YouGov SixthSense estimates that in
2009, the value of the hot drinks market reached £1,509 million, an
increase of around 6% on the previous year. Value sales are
expected to grow during 2010 to an estimated £1,604 million.
As many consumers forgo the luxury
of buying hot drinks from coffee shops to save on the weekly
budget, there has been a rise in sales of indulgence tea and coffee
lines, which consumers are using to replicate the coffee shop
experience at home.
Whilst premiumisation has helped to boost coffee sales, much of
the 6% value growth in the category between 2008 and 2009 was
driven by the rising price of coffee beans on the international
A shortfall in the supply of some premium varieties, like
Columbian beans, and the rising cost of fertiliser and fuel have
lead to retail price increases. According to ONS the price of a
100g jar of instant coffee went up by around 15% in 2009.
To download a copy of the table of contents please click
To buy the Hot Drinks report, click here.