The performance of hot drinks in Italy in 2023 is being strongly affected by inflationary pressures. Within this context, volume sales are sluggish while value sales are supported by rising unit prices.
Downtrading, especially in coffee, is a very relevant trend in 2023. Within this context, consumers are switching from more expensive brands to cheaper ones, and from more expensive categories (e.
Private label has benefitted from the inflationary pressures seen over the recent time, as consumers seek to maximise their budgets through seeking the most affordable options. This is even true in coffee, a category where brand recognition is very important in Italy.
The rise of private label across hot drinks has affected distribution, with discounters gaining more attention. That said, supermarkets and hypermarkets remain the most relevant channels overall, with discounters holding similar shares to small local grocers.
The reopening of foodservice after the era of the pandemic closures has, indeed, impacted at-home consumption. However, inflationary pressures persist and thus recovery is not as strong as it might have been, as many price-conscious consumers continue their habits of making their own beverages at home instead of purchasing at cafés and coffee shops.
As the effects of the inflation crisis are set to wane, especially over the second half of the forecast period, demand for premium hot drinks looks likely to regain dynamism. This is expected in fresh ground coffee pods and fresh coffee beans, for example, as well as functional and health-positioned teas, with similar developments in health-positioned other hot drinks (e.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Italy 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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