Hot Beverages (Coffee and Tea)

Hot Beverages (Coffee and Tea)

Global Hot Beverages (Coffee and Tea) Market to Reach US$1.2 Trillion by 2030

The global market for Hot Beverages (Coffee and Tea) estimated at US$787.8 Billion in the year 2023, is expected to reach US$1.2 Trillion by 2030, growing at a CAGR of 5.8% over the analysis period 2023-2030. Coffee, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$742.1 Billion by the end of the analysis period. Growth in the Tea segment is estimated at 6.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$206.2 Billion While China is Forecast to Grow at 8.9% CAGR

The Hot Beverages (Coffee and Tea) market in the U.S. is estimated at US$206.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$270.5 Billion by the year 2030 trailing a CAGR of 8.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.5% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.

Global Hot Beverages (Coffee and Tea) Market - Key Trends and Drivers Summarized

Hot beverages, particularly coffee and tea, hold a significant place in global consumption patterns, shaping daily routines and social interactions. Coffee, known for its stimulating effects, has evolved beyond just a morning pick-me-up, embedding itself into various aspects of culture, from artisanal cafes to sophisticated brewing techniques. Specialty coffee, including single-origin beans and ethically sourced varieties, has seen a rise in popularity, catering to consumers` growing interest in quality and sustainability. Tea, on the other hand, boasts a rich history and diverse range, from traditional green and black teas to herbal and fruit infusions. The health benefits associated with tea, particularly its antioxidant properties, have fueled its popularity among health-conscious consumers. Innovations in packaging, such as biodegradable tea bags and resealable coffee pouches, reflect the industry`s response to environmental concerns and consumer demand for convenience.

Technological advancements have significantly influenced the hot beverages market, especially in terms of brewing and preparation. The rise of smart coffee makers, which allow users to control brewing parameters via mobile apps, has made at-home coffee brewing more precise and accessible. Cold brew and nitro coffee innovations have introduced new flavors and experiences, attracting younger demographics and those seeking unique beverage options. The ready-to-drink (RTD) segment for both coffee and tea has expanded, driven by busy lifestyles and the need for on-the-go solutions. This segment includes a variety of products, from bottled iced teas to canned lattes, catering to a wide range of taste preferences. Moreover, the growing trend of plant-based milk alternatives has opened up new avenues for product development in the hot beverages market, aligning with the increasing number of consumers adopting vegan and lactose-free diets.

The growth in the hot beverages market is driven by several factors. The premiumization trend, where consumers are willing to pay more for higher-quality products, has significantly boosted the market for specialty coffee and tea. Health and wellness trends have led to increased demand for organic and functional teas, which are perceived as healthier alternatives. E-commerce growth has provided new sales channels, making it easier for consumers to access a wide variety of coffee and tea products. Urbanization and changing lifestyles have accelerated the demand for convenient and quick beverage solutions, further supported by the proliferation of at-home brewing equipment and RTD options. Sustainability concerns have pushed for innovations in eco-friendly packaging and ethical sourcing practices, which resonate well with the environmentally conscious consumer. Additionally, marketing strategies, including social media campaigns and influencer endorsements, have enhanced brand visibility and consumer engagement, driving further market expansion. The confluence of these factors has created a dynamic and evolving market landscape, poised for continued growth in the coming years.

Select Competitors (Total 203 Featured) -

• Celestial Seasonings, Inc.
• Costa Limited
• Dilmah (Ceylon Tea Services PLC.)
• Harney & Sons
• JAB Holding Company
• Jacobs Douwe Egberts
• JDB (China) Beverages Ltd.
• Luigi Lavazza S.p.A.
• McCafé
• Nestlé S.A.
• R. Twining and Company Limited
• Segafredo Zanetti SpA
• Starbucks Corporation
• Strauss Group Ltd.
• Tata Global Beverages
• Tchibo GmbH
• Tim Hortons Inc.
• UCC Ueshima Coffee Co., Ltd.
• Unilever PLC

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