Storm in a tea cup: Brits to face price hike on hot drinks

Supply issues could lead a price hike on tea and coffee across Britain, according to Beacon, Britain’s leading purchasing company.

The research conducted by the firm also found that most Britons would not be willing to pay over £2.99 for their daily cuppa, a worrying figure for tea and coffee shops with demand currently outstripping supply.

Recent data collected by Beacon through CGA Data shows that coffee prices have seen a 4.9% increase in Britain as the drink becomes more popular, and major droughts in Kenya have had an adverse effect on tea prices.

"The tea and coffee market has seen a lot of fluctuation recently, with weather conditions and the political climate having a major impact on price. The trend for drinks with an American and Australian influence has changed the hot drinks market completely, with consumers now spoilt for choice when they enter a coffee shop," said Beacon’s managing director Paul Connelly.

Connelly added that the rapid increase in demand for speciality tea and coffee is driving the market at the moment, but also boiling prices higher.

"From our research, we know that there continues to be huge demand for these speciality drinks, which is driving growth in the category, however it’s also placing strain on supply that inevitably leads to price increases."

The survey estimated that around £53.9m is spent every week in the UK on tea and coffee, with 75% of those involved saying such hot drinks were their first drink of the day.