Health, wellness, and product sourcing drive consumer decision-making in the Out-Of-Home hot beverage market

As consumers become more mindful of the health and wellness benefits associated with hot drinks, and the sourcing of their ingredients, CGA by NIQ unveil how these factors are influencing the Out-Of-Home market.
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The Hot Beverage Report 2024/2025 reveals 78% of consumers in Great Britain regularly drink tea, coffee, and hot chocolate (plus iced coffee and tea) in Out-Of-Home settings, rising +2pp (percentage points) compared to 2023.  

 

Today’s consumers are looking beyond cost and cup size when making buying decisions. Almost 1 in 5 want more information about ingredient sourcing, while another 18% are looking for options supporting relaxation, concentration, and other health benefits.  

 

Similarly, the Report shows that consumers are seeking drinks promoting better sleep. More than half are interested in beverages to help them relax and de-stress, and almost a third prioritise drinks boosting focus and concentration. Suppliers and operators need to adapt to meet these evolving needs as awareness of mental and physical benefits grow.  

 

Moreover, consumers are demanding more transparency around caffeine and sugar content. Consequently, suppliers are being called upon to equip operators with detailed product information to align with consumer interests, including flavour descriptors, health benefits, and ingredient origins. This trend corresponds with the growing desire for alternative milk options and sustainability information about coffee sourcing. 

 

The Report also reveals younger consumers are at the forefront of this health-driven hot drink trend, particularly 18–34-year-olds. Gen Z is significantly more likely to base drink choices on health benefits. Falling +9pp versus the national average, health impacts are a key factor in their decision-making process. 

 

So, what does this mean for suppliers to the Out-Of-Home market? The insights present both a challenge and an opportunity. It is clear suppliers must support their operational clients by educating them on the product details consumers are increasingly interested in. This includes not only nutritional content but also the broader story behind the beverage, such as its sustainability credentials and ingredient sourcing. In turn, suppliers can deepen long-term relationships and build trust by enabling operators to meet the demands of today’s hot drink consumers, ultimately contributing to retention and growth of their customer bases. 

 

Andrew Hodgson, CGA by NIQ Client Business Partner said: It’s no longer enough for suppliers to simply provide a product. Over and above, it’s essential to actively engage in helping operators understand and communicate the benefits of their offerings, particularly as consumers become more conscious of what they’re putting into their bodies. Our Report stresses the importance of transparency and education around hot drinks, whether it’s health benefits, sustainability, or ingredient origins. Suppliers who grasp this trend are in a pole position to help their clients stay ahead of the Out-Of-Home market.” 

 

The Hot Beverages Spotlight Report, part of the Food Insight Series, gathers the hot drink habits of Out-Of-Home consumers across Great Britain, to provide an understanding of who the hot drink consumer is, what their preferences are, as well as threats and opportunities to help inform and shape a winning hot beverage strategy.  

 

Click here to download more information, or contact Andrew Hodgson, CGA by NIQ Client Business Partner, here. 

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