Global tea and coffee value sales are expected to slow down between now and 2027, as indicated by data, compared to the pace of the last few years.
According to GlobalData, the compound annual growth rate (CAGR) for the overall value sales of tea is projected to decrease from 7.8% between 2021 and 2024 to 4.8% between 2024 and 2027. This decline will culminate in reaching £58.6 billion ($72.5 billion).
During the same periods, the CAGR for coffee is expected to decrease from 5.9% to 5%, with total value sales forecasted to reach £72.5 billion in 2027.
The data is derived from 13 “key markets,” encompassing the US, Mexico, Brazil, Argentina, the UK, Germany, Sweden, China, India, Australia, Singapore, South Africa, and the UAE.
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Factors Influencing Market Trends
According to the report, GlobalData predicts a deceleration in the compound annual growth rate (CAGR) of overall value sales across most non-alcoholic beverage categories in the 13 key countries examined in this study.
“The anticipated decline in global sales is linked to consumer belt-tightening amid inflationary pressures. Projections indicate a decrease in inflation worldwide in the forthcoming years. This has prompted consumers to adopt more prudent spending habits, seeking to optimize their budgets. Alongside adjusted pricing, this trend is poised to align value growth more closely with volume growth once again.”
In the UK, tea’s sales value surged by 12.3% from 2023 to 2024, despite a 1.6% decline in volume sales. Similarly, in the US, there was value growth in both tea (7.4%) and coffee (2.9%), but volume growth lagged behind at 3.8% and 0.4%, respectively.
In the US, tea exhibited the highest volume growth among all non-alcoholic beverages surveyed by GlobalData in the past year.
Non-Alcoholic Beverage Categories Analysis
Meanwhile, juices and bottled water are poised for deceleration, with the former expected to decline from a 0.2% to a 6.9% compound annual growth rate (CAGR) between 2024 and 2027, and the latter dropping from 0.8% to 3.9%.
However, carbonates are predicted to increase their value sales compound annual growth rate (CAGR) from 2.2% to 3.4%, jumping from a global value of £192.9 billion in 2021 to £278 billion in 2027.
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