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市場調查報告書

英國熱飲市場

Hot Drinks in the United Kingdom

出版商 Euromonitor International
出版日期 2009年05月 商品編碼 100422
內容資訊 英文 Tables 758
價格
US $ 1900 PDF by E-mail (Single User License)


英國熱飲市場 是由出版商Euromonitor International在2009年05月所出版的。 這份英文市場調查報告書包含Tables 758 價格從美金1900起跳。

目錄

Abstract

Why buy this report

  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
  • Identify market and brand leaders and understand the competitive environment

Product coverage

Coffee; Other hot drinks; Tea

Executive summary

Consumers lean on hot drinks under waning British weather

Poor weather continues to impact sales of food and drinks. Soft drinks performed disappointingly but soups and hot beverages sold well. Soup and hot drinks had a strong year in 2008, thanks to the wet weather and cooler temperatures. Top tea and coffee brands grew or remained stable during poor seasons, when consumer spending habits naturally turn to hot beverages. In an attempt to adapt to a meagre warmer climate and adjust to consumer demands, hot drink manufacturers are diversifying their products and investing in marketing communication.

UK consumers bag more ethical hot drinks

Hot drinks successfully tapped into the ethical trend in 2008, particularly in coffee, with manufacturers producing and labelling their products with Fairtrade, Rainforest Alliance, sustainable development or other initiatives such as the Ethical Tea Partnership. UK consumers are investing in ethical products as their way of contributing to the battle against global poverty and inequality. Major retailers are also recognising the growing public support for ethical consumerism and sustainable development, sourcing many of their products from ethical movements. Over the review period Kraft, in its first ethical move, also announced that it was switching its entire Kenco brand to Rainforest Alliance certified coffee. In the tea sector, Unilever' s PG Tips plans to source from Rainforest Alliance certified farms by 2010. It is evident from these shifts that the ethical consumerism trend continues to gain momentum in the hot drinks market.

Health and wellness trend is now empowering coffee sector

The UK hot drink of choice remains tea, in contrast to the rest of Europe where it is coffee. However, the consumption share of tea may be in decline as consumers are switching to coffee. Manufacturers are increasingly communicating the health benefits of coffee and developing low-calorie instant coffee specialty products. In terms of volume sales over the review period, tea was the only hot drink to decline, while coffee saw considerable growth. Tea continues to fail to reinvent itself in the same way that coffee does, placing coffee manufacturers in a position to develop their brands; focusing on health and popularising the UK "cafe culture".

Convenience and self-service culture shapes retail coffee offerings

Retailers across the country are introducing hot beverage machines on site, which has resulted in a boost in business. At the moment "bean-to-cup" machines and a boiling water tap for tea and hot chocolate are on the rise, but retailers hope to further upgrade to systems that offer more choice. Convenience stores are among the growing destinations for the sale of gourmet coffee on-the-go; a category that generated £830 million in UK sales in 2008. Consumer demand for convenience-led coffee is continuing to grow and the outlook in 2009 remains positive. Self-service bridges the gap between coffee bar chains and traditional coffee vending, and enables retailers to capitalise on the growing consumer demand. On-the-go, savvy cash-strapped consumers recognise the value of such coffee machines in relation to similar products from a high street chain. At the same time, their time and wallets do not have to suffer.

Hot drink variety will outweigh tight spending in times of economic strife

The credit crunch may curb spending, but if consumers cut down on the amount they spend on in other areas, they will most likely continue to spend on food and drink in some shape or form. Accessibility (increasing self-service machines across the country), innovation (pod machines and other equipment which encourages a convenient, cafe experience), health (manufacturers communicating and developing health varieties), and promotional activity will positively affect consumer spending in spite of rising prices and declining disposable income. Consumers will buy what they perceive as indulgent and premium to satisfy their individual needs, seeking for alternatives that will not pinch as hard.

Hot drinks players are mindful of ethical consumption

Consumers continued "positive buying" in the UK during the review period, allowing companies to show their progression at a time of global morality. According to the Bank Ethical Consumerism Report published in November 2007, household expenditure on ethical goods and services has almost doubled since 2003. The Report, which acts as a barometer of ethical spending and boycotts in the UK, revealed that in 2008 on average, every household in the UK spent £664 in line with their ethical values compared to a mere £366 in 2002; an increase of 81%.

