Hot beverages remain a cornerstone category for independent convenience stores supplied by UK wholesalers, but the latest SmartView Convenience data shows the Hot Beverages market is undergoing a period of adjustment. While total value decline has been relatively modest, sharper volume losses highlight changing shopper behaviour and the need for a more nuanced approach to ranging and execution.
Total hot beverages sales across unaffiliated independents and wholesaler supplied symbol stores are down -1.42% in value year-on-year (w/e 30/11/25), with retail units declining more significantly at -5.40%. This widening gap between value and volume reflects ongoing price inflation, fewer purchasing occasions and increased selectivity among shoppers
Hot Beverages Review
Despite these headwinds, coffee continues to dominate the category. Accounting for 65.6% of total value sales, coffee has gained +1.83% share year-on-year, reinforcing its status as the primary driver of hot beverage spend in independent convenience. Tea, by contrast, now represents 29.4% of value sales and has lost -1.67% share, with overall value sales in decline.
Within coffee, instant formats remain the backbone of the category, holding an overwhelming 87.3% share of value sales. However, growth dynamics are shifting. Filter and ground coffee, while still relatively small at 8.3% share, is delivering strong value growth of +7.0% and gaining share slightly faster than instant. This points to a growing appetite among convenience shoppers for more premium or at-home café-style experiences, even within space-constrained stores.
Tea presents a more polarised picture. Standard tea bags still account for nearly four-fifths of tea value sales, but their dominance is eroding. Value sales for standard tea bags are down -8.15% year-on-year, and share has declined by -1.23%. In contrast, fruit and herbal tea bags are showing modest growth and now represent over 9% of tea value sales. Speciality leaf tea, while niche at just 1.8% share, is the fastest-growing segment, with value sales up +9.5%. These trends suggest that while everyday tea consumption may be under pressure, there remains an opportunity to trade shoppers up through differentiation and premiumisation.
Brand performance further underlines the importance of range balance. Nescafé continues to dominate hot beverages in convenience, with a 39% share of value sales. Within its extensive portfolio, Nescafé Original remains the largest sub-brand and is still in growth, while Gold, despite a similar share, is no longer growing. Yorkshire Tea remains the second-largest brand overall, highlighting the enduring strength of trusted names in the category.
Regional trends add another layer of complexity. Yorkshire and the Humber and the Northwest hold the highest combined share of coffee sales, although both regions are experiencing marginal decline. Meanwhile, the Southeast, Eastern England, Scotland and London are all seeing coffee growth. Tea shows a slightly different pattern, with growth evident in London, the West Midlands, Southeast, Scotland and the Southwest.
For wholesalers and independent retailers, the message is clear. While the hot beverages category faces structural challenges, opportunities still exist through targeted ranging, premium coffee formats, emerging tea segments and regionally informed strategies. SmartView Convenience continues to provide the most reflective and actionable view of these dynamics, helping the wholesale sector make informed decisions in an evolving market.
