Hot Drinks in Asia Pacific

Delivery

This report comes in PPT.

Key findings

Consumers prioritise value as cost-of-living pressures persist

Rising cost-of-living pressures across Asia Pacific are driving consumers to seek greater value in their purchases, leading to increased demand for smaller pack sizes, economy-tier brands, and multifunctional products. Brands that successfully balance affordability with perceived quality are gaining traction, while premiumisation is increasingly being justified by functional or lifestyle-driven benefits.

Foodservice remains vital to drive growth

Foodservice is a key growth driver, particularly in countries where café culture and on-the-go consumption are deeply rooted. Innovation in outlet formats, tech-enabled service, and cross-channel retail integration is critical to maintaining foot traffic and engagement.

Health and wellness continue to shape the product

Health claims and functionality are now central to product appeal. Consumers are increasingly drawn to products with digestive, energy, or stress-relief benefits. Decaf options are also gaining momentum as caffeine moderation becomes part of broader wellness routines.

Digital and D2C channels reshape the route to market

Digitally enabled commerce, led by e-commerce, D2C, and social platforms, is capturing a growing share of sales across Asia Pacific. Brands are using livestreaming, subscription models, and influencer partnerships to drive trial and loyalty, particularly among younger, urban consumers.

Localisation drives brand relevance and becomes a strategic necessity amid geopolitical risk

Brands across Asia Pacific increasingly localise flavours, sourcing, and packaging to align with cultural preferences, manage costs, and strengthen consumer connection. This shift has been further accelerated by ongoing geopolitical tensions, prompting companies to reduce cross-border exposure and invest more heavily in local supply chains.