Hot drinks market predicted to accelerate in next 5 years
The UK beverage market has seen a gin boom, a Japanese whiskey boom - but what is the next beverage trends to look out for?
The hot drinks market has grown steadily between 2011 and 2016 with modest growth of 1.4%.
However, this market segment is predicted to accelerate in the next years to 2021, according to a recent study by ReportBuyer.
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The UK hot drinks market is forecast to see strong growth at a compound annual growth rate (CAGR) of 4.2% during 2016-2021.
Among the top ten hot drinks markets, the UK ranks sixth in terms of per capita expenditure, outperforming Poland, the US, Malaysia and China and this per capita expenditure is expected to grow by 3.5% CAGR during 2016-2021.
The growth of this up-and-coming market is primarily attributed to British consumer preference for hot drinks coupled with increasing disposable incomes which motivates them to seek premium products in the market.
As well as this, the majority of UK millennials and young people are willing to spend more on hot drink products that have novel tastes and flavours while the ageing population seeks products marketed with health and wellness benefits, according to the report.