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Food and Beverages | Monday, January 17, 2022
In the APAC region, a trend can be noticed where hot beverages are demanded at a much higher premium level and sophistication after the pandemic.
FREMONT, CA: New product innovation driven by a rise in consumer demand for premium, better-for-you along with sustainable options has been highlighted by the hot drinks sector in the Asia Pacific region. To understand how firms are creating new products, a closer look at the region's hot drinks industry, including tea, coffee, and hot chocolate, has been taken by the FNA Deep Dive in their latest edition. The Asia Pacific hot drinks market, which is driven by many working-class consumers' needs for caffeine on a day-to-day basis, is expected to reach 116.8 billion dollars by 2024 at a CAGR of 7.7 percent, with coffee and tea amongst the most popular categories in the market.
Speaking of coffee, Nespresso, one of the region's best-known brands, believes that preferences vary based on geography as black coffee such as espressos and lungos are preferred in European markets. Still, on the other hand, many Asian markets such as Singapore are more partial towards milk coffee and longer cups. However, consumer preference for premium, sophisticated drinks is on rising demand. Nespresso Singapore Head of Marketing Peilin Lee told FoodNavigator-Asia that after the pandemic, coffee consumers are having a higher willingness to experiment with home-brewing compared to before and also have increasingly sophisticated tastes. Even the UN award-winning firm Varacco, which offers Filipino coffee brand Circa 1740 Coffee, concurred that APAC consumers today seek products with a higher level of sophistication and premiumization and are no longer satisfied with the usual instant coffees they grew up with. Similarly, even in the tea space, the same trend can be noticed as quality is becoming a significant attribute for consumers when it comes to tea purchases.