Vape category is fastest growing for second year in a row

Vaping was the fastest-growing category in UK retail for the second year in a row, new research has found.

Data from NielsenIQ (NIQ) for The Grocer’s Top Products survey 2023 has revealed that the vaping category saw a value sales growth of £897.4m over the year, with last year’s top product, Elf Bars (+£273m), while still the best-selling product, falling into third place in terms of growth, overtaken by Lost Mary (+£310.6m) as the fastest growing product overall.

Commenting on the findings, editor-in-chief at The Grocer Adam Leyland said: “Vaping is a runaway train. On the one hand, value sales have more than doubled; on the other hand, players in the market are struggling to keep up with the success they’re enjoying, with the law in hot pursuit.”

Sports & energy drinks (+£390.1m) was another winner, driven by the viral success of Prime Hydration (+£130.5m).

Fastest-growing grocery categories of 2023

The data found that meat-free was one of the worst-performing categories over the year, down £34.8m, while alcohol also fared badly. Within the overall alcohol sector, sales of spirits were down £181.2m, as were champagne (-£29.7m), sparkling wine (-£16.6m) and cider (-£4.4m).

Rising inflation created disparity between volume and value sales, with commodities such as fresh poultry (+£273.1m), beef (+£141.6m), milk (+£497.6m), and cheese (+£423m) seeing sales growth but sales volumes declines.

Bagged snacks (+£523.7m), chocolate (+£410.3m) and sweet biscuits (+£307.1m), all saw value growth as higher energy prices and inflation on cooking oil, sugar, chocolate were passed on to shoppers, while volumes fell.

Managing director UK & Ireland at NIQ Rachel White said the cost of living crisis has pushed shoppers to focus on more traditional lines. “The cost-of-living crisis continues to impact UK consumers and our data shows that this has had an effect on how they shop for groceries and what they choose to put in their baskets. There has been a real emphasis, despite inflation, on stripping it back to traditional items, such as fresh meat and dairy products and a move away from trying more expensive meal solutions, which have shifted the dial in terms of the meat-free category. Whether this will have an impact in January when many like to experiment with Veganuary, remains to be seen.

“Shoppers have been looking to cut costs where they can and this has meant that many beers, wines and spirits categories have suffered. However, it is evident that Brits are still looking for those little moments to treat themselves, or grab something on the go, and despite HFSS regulations top of mind with the industry.”

Leyland added that he expected lower prices in 2024 as well as a return of innovation. “As the Top Products Survey shows, supermarkets are in a tug of war with brands. And with own-label product volumes soaring across numerous categories, and the discounters in strong growth, the back to basics approach is having a profound impact on volume sales for many leading brands. But there’s growing evidence that brands are tugging the argument in the other direction through increased promotions as inflation starts to ease, and that should mean lower prices for consumers and better innovation over the next year.”

Fastest-falling grocery categories of 2023

Note: There were only nine categories in value decline