Hot Drinks - Iceland | Statista Market Forecast

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Hot Drinks market amounts to US$64.05m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$258.90m in 2024.
Revenue, combined amounts to US$323.00m in 2024.
The revenue, at home is expected to grow annually by 3.00% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated China (US$51bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$169.60 are generated in 2024.
In the Hot Drinks market, volume, at home is expected to amount to 1.83m kg by 2024.
Volume, out-of-home is expected to amount to 526.40k kg in 2024.
Volume, combined is expected to amount to 2.36m kg in 2024.
The Hot Drinks market is expected to show a volume growth, at home of 0.6% in 2025.0.
The average volume per person, at home in the Hot Drinks market is expected to amount to 4.84kg in 2024.

Definition:

The Hot Drinks market includes the Coffee, Tea, and Cocoa market. In the Hot Drinks market, products in dry form (such as powders, beans, and leaves) are covered. The drink is prepared by adding liquids, such as hot water or milk, to the product. Ready-to-Drink (RTD) Coffee and Tea products in liquid form are in the corresponding segment in the Non-Alcoholic Drinks market.

Structure:

The Hot Drinks market is divided into the Coffee market, the Tea market, and the Cocoa market.

The Coffee market consists of Roast Coffee in the form of ground coffee and whole beans, that is prepared with coffee machines or a French press, as well as Instant Coffee that only requires the addition of hot water.
The Tea market consists of black tea, green tea, and mate sold in tea bags or as loose-leaf tea.
The Cocoa market contains powder and powder-mixes for the preparation of cocoa drinks or hot chocolate.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per kilogram , as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Nestlé (e.g., Nescafé and Nespresso), Tchibo, Starbucks, Lavazza, and Tata Global Beverages (Tetley).

Roast Coffee, such as Peet's Coffee
Instant Coffee, such as Nescafé Gold
Tea, such as Republic of Tea Black Tea
Cocoa, such as Nesquik

RTDs derived from Coffee, Tea or Cocoa (e.g., Lipton Ice Tea)

Rising employment levels have driven up caffeination demand across the board. At the same time, increasing discretionary spending power has fueled the appetite for indulgence among consumers as well as a desire for novel experiences, which in turn has driven premiumization and sophistication.

As mostly agriculturally sourced products, organic and fairly traded Hot Drinks products have gained significant traction in the market. Consumers are increasingly conscious of the environmental and social impact of their purchasing decisions, leading to a greater demand for sustainably produced products.

The Hot Drinks market is expected to continue its upward trajectory, driven by factors such as expanding consumption in emerging markets, the demand for premium and specialty products, and the evolving preferences of the younger generation. However, challenges such as climate change and sustainability concerns remain areas of focus for industry stakeholders.

Data coverage:
The data encompasses B2C enterprises. Figures are based on private Household spendings on Hot Drinks. At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments.
In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as production data, region, and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Hot Drinks market with a projected steady growth.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

The market for hot drinks in Western Europe is currently valued at 27.1 billion euros, while the Eastern European market lags behind with less than half the value at 11.3 billion euros. The market is predominantly made up of coffee, with tea and other hot beverage products, such as hot chocolate and malt drinks, taking a smaller share.