends, Overall vs. Older Consumers, 2011
Table 8: Global Retailer's Own Brand Soft Drinks Consumption by Age Group, 2011
Table 9: Bottled Water Volume Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 10: Relative Importance of Key Consumer Trends, BRIC vs. Non-BRIC, 2011
Table 11: Volume Share of Bottled Water Consumption by Country, Male vs. Female (%), 2011
Table 12: Consumption Frequency of Bottled Water and Soft Drinks (%), 2011
Table 13: Concentrates Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 14: The Five Leading Consumer Trends for Female Early Young Adults in Concentrates by Volume (Liters million) and Market Share Influenced (%) 2011
Table 15: The Five Leading Consumer Trends for Kids and Babies in Concentrates by Volume (Liters million) and Market Share Influenced (%) 2011
Table 16: Functional Drinks Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 17: Volume Share of Functional Drinks Consumption by Age Group, Males vs. Females (%), 2011
Table 18: Volume Share Influenced by the Health Consumer Trend in Functional Drinks, Females vs. Males, 2011
Table 19: Juices Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 20: Rank (out of 20) of Selected Consumer Trends, BRIC vs. Non-BRIC
Table 21: Volume Share and Per Capita Consumption of Juices by Age Group (%), BRIC vs. Non-BRIC, 2011
Table 22: RTD Tea and Coffee Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 23: Volume Share and Per Capita Consumption of Juices by Age Group (%), BRIC vs. Non-BRIC, 2011
Table 24: Rank (out of 20) of the Indulgence and Quality Seeking Consumer Trends in the RTD Tea and Coffee Market, BRIC vs. Non-BRIC
Table 25: Smoothies Volume Share by Age Group (%), BRIC vs. Non-BRIC, 2011
Table 26: Key Consumer Trends among Older Consumers in Smoothies in the Non-BRIC Region by Volume Share Influenced (%), 2011
Table 27: Sparkling Soft Drinks Growth Index, BRIC vs. Non-BRIC, 2000–2011
Table 28: Older Consumers' Volume Share of the Soft Drinks and Sparkling Soft Drinks Markets (%), 2011
Table 29: Key Consumer Trends among Older Consumers in Sparkling Soft Drinks by Volume Share Influenced (%), 2011
Table 30: Sparkling Soft Drinks Consumption by Volume (liters million) and Share (%) by Gender, 2011
Table 31: Sparkling Soft Drinks Volume Share Accounted for by Heavy, Medium and Light Consumption Frequencies by Gender (%),2011
Table 32: Volume Share by Gender (%), Coca-Cola vs. Pepsi, 2011
Table 33: Top 10 Consumer Trends (Out of 20) by Volume Share Influenced (%), Hot Drinks vs. Soft Drinks, 2011
Table 34: Volume of Tea Consumed, BRIC vs. Non-BRIC (Kg million), 2011
Table 35: Relative Importance of Selected Consumer Trends in Tea Markets, Coffee vs. Tea Cultures, 2011
Table 36: Volume Share Influenced (%) by Selected Trends in the Tea Market in the Non-BRIC Region, Females vs. Males, 2011
Table 37: Volume Share Influenced of Selected Consumer Trends among Women in the US Hot Drinks Market
Table 38: Soft Drinks in BRIC: Growth (%), 2011–2011 and Per Capita Consumption (liters per head), 2011
Table 39: Soft Drinks in Non-BRIC: Growth (%), 2011–2011 and Per Capita Consumption (liters per head), 2011
Table 40: Global Hot Drinks: Growth (%), 2011–2011 and Per Capita Consumption (Kg per head), 2011
Table 41: Global Hot Drinks Volume Share by Market by Country (%), 2011
Table 42: Consumer Trends Framework
Table 43: Age Group Definitions
Table 44: Country Coverage and Region Definition
List of Figures
Figure 1: Soft Drinks Volume Growth by Country
Figure 2: Hot Drinks Volume Growth by Country
Figure 3: Soft Drinks Volume Growth by Market
Figure 4: Hot Drinks Volume Growth by Market
Figure 5: Key Opportunities in Sparkling Soft Drinks and Bottled Water in Brazil and Bottled Water in China and India
Figure 6: Soft Drinks markets in the Non-BRIC region offer high per capita consumption or rapid growth – but not both
Figure 7: Coffee in Brazil offers the best opportunity
Figure 8: Soft Drinks growth index shows a rapid increase in volumes in the BRIC region
Figure 9: Large “fridge-friendly” packages are needed in BRIC
Figure 10: Frijj Flavored Milks benefited from identifying the key lifestage group driving consumption of their products
Figure 11: Globally, Older Consumers account for a larger share of the volume Soft Drinks consumed than they do of the population
Figure 12: Bottled Water has the greatest number of consumption occasions worldwide
Figure 13: Growth in the BRIC region is compensating for a maturing market in the Non-BRIC region
Figure 14: Coca-Cola's Iced Dew brand in China targets quality and trust
Figure 15: Packaging and marketing a key to adding value in the Bottled Water market
Figure 16: Packaging and marketing are key to adding value in the Bottled Water market
Figure 17: Concentrates' growth is sluggish in both the BRIC and Non-BRIC regions
Figure 18: Concentrates are established in the UK, France and Brazil
