The global hot drinks market was valued at USD 371.0 billion in 2024 and is expected to reach USD 567.7 billion by 2030, growing at a CAGR of 7.4% from 2025 to 2030. A key driver of this growth is the rising consumer awareness around the health benefits of hot beverages, including green tea, lemon tea, and detox varieties of coffee and tea.

As consumer preferences shift away from sugary, carbonated drinks, many are turning to freshly brewed or prepared hot drinks. The widespread availability of vending machines offering instant tea and coffee, along with the increasing presence of coffee bars and kiosks in workplaces and public areas, has played a major role in boosting hot beverage consumption.

Daily routines also play a crucial role in sustaining demand for hot drinks. Many individuals incorporate beverages like black tea, regular tea, or coffee into their morning commutes, work breaks, and leisure time. In addition to this habitual consumption, the influence of social media, brand marketing, and promotional efforts has spurred interest in specialty coffee and tea—especially among millennials and Gen Z, who are more open to experimenting with new flavors and beverage experiences.

According to the National Coffee Association (U.S.), specialty coffee consumption in the U.S. rose by 20% in 2022 compared to 2021. Similar consumption trends have been observed across Europe and the Asia-Pacific region, reflecting a global shift toward premium and health-conscious beverage choices.

Key Market Insights:

• Asia Pacific led the global market in 2024, capturing a 41.6% revenue share. With a population of approximately 4.3 billion—around 60% of the global total—the region has become the most promising market for hot beverages.
• By product type, the tea segment dominated the hot drinks market with a 39.0% revenue share in 2024. Tea remains the most widely consumed hot beverage globally, second only to water in overall beverage consumption.

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Market Size & Forecast

• 2024 Market Size: USD 371.0 Billion
• 2030 Projected Market Size: USD 567.7 Billion
• CAGR (2025-2030): 7.4%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

The global hot drinks market is characterized by its fragmented nature, with numerous international and local companies competing for market share. Key players include Tazo Tea Company, Tata Consumer Products (formerly Tata Global Beverages), Keurig Dr Pepper (KGM), Costa Coffee, Starbucks, Celestial Seasonings, Inc., Caffe Nero, Ajinomoto General Foods, Inc., and Associated British Foods (ABF). To maintain competitiveness in this dynamic environment, these companies actively pursue strategies such as forming partnerships with local entities, expanding franchise networks, and consistently introducing new flavor profiles.

Starbucks, a prominent U.S.-based global coffeehouse chain, operates over 35,000 stores across 80 countries. Renowned for its innovation in both hot and cold beverages, Starbucks aims to provide a "third place" for customers—a comfortable space between home and work for relaxation, socialization, or productivity. The company's strategy of offering customized beverages, often tailored to regional tastes, has significantly influenced global hot drinks culture.

Costa Coffee, a leading European coffeehouse chain, is recognized for its extensive selection of coffee and tea beverages. The chain prioritizes quality, sustainability, and ethical sourcing, striving to create a welcoming and enjoyable customer experience. With a network of over 4,000 Costa Coffee shops and more than 14,000 Costa Express smart cafe machines worldwide, the brand maintains a strong presence in over 30 countries.

Key Players

• Tazo Tea Company
• Tata Global Beverages
• Keurig Green Mountain (KGM)
• Costa Coffee
• Starbucks
• Celestial seasoning, Inc.
• Caffe Nero
• Ajinomoto General Foods, Inc.
• Associated British Foods (ABF)
• Tim Hortons

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Conclusion

The global hot drinks market is experiencing robust growth, driven by increasing consumer health awareness, a shift away from sugary drinks, and enhanced accessibility through various channels. Daily consumption habits and strategic marketing, particularly targeting younger demographics, further fuel demand for both traditional and specialty beverages. Asia Pacific leads the market, with tea dominating product types. This dynamic environment fosters continuous innovation and strategic partnerships among key players to meet evolving consumer preferences.