Maintaining annual growth of 20%, the global hot drinks industry is expected to reach about USD 81.5 billion whereas, in regards to volume, the industry is forecasted to expand at a yearly rate of 12% and reach about 6 billion kilograms by 2014. However, the market is still greatly fragmented with the three leading vendors holding a combined market share of less than 23%.

The report: Global Hot Drinks Market: Merger and Acquisitions April 2014 provides an insight into the deal activity of the global hot drinks market throughout the month. With the number of ongoing M&As the world’s coffee and tea markets are expected to reach almost USD 70 billion by 2015. Industry experts suggest that this market growth is propelled by heightened awareness about the health benefits of drinking tea, while coffee is being marketed as luxurious and stylish product. The coffee market has further benefitted from the rising global affluence, urbanization and greater per capita consumption. The emerging countries furthermore, promise of a vast growth potential.


[b]Key segments of the market[/b]

Of all the beverages in the hot drinks market, coffee is the world’s most preferred beverage - analysts estimate an annual consumption of 400 billion cups of coffee. Moreover, recently, the consumption of these hot beverages has greatly risen in the public eye as a healthy lifestyle choice, and has eventually become a vital part in many consumer’s daily rituals. With consumption and trade developing in the emerging economies, the penetration of coffee is expected to continue, while the investments in production are to increase, although, the pricing will see a degree of fluctuation. Brazil continues to dominate the market with the country’s consumption having risen by 5%, which is more than double the global average increment of 2%. The consumption of coffee is increasing in emerging economies like India and China mainly due to the burgeoning of middle class and in the increasing number of young professionals in the world’s workforce. Besides, the rise in disposable income is propelling the coffee consumption further in markets like Russia, Middle East and Ukraine.

Despite the preference of coffee, tea continues to dominate the beverages market citing which the global sales are expected to be on an upward trend. The global market for tea was valued at USD 15 billion in 2013, and has risen considerably since then too. The increased awareness about the potential health risks associated with carbonated drinks has further acted as the key driving force behind the change in the consumption patterns. The green and herbal tea sub-segments therefore are seeing double-digit growth. Research has shown that tea also lowers the risks of chronic conditions such as certain health cancers, coronary heart disease and heart attacks. Since consumers are looking for alternative preventative measures through lifestyle choices, especially the diets they adopt and drinks they consume, it bodes well for the tea market. The global hot drinks market is expected to continue to grow in the upcoming years, driven by quality, increased health awareness and globalization which removes all previously existing regional constraints on purchase of products.


[b]For further insights,[/b]

Visit: http://www.researchonglobalmarkets.com/global-hot-drinks-market-merger-and-acquisitions-april-2014.html


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