Hot tea inflation in the UK stood at 0.060% 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 679 hot tea SKUs from companies such as Twinings, Pukka and Heath & Heather 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 Holland And Barrett offered the lowest prices of the total SKUs within the hot tea category from April through June 2023, followed by Ocado and Morrisons. According to the analysis, the price range of $5 and below was the most competitive, with 418 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, Holland And Barrett had the greatest share of lowest prices for individual SKUs in hot tea in the UK in Q2 2023.
Analysis of the quarterly price data showed that Boots offered the highest number of SKUs on discount among the listed SKUs for each retailer. Among variants, the tracker revealed original and decaffeinated as the most popular (by number of SKUs) hot tea variants. These were priced 9.94% 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 Holland And Barrett, Ocado, Morrisons, Tesco and Bestway. According to the analysis, OnlineMeatShop had the lowest average unit price, while the retailer with the widest product assortment was Holland And Barrett.
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, Holland And Barrett, Ocado and Morrisons stood out as prominent e-retailers, providing competitive pricing for a substantial number of hot tea SKUs. However, to comprehensively grasp the hot tea 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 tea market, buy the report here.