The UK continues to lead as one of the most advanced nations in the world in terms of Fairtrade FMCGs, which first appeared in the country during the mid-1980s. Due to technology, instant communication, and globalisation, by 2006 the Fairtrade concept entered the mainstream public consciousness at full force. 2008 saw no signs of downturn in hot drinks with the exception of tea. Increasing numbers of UK consumers are switching to coffee and in this switch they are opting for Fairtrade coffee, any Fairtrade product for that matter, suggesting that the ethical conscious is more than a passing fad.

Current Impact

Increasingly, the social and ethical behaviour of companies is influencing consumer purchasing decisions, and not just in terms of packaged food, beverage products, the environment and "green" bandwagon. Companies are offering all kinds of goods and services that boost their ethical credentials and they are clearly attempting to communicate such efforts to the public. Whether they are doing so out of sincerity or to meet the requirements of "what sells" remains a matter of opinion. Regardless, one thing is clear -- people are willing to contribute to help the less fortunate. With its unique partnership with Save the Children, for instance, the 2008 launch of Fair Instant was an innovation in the Fairtrade coffee market and sales are now making a real difference to children' s education opportunities in coffee growing countries. A year on, the project is proving to be a great success and packaging has been re-designed to communicate the high quality of the coffee and raise the awareness of the Save the Children partnership even further. Fair Instant sales have raised £100,000 over the review period for education programmes in Columbia, confirming that many UK consumers are prepared to pay higher prices for ethical hot drink products.

Outlook

A possible backlash against the concept of ethical and Fairtrade products may arise over the forecast period, as signs of this were evident towards the end of the review period. This is similar to the negative media that surrounds the organic movement which continued throughout the review period. Accusations of inconsistent international standards and allegations that large grocery retailer chains pressure organic producers to lower standards in order to meet stock, continued in 2008. Critics of these ethical business schemes also question the fact that retailers are charging a high premium and pocketing higher margins for products that are designed to help less fortunate farmers, plantations and their communities.

Consumers are becoming increasingly inundated and confused with the proliferation of competing sustainable business schemes, or eventually see Fairtrade-certified products as offering no more than regular brands. In 2008, Costa Coffee announced it would source its entire bean supply from Rainforest Alliance Certified farms by 2010. Over the review period Kraft also announced that it was switching its entire Kenco brand to Rainforest Alliance-certified coffee, a move it hopes will win over more ethical shoppers and give it a point of difference over market leader Nescafé It is the first time Kraft has converted an entire brand to the ethical mark, demonstrating a wide commitment to sustainable development. Nevertheless, the increasing number of ethical labels may undermine trust, and it is questionable whether UK consumers could become more cynical and numb to ethical shopping altogether. In addition, the ethical stance of consumers will only be as strong as the UK economy - any significant economic downturn could see consumers revert back to products that offer the best value for money.

Future Impact

This trend of ethical consumerism is most evident in the hot drinks aisle in retail outlets: manufacturers are mindful of moral consciousness and are providing consumers with a slew of options. During the review period, the development of Fairtrade hot drinks products in the UK was led by smaller companies such as Café irect and Percol. However, bigger players like Nestlé and Kraft Foods were quick to launch their own Fairtrade products, recognising the need to commit to corporate responsibility and sustainable business practices. According to the Fairtrade Foundation, the UK spent £117 million on Fairtrade coffee and £30 million on Fairtrade tea. The penetration of Fairtrade products in tea was lower, mainly due to insufficient levels of production. However, new Fairtrade products continued to appear in the tea sector in 2008, including private label products.

It is expected that smaller players will continue to gain ground in the hot drinks market over the forecast period by focusing on products that make consumers feel good about themselves and their purchasing decisions. Many UK consumers tend to group organic, environmental and Fairtrade products together, viewing them as ethical choices that help improve the state of the world and all its inhabitants.

