Hot Beverages (Coffee & Tea) Market Forecasts to 2030 – Global Analysis By Product Type (Tea and Coffee), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Specialty Stores and Online Retail), Application and By Geography

Hot Beverages (Coffee & Tea) Market Forecasts to 2030 – Global Analysis By Product Type (Tea and Coffee), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Specialty Stores and Online Retail), Application and By Geography

According to Stratistics MRC, the Global Hot Beverages (Coffee & Tea) Market is accounted for $761.82 billion in 2023 and is expected to reach $1357.27 billion by 2030 growing at a CAGR of 8.6% during the forecast period. Coffee is one of the most consumed beverages globally, known for its stimulating effects due to its caffeine content. It is typically brewed from roasted coffee beans with various methods such as drip brewing, espresso, French press, and more. Tea is derived from the leaves of the Camellia sinensis plant and is processed into various types, such as green tea, black tea, oolong tea, white tea, and herbal infusions.

Market Dynamics:

Driver:

Health and wellness trends

Health and wellness trend has led to a growing demand for options perceived as healthier, such as herbal teas, green teas, and specialty coffees with antioxidant properties. Health-conscious consumers are prioritizing natural ingredients, functional benefits, and reduced sugar content in their beverage choices. As a result, manufacturers and retailers are responding with product innovations, marketing strategies emphasizing health benefits, and a focus on transparency in sourcing and production methods.

Restraint:

Price fluctuations

Factors such as weather conditions, geopolitical events, and currency fluctuations can lead to unpredictable changes in production costs and retail prices. This volatility may impact consumer purchasing power and consumption patterns, potentially leading to reduced profitability for producers and affordability challenges for consumers.

Opportunity:

Innovation in product offerings

Innovation in product offerings is a golden opportunity for the hot beverage market. This allows companies to develop exciting new flavours, incorporate health-boosting ingredients for wellness-focused consumers, and explore convenient formats like cold brew or nitro coffee that utilize sustainable packaging. By catering to evolving preferences and capitalizing on trends like adaptogens in tea and probiotics, companies can keep the market fresh and attract a wider audience.

Threat:

Competition from alternative beverages

Plant-based milk alternatives like almond, oat, and soy milk cater to dietary restrictions and lactose intolerance while also being positioned as healthier options. Functional waters infused with electrolytes, vitamins, and minerals offer a convenient way to stay hydrated with added health perks. Moreover, kombucha, a fermented tea drink, boasts gut health benefits and a unique taste profile, attracting a new wave of consumers. These alternatives are limiting market growth.

Covid-19 Impact

The COVID-19 pandemic has had a mixed impact on the hot beverages market. Initially, lockdowns and social distancing measures led to the closure of cafes and restaurants, reducing out-of-home consumption. However, the increased focus on home brewing and consumption has boosted sales of coffee and tea for at-home consumption. Online sales channels have seen significant growth as consumers shifted towards e-commerce for purchasing hot beverages.

The coffee segment is expected to be the largest during the forecast period

The coffee segment is estimated to hold the largest share. It offers diverse varieties, brewing methods, and flavour profiles to cater to consumer preferences worldwide. From traditional espresso-based drinks to specialty blends and single-origin coffees, the coffee segment encompasses a wide range of products that appeal to various demographics and consumption occasions. With a growing coffee culture and increasing demand for premium and specialty options, coffee plays a central role in shaping consumer trends and driving innovation.

The supermarkets and hypermarkets segment is expected to have the highest CAGR during the forecast period

The supermarkets and hypermarkets segment is anticipated to have lucrative growth during the forecast period. These retail outlets offer a wide assortment of hot beverage products, catering to diverse consumer preferences and budgets. Additionally, these retail channels often feature promotional activities, tastings, and product demonstrations, driving awareness and sales. Overall, supermarkets and hypermarkets play a vital role in facilitating the availability and consumption of hot beverages among consumers worldwide.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period owing to tea-loving giants like China and Japan, and a burgeoning coffee culture fuelled by international chains and rising disposable incomes. This region is expected to see continued growth due to factors like increasing urbanization, a growing middle class, and a growing preference for premium and convenient hot beverage options.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period due to a strong preference for high-end brews and convenient formats. The ever-growing popularity of specialty coffee chains like Starbucks and Dunkin' Donuts, coupled with a rising health consciousness and consumer interest in on-the-go options like instant coffee and pre-made latte mixes, fuels market expansion.

Key players in the market

Some of the key players in the Hot Beverages (Coffee & Tea) Market include Unilever, Ajinomoto General Foods Inc., Keurig Green Mountain (KGM), The Coca-Cola Company, Starbucks Corporation, Caffe Nero, Kraft Foods, Celestial seasoning Inc., Costa Coffee, Nestle, Tata Global Beverages, Harney & Sons, Jacobs Douwe Egberts, Luigi Lavazza S.p.A., R. Twining and Company Limited, Tata Global Beverages, Tim Hortons Inc. and JDB Beverages Ltd.

Key Developments:

In April 2023, Nescafé is launching Ice Roast, the brand's first ever soluble coffee designed especially for consumption with cold water or milk, over ice. With Ice Roast, they created a light-medium roast that's ideal to drink cold, with a smooth texture and cocoa notes that unlocks new sensory territory

In February 2020, Starbucks, in collaboration with PepsiCo Inc., launched ready-to-drink Starbucks Nitro Cold Brew cans. The Nitrogen-infused drinks are available in three flavours: black, vanilla sweet cream, and dark caramel.

Product Types Covered:
• Tea
• Coffee

Distribution Channels Covered:
• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail

Applications Covered:
• Coffee Shops
• Drinks Stores
• Food Service
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances