Without doubt the key factor for hot drinks in Spain in 2023 has been the high inflation rate, and the resultant rise in unit prices faced by consumers, partly driven by high production costs and expensive raw materials. Indeed, whilst some brands tried to absorb any rises in costs, many found this unsustainable, and faced no choice but to raise prices for consumers.
The health and wellness trend has continued to be a strong factor within hot drinks during 2023. For instance, functional varieties that offer some health benefit, along with reduced sugar products, have remained very popular in Spain, and innovation was therefore seen in these areas.
As has been mentioned, private label is set to see its retail value share increase in 2023, as many consumers have been seeking to save money, attracted by the cheaper average prices. However, players such as Nestlé, Jacobs Douwe Egberts (JDE Peet’s), Lavazza, and Idilia Foods have also remained strong.
Supermarkets is set to remain the largest distribution channel in terms of retail volume and value sales of hot drinks during 2023, with consumers buying coffee, tea, and other hot drinks as part of their weekly shop. Hypermarkets is expected to remain second in terms of channel share; however, it is facing increased pressure from discounters, which is anticipated to gain share in 2023, as consumers are attracted by the lower prices these outlets offer.
As outlined above, volume sales in the retail channel are expected to decline slightly in 2023. However, they remain above the pre-pandemic level.
The inflation rate is expected to reduce during the forecast period. However, it is important to remember that even though the inflation rate is reducing, a low single-digit inflation rate still means that prices are rising, albeit at a slower rate than they were before.
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Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Spain 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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