Multinational players meanwhile will continue to try and tap into this trend, either by creating their own brands or investing in smaller companies with a proven commitment to Fairtrade or ethical production. Previously, multinational players have pursued both strategies with limited success. The ethical shopper is often savvy enough not to buy into brands that do not fully meet ethical business principles (ie McDonald' s switching to Fairtrade coffee), or that do not meet their expectations in terms of taste and provenance.

Even during times of economic slowdown, consumers remain loyal to Fairtrade as sales increased by 55% according to the organisation. Particularly with the 2008 announcement of "Tipping the Balance"; a new five-year strategy aimed at achieving a four-fold expansion by 2012 to £2 billion and making Fairtrade the trade norm rather than the exception, there is no doubt that the public will be even more globally and ethically aware, perhaps to the extent of forcing more government and business commitments.

Convenience and self-service presents opportunity to retailers

Increasingly fast-paced lifestyles lead people to multi-task. Everyday tasks are adapting to correspond to this need, such as recycling-on-the-go, eating-on-the-go, and no end of applications designed to make life easier are accessible on a mobile phone, PDA, laptop, or any gadget for that matter. According to Kinetic research, people are spending more of their time out of home, on-the-go, and operating in a "Moving World". The research shows that our society has never been as mobile. Consumer lifestyles, where time is spent more at work and on the go, has an impact on fast consumption and presents major growth opportunities for hot drinks players to capitalise on this at retailer sites and challenge competing high street coffee shops.

In 2008, hot drinks in the UK generated 200,000 tonnes in off-trade volume terms, compared to 41,000 tonnes in the on-trade. Hot drinks manufacturers can see that there is room for growth and the need for convenience creates new opportunities for hot drinks in convenience stores and other retail channel. On the one hand, in-store coffee facilities encourage consumers who purchase their breakfast and/or lunch at supermarkets or convenience stores to buy their hot drinks at the same time, especially if a self-serve option is available. Also, providing convenient hot drinks in-store means that retailers can also benefit from sales, in addition to manufacturers. Consumers are able to buy their foods and hot drinks without having to stop at a coffee chain and can enjoy their drink on-the-go. Seeking to save time in their hectic lives, many consumers buy hot drinks in retail outlets when available, which were increasingly seen as convenient luxuries or small rewards.

Current Impact

Retailers across the country are introducing hot beverage machines on site which has resulted in a boost in business. In 2008, "bean-to-cup" machines and a boiling water taps for tea and hot chocolate predominate, but retailers hope to upgrade their systems and be able to offer more choice. These machines are also easy for retailers to look after as their cleaning systems are generally straightforward. A Surrey retailer installed a Tchibo hot beverage machine in 2008 that serves a range of coffees, tea, and hot chocolate and claims that business peaks on days when there is a football match in town, and increasingly attracts passing trade.

Hot beverage equipment suppliers such as Coffee Nation claim that the average machine can generate sales of over £40,000 a year. Convenience stores is among the growing channels for sales of gourmet coffee on-the-go; a category that was worth around £830 million in UK sales in the off-trade alone in 2008. Consumer demand for convenience-led coffee is continuing to grow and the outlook for 2009 remains positive. Self-service bridges the gap between coffee bar chains and traditional coffee vending, and enables retailers to capitalise on the growing consumer demand.

Furthermore, consumers not only seek convenience but they want quality, even whilst on-the-go. This is the reason why Coffee Nation' s installations, for instance, have grown year-on-year. UK consumers demand high quality coffee with fresh milk and real espresso. Sielaff, a leading European manufacturer of vending machines and glass-fronted merchandisers, also launched the Barista Uno during 2008. The stylish, fully automatic, purpose-built self-service coffee bar is intended for self-serve take-away locations, particularly convenience stores, petrol stations, and motorway service areas. On the go, savvy cash-strapped consumers recognise the value of such coffee machines in relation to similar products from a high street chain. Meanwhile, their time and wallets do not have to suffer.

In 2008, the trend for seeking high quality hot drinks products at retailers still applied, mainly among middle-income consumers making impulse purchases. However, the consumer base for self-service hot drinks machines is set to expand during the forecast period as availability increases and convenience demands continue to rise. This trend will have a major influence on all food and beverage markets, not only hot drinks.

