The hot beverage makers market continues to perform well in the 12 months to January 2015 enjoying an uplift of 22% in volume. However ongoing price erosion means the value growth is smaller at 16% as the average price falls by a further £4 to £74. As great gifting items, sales are boosted in the run up to Christmas, November and December alone accounted for 47% of the year’s volume two years in a row. The single serve machines which use capsules from a unique supplier now account for 69% of the total value enjoying a 17% growth year on year.  The average price paid was over £100 three years ago, falling to just £67 in the last year as the market has become increasingly dependent on promotional activity. Consumers predict falling prices over the Christmas months and this year was no exception as the average price paid fell below £58 in November and December with many bargains had below £35. Last year single serve machines were the only segment to grow within hot beverage makers, but this year both traditional espresso and espresso full automatic machines also display growth. Traditional espresso machines take ground coffee giving consumers a large variety to pick from having the choice of purchasing pre-ground coffee or grinding their own beans.  This segment has increased by 13% in volume and value year on year.  Average price remains static but sales increase rapidly at the sub £75 price and the £200+ making it a diverse market The espresso full automatic segment is the most premium; these machines grind the beans, froth the milk and give the consumer a wide range of choices from espresso to cappuccino, americano to latte. It remains a small part of the total market accounting for only 2% of volume, but with an average price tag of £406 this equates to 12% of the total market’s value. Despite such a premium price tag, it is a significant £80 less than last year as Black Friday and Christmas sales played a huge role in promotional activity causing 45% of the year’s sales to fall in the sub £300 price bracket making it a more affordable category for many consumers. Both the nation’s growing love for coffee and the cheaper price tags booted sales of this premium segment by 35% in value and 72% in volume Looking forward I would expect growth to continue but if prices carry on falling as rapidly as we have seen over the last year value will begin to stabilise. All data relates to the MAT to January 2015 unless otherwise stated.  Source: gfk.com/uk/news-and-events/press-room/press-releases/pages/coffee-becomes-affordable.aspx