The UK Hot Drinks Market: What Consumers Drink and Why?

Published: October 2013

Publisher: Canadean Ltd

Product ref: 185341

Pages: 64

Format: PDF

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Price: $ 3995.00

Report description

Product Synopsis
This report provides the results for the Hot Drinks market in the UK from Canadean’s unique, highly detailed study of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape
Why was the report written?
Marketers in the Hot Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Hot Drinks market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?
As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008–2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Coffee, tea, and other hot drinks are not considered essential items and therefore consumption patterns have been affected widely. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the Medium and Heavy frequency bands and the amount of Non-users should decrease.

What are the key drivers behind recent market changes?
Consumers’ uptake of products and the influence of consumer trends are fundamental causes of change in markets – making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits
Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Coffee, Tea, and Other Hot Drinks.

Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.

Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.

Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues
Consumer analysis indicates that Hot Drinks in the UK are consumed mostly by consumers in the urban market, accounting for almost three-quarters of the total Hot Drinks market share by value. As such, Hot Drink producers need to account for urban trends when targeting their products.

Private labels have significant penetration in the UK market, reaching almost one-fourth of consumers in the Other Hot Drinks category. However, this isn’t as high as in other CPG categories in the country, meaning retailers can continue to increase their share of the market.

Consumer analysis reveals that consumption of Hot Drinks increases with age and Older Consumers account for the largest share of Hot Drinks consumed in the UK. Companies and marketers should therefore factor in this demographic trend while designing any promotional campaign and advertisement.

Key Highlights
Although the UK market is relatively fragmented, the four largest retailers account for more than 80% of the Hot Drinks market in value terms. This indicates a high bargaining power compared to product manufacturers.

Switching analysis indicates that consumer loyalty stands low for hot drinks consumers in the UK as the top three retailers witnessed a large number of end consumers switching to other retailers in the last six months.

Consumer survey results indicate that Personal space and time and Better value for money are the leading trends influencing consumers’ choices of Hot Drinks in the UK. The importance of the Better value for money trend is indicative of the weak state of the UK economy, with consumers carefully weighing the costs and benefits of the products they consume.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 Consumer Trends
1.2.2 Consumer Groups
1.2.3 End Consumers
1.2.4 Volume Units and Aggregations
1.2.5 Exchange Rates
1.2.6 Population Profiles (for interpretation of tables and charts)
2 Methodology
2.1 Introduction
2.2 Initial data are based on a large scale, international program of online consumer surveys
2.3 Demographic groups tracking provides time series data
3 Consumer Segmentation, Group Value and Trend Influence
3.1 Cohort Groups and Hot Drinks Market Value
3.1.1 Age Groups
3.1.2 Gender Groups
3.1.3 Location Groups
3.1.4 Education Achieved Groups
3.1.5 Wealth Groups
3.1.6 Busy Lives Groups
3.2 Cohort Groups and Market Value by Category
3.2.1 Coffee
3.2.2 Other Hot Drinks
3.2.3 Tea
3.3 Behavioral Trends and Market Value
3.3.1 Coffee
3.3.2 Other Hot Drinks
3.3.3 Tea
4 Consumption Analysis
4.1 Consumption Frequencies by Age and Gender
4.1.1 Coffee
4.1.2 Other Hot Drinks
4.1.3 Tea
4.2 Consumer Profiles by Product Category
4.2.1 Coffee
4.2.2 Other Hot Drinks
4.2.3 Tea
5 Brand vs. Private Label Uptake
5.1 Brand vs. Private Label Consumer Penetration
5.1.1 By Category
5.2 Hot Drinks Brand Choice and Private Label Consumer Penetration
5.2.1 Coffee
5.2.2 Other Hot Drinks
5.2.3 Tea
6 The Share of Consumers Influenced by Trends
6.1 Trend Drivers of Consumers' Product Choices
6.1.1 Overall Hot Drinks
6.1.2 Coffee
6.1.3 Other Hot Drinks
6.1.4 Tea
7 Consumption Impact: Market Valuation
7.1 Hot Drinks Value Impact of Consumer Consumption Behavior
7.1.1 Market Value by Category
7.1.2 Market Volume by Category
7.2 Hot Drinks Value Analysis by Category
7.2.1 Market Value by Category
7.2.2 Expenditure per Capita by Category
7.2.3 Expenditure per Household by Category
7.3 Hot Drinks Volume Impact of Consumer Behavior Trends
7.3.1 Share by Category
7.3.2 Consumption per Capita by Category
7.3.3 Consumption Per Household by Category
8 Retailer Choice and Category Share
8.1 Retailer Volume Share
8.1.1 Retailer Volume Share in Hot Drinks
8.2 Retailer Volume Share by Category
8.2.1 Retail Share by Volume - Coffee
8.2.2 Retail Share by Volume - Other Hot Drinks
8.2.3 Retail Share by Volume - Tea
8.3 Profiles of End-Consumers of Hot Drinks, by Retailer Used
8.3.1 Aldi
8.3.2 Asda
8.3.3 Co-Op/Somerfield
8.3.4 Iceland
8.3.5 Lidl
8.3.6 M&S
8.3.7 Morrisons
8.3.8 Sainsbury's
8.3.9 Tesco
8.3.10 Waitrose
8.3.11 Other
9 Appendix
9.1 About Canadean
9.2 Disclaimer

