Consumers willing to spend more on hot drinks in 2024

A new report from CGA by NIQ has revealed that many on-premise visitors are happy to spend more on hot beverages next year, depending on their perceived quality and value. 

The research shows that over a quarter (28%) of consumers expect to spend more on hot beverages in the next 12 months, while more than half (54%) say they are likely to pay extra for a better quality drink – a figure that rises even higher to 62% of adults aged 18 to 34. There is a particularly strong appetite for trading up in coffee, where the quality of beans has become integral to marketing campaigns. 

While some drinkers are happy to upgrade, the report indicates that others will be seeking greater value in 2024. The research provides expert insights into the impact of price on decision-making, as well as the formats and flavour profiles that consumers want at both the premium and value ends of the market. 

Andy Hodgson, CGA by NIQ's business development manager, comments: "Hot beverages are an increasingly valuable part of on-premise drinks menus and they can unlock incremental sales in new day-parts. But with competition so fierce and consumers more knowledgeable about their drinks than ever, it's crucial to understand exactly where, when and why these drinks are brought. With spending likely to fluctuate widely between premium and value offerings, crafting the right ranges and hitting the pricing sweet spots will be the keys to success in 2024."

The Hot Beverages Spotlight Report, part of CGA's Food Insights Spotlight series, offers a bird's eye view of the segment to help operators, suppliers and wholesalers sharpen their promotional, pricing and ranging strategies, as well as pinpoint opportunities for growth. It sets out the latest hot drink preferences, habits, channels, as well as outlines consumer demographics and drivers to purchase. 

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