23 Nov 2023
Consumers willing to pay for quality hot beverages
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A new CGA by NIQ report shows many on premise visitors are happy to spend more money on hot beverages in 2024—but only if the quality and value are right.
The Hot Beverages Spotlight Report sets out the latest hot drink preferences, habits, channels, as well as outlining consumer demographics and drivers to purchase.
The exclusive research shows well 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 Hot Beverages Spotlight Report indicates others will be seeking more 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 senior business development manager, said: “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 bought. 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.”
To learn more about The Hot Beverages Spotlight Report email Andy Hodgson at andrew.hodgson@nielseniq.com.
The exclusive research shows well 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 Hot Beverages Spotlight Report indicates others will be seeking more 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 senior business development manager, said: “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 bought. 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.”
To learn more about The Hot Beverages Spotlight Report email Andy Hodgson at andrew.hodgson@nielseniq.com.