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The UK Hot Drinks Market: What Consumers Drink and Why?

Consumer analysis indicates that Hot Drinks in the UK are consumed mostly by consumers in the urban market, accounting for almost three-quarters of the total Hot Drinks market share by value. As such, Hot Drink producers need to account for urban trends when targeting their products.

Private labels have significant penetration in the UK market, reaching almost one-fourth of consumers in the Other Hot Drinks category. However, this isn't as high as in other CPG categories in the country, meaning retailers can continue to increase their share of the market.

Consumer analysis reveals that consumption of Hot Drinks increases with age and Older Consumers account for the largest share of Hot Drinks consumed in the UK. Companies and marketers should therefore factor in this demographic trend while designing any promotional campaign and advertisement.

Although the UK market is relatively fragmented, the four largest retailers account for more than 80% of the Hot Drinks market in value terms. This indicates a high bargaining power compared to product manufacturers.

Switching analysis indicates that consumer loyalty stands low for hot drinks consumers in the UK as the top three retailers witnessed a large number of end consumers switching to other retailers in the last six months.

Consumer survey results indicate that Personal space and time and Better value for money are the leading trends influencing consumers' choices of Hot Drinks in the UK. The importance of the Better value for money trend is indicative of the weak state of the UK economy, with consumers carefully weighing the costs and benefits of the products they consume.

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