The global hot drinks industry is shifting towards value-led retail, with small grocers and discounters seeing significant growth. Nevertheless, e-commerce is set to grow, especially online marketplaces, due to features such as social selling, influencer-driven demand, last mile delivery services and the rapid development of technological innovations.

Soft drinks face slower-than-expected growth in 2025 amid income pressures and heightened geopolitical risks. On-trade categories are weakening, particularly in Europe and China, while real pricing power has faded. Input cost relief offers some margin stability, though coffee prices remain volatile. Fragmentation deepens as affordability and functionality reshape global competition.

Consumers are increasingly anxious about global stability and their own financial, social, physical and mental wellbeing. This is driving them to exert more control over the impact and fallout of their consumption. Protect your brand against downside risk and leverage growth opportunities by understanding and empowering this mindful, evidence-seeking and outcome-orientated shift.

China’s strategic engagement with Southeast Asia (SEA), rooted in historical ties, has intensified under the Belt and Road Initiative. As SEA emerges as a growth hub for Chinese exports, Chinese firms are capitalising on rising consumer demand and favourable demographics. With shifting brand perceptions, Chinese companies are gaining traction in sectors like appliances, beauty, and consumer foodservice.. Success hinges on localisation, market intelligence, and strategic partnerships.

GLP-1 usage is going to rise considerably across the world in the coming years, confronting food and beverages with both challenges and opportunities. The pressure on volumes is going to be considerable, but changing needs of GLP-1 users will at the same time boost demand in many categories.

Asia Pacific remains the largest hot drinks market globally, but growth has been moderate due to lingering cost-of-living pressures. Foodservice recovery is slow, with out-of-home consumption still below pre-COVID levels. The market is being reshaped by health and wellness trends, digital and D2C expansion, and stronger localised product strategies. Looking ahead, evolving consumer needs, trade shifts, and geopolitics will fuel a more localised and competitive market landscape.

The hot drinks industry remains relatively stable, yet faces challenges such as climate change, inflation and trade wars. With price hikes inevitable, hot drinks companies are set to actively launch new product innovation and adopt premiumisation strategies to drive growth, while focusing on product optimisation through acquisition or divestments. Meanwhile, specialist coffee and tea shops from Asia Pacific are actively expanding their footprint, posing stiff competition to incumbent players.

The volume performance improved in the Western European hot drinks market in 2024, albeit still remaining marginally negative. Although inflation has eased, prices continue to rise, negatively impacting volume sales, but boosting the value performance. The health and wellness trend continues to drive sales of fruit/herbal tea, while fresh coffee beans was another product defying the general gloom surrounding much of the industry at the end of the review period.

A number of Latin American countries have been grappling with economic problems in recent years, with inflation still raging in Argentina in 2024, for example, negatively impacting the hot drinks performance in this country. Overall, this meant that the regional hot drinks market was stagnating in retail volume terms in 2024, despite positive growth being seen in Brazil. As inflation eases across Latin America, positive volume and value growth is expected from 2025.

This report identifies key long-term megatrends shaping consumer behaviour in Latin America. Technological advancements and wider internet access drive digital living, offering solutions to regional challenges. Better access to financial services fuels e-commerce and s-commerce growth. Inflation and changing household dynamics are driving consumers to focus on saving time and money, while also prioritising their overall wellbeing in the face of economic and geopolitical uncertainty.

Hot drinks in Brazil is expected to maintain low growth in retail volume and dynamic growth in current value terms in 2024, with sales increasing across all the main categories. In 2024, Brazil's economy reflects a combination of global challenges and internal opportunities. The country has been undergoing a period of gradual economic recovery, with moderate inflation and restrained but positive economic growth expectations. The continuation of tighter fiscal policies and efforts to control publ

Significant shifts in US policies on tariffs, taxation, spending, regulation, migration, AI/tech, and energy are expected to impact the global economy and key industries like food and drinks, health and beauty, home and tech, travel, and automotive. Trump's policies can undermine global economic growth, affect consumer sentiment, risk higher prices, and disrupt production and distribution network. However, some opportunities will arise as the global supply chain rewires and consumers adapt.

