Global hot beverages market is expected to witness steady growth through the 2001-2010 period to reach 9.7 million tons in sales by 2010. Growth in the coffee and tea industries would be driven by rising awareness about health benefits of these products, and quality. While coffee continues to grow in popularity as a premium product, particularly among young adults in developed nations, tea is gaining ground due to its medical benefits in lowering the risk associated with stroke, coronary heart disease and some forms of cancer. The rising price of regular coffee is further contributing to the growing demand for specialty coffee products.

China and India are emerging as major tea and coffee producing and consuming markets in the world. Rising disposable income, improved lifestyle, urbanization, wider acceptance of western culture and lifting of retail restrictions are prime factors contributing to the increased consumption of coffee in China. The presence of a largely under-penetrated market is proving to be a major factor pushing international players in the coffee market to enter China. Coffee market in China is forecast to exceed 100 thousand tons in sales by the year 2010. India, on the other hand, is the leading producer and consumer of tea in the world. Tea industry, governed by stringent regulations, is a significant contributor to the nation’s economy.

Europe represents the leading hot beverages (coffee and tea) market for 2007, both in terms of value and volume sales, accounting for about 45% share of the dollar market for the year, as stated by Global Industry Analysts, Inc.

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