Hot coffee inflation in South Africa stood at 1.180% in April 2023, according to GlobalData’s report on the prices of stock keeping units (SKUs) supplied through online retailers. In Q4 2023, GlobalData monitored the pricing of 360 hot coffee SKUs from companies such as Woolworths Food, Jacobs Coffee and KayRin Coffee Roasters that were sold by e-retailers. Buy the report here.

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Premium Insights Quarterly Hot Coffee pricing trends in South Africa

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Pricing is crucial, especially in a challenging economic climate, as competitive pricing and price leadership impact consumers’ choices. GlobalData’s pricing analysis reveals that Makro offered lowest prices of the total SKUs within the hot coffee category from October through December 2023, followed by Woolworths-South Africa and Pick n Pay. According to the analysis, the price range of $5 and $10 was the most competitive, with 166 SKUs.

The chart below illustrates price leadership among the covered retailers which offer the highest number of low-priced products in the category. Of all retailers, Makro had greatest share of lowest prices for individual SKUs in hot coffee in South Africa in Q4 2023.

Analysis of the quarterly price data showed that no discounts were offered for hot coffee category by the retailers tracked by GlobalData. Among variants, the tracker revealed cappuccino and kronung; instant as the most popular (by number of SKUs) hot coffee variants. These were priced 12.5% lower than the average price of a hot coffee SKU.

Among the e-retailers tracked by GlobalData, the leading ones, based on the number of SKUs, were Makro, Woolworths-South Africa, Pick n Pay, and . According to the analysis, Pick n Pay had the lowest average unit price, while the retailer with the widest product assortment was Makro.

The report brings attention to the intricate pricing dynamics within the hot coffee market, examining both the SKU and retailer levels, and offering invaluable insights for stakeholders. Notably, Makro, Woolworths-South Africa and Pick n Pay stood out as prominent e-retailers, providing competitive pricing for a substantial number of hot coffee SKUs. However, to comprehensively grasp hot coffee market in South Africa, continuous tracking of SKU pricing over time is necessary.

For a more detailed analysis of pricing trends in the South Africa hot coffee market, buy the report here.

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