Vaping Soars As UK's Fastest Growing Retail Category Two Years Running
Matthew Ma
For the second consecutive year, vaping has emerged as the fastest growing product category in UK retail, new data reveals.
Research from NielsenIQ (NIQ) published in The Grocer’s 2023 Top Products report found that vaping generated £897.4 million in value growth over the past year. Impressively, the vaping juggernaut Lost Mary saw the highest gains overall at £310.6 million, surpassing 2022 top performer Elf Bars, which still managed to tack on a hefty £273 million.
“Vaping is a runaway train,” remarked The Grocer editor-in-chief Adam Leyland on the breakneck category expansion. “Value sales have more than doubled, yet brands struggle to keep pace amid blurring legal boundaries.”
Alongside vapes, sports and energy drinks ranked among the survey’s top growth areas at £390.1 million, fueled largely by the viral success of YouTube star KSI’s brand Prime Hydration (£130.5 million).
Meanwhile, meat-free products languished as one of the worst performing segments, declining £34.8 million year-over-year. The data similarly showed across-the-board slumps for alcohol categories – spirits (-£181.2 million), champagne (-£29.7 million), sparkling wine (-£16.6 million) and cider (-£4.4 million) – as inflation and cost-cutting bit into discretionary spending.
For everyday essentials like fresh poultry (£273.1 million growth), beef (£141.6 million), milk (£497.6 million) and cheese (£423 million), rising prices lifted value gains even as purchase volumes fell.
The same inflation dynamic applied to indulgent categories, with chocolate (£410.3 million growth), sweet biscuits (£307.1 million) and bagged snacks (£523.7 million) passing higher input costs to shoppers amid slumping volumes.
“The cost-of-living crisis continues to impact UK consumers and our data shows that this has affected how they shop,” noted NIQ managing director Rachel White.
She added that brittle household budgets had steered shoppers toward more traditional grocery staples while avoiding pricier prepared meals. However, she believes many will likely continue seeking small treats like beer, wine and spirits despite the economic strain.
Leyland anticipates easing inflation could usher in lower prices and revived innovation next year. “Supermarkets are in a tug of war with brands,” he said, highlighting strong own-label growth across categories, particularly at discount chains.
“But with inflation easing, evidence shows brands tugging through promotions and better value – meaning lower prices for shoppers and more innovation in 2024.”