The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
Cups per Capita in 2016
Source: Euromonitor International
Chocolate-based flavoured powder drinks are the preferred non-coffee or tea hot beverage in the majority of markets that Euromonitor researches. They were a US$4.9 billion market in 2015 and are expected to add another US$612 million in value by 2020. But with an annual growth rate of 2%, they are also one of the slowest-growing of categories in hot drinks.
The reason lies in unfavourable demographic realities. In most places chocolate hot drinks are viewed as drinks for children. Many of those same places, though, are also seeing shrinking youth populations. While the category as a whole will continue to grow on the strength of Latin American markets where chocolate beverages appeal to a wider age range, it will be weighed down by the ageing populations of North America, Western Europe, and Japan. Accelerating growth in the category will be dependent on either elevating its status to compete directly with coffee and tea for mature consumers in developed markets or in significantly increasing consumption in developing markets with large and young populations.