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The hot beverages market is thriving. With Brits spending approximately £2.3bn annually on the category, it boasts an impressive average spend per buyer of £84.88/year [1] and continues to report strong growth since Covid-19 first reared its ugly head earlier this year.

Coffee sales in particular are at the heart of this trend having reported 5.2% year-on-year growth over the 12-month period to 6 September 2020 [2].

The same is true for the convenience industry too.

Hot beverages are worth approximately £323m in value sales for the sector, with coffee once again the driving force behind this performance. In fact, coffee currently holds a 61.8% share of the hot beverages market, well ahead of tea (29.1%) and hot chocolate (4.5%) – both of which are expected to see a fall in value sales in 2022 [3].

And the coffee segment is only predicted to grow even further over the next few years, providing enticing opportunities for the more than 45,000 convenience stores in the UK to tap into.

Which is why Nestlé, owner of some of the category’s biggest products such as Nescafé Original and Azera, has created a new guide chock-full of advice on how convenience retailers can capitalise on the growth of the hot beverages market.

To do this, Nestlé claims retailers need to get back to basics and give the customers what they want, particularly in light of the gloomy economic outlook as a result of Covid-19. This means using prime marked packs, stocking the right products and planning the fixture based on the decision hierarchy of shoppers.

For example, the average number of hot beverage products in symbol and independent stores is 48, so based on share each segment should account for the following:

  • Coffee - 30
  • Tea - 14
  • Hot chocolate - 2
  • Coffee additives - 1
  • Other hot beverages - 1

Nestlé would also like to help retailers to understand the insights around different coffee occasions, such as using it as a stimulus to start the day, and knowing which occasions are likely to drive future growth in the category.

To find out more, click here to download Nestlé’s guide to the perfect store to help boost your hot beverage sales.


[1] Kantar Worldpanel, latest 52 weeks to 6th September 2020

[2] IRI Total Grocers Data Market Advantage 52 w/e 12 Sep 20

[3] IRI Total Convenience Data Market Advantage 52 w/e 12 Sep 20