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Hot Beverages

« Category Advice

Market Insight

With up-to-date information on market trends, new products, top sellers etc.
We are able to share with you valuable market insight for each category.

The coffee market is worth £161m in Convenience and is growing at 2.2% YOY

(Nielsen ScanTrack, GB Total Coverage Convenience, 52 Weeks, 15th June 2019)

Freeze Dried represents the biggest sector in Instant and takes close to half of total sales (45%)

 (Nielsen ScanTrack, GB Total Coverage Convenience, 52 Weeks, 15th June 2019)

RTD Cold Coffee Total Market has grown +32% in the last year and is worth £98m. Convenience is growing +42%.

Over 5 million Household buy Pods (IRI Total Market 52 w/e 20.04.19)

Super Premium Instant Coffee is now ½ the size of Regular Instant coffee in Convenience

(IRI Total Convenience 52 w/e 20.04.20.19)

The Total Tea Category is worth £673m and is growing at 1.5% YOY)

 (Kantar, Drivers for GB, 52 wks. 11.08.19)

The growth in the total tea category is coming from Black Decaf Tea (5.4% YOY), Fruit & Herbal (3.9% YOY) and Speciality (0.1% YOY)

(Nielsen, Total Coverage, 52 Weeks, (10/08/2019)

Category Info

Ground takes up the majority of sales in R&G (62%), though Capsules is not a negligible sector (29%) growing strongly at +9% YOY. Capsules’ growth has been driven mostly by the Nespresso Compatible ones (+41%).

Despite Beans remaining an underdeveloped segment in Convenience, it is seeing significant positive shifts YOY (+21.3%) (Nielsen ScanTrack, GB Total Coverage Convenience, 15th June 2019)

1 Stock the best sellers

Having the right range of brands is vital to avoid losing sales. We know that over a fifth of consumers (21%) would fail to buy if their preferred brand was unavailable. (HIM April 2018)

2 Improve range of products and price & promo

breadth of range as well as price & promo are also key factors to satisfying the Hot Beverages shopper.

3 Range premium SKU’s:

non-everyday black tea SKU’s are delivering value sales and profit growth. (Nielsen, Total Coverage, 52 wks, 10/08/2019)

4 Make hot beverages easy to find in store:

a prominent position next to associated products like sugar and biscuits is ideal, and will encourage cross shopping.

5 Introduce more products

in fast-growing segments, premium coffees, beans and machine pods.

Additional Information

ARE YOU A RETAILER?

If you are a retailer, visit United Wholesale (Scotland) to view our latest trade-only 3-weekly promotional offers.

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