Outlook

Hot drinks is a lucrative market for retailers with decent facilities, and equipment can generate additional sales of the associated products. Hot drinks, such as filter drip coffee, cocoa, and hot tea are enormously profitable and require very little operator work to brew and serve -- more so if quality hot beverages are offered. A hot drinks system will allow convenience stores and supermarkets to address the needs of their consumers, especially working parents, students, and shift workers for example, by fulfilling more than one need: besides coming in to purchase their lunch, laundry detergent, or other item, a customer can also purchase a cup of coffee.

Future Impact

The hot drinks market will again be profitable for retailers during the forecast period, as long as they are willing to diversify. In terms of volume and value sales, hot drinks continues to experience growth in the on-trade, and convenience stores that installed hot drinks facilities saw sales and profits rise 58%, according to trade press. Convenience stores, petrol forecourts, newsagents and supermarkets will continue to engage in a price war and challenge major hot beverage chains. However, they should exercise caution while major coffee shops are still growing. Such retailers would be wise to cross-promote, offer products and quality with service support and commit to programmes with proven success. Manufacturers can facilitate this by providing high-volume machines, innovative product extensions, payment options and menu additions. Retailers who keep up with the newest systems will see opportunity in light of consumers seeking quality and convenience. Not all retailers will have the space or option to creating seating areas in or outside their stores, but this does not stop them from benefiting from evolving in-store cafes.

Moreover, retailers that install facilities for hot drinks, and hot drinks manufacturers which get involved will profit. Some hot drinks machine manufacturers are developing machines to be able to serve a range of brands. They are working with a wide variety of suppliers, so retailers will enjoy flexibility and options in their beverage programmes. This will allow retailers to select products that are profitable and popular with their customers. With hot drinks machines becoming mainstream and manufacturers looking to support retailers with new products and machinery, retailers and hot drinks players who are willing to invest in promoting their services could see their business heat up the market.

Recession fails to cool hot drinks sales

October 2008 saw the UK economy entering an economic crises following a rash of bank failures and nationalisations, or "bailouts", around the world. Simultaneously, consumers felt a price squeeze as commodity prices rose rapidly during 2007 and the first half of 2008, increasingly driven by booming China and India, making petrol, food, and other basic costs more expensive. This surging inflation stopped central banks from cutting interest rates to help ease the credit crunch. As a result, the looming crunch finally impacted the public and so arose the question and importance of consumer confidence in holding up the economy, and in this case, its effect on the hot drinks market.

Current Impact

In 2008, rising consumer interest in hot drinks coupled with the economic recession did not affect hot drinks sales in terms of volume and value in the UK. Many UK consumers continued to prioritise their need for a hot drinks, as reflected in the impressive performance of coffee and its fuelling growth in the category. Some experts in the field believe that the current economic climate could actually boost the sector as coffee drinkers trade their coffee shop-bought lattes for making their own at home or work. Furthermore, with an increasing and lucrative number of Fairtrade and similar ethical brands on the market, such hot drinks products that are well established in the consumer conscience will weather any economic storm. People who stay at home more will seek quality hot drink indulgences, and certainly hot drinks manufacturers should not cut back on their Fairtrade ranges as they have proven successful.

Additionally, hot drinks players are tapping into the convenience store channel by offering packaged coffee. Manufacturers are paying closer attention to small independent stores in addition to major supermarkets where there is a huge opportunity. Great sales opportunities also exist in the growing number of self-service coffee machines found in retail outlets. This has enabled hot drinks lovers to enjoy their indulgences at a lower price, thus avoiding any guilt about unnecessary spending at a time when money is tight. Accordingly, the review period saw many leading coffee players partner with hot drinks machine manufacturers to further profit outside of traditional on-trade sites.

Major coffee shop chains, however, are hearing another story. Starbucks, for instance, announced in 2008 that sales in Britain had "softened" for the first time. During the financial year 2008, Starbucks Coffee Company UK closed a small number of stores. However, Starbucks continues to plan new store openings internationally in spite of hard times. The company believes that EMEA (Europe, Middle East and Africa) operations, including the UK, are a good growth engine for sales. During a previous downturn, following the bursting dotcom bubble in 2001, Starbucks managed to continue growing sales, leading some analysts to suggest that the business model was recession-proof. But a rise in cut-price competition and further options has meant that consumers can now trade down when feeling the financial squeeze.

