Hot drinks sales drop as brands focus on lighthearted marketing
By Felicia Nwosu
The hot drinks industry is experiencing a significant decline in sales due to ongoing economic hardship, according to a report from Euromonitor International. The report also revealed that new product launches have decreased annually since 2021, with 2024 continuing this trend.
It mentioned that early-year launches are already behind those of 2023, driven by higher interest rates, SKU rationalization, and inflation-related consumer cutbacks.
It disclosed that, in response to these challenges, hot drinks companies are shifting their branding strategies to focus on fun and lighthearted marketing.
The report further noted that this approach aims to make grocery shopping less stressful and more enjoyable for consumers dealing with increased anxiety. Euromonitor affirmed that despite the economic downturn, wellness remains a top spending priority.
Meanwhile, the research body averred that products with functional benefits such as energy boosts, mental health support, and gut health are driving category growth.
It maintained that, additionally, there’s a glaring shift towards ready-to-drink (RTD) formats, often categorized as soft drinks, which are gaining popularity in the market.
Overall, the report concluded that the hot drinks industry is adapting to economic adversity by innovating in product offerings and consumer engagement strategies.
RECOMMENDED ARTICLES
Comment
No comments found.