The global hot drinks products market was valued at USD 206.0 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. Hot drinks products have been very popular among consumers for many years and are becoming even more popular due to increasing health consciousness. In addition, increasing disposable incomes and changing lifestyles have led to an increase in the demand for hot drinks products. Furthermore, the rise in the number of cafés, bars, and restaurants has also contributed to the growth of the market.

Consumers are now opting for healthier, natural, and organic hot drinks products due to the rising awareness of the health benefits associated with consuming natural and organic products. For instance, in April 2021, Starbucks launched its first ever plant-based café in London, UK. The café offers plant-based options including oat-based drinks, plant-based proteins and vegetables, and other vegan items. Furthermore, the increasing number of product launches is anticipated to drive the demand for hot drinks products over the forecast period. For instance, in May 2021, Nestlé launched a new premium coffee brand, Nescafé Azera Nitro, in the UK. The product is a combination of nitrogen-infused instant coffee and cold-brewed coffee, offering an intense and creamy flavor.

The trend of flavoring hot drinks with fruits, honey, and other ingredients is becoming increasingly popular among consumers. For instance, in October 2021, Starbucks launched a new range of herbal teas, including flavors such as Hibiscus, Rooibos, and Lemongrass, blended with natural ingredients such as licorice and peppermint. Furthermore, a number of companies are offering non-dairy milk alternatives such as almond milk, cashew milk, and coconut milk, which are becoming increasingly popular among consumers.

The advent of various kinds of hot drinks such as cappuccino, latte, and espresso has made them more popular among consumers. Furthermore, the growing number of cafés, bars, and restaurants has also contributed to the growth of the market. The increasing number of promotional activities and campaigns by market players to attract new customers is also driving the demand for hot drinks products. For instance, in April 2021, Starbucks launched its “Tastes of Summer” campaign, offering limited-time promotions on its menu of cold, iced, and blended coffees.

The growing trend of convenience is also driving the market growth. Increasing numbers of consumers prefer ready to drink (RTD) beverages over traditional hot drinks as they are quick and easy to consume. Furthermore, the increasing demand for RTD hot drinks products such as RTD coffee and RTD tea is expected to drive the market in the coming years. For instance, in March 2021, Nestlé launched a new range of RTD coffee products, Nescafé Azera Nitro Cold Brew, in the UK. The product is a combination of nitrogen-infused instant coffee and cold-brewed coffee, offering an intense and creamy flavor.

The coffee segment held the largest market share in 2020 and is anticipated to remain the most attractive segment over the forecast period. The increasing demand for convenience and the new varieties of coffee such as cold brews, nitro coffees, and canned coffees are some of the factors driving the market. According to a survey conducted by the National Coffee Association in October 2020, 83% of Americans drink coffee every day. Furthermore, growing consumer preference for premium coffee and the availability of instant coffee varieties are some of the other factors driving the market.

The tea segment is expected to witness the highest growth rate over the forecast period. Increasing health consciousness and changing consumer preferences are some of the factors driving the market. According to an article published by the Tea Association of the USA, in January 2020, around 158 million Americans consume tea on a daily basis, with 79% of them drinking hot tea and the remaining 21% drinking iced tea. In addition, the growing demand for herbal teas and green teas, due to their health benefits, is further propelling the growth of the tea segment.

The supermarkets and hypermarkets segment held the major share of over 40% in 2022. The high market share of the segment is mainly attributed to the increasing availability of hot drinks in supermarkets & hypermarkets. According to a study by Statista in 2020, around 75.4% of people prefer to purchase hot drinks from supermarkets and hypermarkets as compared to other channels. Moreover, these establishments offer a wide variety of hot drinks from different brands, which helps customers to make quick purchasing decisions.

The online segment is expected to register a CAGR of 10.3% over the forecast period. The increasing penetration of internet and rising use of smartphones and other devices have led to a surge in the number of consumers shopping online for grocery products, including hot drinks. Moreover, e-commerce platforms are providing special discounts and offers to attract more customers. For instance, in 2021, Amazon launched ‘Amazon Pantry’, an online grocery store offering discounted prices on a wide range of grocery and food products, including hot drinks.

