Danish Hot Drinks to Prosper With Improving Demand: Ken Research


Denmark has maintained itself to be 39th largest national economy in the world measured by nominal gross domestic product and 60th largest in the world if measured by purchasing power parity. It has long possessed a mixed economy based on services and manufacturing. It greatly depends on human resources along with few significant and valuable natural resources available.

The ameliorating Danish economy, conglomerated with increasingly busy and mobile lifestyles led by Danes, have been seen as the main driving factors behind declining volume sales of standard fresh ground coffee, which decreased about 2% in 2016. At the other end of the spectrum the same trends have driven the growth in fresh ground coffee pods, which saw 2016 volume growth.

According to the report, “Hot Drinks in Denmark”, the strong health and wellness trend, which persisted in 2016, has resulted in growing tea volume sales. Although Denmark remains a predominantly coffee-drinking nation, tea still persists to earn ground on coffee as many consumers view tea as a healthier hot beverage than coffee. The main reasons of growth in tea in 2016 were black speciality tea, which recorded a noticeable retail volume growth in 2016, as well as green tea and herbal/traditional medicinal teas, which both saw significant growth in retail sales volume.

Merrild Kaffe has remained the key player in hot drinks in 2016 with a stable value share following its acquisition by Lavazza SpA in 2015. The company has stayed the leading player in coffee because of its strong brand positioning and has also been observed to be the leading player in tea where Denmark’s most popular tea brand, Pickwick is marketed well.

The enhancing Danish economy and the majorly mobile and busy lifestyles of Danes have prolonged to speed up demand for higher quality products and more convenience. As a result of evolving demand, these trends have also been at the centre of many new product developments in Denmark. The product that acquires a position at intersection point of the existing trends has been fresh ground coffee pods, which has registered strong growth rates in 2016 because of the premium quality image and great convenience offered by the same.

Other hot drinks in Denmark have been observed to be dominated by the large players as the two leading companies Nestlé Denmark and Mondelez Denmark held majority retail value shares in 2016. Nestlé Denmark markets two of the leading brands in Denmark, Nesquik as well as the Nestlé Choco Hot brand. Both of these have had a long presence in the country and have relished a high level of brand recognition as well as widespread distribution and strong shelf positioning in retail outlets. Nesquik in particular, with its Nesquik bunny and colourful packaging has remained very famous among Danish children.

Hot drinks total volume sales are expected to register a slightly declining CAGR in the future majorly driven by decreasing coffee volume sales. In consistency with the move towards more premium quality and higher convenience, standard fresh ground coffee is set to persist recording a downfall while fresh coffee beans, fresh ground coffee pods and instant coffee mixes will continue to grow, though not swift enough to compensate for the drop in standard fresh coffee sales. A reason behind the decline in volume sales is viewed to be usage of single serve coffee products like pods that usually results in less wastage compared to traditional coffee brewing methods such as coffee machines or cafeterias. Cumulatively, the hot drinks market will definitely reach better positions in the coming years than before but pace would be quite slow.

Key Factors Considered in the Report

Denmark Hot Drinks Market Research Report

Denmark Hot Drinks Industry Analysis

Denmark Hot Drinks Market Revenue

Denmark Hot Drinks Industry Trends

Denmark Hot Beverages Market

Denmark Hot Drinks Industry Future Outlook

Denmark Beverages Market Analysis

Denmark Hot Drinks Import Volume

Denmark Hot Drinks Export Volume

Hot Beverages Market Demand Denmark

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Ken Research

Ankur Gupta, Head Marketing & Communications




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