European iced tea and coffee growth
Iced drinks were poised to break through the 2000 million litre sales barrier in Europe at the end of 1997 and should exceed 3000 million litres within five years, according to new research from specialist consultants Zenith International.
"Iced tea is by far the largest of Europe's emerging soft drinks markets and is still growing strongly, while iced coffee is at a much earlier and more experimental stage", comments Zenith Chairman Richard Hall.
Across the 16 countries of West Europe, iced tea volumes rose by 17% in 1996 to 1655 million litres, three times the level of 1992. The iced coffee market was much smaller at 258 million litres, achieving a more modest 18% gain since 1992.
Iced tea hot spots
Germany is now Europe's hottest spot for iced tea, with volumes trebling in just two years to a 36% share, pushing Italy back to second place on 27%. The Swiss remain the biggest consumers at almost eight times the European average of 4.5 litres per person.
Amongst other countries, 1996 sales more than doubled in both Denmark and Finland. France, the Netherlands and Portugal each added over 20%. In contrast, the British and Irish markets appear to have completely run out of steam.
All of the 1996 growth came from ready to drink still products, with sparkling, powder and concentrates losing ground. Lemon continues to be the most popular flavour, but peach climbed again to 36%. Purchases are increasing in size, with 1.5 and 2 litre cartons and PET rising to 37%.
Lipton from Unilever has held on to a commanding brand lead with a 22% volume share. Aldi's Westcliff has speed-skated through the rankings to take second place on 7%. Nestlé's Beltè and Nestea come third and fourth, with Switzerland's Sun Queen own label from Migros slipping from second to fifth.
Iced coffee awakens
Europe's iced coffee market is heavily weighted to summer consumption from powder and Greece has a massive 78% share. Ready to drink products accounted for a mere 10% in 1996, but this is where Zenith believes the future potential lies.
"Ready to drink iced coffee jumped by 99% in 1995 and 55% in 1996," observes Richard Hall. "Measurable sales were confined to four countries in 1994, but had expanded to 11 countries in 1996.
"In line with iced tea, Germany had the largest ready to drink share of 48% and Italy was second on 29%. Still products were responsible for all the growth in 1996 and now outsell their sparkling alternatives.
"As yet, however, there is no clear pattern of preference between milk based and black coffee or cappuccino, cola and other speciality flavours."
Overall, Nestlé's powdered Nescafé Classic and Frappé held a dominant 78% share. Milk based Drink Fit from Germany's Immergut-Milch was the top ready to drink brand in its first year of activity, ahead of sparkling Brasilena from Italy and Sienna from Schweppes.
General outlook
Over the next five years, Zenith expects iced tea to rise a further 75% by 2002 to pass 2900 million litres, led by Germany and backed by advances in less developed markets such as France and the Netherlands, Denmark and Finland, Portugal and Spain.
"The iced coffee market should manage an extra 25% over the same timescale, with ready to drink providing the main impetus," concludes Richard Hall.
The 1997 Zenith Guides to Iced Tea and Iced Coffee in Europe contain 364 pages, 118 brand profiles and 16 country profiles. Contact Zenith International Ltd, 7 Kingsmead Square, Bath BA1 2AB, United Kingdom Tel +44 (0)1225 327900 Fax +44 (0)1225 327901.
Notes for Editors
1. For further information, please contact:
Richard Hall or Jason Holway, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901
"Iced tea is by far the largest of Europe's emerging soft drinks markets and is still growing strongly, while iced coffee is at a much earlier and more experimental stage", comments Zenith Chairman Richard Hall.
Across the 16 countries of West Europe, iced tea volumes rose by 17% in 1996 to 1655 million litres, three times the level of 1992. The iced coffee market was much smaller at 258 million litres, achieving a more modest 18% gain since 1992.
Iced tea hot spots
Germany is now Europe's hottest spot for iced tea, with volumes trebling in just two years to a 36% share, pushing Italy back to second place on 27%. The Swiss remain the biggest consumers at almost eight times the European average of 4.5 litres per person.
Amongst other countries, 1996 sales more than doubled in both Denmark and Finland. France, the Netherlands and Portugal each added over 20%. In contrast, the British and Irish markets appear to have completely run out of steam.
All of the 1996 growth came from ready to drink still products, with sparkling, powder and concentrates losing ground. Lemon continues to be the most popular flavour, but peach climbed again to 36%. Purchases are increasing in size, with 1.5 and 2 litre cartons and PET rising to 37%.
Lipton from Unilever has held on to a commanding brand lead with a 22% volume share. Aldi's Westcliff has speed-skated through the rankings to take second place on 7%. Nestlé's Beltè and Nestea come third and fourth, with Switzerland's Sun Queen own label from Migros slipping from second to fifth.
Iced coffee awakens
Europe's iced coffee market is heavily weighted to summer consumption from powder and Greece has a massive 78% share. Ready to drink products accounted for a mere 10% in 1996, but this is where Zenith believes the future potential lies.
"Ready to drink iced coffee jumped by 99% in 1995 and 55% in 1996," observes Richard Hall. "Measurable sales were confined to four countries in 1994, but had expanded to 11 countries in 1996.
"In line with iced tea, Germany had the largest ready to drink share of 48% and Italy was second on 29%. Still products were responsible for all the growth in 1996 and now outsell their sparkling alternatives.
"As yet, however, there is no clear pattern of preference between milk based and black coffee or cappuccino, cola and other speciality flavours."
Overall, Nestlé's powdered Nescafé Classic and Frappé held a dominant 78% share. Milk based Drink Fit from Germany's Immergut-Milch was the top ready to drink brand in its first year of activity, ahead of sparkling Brasilena from Italy and Sienna from Schweppes.
General outlook
Over the next five years, Zenith expects iced tea to rise a further 75% by 2002 to pass 2900 million litres, led by Germany and backed by advances in less developed markets such as France and the Netherlands, Denmark and Finland, Portugal and Spain.
"The iced coffee market should manage an extra 25% over the same timescale, with ready to drink providing the main impetus," concludes Richard Hall.
The 1997 Zenith Guides to Iced Tea and Iced Coffee in Europe contain 364 pages, 118 brand profiles and 16 country profiles. Contact Zenith International Ltd, 7 Kingsmead Square, Bath BA1 2AB, United Kingdom Tel +44 (0)1225 327900 Fax +44 (0)1225 327901.
Notes for Editors
1. For further information, please contact:
Richard Hall or Jason Holway, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901