Outlook

With the credit crunch biting, retailers are trying to do all they can to encourage consumer loyalty. Tea and coffee is proving to be a solution in the form of the in-store cafe. Some hot drinks players will be more generous to retailers compared to recent years in terms of trial products. Tchibo, for example, provided hot drinks machines on loan to certain retailers in an effort to popularise in-store cafes.

The forecast period is likely to see a slowdown in demand for instant specialty coffee products. Previously, instant coffee manufacturers tried to keep up with specialist coffee shop trends by launching flavoured sachets of different coffee shop drinks, such as latté mocha and cappuccino. Over the forecast period, demand for these products will fall as more consumers trade up to coffee pods machines in an attempt to re-create the authentic specialist coffee shop taste at home. Potential threats to this scenario include the initial investment required to purchase a coffee machine, as well as the large amount of waste produced by coffee pods, which will no doubt influence environmentally-conscious consumers.

As far as specialist coffee shops, there were no significant signs of slowing towards the end of the review period, with leading chains Starbucks, Costa Coffee, and Cafe Nero all posting good profits in 2007. Saturation point appeared to have been reached in London, with Starbucks operating 150 outlets within a 5-mile radius. Despite closing several outlets during the review period, the major chain announced that business potential in London and the rest of the country continues in the long term and the company instead will opt for promotion deals such as free refills to beat the crunch.

Expansion in the provincial regions of the UK will be followed by the establishment of chained specialist coffee shops outlets or counters in new locations such as supermarkets/hypermarkets, bookshops, estate agents and even bookmakers. Diversification via a greater focus on food offerings will also help to sustain the positive development of specialist coffee shop chains. This will in turn continue to support rising consumer interest in fresh and speciality coffee products at the retail level during struggling financial times.

Future Impact

The credit crunch may curb spending, but some FMCG sectors will experience more of an impact than others, with consumers most likely continue to spend on food and drink in some shape or form. They key for convenience store retailers and supermarkets is to reach out to those who spend, perhaps promoting products and tailoring offers to cater to specific needs. Value messages are critical in communicating to the public. Consumers will not necessarily trade up their coffee or tea, but they may alter their buying habits and consider alternate products, affordable formats, smaller sizes at cheaper prices and such. Loyal Starbucks customers, for instance, may opt for a "Grande" instead of a "Venti". Loyal Cafe Nero customers may purchase their hot drinks at convenience stores while they are picking up their lunch. Consumers will continue to spend in spite of rising prices, buying what they perceive as indulgent and premium to satisfy their individual needs. However, they will find alternatives that will not pinch as hard.

Innovation will encourage more UK consumers to try and recreate the specialist coffee shop experience at home over the forecast period in light of the economic climate. While coffee pods retail volume sales will initially remain small, as competition increases, prices for the coffee machines will come down. As coffee pods products become more accessible, coffee pod machines could become as ubiquitous as the kettle in UK kitchens, primarily for convenience, quality, and financial savings.

UK consumers use hot drinks as a crutch in cold weather

The bad weather in 2008, the wettest summer on record, coupled with cold days and nights in the UK, impacted sales of food and drinks according to trade press. The study revealed soft drinks performed poorly but soups and hot beverages sold well. Soup and hot drinks had a strong year in 2008, thanks to the wet weather and cooler temperatures. Top tea and coffee brands grew or remained stable during cool, rainy seasons and cold winter nights, where thoughts naturally turn to warming hot drinks.

Current Impact

The British weather has undoubtedly played a part in shaping consumer spending habits. Poor summer weather may be one of the causes of slowing growth in soft drinks. It may be important to note that functional drinks is the fastest growing category in soft drinks; however, many functional drinks are consumed indoors to aid recovery after exercise or sport. Similarly, hot drinks benefits from the increasing indoor tendencies of Britons when the weather is bad or a perceived notion of warmth while consuming hot indulgences outdoors. Such a dependence on hot drinks explains why manufacturers are mirroring soft drinks in developing an array of beverages to meet consumer demand during chilling weather conditions.

