Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Executive Summary
- Tea market reached $4.3 billion in 2008
- RTD teas have driven growth, but stumbled in 2008
- Unilever/PepsiCo lead the tea market, but private label is gaining share
- Widespread availability is driving growth
- Organic, natural and "superfruit" flavors dominate new tea products
- Tea consumption trends
- Taste is the biggest attribute to motivate tea purchase
- Market Size and Forecast
- Key points
- Healthy eating trend and product innovation driving growth
- Figure 1: Total U.S. sales* and forecast of regular and RTD tea, at
current prices, 2003-13
- Figure 2: Total U.S. sales* and forecast of regular and RTD tea, at
inflation-adjusted prices, 2003-13
- Walmart sales
- Competitive Context
- Key points
- Tea competes with a wide range of beverages
- Tea no longer "owns" antioxidants
- Figure 3: Trends in number of new products in non-alcoholic beverages
with antioxidant claim, by segment, 2003-08
- Tea prices are rising
- Figure 4: Producer Price Index* for tea, 2003-08
- Figure 5: Average retail price for bagged/loose and RTD tea in FDMx,
2003-08
- Pepsi and Unilever expand joint venture to include Tazo
- Segment Performance
- Key points
- Healthy eating trend drives growth of RTD and bagged tea
- Figure 6: FDMx sales and forecast of tea and RTD tea, at current prices,
by segment, 2003-13
- Figure 7: FDMx sales of regular and RTD tea, segmented by type, 2006 and
2008
- Segment Performance--RTD Shelf-Stable Canned/Bottled Tea
- Key points
- Healthy eating trend good for RTD tea
- More varieties--and more shelf space--translate to more sales
- Premium and organic teas are to drive small growth
- Figure 8: FDMx sales and forecast of RTD SS canned/bottled tea, 2003-13
- Segment Performance--Bagged/Loose Tea
- Key points
- Strong health perceptions continue to drive sales
- Value trumps convenience in 2008
- Figure 9: FDMx sales and forecast of bagged/loose tea, 2003-13
- Segment Performance--Instant Tea Mixes
- Key points
- Lacking selection and "not quite as good-for-you" perceptions stunt growth
- Instant tea mixes missed an opportunity in economic recession
- Figure 10: FDMx sales and forecast of instant tea mixes, 2003-13
- Segment Performance--RTD Refrigerated Tea
- Key points
- Healthy eating trend, advertising campaign boost sales
- Poor economy hurts sales in 2008
- Figure 11: FDMx sales and forecast of RTD refrigerated tea, 2003-13
- Retail Channels--Overview
- Key points
- Availability of tea has expanded
- Figure 12: Total U.S. sales* and forecast of regular and RTD tea, by
retail channel, 2006 and 2008
- Retail Channels--Supermarkets
- Key points
- Expanded selection and store brand products help drive sales
- Figure 13: U.S. sales of tea at supermarkets, 2003-08
- Retail Channels--Convenience Stores
- Key points
- Increased tea consumption among teens fuels sales
- Figure 14: U.S. sales of tea at convenience stores, 2003-08
- Retail Channels--Drug and Other
- Key points
- Mass merchandisers benefit from ailing economy
- Figure 15: U.S. sales of tea at drug stores and other, 2003-08
- Retail Channels--Natural Channel
- Sales of tea and RTD tea in the natural channel
- Figure 16: Natural product supermarket retail sales of tea and RTD tea,
at current prices, 2007-09
- Figure 17: Natural product supermarket retail sales of tea and RTD tea,
at inflation-adjusted prices, 2007-09*
- Natural channel sales by segment
- Figure 18: Natural product supermarket retail sales of tea and RTD tea,
by segment, 2007 and 2009
- Brand performance
- Kombucha Tea Continues to Skyrocket and Dominate
- Manufacturer and brand sales
- Figure 19: Manufacturer brand natural supermarket sales of tea and RTD
tea*, 2007 and 2009
- Natural channel sales of Tea and RTD Tea by organic
- Figure 20: Natural product supermarket retail sales of tea and RTD tea,
by organic, 2007 and 2009
- Natural channel sales of organic tea and organic RTD tea by segment
- Figure 21: Natural product supermarket retail sales* of organic tea and
organic RTD tea, by segment, 2007 and 2009
- Market Drivers
- Health and wellness trend is good for the tea market
- Studies continue to prove tea' s health benefits
- But not all news is good news
- Baby Boomers drove category growth during 2004-08
- Figure 22: U.S. population of adults aged 18 and over, by age group,
2003-13
- Figure 23: Usage of various types of tea, by age, February 2009
- Figure 24: Frequency of drinking freshly brewed iced and hot tea, by
age, February 2009
- Economic recession hurt RTD tea sales in 2008
- Figure 25: Spending at restaurants compared to last year, by age,
February 2009
- Blacks and Asians are key user groups
- Figure 26: Usage of various types of tea, by race/Hispanic origin,
February 2009
- Figure 27: Population, by race and Hispanic origin, 2003-13
- Leading Companies
- Key points
- Unilever/PepsiCo
- Ferolito, Vultaggio & Sons
- Snapple Beverage Group
- Nestlé and Coca-Cola
