Global tea and coffee value sales are set to slow between now and 2027 compared to the last few years, data shows.
GlobalData, Just Drinks’ parent, reported that the compound annual growth rate (CAGR) of overall value sales for tea will fall from 7.8% between 2021 and 2024 to 4.8% between 2024 and 2027, reaching £58.6bn ($72.5bn).
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For coffee, the CAGR will fall from 5.9% to 5% during the same periods, with total value sales forecast to reach £72.5bn in 2027.
The data is based on 13 “key markets”, which include the US, Mexico, Brazil, Argentina, the UK, Germany, Sweden, China, India, Australia, Singapore, South Africa and the UAE.
The report said: “Across most non-alcoholic beverages categories, GlobalData predicts there will be a slowdown in the CAGR of overall value sales among 13 key countries studied in this report.
“This global decrease in predicted sales can be attributed to consumer cutbacks in the wake of inflation. Inflation around the globe is expected to fall in the coming years. Consumers have become more spending savvy as a result and are looking to make the most out of their budgets, coupled with the more adjusted pricing, which will bring value growth closer in line with volume growth again.”
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By GlobalDataIn the UK specifically, tea’s sales value jumped 12.3% between 2023 and 2024, despite volume sales declining 1.6%. The US is similar, with value growth across tea and coffee (7.4% and 2.9% respectively), but lagging volume growth of 3.8% and 0.4% respectively.
In the US, however, tea marked the highest volume growth in the last year out of all of the non-alcoholic beverages in the GlobalData survey.
Meanwhile, juices and bottled water are set to see slowdowns with the former falling 0.2% to 6.9% CAGR between 2024 and 2027 and the latter dropping 0.8% to 3.9%.
However, carbonates are predicted to increase from a value sales CAGR of 2.2% to 3.4%, jumping from a global value of £192.9bn in 2021 to £278bn in 2027.