Figure 19: Double concentrates target the importance of the Better Value for Money trend
Figure 20: Adult flavors and distinctive bottle design allow Bottle Green to target a premium Concentrate at Older Consumers
Figure 21: Kids and Babies are the most important age group globally in Concentrates, but adults shouldn't be forgotten about either
Figure 22: Fun Light targets Concentrates at young adult women through its bottle design, flavors and use of natural sweeteners
Figure 23: Adult women consume more Concentrates than adult men, and the gap is particularly large among Early Young Adults
Figure 24: Packaging is key to communicating to both children and their parents
Figure 25: Strong performance from a low base for Functional Drinks in BRIC
Figure 26: Functional Drinks are successful when they meet an easy to perceive need
Figure 27: Women need to be convinced of the Health benefits of energy drinks
Figure 28: Monster is a risqué brand targeting Early Young Adults
Figure 29: Aging populations will result in increased demand for Functional Drinks from Older Consumers
Figure 30: Taste and refreshment is still important in Functional Drinks
Figure 31: Flat Juices volume growth in the Non-BRIC region as consumers take a “less of the best” approach
Figure 32: Juices in the Non-BRIC region have to address consumers' concern about sugar content
Figure 33: Juices have to address consumers' concern about sugar content
Figure 34: Growth index shows how volumes of RTD Tea and Coffee have exploded in the BRIC region
Figure 35: RTD Tea and Coffee per capita consumption is, by far, highest in the US
Figure 36: Taste remains the primary barrier to younger consumers in RTD Tea and Coffee
Figure 37: Iced Coffee is moving from the on-premise to the off-premise
Figure 38: Iced Coffee is moving from the on-premise to the off-premise
Figure 39: Street vendors in Brazil, India, and China limit the potential of packaged Smoothies
Figure 40: Turning volume into profit is difficult in the Smoothies market, as shown by PJ Smoothies in the UK
Figure 41: Overall Sparkling Soft Drinks volume growth is reliant on the BRIC region
Figure 42: Soda Steam targets Older Consumers with a wide range of flavors, an attractive value for money proposition, and a “grown-up” presentation
Figure 43: Coca-Cola Zero targets men put-off by Coca Cola Light's feminine positioning
Figure 44: Countries have either a Coffee culture or a Tea Culture
Figure 45: The majority of Hot Drinks are consumed by those over 35
Figure 46: Tea is commoditized in Tea cultures, an exciting drink in Coffee cultures
Figure 47: Tea can be priced higher in trend-driven countries
Figure 48: Women drink more Tea than men in the Non-BRIC region
Figure 49: Kusmi Tea targets women with an indulgent and wellbeing positioning
Figure 50: Coffee shop brands such as Starbucks are targeting the Coffee experience at home
Figure 51: Creating more consumption occasions for Coffee will be difficult
Figure 52: Key Consumers in Other Hot Drinks are those aged under 16
Figure 53: Opportunities exist to increase how often Other Hot Drinks are consumed, particularly in the Non-BRIC region
Figure 54: Mate competes with Tea and Coffee in Brazil
Figure 55: Soft Drinks Markets in Brazil
Figure 56: Soft Drinks Markets in Brazil
Figure 57: Opportunities exist to target women in a Chinese market being driven by global brands
Figure 58: Soft Drinks Markets in China
Figure 59: Hot Drinks Markets in China
Figure 60: Soft Drinks in France are highly indulgent
Figure 61: Soft Drinks Markets in France
Figure 62: Hot Drinks Markets in France
Figure 63: The importance of value for money in Germany is reflected in the success of their Hard Discount supermarket chains
Figure 64: Soft Drinks Markets in Germany
Figure 65: Hot Drinks Markets in Germany
Figure 66: Low prices mean that Tea will remain the leading Hot Drink in India
Figure 67: Soft Drinks Markets in India
Figure 68: Hot Drinks Markets in India
Figure 69: The importance of Bottled Water in Italy makes Better Value for Money a leading consumer trend
Figure 70: Soft Drinks Markets in Italy
Figure 71: Hot Drinks Markets in Italy
Figure 72: The potential for volume growth in the Russian Soft Drinks market is limited
Figure 73: Soft Drinks Markets in Russia
Figure 74: Hot Drinks Markets in Russia
Figure 75: The weak Spanish economy has hit overall volume growth, but private labels are prospering
Figure 76: Soft Drinks Markets in Spain
Figure 77: Hot Drinks Markets in Spain
Figure 78: Traditionally strong Tea and Sparkling Soft Drinks markets in the UK are under pressure from the coffee-shop culture and the rise of Functional Drinks
Figure 79: Soft Drinks Markets in the UK
Figure 80: Hot Drinks Markets in the UK
Figure 81: Soft Drinks Markets in the US
Figure 82: Hot Drinks Markets in the US
Figure 83: Issue Report Methodology
Companies Mentioned
Aldi, AriZona, Beet-It, Bottle Green, Coca-Cola, Costa Coffee, Danone ,Frijj ,Glaceau Vitamin Water
