A return to normality will prove elusive for the global hot drinks industry in 2024. Supply chain challenges have moderated but not gone away, as increasingly value-conscious consumers try to balance their desires with tight budgets. Meanwhile, external pressures from technological shifts, geopolitical turmoil and climate change create new challenges.
This report comes in PPT.
Consumer tolerance of further price increases is wearing thin, presenting a question those in the industry must face as to whether to persist in passing on price increases or move towards more volume-focused strategies.
The on-premise segment is shifting towards a new model focused on efficiency and technology, at the expense of the human touch. This shift, and the resulting backlash from the traditionally-minded, will be the key long-term trend in foodservice in the years to come.
Functionality is certainly not a new trend in hot drinks. What is changing is that as the external world becomes more uncertain, individuals are viewing it through a lens of self-optimisation – this being something they can control in a chaotic world.
Consumer willingness to pay more for sustainable products has reduced under the pressures of the rising cost of living, but the threat from climate change to the industry is only becoming more acute. Sustainability is, therefore, becoming a way to prepare for trouble tomorrow rather than to appeal to the consumer today.
All aspects of the hot drinks industry move increasingly online with each passing year. This means more online retailing, of course, but also an increasingly unstable trend cycle, as social media becomes more important as a source of information.
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