Outlook

Bad weather and the UK are synonymous and have been for quite some time. Global warming permitting, the gloomy weather is likely to stay. In fact, in 2008 scientists at the University of East Anglia (UEA) found that winter rain has intensified in the UK during the last 100 years. Furthermore, aggressive rain is predicted to become the norm in the UK for years to come and similar increases in heavy rainfall will be evident in spring and, to a lesser extent, autumn. In the late-1960s, about 7% of the UK' s winter precipitation came from heavy rain or snow fall, while over the last decade this figure has reached about 12%. As long as consumers maintain impulse purchases of hot drinks, continuing weather patterns will positively impact the hot drinks market.

Future Impact

In an attempt to adapt to the cooling environment and adjust to consumer demands, hot drinks manufacturers will diversify their products and invest in marketing communication. They will increasingly seek to attract consumers and brand their products as luxury or premium, yet affordable, splurges. The growing number of self-service coffee machines sweeping the country exemplifies how accessible hot drinks have become. In addition to this are the numerous developing formats where consumers can prepare their hot drinks with utmost convenience. This will place them in direct competition with specialist coffee shop operators.

Additionally, with hot drinks increasingly being served in bookshops, department stores, garden centres and even record stores, UK consumers may show more and more interest and use hot drinks as a crutch under waning weather conditions.

Health consciousness continues to heat hot drinks

In 2008 UK consumers continued to seek products that provided functional and added-value health benefits. UK consumers' health consciousness is constantly rising with increasing communication about the obesity epidemic and its related illnesses. Deemed the "fattest nation in Europe" in 2007, the UK is aligning itself with health and fitness that is more sustainable and is being more proactive in shaping up.

In recent times, the UK government has taken a more interventionist approach to Britons by identifying three key threats to the nation' s health, namely obesity, alcohol and tobacco. The government calculated that if prevention is not realised and practiced, it could cost the NHS £30 billion over the next 14 years in treating obesity-related problems. Furthermore, Britons are generally prone to sedentary lifestyles, with time-strapped, on-the-go processed food and irregular mealtimes, taking a toll on the nation' s waistlines. The government had initially been the sole communicator that focused on health promotion and encouraging the population to be actively engaged in the pursuit of better health, but in recent times, the hot drinks market has jumped on the bandwagon to cash in.

According to trade press, UK consumers are some of the biggest sippers of hot drinks in Europe, behind only Sweden and the Netherlands. UK consumers had on average 3.7 hot drinks per person per day in 2006 compared with 3.2 in Europe and 1.8 in the US. The influx and spread of coffee houses such as Starbucks, Costa Coffee, and Cafe Nero on virtually every high street have encouraged consumers to trade up in terms of high-quality coffee and be happy to pay more for it, especially if it contains added-value benefits.

Current Impact

Despite the growth of a "caf culture", UK consumers' hot drinks choices are still dominated by tea, in contrast with the rest of Europe, which is dominated by coffee. According to the National Drinks Survey during the first part of 2008, tea accounts for about a third of consumption. In fact, 61% of Britons drink tea daily. However, the consumption share of tea may be in decline as consumers are switching to coffee. In terms of volume sales over the review period, tea was the only hot drink to decline, while its retail current value sales stabilised at £720 million. Negative growth could be avoided if hot drinks players link their products with antioxidant content. Both ready-to-drink teas and specialty teas, for example, are enjoying growth. Tea continues to fail to reinvent itself in the same way as coffee, with long term stagnation in the market. It is expected to decline in overall volume terms by 4% and in constant value terms by 5% over the forecast period. Coffee players are in a position to develop coffee that centres on health.

