>>consumers choosing alternatives
The hot beverages market has grown 3.4% to £1.3bn [52 w/e 19 June]. Volume growth at 5.5% is driven by consumers buying more often and in higher volume per trip. Intense competition has led to continuing high levels of promotion and price cuts, especially in tea.
Hot beverages are bought by 98.5% of Britain’s 24.5 million households, and on average they purchase the category twice a month. The three biggest sectors - standard instant coffee, everyday tea and ground coffee - still account for nearly 80% of consumer spending. However, alternative drinks are being consumed in place of hot drinks: performance is weakening in the traditional morning occasion and the drinks are losing out to water.
Standard instant coffee and tea account for almost two thirds of the market in terms of value. Coffee growth is 4.1%, with Nescafé and Kenco dominating the market.
Tea is down 5.1%, with key brands being Tetley and PG Tips. People are reducing their daily consumption of both tea and coffee, which may be attributed to health concerns and an avoidance of caffeine.
Consumers are moving toward healthy and indulgent offerings and the growth of niche sectors such as decaffeinated coffee, fruit and herbal teas, roast and ground coffee, and speciality coffee demonstrate this.
Hot chocolate sales have grown at 9.2% to £85m benefiting from the perception that it is indulgent and healthy (due to its exclusion of caffeine) but still practical. Malted drinks, dominated by Horlicks and Ovaltine, are worth £59m, growing 13.8% year-on-year.
The best-performing sector is speciality coffees, which replicate those found in cafes, such as powdered cappuccino, latte and mocha in sachets, led by Nescafé’s Cappuccino brand. Consumer spending here has nearly doubled over the past two years, but only a quarter of homes bought into it in the latest year.
Nicola Cassidy, TNS Superpanel
Produced for The Grocer by TNS Superpanel. For more information call 020 8967 4521
The hot beverages market has grown 3.4% to £1.3bn [52 w/e 19 June]. Volume growth at 5.5% is driven by consumers buying more often and in higher volume per trip. Intense competition has led to continuing high levels of promotion and price cuts, especially in tea.
Hot beverages are bought by 98.5% of Britain’s 24.5 million households, and on average they purchase the category twice a month. The three biggest sectors - standard instant coffee, everyday tea and ground coffee - still account for nearly 80% of consumer spending. However, alternative drinks are being consumed in place of hot drinks: performance is weakening in the traditional morning occasion and the drinks are losing out to water.
Standard instant coffee and tea account for almost two thirds of the market in terms of value. Coffee growth is 4.1%, with Nescafé and Kenco dominating the market.
Tea is down 5.1%, with key brands being Tetley and PG Tips. People are reducing their daily consumption of both tea and coffee, which may be attributed to health concerns and an avoidance of caffeine.
Consumers are moving toward healthy and indulgent offerings and the growth of niche sectors such as decaffeinated coffee, fruit and herbal teas, roast and ground coffee, and speciality coffee demonstrate this.
Hot chocolate sales have grown at 9.2% to £85m benefiting from the perception that it is indulgent and healthy (due to its exclusion of caffeine) but still practical. Malted drinks, dominated by Horlicks and Ovaltine, are worth £59m, growing 13.8% year-on-year.
The best-performing sector is speciality coffees, which replicate those found in cafes, such as powdered cappuccino, latte and mocha in sachets, led by Nescafé’s Cappuccino brand. Consumer spending here has nearly doubled over the past two years, but only a quarter of homes bought into it in the latest year.
Nicola Cassidy, TNS Superpanel
Produced for The Grocer by TNS Superpanel. For more information call 020 8967 4521
No comments yet