Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Tea market reached $3.9 billion in 2009
- RTD tea leads growth
- Supermarkets command the biggest share in the tea market
- RTD kombucha becoming a power house in Natural channel
- Product innovation is a must to compete successfully
- Brand qualities that define growth avenues
- The tea and RTD tea consumer
- Personal consumption
- Household usage
- Reasons for drinking different types of teas
- Attitudes towards various tea flavors
- What tea drinkers add to tea
- Attitudes toward health benefits of tea, and organic and fair-trade certified tea
Insights and Opportunities
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- RTD tea can take flavors inspiration from regions in the U.S.
- Super-premium teas with a flowery twist
- Tea-based smoothies for dessert
- Instant Matcha tea a versatile ingredient
- Premium bulk tea
- Sparkling and carbonated tea: Can they replace soda?
Inspire Trends
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- Trend 1: Fair-trade revolution set to continue
- What we’ve seen?
- Implications for the tea industry
- Trend 2: Tea and beauty
- What we’ve seen?
- Implications for the tea industry
Market Size and Forecast
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- Key points
- Bagged/loose tea sales pick up—will it last?
- Wellness trend and product innovation driving growth
- Sales and forecast of market
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- Figure 1: FDMx and convenience store sales and forecast of tea and RTD tea, at current prices, 2004-14
- Figure 2: FDMx and convenience store sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2004-14
- Walmart sales
Competitive Context
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- Key points
- Competition within the tea market
- Growing battle for shelf space—dairy producers and fruit juice manufacturers enter tea space
- External competition from other non-alcoholic beverages heats up
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- Figure 3: Number of new U.S. tea and RTD (iced) tea introductions using “antioxidant” claims, 2005-09
- Juice and enhanced water
- Energy drinks
Segment Performance
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- Key points
- Pricing increases lead to market gains
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- Figure 4: Mombasa auction tea prices, 2002-09
- Figure 5: FDMx tea and RTD tea cost per unit, 2007 and 2009
- FDMx sales and forecast of tea and RTD tea, by segment
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- Figure 6: FDMx sales and forecast tea and RTD tea, at current prices, by segment, 2004-14
- Figure 7: FDMx sales of tea and RTD tea, by segment, 2007 and 2009
Segment Performance—RTD Shelf-stable Canned/ Bottled Tea
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- Key points
- The recession negatively influences RTD tea
- Single-serve tea gives way to RTD multipacks and gallon jugs
- Sales and forecast of RTD shelf-stable canned/bottled tea
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- Figure 8: FDMx sales and forecast of RTD shelf-stable canned/bottled tea, 2004-14
Segment Performance— Bagged/Loose Tea
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- Key points
- Higher pricing bolsters market expansion
- Bagged tea wins price-sensitive RTD customers
- Sales and forecast of bagged/loose tea
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- Figure 9: FDMx sales and forecast of bagged/loose tea, 2004-14
Segment Performance—RTD Refrigerated Tea
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- Key points
- Distribution is key to growth
- Sales and forecast of RTD refrigerated tea
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- Figure 10: FDMx sales and forecast of RTD refrigerated tea, 2004-14
Segment Performance—Instant Tea Mixes
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- Key points
- Lack of innovation leads to declining market penetration
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- Figure 11: U.S. Number of new instant tea introductions 2005-10
- Sales and forecast of instant tea mixes
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- Figure 12: FDMx sales and forecast of instant tea mixes, 2004-14
Retail Channels
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- Key points
- Grocery channel losing its edge
- Convenience stores showcase new products
- Sales of tea and RTD tea, by channel
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- Figure 13: FDMx and c-store sales of tea and RTD tea, by retail channel, 2007 and 2009
Retail Channels—Supermarkets
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- Key points
- Competition for tea away from home poses the greatest challenge
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- Figure 14: U.S. sales of tea and RTD tea at supermarkets, 2004-09
Retail Channels—Drug and Other
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- Key points
- Impulse purchases and value priced multipacks can increase volume
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- Figure 15: U.S. sales of tea and RTD tea at drug and other FDMx channels, 2004-09
Retail Channels—Convenience Stores
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- Key points
