20 Oct 2020
Posted in Consumer
Australia’s hot drinks market to grow at CAGR of 3.5% through 2019–24, says GlobalData
The Australian hot drinks sector is expected to grow from A$3.5bn (US$2.4bn) in 2019 to A$4.1bn (US$2.8bn) in 2024, at a compound annual growth rate (CAGR) of 3.5%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Hot Drinks – Market Assessment and Forecasts to 2024’, reveals that ‘Hot Coffee’ was the largest category in terms of both value and volume sales in 2019. The category is forecast to record the fastest value growth at CAGR of 3.9% for the period 2019–2024. The category is followed by other hot drinks and hot tea categories with CAGRs of 3.8% and 0.8%, respectively.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Hot coffee remains a favorite among the Australians. Rising number of coffee shops are promoting coffee culture in the country, thus increasing the popularity among millennials as well as elderly consumers. Growing number of cafes, and the novelty, experimentation and education they bring to the mix, have further expanded consumer palates, contributing to the category growth.”
Hypermarkets and supermarkets were the leading distribution channel in the Australian hot drinks sector and accounted for a value share of 44.1% in 2019. Sales through on-trade channels accounted for 40.1% in the same year.
Nestle SA emerged as the leading player in the Australian hot drinks sector, followed by Jacobs Douwe Egberts and Unilever in 2019.
Ms Bisht concludes: “While hot coffee continues to reign, hot tea is also widely consumed among the Australians. Hot coffee and hot tea are gaining favor among health-conscious consumers of diverse age groups, who are gravitating towards novel tea varieties such as specialty, matcha and herbal teas. Considerable opportunities are emerging from the foodservice sector, where these tea varieties are finding more space in their menus as consumer preferences evolve, aiding the overall category growth.”