The Asia-Pacific (APAC) hot drinks sector is the largest in the world and is expected to reach US$116.8bn in 2024, growing at a compound annual growth rate (CAGR) of 7.7% during 2019-2024. Increased spending power and busy lifestyles are spurring the demand for the sector in the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in Asia Pacific Hot Drinks Sector’, reveals that the hot tea category led the sector in value terms and is also projected to register highest value CAGR at 8.3% over 2019-2024.
Japan, Vietnam, South Korea and Taiwan emerged as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social, and technological assessment of 26 major economies in the APAC region.
The report states that Japan was the largest market in the hot drinks sector in the region, in both value and volume terms in 2019. Vietnam is forecast to register the highest value and volume growth during 2019-2024.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The APAC region is expected to register high value growth during 2019-2024 on account of expanding middle-income group and a large working age population who drive the consumption of hot tea/hot coffee, for their perceived health benefits. In addition, the growth in the region will be driven by young and experimental consumers who find it exciting to try new palatable experiences, spurring innovation in the sector.”
Among the various categories, hot coffee category is anticipated to witness growth in consumption share among all high potential countries during 2019-2024. Hot tea category is anticipated to witness decline in consumption share in across all high potential countries while other hot drinks is expected to register growth only in Vietnam during the same period.