- Convenience stores finding success in RTD canned/bottle tea sales
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- Figure 16: U.S. sales of tea and RTD tea at convenience stores, 2004-09
Retail Channels—Natural Channels
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- Premium product sales shift to FDM outlets
- Marketing basics could boost dried tea sales
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- Figure 17: Natural supermarket sales of tea and RTD teas, at current prices, March 2008- March 2010
- Figure 18: Natural supermarket sales of tea and RTD teas, at inflation-adjusted prices, 2008- 2010
- Natural channel sales by segment
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- Figure 19: Natural supermarket sales of tea and RTD teas, by segment, 2008 and 2010
- Brand table: Tea & RTD teas
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- Figure 20: Manufacturer brand natural supermarket sales of dried and loose tea, 2008 and 2010
- Natural channel sales of tea & RTD teas by organic
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- Figure 21: Natural supermarket sales of dried and loose tea, by organic vs. non-organic, 2008 and 2010
Market Drivers
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- Key points
- Adult obesity levels in the U.S. stabilize but still remain a cause of concern
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- Figure 22: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
- Adults watching their diet seek low-fat, low-sugar food products
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- Figure 23: Reasons for watching/controlling diet, 2006 and 2009
- Figure 24: Attributes diet watchers look for in food, 2006 and 2009
- Government concerns for obesity-related issues elicits reaction from non-alcoholic beverage manufactures
- Sweeteners are a problem in RTD teas
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- Figure 25: Number of new RTD tea products made with juice, 2006, 2008 and 2010
- Teen population to remain flat; tea makers need to work on frequency of consumption
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- Figure 26: U.S. Teen population, 2004-14
- Black and Asian population projections offer growth potential
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- Figure 27: U.S. Population, by race and Hispanic origin, 2004-14
- Recession negatively influences household spending on teas
Companies and Brands
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- Key points
- Unilever sales stalled due to lack of innovation
- Bigelow—Provides variety at value prices
- Private labels thrive in a down economy
- Company sales
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- Figure 28: FDMx tea and RTD tea sales of leading companies, 2009 and 2010
Brand Share— RTD Canned/Bottled Tea
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- Key points
- Better for you makes winning combination for Lipton and Honest Tea
- Premium teas winning sales despite economy
- Manufacturer and brand shares
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- Figure 29: FDMx brand sales of RTD canned/bottled tea in the U.S., 2009 and 2010
Brand Share—Bagged/loose Tea
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- Key points
- A plethora of premium wins favor
- New products key to continued growth
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- Figure 30: Number of new regular tea products, by top ten brands, 2006 and 2009
- Manufacturer and brand shares
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- Figure 31: FDMx brand sales of bagged/loose tea in the U.S., part 1, 2009 and 2010
- Figure 32: FDMx brand sales of bagged/loose tea in the U.S., part 2, 2009 and 2010
Brand Share—RTD Refrigerated Tea
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- Key points
- Dairy industry key to growth
- Fruit and tea a winning combination
- Manufacturer and brand shares
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- Figure 33: FDMx brand sales of RTD refrigerated tea in the U.S., 2008 and 2009
Brand Share—Instant Tea Mixes
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- Key points
- On-the-go packs on their way out…
- … Matcha is on the way in
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- Source: Mintel GNPD
- Manufacturer and brand shares
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- Figure 34: FDMx brand sales of instant tea mixes in the U.S., 2009 and 2010
Brand Qualities
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- Lipton: Global tea giant with opportunity to build character
- Using international insight to build character
- Traditional Medicinals: American leader in using tea as medicine
Innovation and Innovators
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- Figure 35: Number of new regular tea* and RTD (iced) tea product introductions in the U.S. 2005-10**
- Purity claims
- Premium
- Ethical—environmentally friendly packaging
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- Figure 36: Top ten claims in new tea products in the U.S., 2006-09
- Innovations by segment
- RTD tea
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- Figure 37: Claims in RTD tea New product launches, 2005, 2007 and 2009
- Regular tea
