This report provides the results for the Hot Drinks market in Italy from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Hot Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Hot Drinks market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Coffee, Tea, and Other Hot Drinks are not considered essential items and therefore consumption patterns have been affected widely. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
- Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Coffee, Tea, and Other Hot Drinks.
- Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
- Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
- Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues
- Consumer analysis reveals that consumption of Hot Drinks increases with age. Together with Mid-Lifers, Older Consumers account for over three-fifths of overall Hot Drinks consumption, making them the most important demographic for Hot Drinks producers and marketers.
- Women account for more Hot Drinks consumption than men, suggesting a strong market for Hot Drinks targeted at this gender.
- Tea consumption is low among young adults, with Light and Non-users accounting for over half the population in each respective age group. As such, marketing campaigns should target consumers in older age groups.
- Among Hot Drinks, Coffee accounts for the largest share of consumption in the country, both in value and volume terms. This is expected to continue given the high consumption frequency of Coffee in relation to the Tea and Other Hot Drinks categories, and the habitual nature of Hot Drinks consumption.
- Consumer survey results indicate that Personal space and time and Better value for money are the leading trends influencing Hot Drinks consumption in Italy. These are indicative of the role Hot Drinks play in relaxation and consumers' concerns over the state of the Italian economy and their own finances.
- Hot drinks in Italy are dominated by branded products, while private label products have less than a 10% market penetration. Given the strong distribution network of branded outlets and international manufacturers, the market presence of branded hot drinks is unlikely to weaken in the near future.