Health is playing a significant role. You only need to look at the NPD around green, fruit and herbal teas and the growth of rooibos to see that consumers are experimenting when it comes to their tea and looking for healthier hot beverage options. Big players such as Unilever have launched PG Green Tea, and there is no question that more product development will occur. Manufacturers often cite one of their major challenges as consumers trading up the value ladder into premium segments. Tapping into the health trend has allowed them to come closer to attaining such goals.Low-calorie hot chocolate brand Options ventured into coffee for the first time in 2008. The brand was previously available only in hot chocolate flavours, but the new Options Cafe Coffees trio targets health-conscious coffee lovers looking for a different indulgence. It also taps into the instant cafe-style coffee sector, growing almost 8% in current value terms over the review period. Customers are seeking more sophisticated, authentic and, if possible, healthy experiences at home.

At the same time, food and beverage manufacturers are sending mixed messages about health claims to UK consumers. Similar to soft drinks, this is particularly true within hot drinks where almost everything seems to be good for you. Coffee is a natural stimulant; black and green teas are high in anti-oxidants; fruit/herbal teas are full of natural goodness, and if one wishes, decaffeinated varieties of both tea and coffee are also available.

Outlook

For the long term, the health of the nation will be of key concern in the UK. Food and beverage manufacturers will undoubtedly avoid taking the blame for the UK' s public health problems and as a result will adjust their products accordingly. Hot drinks manufacturers will continue to try and prevent the introduction of tighter legislation over the forecast period as the spotlight will continue shining on them, considering their responsibility and influence in the nation' s dietary habits and perceptions.

The government will remain attentive to the health issue for the long term. Obesity rates and other diet-related health problems are still rising in spite of the booming demand for health and wellness, "improving" food and beverage products, and the endless communication devoted to sustainable eating and active lifestyles. Regulating TV advertising will not alone solve the problem.

Future Impact

Coffee, tea and chocolate-based flavoured powder drinks manufacturers are expected to continue highlighting their health claims during the forecast period. All three product types, for example, are promoting their antioxidant content and their assistance in energising, relaxing, and detoxing. Such claims are expected to discourage consumers from soft drinks products; another market experiencing a face lift in light of the health trend.

Over the forecast period, green and fruit/herbal tea will benefit from the health and wellness trend. Such products will increasingly be purchased as a complement to standard black tea products rather than a replacement. While UK consumers will continue to seek healthier alternatives, it is unlikely that they will be willing to change their established habits completely. Coffee, for instance, will continue to be widely consumed for its stimulant effect, yet scare stories in the media and further debate on the dangers of excessive caffeine consumption may make consumers more cautious. Manufacturers of instant speciality coffee products, which are often high in calories, are adapting to meet consumer expectations in terms of health. In other hot drinks, Horlicks, for example, launched Horlicks Extra Light hot chocolate in 2008 in hope of recruiting new, younger adults and women into the category.