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- Figure 38: Claims in regular tea new product launches, 2005, 2007 and 2009
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Advertising and Promotion
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- Overview
- Capitalizing on a healthy image
- Diet Snapple
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- Figure 39: Diet Snapple, TV ad made from the best diet stuff on earth, 2010
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- Figure 40: Diet Snapple, TV ad, tour of a Snapple manufacturing plant, 2010
- Traditional Medicinals Tea
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- Figure 41: Traditional Medicinals Tea, TV ad, 2009
- Ads tout the most sought after attribute in tea—refreshment
- Luzianne sipping tea on a lazy summer afternoon
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- Figure 42: Luzianne, TV ad, relaxing on a porch swing, 2009
- Lipton Sparkling Green Tea
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- Figure 43: Lipton Sparkling Green Tea, TV ad, 2009
- Oregon Chai Tea Lattes
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- Figure 44: Oregon Chai Tea Lattes, TV ad, 2009
The Consumer: Tea Usage, Type, Brands and Frequency
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- Key points
- Trends in personal usage of RTD iced tea and household usage of regular tea and instant iced tea mixes
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- Figure 45: Incidence of individual consumption of RTD iced tea and incidence of household consumption of instant iced tea mixes and bag/package tea, 2005-09
- RTD iced tea
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- Figure 46: Incidence of individual consumption of RTD iced tea, 2005-09
- Personal consumption of RTD iced tea by type
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- Figure 47: RTD iced tea usage, regular vs. diet, by key demographics, April 2008-June 2009
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- Figure 48: Personal consumption of iced tea by choice of brands, by age, April 2008-June 2009
The Consumer: Household Tea Consumption
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- Key points
- Household consumption of regular (bag/loose) tea and instant tea mixes
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- Figure 49: Incidence of household consumption of regular tea and instant iced tea mixes, April 2008-June 2009
- Types and flavors of regular tea and instant iced tea mix
- Regular tea in bags/packages
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- Figure 50: Household usage of regular tea by types of brewing, by region, April 2008-June 2009
- Household usage of regular tea by flavor
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- Figure 51: Household usage of regular tea by types of flavors, by region, April 2008-June 2009
- Household usage of regular tea (in bags/packages) by brand
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- Figure 52: Household usage of regular tea brands, by household income, April 2008-June 2009
- Instant iced tea mixes usage by type
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- Figure 53: Household usage of instant iced tea mixes by type, by age of householder, April 2008-June 2009
- Household usage of instant iced tea mixes by brand
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- Figure 54: Household usage of instant iced tea mix brands, by age of householder, April 2008-June 2009
- Types of tea, by frequency of use
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- Figure 55: Types of tea, by frequency of use, February 2010
- Weekly frequency of drinking different types of tea
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- Figure 56: Frequency of drinking different types of tea in week, February 2010
- Frequency of drinking freshly brewed teas (iced and hot) higher among adults aged 45+
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- Figure 57: Frequency of drinking freshly brewed iced and hot tea, by age, February 2009
Reasons for Drinking Different Types of Teas
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- Taste and refreshment dominate
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- Figure 58: Reasons for drinking different types of tea, February 2010
- Bottled iced tea: women look for taste and refreshment while men want antioxidants and boost
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- Figure 59: Reasons for drinking bottled iced tea, by gender, February 2010
Attitudes Toward Various Tea Flavors
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- Green tea is the most popular type of tea
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- Figure 60: Attitudes toward various tea flavors, February 2010
- Women have bigger flavor repertoire
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- Figure 61: Preference for various tea flavors, by gender, February 2010
Consumer Attitudes and Behavior
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- What tea drinkers add to tea
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- Figure 62: Choice of additives in iced/hot tea, February 2010
- Preference for tea additives in freshly brewed iced tea
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- Figure 63: Choice of additives in iced tea, by age, February 2010
