Continued strength in sales of instant coffee is leading to a resurgence in the hot beverage market, reports

Overall sales of hot drinks have risen by 2.4 per cent over the last 12 months, thanks in part to sales of instant products from the likes of Nescafe and Kenco.

The market is now worth £1.73 billion a year to retailers, spurred on by a four per cent rise in sales of products in the ‘convenience’ sector.

As reported by, this is a huge rise from September 2011, when hot beverage manufacturers achieved sales of £1.44 billion, as the food and beverage industry was forced to battle through tough economic conditions.

Over the last year, however, instant products have enjoyed growth to the tune of 5.1 per cent in convenience stores. They now make up 43.3 per cent – or £751 million – of the total market. Coffee is thought to be the driving force behind these sales. by earning £220 million more than everyday tea products in 2012.

Innovation in the premium coffee segment is also having a huge impact on the overall market. For instance, at Nescafe, the company’s Gold Blend is now worth £86 million a year to the grocery trade.

Meanwhile its Gold Crema brand is already worth £4.7 million, despite only launching at the start of the year.

These so-called ‘super premium’ coffee products have enjoyed growth of 58.7 per cent over the last year, thus boasting total sales of £39.9 million.


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