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




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Product Synopsis

This report provides the results for the Hot Drinks market in Germany 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. 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

  • Tea consumption remains uniform across age groups, with Light consumption the most common and Heavy consumption infrequent. The Mid-Lifers age group contains the highest share of heavy-frequency consumers, suggesting that up until now marketers have only targeted their campaigns at this demographic.
  • Group analysis reveals that German consumers in the Upper Secondary education group account for approximately one-third of the Hot Drinks market in value terms. This is followed by the Post-Secondary and Tertiary educational groups.
  • Retailer analysis reveals that the top three retailers in the Hot Drinks retail market in Germany account for approximately53% of the sales. Product manufacturers depend on these retailers to provide them with shelf space and a market share.

Key Highlights

  • Market valuation reveals that Coffee accounts for more than 86% of the German hot drinks market in value terms. The Tea and Other Hot Drinks market comprise only a minimal share of the market.
  • Brand analysis reveals that private labels have the highest penetration rate in the Tea market in Germany, followed by Coffee and Other Hot Drinks. It is relatively high compared to other West European markets.
  • Consumer survey results indicate that German consumers of Hot Drinks are influenced mostly by the products ability to provide mental relaxation. This contributes to higher sales of premium coffee products which are marketed as providing a superior experience.