- Attitudes toward health benefits of tea, and organic and fair trade certified tea
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- Figure 64: Attitudes toward health benefits and organic and fair-trade certified tea, by age, February 2010
- Influence of backlash against plastic bottles and recession
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- Figure 65: Influence of plastic bottles/packaging and recession on tea purchase behavior, by household income, February 2010
- Attitude toward tea sweeteners and new tea products
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- Figure 66: Attitudes toward tea sweeteners and new tea products, by gender, February 2010
- Occasions for drinking tea
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- Figure 67: Occasions for drinking tea, by type of tea consumed, February 2010
- Tea flavor choice by occasion of consumption
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- Figure 68: Tea flavor choice, by occasion of consumption, February 2009
Impact of Race and Hispanic Origin
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- RTD iced tea consumption
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- Figure 69: Incidence of individual consumption of RTD iced tea, by race/Hispanic origin, 2005-09
- Personal consumption of RTD iced tea by type
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- Figure 70: RTD iced tea usage, regular vs. diet, by race/Hispanic origin, April 2008-June 2009
- Household consumption of regular tea and instant tea mixes
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- Figure 71: Incidence of household consumption of regular tea and instant iced tea mixes, by race/Hispanic origin, April 2008-June 2009
- Regular tea in bags/packages
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- Figure 72: Types of regular tea used in households, by race/Hispanic origin, April 2008-June 2009
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- Figure 73: Household usage of regular tea by type of brewing, by race/Hispanic origin, April 2008-June 2009
- Household usage of regular tea by flavor
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- Figure 74: Household usage of regular tea by types of flavors, by race/Hispanic origin, April 2008-June 2009
- Household usage of regular tea (in bags/packages) by brand
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- Figure 75: Household usage of regular tea by choice of brands, by race/Hispanic origin, April 2008-June 2009
- Instant iced tea mixes usage by type
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- Figure 76: Household usage of instant iced tea mixes by type, by race/Hispanic origin, April 2008-June 2009
- Household usage of instant iced tea mixes by brand
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- Figure 77: Household usage of instant iced tea mixes by choice of brands, by race/Hispanic origin, April 2008-June 2009
- Attitudes towards health benefits of, and organic and fair-trade certified tea
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- Figure 78: Attitudes towards health benefits and organic and fair-trade certified tea, by race/Hispanic origin, February 2010
- Attitudes towards tea sweeteners and new tea products
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- Figure 79: Attitudes towards tea sweeteners and new tea products, by race/Hispanic origin, February 2010
The Teen Consumer
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- Teen use of RTD iced tea
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- Figure 80: Incidence of individual consumption of RTD iced tea among teens, May 2004-June 2009
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- Figure 81: Incidence of drinking RTD iced tea among teens, by age and gender, April 2008-June 2009
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- Figure 82: Teen use of RTD iced tea, by regular/diet, by age and gender, April 2007-June 2008
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- Figure 83: Teen consumption of iced tea by choice of brands, by age and gender, April 2008-June 2009
Cluster Analysis
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- Flavorers
- Demographics
- Opportunity
- Mainstreams
- Demographics
- Characteristics
- Opportunity
- Alternatives
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 84: Tea clusters, February 2010
- Figure 85: Attitudes towards various tea flavors, by tea clusters, February 2010
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- Figure 86: Attitudes towards health benefits and organic and fair-trade certified tea, by tea clusters, February 2010
- Figure 87: Attitudes towards tea sweeteners and new tea products, by tea clusters, February 2010
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- Figure 88: Influence of plastic bottles and recession on tea purchase behavior, by tea clusters, February 2010
- Cluster demographics
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- Figure 89: Tea clusters, by gender, February 2010
- Figure 90: Tea clusters, by age group, February 2010
- Figure 91: Tea clusters, by household income group, February 2010
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- Figure 92: Tea clusters, by race, February 2010
