Hot coffee inflation in the UAE stood at -0.080% in April 2023, according to GlobalData’s report on the prices of stock keeping units (SKUs) supplied through online retailers. In Q2 2023, GlobalData monitored the pricing of 182 hot coffee SKUs from companies such as Nescafé, Real Coffee and Segafredo Zanetti that were sold by e-retailers. Buy the report here.
Pricing is crucial, especially in a challenging economic climate, as competitive pricing and price leadership impact consumers’ choices. GlobalData’s pricing analysis reveals that Noon offered the lowest prices of the total SKUs within the hot coffee category from April through June 2023, followed by Lulu Webstore and Supermart. According to the analysis, the price range of $5 and $10 was the most competitive, with 92 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, Noon had the greatest share of lowest prices for individual SKUs in hot coffee in the UAE in Q2 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 instant and cappuccino as the most popular (by number of SKUs) hot coffee variants. These were priced 42.82% 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 Noon, Lulu Webstore, Supermart, Trolley and Choithrams. According to the analysis, Lulu Webstore had the lowest average unit price, while the retailer with the widest product assortment was Noon.
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, Noon, Lulu Webstore and Supermart stood out as prominent e-retailers, providing competitive pricing for a substantial number of hot coffee SKUs. However, to comprehensively grasp the hot coffee market in the UAE, continuous tracking of SKU pricing over time is necessary.
For a more detailed analysis of pricing trends in the the UAE's hot coffee market, buy the report here.