When buying sugar the majority of hot drinks consumers are vastly motivated by price. To avoid a race to the bottom, manufacturers need to come up with new ways to add value, such as flavoured sugar and sugar on wands, according to a survey of 2,000 consumers in the UK.
Canadean asked consumers in December 2014 how they take their hot drinks and found that 30% of consumers add sugar to their tea, coffee or hot chocolate.
The survey shows that a low price is by far the most influential criteria when buying sugar, with 60% of consumers saying they are price-driven.
By comparison, quality – the second biggest criteria – is only important to 31%.
Packaging design and health benefits are the least important to consumers, with only 1% and 6%, respectively, saying that these are deciding factors when purchasing sugar.
“The desire for better price means that manufacturers who want to charge more have to make sure they convey clearly why consumers should pay extra,” says analyst Veronika Zhupanova.
Canadean says the hot drinks market valued at £2.0 billion in the UK in 2014.
Adding perks to regular drinks
When Canadean asked those taking sugar with their hot drinks if they were interested in flavored sugar, such as lemon, mint, or alcohol flavor (without alcohol in it), 37% of respondents expressed interest, while 28% were interested in sugar with alcohol.
“Flavored sugar adds elements of fun and novelty to regular hot drinks and presents an opportunity for manufacturers to add value, and also to highlight the product’s quality via tasty flavors,” says Zhupanova.
Sugar as a touch of class
The survey also found that 41% of respondents who add sugar to their hot drinks are interested in ‘sugar on a stick’, a stirring wand with sugar on the bottom which was designed to sweeten up hot beverages, while also adding charm to the consumption process.
About 51% are even prepared to pay extra to use the sugar wand at home, while 31% would pay more for an out-of-home experience.
“Such results show that UK consumers are seeking to add a touch of class and new experiences to their regular coffee or tea. Furthermore, the sugar wand has the potential to tap into the market of hot alcoholic drinks such as mulled wine or cider,” Zhupanova adds.