List of Tables
Table 1: Volume Units for the Hot Drinks Market
Table 2: Foreign Exchange Rate - GBP vs. USD
Table 3: United Kingdom Survey Respondent profile (weighted), 2012
Table 4: United Kingdom Hot Drinks Value Share (%), by Age Groups, 2012
Table 5: United Kingdom Hot Drinks Value Share (%), by Gender, 2012
Table 6: United Kingdom Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Table 7: United Kingdom Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Table 8: United Kingdom Hot Drinks Value Share (%) by Wealth Groups, 2012
Table 9: United Kingdom Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Table 10: United Kingdom Coffee Consumer Group Share (% market value), 2012
Table 11: United Kingdom Other Hot Drinks Consumer Group Share (% market value), 2012
Table 12: United Kingdom Tea Consumer Group Share (% market value), 2012
Table 13: United Kingdom Total Coffee Value (Pound Sterling millions) and Value Share Influenced by Behavioral Trends, 2012
Table 14: United Kingdom Total Other Hot Drinks Value (Pound Sterling millions) and Value Share Influenced by Behavioral Trends, 2012
Table 15: United Kingdom Total Tea Value (Pound Sterling millions) and Value Share Influenced by Behavioral Trends, 2012
Table 16: United Kingdom Coffee Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 17: United Kingdom Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 18: United Kingdom Other Hot Drinks Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 19: United Kingdom Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 20: United Kingdom Tea Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 21: United Kingdom Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 22: United Kingdom Coffee Consumer Profiles (% consumers by sub-group), 2012
Table 23: United Kingdom Other Hot Drinks Consumer Profiles (% consumers by sub-group), 2012
Table 24: United Kingdom Tea Consumer Profiles (% consumers by sub-group), 2012
Table 25: United Kingdom Hot Drinks Private Label Consumer Penetration (% Consumers Using), by Category, 2012
Table 26: United Kingdom Coffee Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 27: United Kingdom Other Hot Drinks Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 28: United Kingdom Tea Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 29: United Kingdom Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 30: United Kingdom Coffee: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 31: United Kingdom Other Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 32: United Kingdom Tea: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 33: United Kingdom Hot Drinks Market Value (Pound Sterling million), by Category, 2012
Table 34: United Kingdom Hot Drinks Market Value (US$ million), by Category, 2012
Table 35: United Kingdom Hot Drinks Market Volume by Category, 2012
Table 36: United Kingdom Hot Drinks Market Value (US$ million), by Category, 2012
Table 37: United Kingdom Hot Drinks Expenditure Per Capita (Pound Sterling), by Category, 2012
Table 38: United Kingdom Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Table 39: United Kingdom Hot Drinks Expenditure Per Household (Pound Sterling), by Category
Table 40: United Kingdom Hot Drinks Expenditure Per Household (US$), by Category
Table 41: United Kingdom Hot Drinks Market Volume (Ltr m) by Category, 2012
Table 42: United Kingdom Hot Drinks Consumption Per Capita (Ltr ) by Category, 2012
Table 43: United Kingdom Hot Drinks Consumption Per Household (Ltr ) by Category, 2012
Table 44: United Kingdom Hot Drinks Survey-tracked Retailer Shares by Volume (% of Kg m), 2012
Table 45: United Kingdom Coffee Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 46: United Kingdom Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 47: United Kingdom Tea Survey-tracked Retailer Shares by Volume (Kg m), 2012
Table 48: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Aldi (% by Subgroup, as tracked by the Survey), 2012
Table 49: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Asda (% by Subgroup, as tracked by the Survey), 2012
Table 50: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Co-Op/Somerfield (% by Subgroup, as tracked by the Survey), 2012
Table 51: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Iceland (% by Subgroup, as tracked by the Survey), 2012
Table 52: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Lidl (% by Subgroup, as tracked by the Survey), 2012
Table 53: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From M&S (% by Subgroup, as tracked by the Survey), 2012
Table 54: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Morrisons (% by Subgroup, as tracked by the Survey), 2012
Table 55: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Sainsbury's (% by Subgroup, as tracked by the Survey), 2012
Table 56: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Tesco (% by Subgroup, as tracked by the Survey), 2012
Table 57: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Waitrose (% by Subgroup, as tracked by the Survey), 2012
Table 58: United Kingdom: Profile of Hot Drinks Consumers Whose Goods Mainly Come From Other (% by Subgroup, as tracked by the Survey), 2012

List of Figures
Figure 1: Consumer Trends Report Methodology
Figure 2: United Kingdom Hot Drinks Value Share (%), by Age Groups, 2012
Figure 3: United Kingdom Hot Drinks Value Share (%), by Gender, 2012
Figure 4: United Kingdom Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Figure 5: United Kingdom Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Figure 6: United Kingdom Hot Drinks Value Share (%) by Wealth Groups, 2012
Figure 7: United Kingdom Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Figure 8: United Kingdom Coffee Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 9: United Kingdom Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 10: United Kingdom Other Hot Drinks Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 11: United Kingdom Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 12: United Kingdom Tea Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 13: United Kingdom Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 14: United Kingdom Hot Drinks Market Value (US$ million), by Category, 2012
Figure 15: United Kingdom Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Figure 16: United Kingdom Hot Drinks Expenditure Per Household (US$), by Category
Figure 17: United Kingdom Hot Drinks Survey-tracked Retailer Shares by Volume (% of Kg m), 2012
Figure 18: United Kingdom Coffee Survey-tracked Retailer Shares by Volume (Kg m), 2012
Figure 19: United Kingdom Other Hot Drinks Survey-tracked Retailer Shares by Volume (Kg m), 2012
Figure 20: United Kingdom Tea Survey-tracked Retailer Shares by Volume (Kg m), 2012

Price: $ 3995.00

Related research categories

By sector: Hot drinks, General drinks

By market: United Kingdom (in Europe)