Hot coffee inflation in the UK stood at -0.030% 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 549 hot coffee SKUs from companies such as Kenco, Lavazza and Taylors Of Harrogate 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 ASDA offered the lowest prices of the total SKUs within the hot coffee category from April through June 2023, followed by Morrisons and Ocado. According to the analysis, the price range of $5 and below was the most competitive, with 255 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, ASDA had the greatest share of lowest prices for individual SKUs in hot coffee in the UK 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 original and decaffeinated as the most popular (by number of SKUs) hot coffee variants. These were priced 29.57% 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 ASDA, Morrisons, Tesco, Ocado and Holland And Barrett. According to the analysis, Poundland had the lowest average unit price, while the retailer with the widest product assortment was ASDA.
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, ASDA, Morrisons and Ocado 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 UK, continuous tracking of SKU pricing over time is necessary.
For a more detailed analysis of pricing trends in the the UK's hot coffee market, buy the report here.