Table of Contents

  • HOT DRINKS IN THE UNITED KINGDOM : MARKET INSIGHT
  • EXECUTIVE SUMMARY
  • Consumers lean on hot drinks under waning British weather
  • UK consumers bag more ethical hot drinks
  • Health and wellness trend is now empowering coffee sector
  • Convenience and self-service culture shapes retail coffee offerings
  • Hot drink variety will outweigh tight spending in times of economic strife
  • Hot drinks players are mindful of ethical consumption
  • Convenience and self-service presents opportunity to retailers
  • Recession fails to cool hot drinks sales
  • UK consumers use hot drinks as a crutch in cold weather
  • Health consciousness continues to heat hot drinks
  • MARKET DATA
    • Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
    • Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
    • Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
    • Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
    • Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
    • Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
    • Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
    • Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
    • Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
    • Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
    • Table 11 Hot Drinks Company Shares by Value 2004-2008
    • Table 12 Hot Drinks Brand Shares by Value 2005-2008
    • Table 13 Penetration of Private Label by Sector 2004-2008
    • Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
    • Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
    • Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
    • Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
    • Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
    • Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
    • Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
    • Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
    • Table 22 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
    • Table 23 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
  • APPENDIX
  • Published Data Comparisons
  • Production/Import/Export Data
  • DEFINITIONS
    • Summary 1 Research Sources
  • LOCAL COMPANY PROFILES - UNITED KINGDOM
  • BETTY & TAYLORS OF HARROGATE LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 2 Betty & Taylors of Harrogate Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
  • COMPETITIVE POSITIONING
    • Summary 3 Betty & Taylors of Harrogate Ltd: Competitive Position 2008
  • CAFésIRECT LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 4 Cafésirect Ltd: Key Facts
    • Summary 5 Cafésirect Ltd: Operational Indicators
  • COMPANY BACKGROUND
  • PRODUCTION
  • COMPETITIVE POSITIONING
    • Summary 6 Cafésirect Ltd: Competitive Position 2008
  • KRAFT FOODS UK LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 7 Kraft Foods UK Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
    • Summary 8 Kraft Foods UK Ltd: Production Statistics 2008
  • COMPETITIVE POSITIONING
    • Summary 9 Kraft Foods UK Ltd: Competitive Position 2008
  • NESTLéUK LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 10 Nestlé UK Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
  • COMPETITIVE POSITIONING
    • Summary 11 Nestlé UK Ltd: Competitive Position 2008
  • TETLEY GB LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 12 Tetley GB Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
    • Summary 13 Tetley GB Ltd: Production Statistics 2008
  • COMPETITIVE POSITIONING
    • Summary 14 Tetley GB Ltd: Competitive Position 2008
  • TWINING & CO LTD, R - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 15 R Twining & Co Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
  • COMPETITIVE POSITIONING
    • Summary 16 R Twining & Co Ltd: Competitive Position 2008
  • TYPHOO TEA LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 17 Typhoo Tea Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
    • Summary 18 Typhoo Tea Ltd: Production Statistics 2008
  • COMPETITIVE POSITIONING
    • Summary 19 Typhoo Tea Ltd: Competitive Position 2008
  • UNILEVER BESTFOODS UK LTD - HOT DRINKS - UNITED KINGDOM
  • STRATEGIC DIRECTION
  • KEY FACTS
    • Summary 20 Unilever Bestfoods UK Ltd: Key Facts
  • COMPANY BACKGROUND
  • PRODUCTION
    • Summary 21 Unilever Bestfoods UK Ltd: Production Statistics 2008
  • COMPETITIVE POSITIONING
    • Summary 22 Unilever Bestfoods UK Ltd: Competitive Position 2008
  • COFFEE IN THE UNITED KINGDOM
  • HEADLINES
  • TRENDS
  • COMPETITIVE LANDSCAPE
  • PROSPECTS
  • SECTOR DATA
    • Table 24 Coffee Machine Sales: 2002-2008
    • Table 25 Instant Coffee by Speciality Type 2004-2008
    • Table 26 Retail Sales of Coffee by Type: Volume 2003-2008
    • Table 27 Retail Sales of Coffee by Type: Value 2003-2008
    • Table 28 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
    • Table 29 Retail Sales of Coffee by Type: % Value Growth 2003-2008
    • Table 30 Standard Vs Coffee Pods 2004-2008
    • Table 31 Coffee Company Shares 2004-2008
    • Table 32 Coffee Brand Shares 2005-2008
    • Table 33 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
    • Table 34 Forecast Retail Sales of Coffee by Type: Value 2008-2013
    • Table 35 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
    • Table 36 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
  • TEA IN THE UNITED KINGDOM
  • HEADLINES
  • TRENDS
  • COMPETITIVE LANDSCAPE
  • PROSPECTS
  • SECTOR DATA
    • Table 37 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
    • Table 38 Other Tea by Type: % Off-trade Volume 2005-2008
    • Table 39 Retail Sales of Tea by Subsector: Volume 2003-2008
    • Table 40 Retail Sales of Tea by Subsector: Value 2003-2008
    • Table 41 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
    • Table 42 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
    • Table 43 Tea Company Shares 2004-2008
    • Table 44 Tea Brand Shares 2005-2008
    • Table 45 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
    • Table 46 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
    • Table 47 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
    • Table 48 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
  • OTHER HOT DRINKS IN THE UNITED KINGDOM
  • HEADLINES
  • TRENDS
  • COMPETITIVE LANDSCAPE
  • PROSPECTS
  • SECTOR DATA
    • Table 49 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
    • Table 50 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
    • Table 51 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
    • Table 52 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
    • Table 53 Other Hot Drinks Company Shares 2004-2008
    • Table 54 Other Hot Drinks Brand Shares 2005-2008
    • Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
    • Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
    • Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
    • Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013
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