Hot Beverages - Market Assessment
The hot beverages market - defined in this report as instant and ground coffees, leaf teas, fruit and herb teas, and chocolate and malted drinks - grew in value terms in the year ending August 2004 by 1.1% over the same period in 2003. This has allowed it to regain the 1.1% ground lost in the previous period.
The market is dominated by instant coffee (representing 41.2% of total value) and leaf tea in bags (at 37.1%), but it is the niche segments within these major sectors that have shown growth and have helped moved the market forward in the year ending August 2004. The total market was falling in value until the year ending August 2003.
The mainstream instant coffee and bagged leaf tea sectors continue to fall in value, but there has been growth in decaffeinated, Fairtrade and speciality instant coffees and leaf teas, and in green teas. The speciality coffee market has been boosted by the 'coffee experience' in coffee bars, while the Fairtrade element has received substantial publicity. There has also been growth shown in ground coffees - which represent an 8% share within hot beverages - and in fruit and herb teas (with a 2.5% share). However, the total coffee market appears to have bottomed out in value in the year ending August 2003 and grown since, while the total tea market (including the 2.6% of the total hot beverages market accounted for by loose and instant teas) continues to fall.
The chocolate and malted drinks sector represents the remaining 8.6% value share of the market. This sector also bottomed out in the year ending December 2002 and has grown in the years ending August 2003 and 2004, with both the chocolate and malted drinks segments growing faster than chocolate malted.
Nestle and Kraft dominate the instant coffee market with their Nescafe and Kenco brands, with a combined value share of 81%. The ground coffee market is more fragmented; the leading brand, Sara Lee's Douwe Egberts, only holds a relatively small value share, at 12%. The leading Fairtrade brand is Cafedirect, at 6%.
The bagged leaf tea market is dominated by Unilever Bestfoods and Tata Teas, with their PG Tips and Tetley brands holding a 60% combined value share. However, other producers, such as Premier Foods (with its Typhoo brand) and AB Foods (with Twinings and Jacksons products), hold more significant positions within niche segments such as instant, speciality and green teas. Twinings is the major force in speciality teas (60%) and fruit and herb teas (between 65% and 70%).
The chocolate and malted drinks market is divided between Premier Foods, the brand leader in chocolate products with its Cadbury's range; Glaxo SmithKline, the leader in malted drinks with Horlicks products; and AB Foods, the major in chocolate malted having acquired Novartis' Ovaltine range in 2002.
For more information, Please visit : http://www.bharatbook.com/
or email us at : info@bharatbook.com
You can also call us at +91-(022)-2757 8668 or +91-(022)-2757 9131
For searching our huge collection of reports, Please visit :
http://www.bharatbook.com/
