Hot tea inflation in South Africa stood at -9.140% 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 168 hot tea SKUs from companies such as Five Roses, Woolworths Food and Freshpak 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 Makro offered lowest prices of the total SKUs within the hot tea category from October through December 2023, followed by Pick n Pay and Woolworths-South Africa. According to the analysis, the price range of $5 and below was the most competitive, with 138 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 tea in South Africa in Q4 2023.
Analysis of the quarterly price data showed that no discounts were offered for hot tea category by the retailers tracked by GlobalData. Among variants, the tracker revealed rooibos and smooth; ceylon blend as the most popular (by number of SKUs) hot tea variants. These were priced 12.02% lower than the average price of a hot tea SKU.
Among the e-retailers tracked by GlobalData, the leading ones, based on the number of SKUs, were Makro, Pick n Pay, Woolworths-South Africa, 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 tea market, examining both the SKU and retailer levels, and offering invaluable insights for stakeholders. Notably, Makro, Pick n Pay and Woolworths-South Africa stood out as prominent e-retailers, providing competitive pricing for a substantial number of hot tea SKUs. However, to comprehensively grasp hot tea 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 tea market, buy the report here.