The hot coffee segment accounted for the largest revenue share of 39.9% in the year 2022. The rising demand for convenience, flavor, and new product launch are the major factors driving the hot coffee segment. The market is driven by the increasing demand for ready-to-drink coffee products, which is gaining traction among the young population and millennials. Moreover, increasing consumption of coffee among the working population and the growing consumption of premium coffee products, such as organic and fair trade, are some of the other factors driving the hot coffee segment.

The hot tea segment is expected to expand at the highest CAGR of 5.4% over the forecast period. The growing demand for healthy and natural beverages is driving the market for the hot tea segment. Furthermore, the rising consumption of herbal and green tea is also driving the hot tea segment. The introduction of innovative flavors and the increasing demand for ready-to-drink tea are some of the other factors driving the segment. In addition, the growing demand for organic, sustainable, and fair trade tea is likely to further boost the demand for hot tea.

Europe dominated the global hot drinks market and accounted for the largest revenue share of over 35.2% in 2022. Increasing demand for hot beverages, such as tea and coffee in the region, is a key factor driving the growth of the market. Growing awareness regarding the health benefits associated with hot beverages, along with the increasing trend of consuming specialty hot beverages, such as matcha and turmeric latte, is further driving the market growth. For instance, in April 2021, UK-based Teapigs introduced a range of specialty hot drinks, including matcha and turmeric latte, to expand its product portfolio.

Asia Pacific is expected to witness the fastest growth in the coming years. The growing trend of consuming hot beverages, such as tea and coffee, among consumers in the region is driving the growth of the market. In addition, the increasing disposable income and rising health consciousness among consumers are further expected to drive the growth of the market in the region. For instance, in October 2020, Starbucks launched a new range of hot beverages in India, including oat milk cappuccino and oat milk latte, to tap the growing demand for specialty hot beverages.

In this part of the hot drinks products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your hot drinks products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a hot drinks products business comes from sales of products, retail and wholesale, and possibly other services related to the business such as delivery and marketing. Here you will find a list with a description of each of them.

Projecting Expenses

In this section, all the regular expenses related to keeping the hot drinks products business running will be described. The list of operating expenses includes raw materials, manufacturing costs, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the hot drinks market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In April 2022, Nestlé launched the Nescafé Gold Latte range of hot drinks.

– In May 2022, Starbucks launched a range of new herbal teas.

– In June 2022, Unilever launched the Lipton Ice Tea range of hot drinks.

Some of the prominent players in the hot drinks market include:

– Nestlé SA
– Unilever Group
– Starbucks Corporation
– The Coca-Cola Company
– PepsiCo Inc.
– Kraft Heinz Company
– Ting Hsin International Group
– Suntory Beverage & Food Ltd.
– Dr Pepper Snapple Group, Inc.
– Keurig Dr Pepper Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global hot drink products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Tea
– Coffee
– Hot Cocoa
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Potential of Hot Drinks Products?
[A]: The global hot drinks market has experienced a significant growth in recent years, owing to factors such as the growing demand for convenience and the health benefits associated with these products. Hot drinks products offer convenience, health, and nutritional benefits, which makes them an attractive option for consumers. The market is expected to be driven by the growing demand for hot drinks with added flavors and health benefits such as antioxidants, vitamins, and minerals. In addition, the increasing health consciousness among consumers is boosting the demand for hot drinks.

[Q]: Who are the Key Players in the Hot Drinks Products Market?
[A]: The key players in the global hot drinks products market include Nestle S.A., Unilever, Coca-Cola Company, PepsiCo Inc., Keurig Dr Pepper Inc., Starbucks Corporation, Dr. Pepper Snapple Group, JDE Peet’s N.V., Associated British Foods plc, and Mars Inc.

[Q]: What are the factors driving the hot drinks products market?
[A]: Factors such as the growing demand for convenience and health benefits, the rising health consciousness among consumers, the increasing innovation and product launches, and the growing popularity of hot drinks as a replacement for alcoholic beverages are driving the global hot drinks products market.

[Q]: What are the major trends in the hot drinks products market?
[A]: The major trends in the global hot drinks products market include the increasing number of product launches with enhanced health benefits, the growing popularity of single-serve hot drinks, the increasing demand for non-alcoholic hot drinks, and the rising demand for organic and natural hot drinks.