Hot Drinks & Soft Drinks Market Trends

Global Hot Drinks & Soft Drinks Market Overview

Hot Drinks & Soft Drinks Market Size was valued at USD 628.5 Billion in 2022. The hot drinks & soft drinks market industry is projected to grow from USD 665.58 Billion in 2023 to USD 1052.855 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2023 - 2032). The market for hot drinks and soft drinks is anticipated to experience rapid growth as a result of a number of key market drivers, including rising consumer interest in a wide range of coffee and soft drink flavors, changing lifestyles, and an expanding population.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hot Drinks & Soft Drinks Market Trends

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  Rising change in consumer preferences is driving the market growth

  
  

A growing working population, rising demand for ready-to-use products, and expanding retail marketplaces are some of the factors anticipated to drive the hot drinks and soft drinks market expansion. The market for hot drinks and soft drinks is anticipated to develop as a result of the growing usage of natural hot drink components like tea and coffee extracts in the food & beverages sector. A further driving force on a worldwide scale will be effective packaging equipment. It helps keep hot & cold beverages' flavor and quality intact. Additionally, production costs and energy usage have decreased thanks to simple-to-use packaging materials. As a result, producers are spending more money on research and development for flexible packaging.

The demand for carbonated soft drinks has consequently dramatically increased in many countries as a result of the fast growth of fast food restaurants. McDonald's, Domino's, Pizza Hut, Subway, and Burger King are just a few of the quick-service eateries that now offer inexpensive meals with substantial nutritional value. A beverage, typically a soft drink, is served with the great majority of these meals. Fast-food establishments serve soft drinks due to customers' longer propensity to digest and enjoy their cuisine more. Furthermore, it enables customers to more fully digest and appreciate their food. It has been noted that eating fast food alone can temporarily obstruct the food pipe. On the other hand, when given alongside the same fast food, a beverage like a soft drink improves its flavor.

The key element propelling expansion in the hot drinks and soft drinks industry will be the ongoing product developments carried out by market participants. Market players continuously create fresh iterations of their products, changing the formulation, components, and packaging, among other aspects, in order to increase their overall sales. For instance, PepsiCo debuted three new cola flavors in April 2019: Pepsi Berry, Pepsi Lime, and Pepsi Mango. Under the Pepsi name, these drinks were offered for sale. These flavors, it was claimed, would cut the sugar content of the beverages by about 50%. As a result, it is anticipated that new goods will be introduced in the years to come that will take the health requirements of the target market into account. Thus, driving the hot drinks & soft drinks market revenue.

Hot Drinks & Soft Drinks Market Segment Insights

Hot Drinks & Soft Drinks Type Insights

The hot drinks & soft drinks market segmentation, based on type includes Coffee, Tea, Carbonated soft drinks, Non-carbonated soft drinks, Hot chocolate, Apple cider, and Others. The coffee segment dominated the market. One of the major drivers of coffee's growth over the anticipated period is the rising popularity of organic coffee. Because natural and organic coffee is devoid of chemicals and pesticides, it is more in demand among consumers who are concerned about their health.

Hot Drinks & Soft Drinks Distribution Channel Insights

The hot drinks & soft drinks market segmentation, based on distribution channel, includes Hypermarkets and Supermarkets, Convenience Stores, Department Stores, Dollar Stores, Variety Store, Cash and Carries and Warehouse Clubs, Food and Drinks Specialists, Drug Stores and Pharmacies and Health and Beauty Stores. The hypermarkets and supermarkets category generated the most income. Mass merchandisers, grocery stores, and hypermarkets make up the bulk of the market. Many people choose to buy hot drinks and soft drinks from supermarkets and general merchandisers due to the shopping experiences these businesses provide.

Hot Drinks & Soft Drinks End User Insights

The hot drinks & soft drinks market segmentation, based on end user, includes Coffee Shops, Drink Stores and Food Services. The coffee shops category generated the most income. The factors influencing the coffee shop market's expansion are changing lifestyles and rising disposable money.

Figure 1: Hot Drinks & Soft Drinks Market, by Distribution channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hot Drinks & Soft Drinks Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American hot drinks & soft drinks market area will dominate this market. Early adopters and developed economies like the US and Canada are having a beneficial effect on market revenue. In order to fulfil the rising demand for hot and soft drinks, production of these beverages is being boosted, along with investments in manufacturing assembly lines and packaging technologies.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: HOT DRINKS & SOFT DRINKS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe hot drinks & soft drinks market accounts for the second-largest market share. In the recent years, there has been an upsurge in demand for hot drinks and soft drinks in this area. Additionally, the demand for ready-to-drink or instant coffee products is high in the United Kingdom, which is anticipated to fuel the market for hot drinks and soft drinks in the next years. Further, the German hot drinks & soft drinks market held the largest market share, and the UK hot drinks & soft drinks market was the fastest growing market in the European region

The Asia-Pacific Hot Drinks & Soft Drinks Market is expected to grow at the fastest CAGR from 2023 to 2032 because there are more franchise and retail stores in the area. Additionally, a significant factor in the region's market growth is increased brand recognition. Over the course of the projection period, the growing millennial generation will be a crucial consumer group for the hot drinks and soft drinks market.  Moreover, China’s hot drinks & soft drinks market held the largest market share, and the Indian hot drinks & soft drinks market was the fastest growing market in the Asia-Pacific region.

