Hot drinks in Germany still benefits from a significant proportion of the population spending considerable time at home. Although local consumers are gradually returning to foodservice channels, the cost-of-living crisis has placed them under financial pressure and thus is hindering a quicker recovery.
Inflation has been the determining factor in influencing demand for hot drinks in 2023. Local consumers are concerned about their financial situation and reducing expenditure on various goods to stretch their budgets.
As unit prices of hot drinks continue to rise, Germans are both turning to cheaper alternatives and reducing overall consumption. For instance, discounters, along with private label, is an attractive destination once more after having suffered marginal losses during the pandemic.
Discounters continues to gain momentum as the largest single distribution channel for hot drinks in Germany. During the pandemic, supermarkets particularly benefited as consumers had higher disposable income to spend on groceries and popular brands which they found in this channel.
In 2023, demand for hot drinks via foodservice continues to recover slowly. After two tough years with lockdowns and restrictions to flatten the curve of new COVID-19 infections, restrictions were lifted completely.
Over the forecast period, a foodservice recovery to pre-pandemic levels is expected by 2025. Although slower than expected (in terms of volumes), consumers are eager to eat and drink outside of the home again.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Germany with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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