- Figure 93: Tea clusters, by Hispanic origin, February 2010
- Cluster methodology
Custom Consumer Groups
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- Black women aged 35-54 are the key RTD tea consumer
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- Figure 94: Incidence of individual consumption of RTD iced tea, by black demographic gender and age, April 2008-June 2009
- RTD tea brand choice varies widely among different age groups in blacks
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- Figure 95: Personal usage of RTD iced tea by choice of brands, by black demographics by age and gender, April 2008-June 2009
IRI/Builders Panel Data: Key Household Purchase Measures
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- Canned and bottled tea: key household purchase measures
- Overview
- Canned and bottle tea: Consumer insights on key purchase measures
- Brand map
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- Figure 96: Brand map, selected brands of canned and bottled tea, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 97: Key purchase measures for the top brands of canned and bottled tea, by household penetration, 2009*
- Bag/loose tea: Key household purchase measures
- Bag/loose tea—consumer insights on key purchase measures
- Brand map
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- Figure 98: Brand map, selected brands of tea bags/loose tea, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 99: Key purchase measures for the top brands of tea bags/loose tea, by household penetration, 2009*
- Instant tea mixes: Key household purchase measures
- Instant tea mixes
- Instant tea mixes—consumer insights on key purchase measures
- Brand map
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- Figure 100: Brand map, selected brands of instant tea mixes, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 101: Key purchase measures for the top brands of instant tea mixes, by household penetration, 2009*
Appendix: IRI/Builders Panel Data Definitions
Appendix: Other Useful Consumer Tables
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- Attitudes and purchase influencers
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- Figure 102: Influence of plastic bottles and recession on tea purchase behavior, by household income, February 2010
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- Figure 103: Attitudes toward tea sweeteners and new tea products, by gender, February 2010
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- Figure 104: Attitudes toward tea sweeteners and new tea products, by household income, February 2010
- Brand usage of RTD Iced tea
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- Figure 105: Personal consumption of iced tea by brands, by gender, April 2008-June 2009
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- Figure 106: Personal consumption of iced tea by brands, by age, April 2008-June 2009
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- Figure 107: Personal consumption of iced tea by brands, by region, April 2008-June 2009
- Brand usage of RTD iced tea
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- Figure 108: Personal consumption of iced tea by brands, by household income, April 2008-June 2009
- Types and flavors of regular tea and instant iced tea mix
- Regular tea in bags/packages
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- Figure 109: Types of regular tea used in households, by household income, April 2008-June 2009
- Instant iced tea mixes usage by type
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- Figure 110: Household usage of instant iced tea mixes by type, by age of householder, April 2008-June 2009
- Household usage of instant iced tea mixes by brand
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- Figure 111: Household usage of instant iced tea mixes by brand, by age of householder, April 2008-June 2009
- Household usage of regular tea by flavor
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- Figure 112: Household usage of regular tea by types of flavors, by region, April 2008-June 2009
- What tea drinkers add to tea
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- Figure 113: Choice of additives in iced tea, by race/Hispanic origin, February 2010
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- Figure 114: Choice of additives in iced tea, by region, February 2010
- Blacks are most active in seeking favorite tea types and flavors
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- Figure 115: Preference for top tea types and favorite flavors, by race/Hispanic origin, February 2010
- Preference for tea additives in freshly brewed hot tea
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- Figure 116: Choice of additives in freshly brewed hot tea, by age, February 2010
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- Figure 117: Choice of additives in freshly brewed hot tea, by race/Hispanic origin, February 2010
- Influence of backlash against plastic bottles and recession on tea-purchase behavior
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- Figure 118: Influence of plastic bottles and recession on tea purchase behavior, by age, February 2010
Appendix: Trade Associations
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