Traditionally a cure for all your troubles, latest research from MINTEL has found Britain's love affair with the good old English cuppa is now under threat.
New research from MINTEL has found sales of more traditional tea products, such as the standard tea bag and loose tea, taking a real battering. Indeed, over the past 2 years, sales of standard tea bags have declined by 16% while sales of loose tea have declined 9%. With standard tea bags making up the lion's share of the total tea market at 63% and often sold as a discount, it is perhaps not surprising that the overall market for tea and teabags has experienced significant losses. Indeed, over the past 5 years the total tea market has declined some 12% falling from ?707 million in 1999 to just ?623 million in 2004.
"The traditional English cuppa is fighting a real battle, against coffee as a hot beverage and against increasing competition from tea alternatives such as soft drinks, bottled water and fruit juice. But also within the tea market itself, traditional tea has maintained a relatively staid image and is now competing with more exotic and healthier herbal tea options. Although young tea drinkers are drinking a wider variety of teas, they are drinking less of it. There is a need by manufacturers to make traditional tea more of a fashionable beverage" comments Ellen Shiels, Senior Market Analyst at MINTEL.
Health conscious tea drinkers go exotic
In contrast to the traditional tea market, speciality teas and herbal & fruit teas have been the shining stars, rising by as much as 50% and 30% respectively between 2002 and 2004.
Positioning tea as a healthy drink has done much to curb overall market decline. Consumers have been trading up towards premium speciality tea and herbal fruit tea, which have helped to slow the decline in market value, in part being caused by tea prices being eroded by heavy price discounting and promotions. There has been a definite trend towards more exotic, fruity flavours, in addition to caffeine-free hot beverages, which is boosting the popularity of tea among the younger generation.
"The tea market has become more segmented, trying to be many things to more people. Herbal and fruit teas are being sold as 'well-being' teas, and have been positioned as anything from cough and cold remedies to anti-stress teas, or even a digestive tea. Green tea is being promoted as containing high levels of antioxidants, and the more recent product on the market, white tea, claims to contain three times the number of antioxidants as green tea. Indeed, the definitions of what constitutes ‘tea’ are becoming slightly blurred, in that tea can be defined as tea when it does not actually contain tea leaves due to its use on certain occasions as tea" comments Ellen Shiels.
Although the more expensive speciality and herbal/fruit teas are gaining share, fruit teas still only account for a combined 27% of retail sales of tea, while standard tea accounts for 63% of tea sales.
Anyone for tea?
Almost 80% of British are tea drinkers, which rises to as many as 85% of those aged 65 and over but falls to just 72% of those aged between 15 and 24. The contrast in use by age is even more pronounced among heavy users, where just 38% of those aged between 15 and 24 drink tea twice a day or more, compared to as many as 70% of those aged 65 and over.
English Breakfast tea remains most popular type of tea followed by fruit teas. Green tea is, however, increasing in popularity, and white tea is expected to make a mark as the new trendy health tea.
Over half of adults claim that they always buy the same brand of tea (55%) and some 32% of adults tend to drink tea throughout the day.
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