By 2029, Asia Pacific will host 56% of the global population aged 65+, representing a trillion-dollar opportunity. This report provides a critical framework to understand, develop and address the unmet needs of this rapidly growing demographic. Leveraging Euromonitor's Inclusivity - Empowerment - Indulgence framework, companies that act now will secure future growth and maintain relevance in a shifting consumer landscape.

Digital Living, Convenience, Pursuit of Value and Sustainable Living are key megatrends in Western Europe, shaped by technological advancements, demographic changes and shifting consumer values. Demand for multifunctional products is driving brands to simplify and optimise. Despite privacy concerns, AI-driven personalisation is gaining acceptance. Value perceptions are shifting toward functionality and affordability, while sustainability continues to influence purchasing choices.

Inhalation - one of the most common modes of consumption globally - is undergoing a rapid transformation. This report assesses the significant risks for those companies who fail to address that change and the huge opportunities for those who can leverage science, technology and new substance frontiers to reimagine inhalation’s role in future societies.

As investment and attention shifts towards GenAI, companies of all types must evaluate potential opportunities associated with this technology. Given its ability to go a step further than AI to create something new, it is viewed as being incredibly powerful. This report explores opportunities and challenges across common use cases such as marketing, product development, the customer journey, customer service and the supply chain.

On the surface, the outlook for on-trade alcoholic drinks is not a positive one. A cautious consumer spending mindset and changing priorities mean people are going out less frequently than in the past or drinking less when they do. Elevated input costs are adding to the industry’s difficulties. Yet, demand still calls for memorable experiences and spaces to connect – perhaps now more than ever. On-trade spending goes beyond simple purchase transactions, underscoring the nature of opportunities.

Issues related to prices and premiumisation are the most important for the hot drinks industry in 2025. The impact of technology, wellness trends and the sustainability challenge will also be major concerns in the coming year for those who work in coffee, tea or other hot drinks.

Coffee continued to shape the performance of hot drinks in Ethiopia in 2024, as a traditional and very popular beverage in the country. While most coffee is sold unpackaged via informal retailing, packaged fresh coffee products continued to gain popularity in urban areas. The consumption of packaged tea also rose in 2024. Black tea remained most popular, although fruit/herbal tea gained traction. On the other hand, other hot drinks remained a negligible category at the end of the review period.

Hot drinks in Pakistan witnessed robust growth over 2024, driven by economic recovery, ongoing urbanisation and evolving consumer tastes. Tea is the nation’s favourite drink since it is deeply embedded in Pakistani culture and daily life, with the country ranking as one of the largest tea importers in the world. Nonetheless, coffee is gaining popularity among younger consumers and urban dwellers, particularly instant coffee. Coffee is more widely available in urban centres where consumers are at

Hot drinks saw total volume sales grow in Ghana in 2024 despite price rises as manufacturers have passed on significant increases in the costs of raw materials, packaging, energy, storage and transportation to consumers. This has deterred consumers from making non-essential purchases and encouraged a shift to less expensive options. Local manufacturing of hot drinks continues to increase. Meanwhile, players continue to resize and rebrand their products to remain relevant.

Tax increases placed upward pressure on prices since 2023, but an uptick in economic activity and the ongoing expansion of the affluent urban middle-class continued to underpin sales growth, while investment in infrastructure has underpinned improvements in the distribution of hot drinks. The government has also been encouraging businesses to invest in the local market. Nonetheless, on-trade sales remain underdeveloped with most consumers preferring to consume hot drinks at home.

Hot drinks saw total volumes rise in Iraq in 2024. Prices remained relatively stable after the high inflation of previous years. However, players faced a more competitive market, necessitating higher spend on marketing and distribution without a corresponding increase in prices. Iraq’s economy is benefiting from high oil prices and investments in infrastructure and real estate. With rapid urbanisation, particularly in the central and southern regions, demand for hot drinks has increased.

Hot drinks saw strong growth in Sri Lanka in 2024 backed by an improving economy and a large influx of tourists. The search for convenience boosted sales of tea bags and instant coffee, while an increasing number of consumers looked for healthier hot drinks such as products with functional claims. The competitive landscape has been influenced by fluctuations in the cost of raw materials alongside an improvement in the economy, as well as an increasing focus on healthy and sustainable products.