Hot Drinks & Soft Drinks Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the hot drinks & soft drinks market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, hot drinks & soft drinks industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the hot drinks & soft drinks industry to benefit clients and increase the market sector. In recent years, the hot drinks & soft drinks industry has offered some of the most significant advantages to medicine. Major players in the hot drinks & soft drinks market are attempting to increase market demand by investing in research and development operations includes The Coffee Bean & Tea Leaf (U.S), Unilever (U.K), Gourmesso (U.S), Harney & Sons Fine Teas (U.S), Dualit (U.K), Nestlé SA  (Switzerland), Dilmah Ceylon Tea Company PLC (Sri Lanka), Ippodo Tea Co. Ltd. (China), Tranquini (U.S), Chillbev (U.S), Som Sleep.(U.S), Phi Drinks, Inc.(U.S), BevNet.com (U.S), Pepsico, Inc.; The Coca-Cola Company; Keurig Dr Pepper Inc (KDP); Red Bull GmbH; Monster Energy Company; Appalachian Brewing Company; ITO EN INC.; and AriZona Beverages USA LLC.

Manufacturer and seller of fast-moving consumer goods is Unilever Plc (Unilever). Food items, cosmetics, personal care items, beverages, home care items, vitamins, minerals, and dietary supplements are all included in the company's product line. Products are offered to brick-and-mortar store partners, small family-run businesses, online retailers, and discount merchants. In the Americas, Europe, Asia-Pacific, Africa, and the Middle East, the company has commercial presence. The UK's capital city of London serves as Unilever's headquarters.

Manufacturer and distributor of food and beverage products is Nestle SA (Nestle). The product line of the company includes infant meals, bottled water, cereals, chocolates and other confections, coffee, and food items. Additionally, it offers dairy goods, nutritional products, ice cream, chilled and frozen meals, plant-based foods, chilled and frozen foods, dairy products, and pet care items. The corporation conducts business in Africa, the Middle East, Europe, Asia, and Oceania. Vevey, Waadt, Switzerland is home to Nestle's headquarters.

Key Companies in the hot drinks & soft drinks market include

• The Coffee Bean & Tea Leaf (U.S)


• Unilever (U.K)


• Gourmesso (U.S)


• Harney & Sons Fine Teas (U.S)


• Dualit (U.K)


• Nestlé SA  (Switzerland)


• Dilmah Ceylon Tea Company PLC (Sri Lanka)


• Ippodo Tea Co. Ltd. (China)


• Tranquini (U.S)


• Chillbev (U.S)


• Som Sleep.(U.S)


• Phi Drinks, Inc. (U.S)


• BevNet.com (U.S)   


• Pepsico, Inc.


• The Coca-Cola Company


• Keurig Dr Pepper Inc (KDP)


• Red Bull GmbH


• Monster Energy Company


• Appalachian Brewing Company


• ITO EN INC.


• AriZona Beverages USA LLC

Hot Drinks & Soft Drinks Industry Developments

June 2022: An official contract was signed for the purchase of the worldwide rights to the non-alcoholic, ready-to-drink cocktail brand Atypique by Quebec-based Keurig Dr Pepper Inc.

March 2021: JDE Peet's and J.M. Smucker Co. announced a strategic relationship that will enable JDE Peet's to support the Smucker Away From Home liquid coffee business with product research, production, and food service equipment innovation.

February 2020: Starbucks and PepsiCo Inc. introduced canned versions of their ready-to-drink Starbucks Nitro Cold Brew beverage. The three flavors of the drinks with nitrogen are black, vanilla sweet cream, and dark caramel.

Hot Drinks & Soft Drinks Market Segmentation

Hot Drinks & Soft Drinks Type Outlook (USD Billion, 2018-2032)

• Coffee


• Tea


• Carbonated soft drinks


• Non-carbonated soft drinks


• Hot chocolate


• Apple cider


• Others

Hot Drinks & Soft Drinks Distribution Channel Outlook (USD Billion, 2018-2032)

• Hypermarkets and Supermarkets


• Convenience Stores


• Department Stores


• Dollar Stores


• Variety Store


• Cash and Carries and Warehouse Clubs


• Food and Drinks Specialists


• Drug Stores and Pharmacies


• Health and Beauty Stores

Hot Drinks & Soft Drinks End User Outlook (USD Billion, 2018-2032)

• Coffee Shops


• Drink Stores


• Food Services

Hot Drinks & Soft Drinks Regional Outlook (USD Billion, 2018-2032)

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America