- Kraft Foods
- Private label
- Manufacturer sales
- Figure 28: FDMx sales of leading tea and RTD tea companies, 2008 and 2009
- Brand Share--RTD Canned/Bottled Tea
- Key points
- Lipton maintains strong lead thanks to better-for-you offerings
- Tazo poised for growth
- AriZona and private label are shining stars in 2008
- Manufacturer and brand sales
- Figure 29: FDMx brand sales of RTD canned and bottled tea in the U.S.,
2008 and 2009
- Brand Share--Bagged/loose Tea
- Key points
- Lipton leads the segment but is losing market share to smaller players
- Private label drives segment growth in 2008
- Manufacturer and brand sales
- Figure 30: FDMx brand sales of bagged/loose tea in the U.S., 2008 and
2009
- Brand Share--Instant Tea Mixes
- Key points
- Shares of top two brands--Lipton and Crystal Light--slip in 2008
- Private label gains one full share point
- Manufacturer and brand sales
- Figure 31: FDMx brand sales of instant tea mixes in the U.S., 2008 and
2009
- Brand Share--RTD Refrigerated Tea
- Key points
- Top three brands post big gains to grow the segment
- Premium brands struggle amidst troubled economy
- Manufacturer and brand sales
- Figure 32: FDMx brand sales of RTD refrigerated tea in the U.S., 2008
and 2009
- Brand Qualities
- AriZona Ice Tea--not just a pretty face
- Honest Tea--tea with a conscience
- Innovation and Innovators
- Key points
- Pace of RTD tea innovation picks up in 2008
- Figure 33: Number of new tea introductions in the U.S, 2003-08
- Top 15 claims in new tea products, 2005 and 2008
- Figure 34: Top 15 claims in new tea products, 2005 and 2008
- Organic growth
- Country matters
- Giving back
- Going superfruity
- Tea for tots
- Advertising and Promotion
- Overview
- Television advertising
- Nestea
- Figure 35: Nestea Lemon television ad, 2008
- Lipton
- Figure 36: Lipton Green Tea television ad, 2008
- Turkey Hill
- Figure 37: Turkey Hill Iced Tea television ad, 2008
- Luzianne
- Figure 38: Luzianne television ad, 2008
- Snapple
- Figure 39: Snapple White Tea television ad, 2008
- Print advertising
- Figure 40: Oregon Chai print ad, 2000
- The Consumer: Tea Usage, Type, Brands & Frequency
- Trended usage of tea--all types
- Figure 41: Incidence of individual consumption of RTD iced tea and
incidence of household consumption of instant iced tea mixes and bagged tea,
2004-08
- Usage of tea by type
- Figure 42: Personal usage of various types of tea, by age, February 2009
- Usage frequency by type
- Figure 43: Personal usage frequency, by type of tea, February 2009
- Drinking occasion by type
- Figure 44: Occasions for drinking tea, by type of tea consumed, February
2009
- RTD iced tea
- RTD iced tea--usage by demographics
- Figure 45: Incidence of personal consumption of RTD iced tea, by gender,
age, race/Hispanic origin and region, 2006 and 2008
- RTD iced tea--usage of diet vs. regular
- Figure 46: Types of RTD iced tea drunk, regular vs. diet, by gender,
age, race/Hispanic origin and region, July 2007-September 2008
- RTD iced tea--brand usage of by age
- Figure 47: Personal consumption of RTD iced tea, by brand, by age, July
2007-September 2008
- RTD iced tea--brand usage by race/Hispanic origin
- Figure 48: Personal consumption of RTD iced tea, by brands, by
race/Hispanic origin, July 2007-September 2008
- RTD iced tea--trended usage among teens
- Figure 49: Incidence of drinking RTD iced tea among teens, 2004-08
- Figure 50: Incidence of drinking RTD iced tea among teens, by age and
gender, April 2007-June 2008
- Figure 51: Incidence of drinking RTD iced tea among teens, by
regular/diet, by age and gender, April 2007-June 2008
- RTD iced tea--brand usage among teens
- Figure 52: Incidence of drinking RTD iced tea among teens, by brand, by
age and gender, April 2007-June 2008
- Bagged and instant iced tea
- Bagged and instant iced tea--usage by demographics
- Figure 53: Incidence of household consumption of bagged tea and instant
iced tea mixes of RTD iced tea, by gender, age, race/Hispanic origin and
region, July 2007-September 2008
- Bagged tea--usage of types & flavors
- Bagged tea--regular vs. decaf
- Figure 54: Types of bagged tea used in households, by race/Hispanic
origin, July 2007-September 2008
- Bagged tea--hot vs. cold
- Figure 55: Household usage of bagged tea, by type of brewing, by
race/Hispanic origin, July 2007-September 2008
- Figure 56: Household usage of bagged tea, by type of brewing, by region,
July 2007-September 2008
- Bagged tea--popular flavors
- Figure 57: Household usage of bagged tea, by types/flavors, by region,
July 2007-September 2008
- Bagged tea--brand usage by race/Hispanic origin
- Figure 58: Household usage of bagged tea, by brand, by race/Hispanic,
July 2007-September 2008
- Instant iced tea mixes--usage by type
- Figure 59: Household usage of instant iced tea mixes, by type, by
race/Hispanic origin, July 2007-September 2008
- Instant iced tea mixes--brand usage by race/Hispanic origin
- Figure 60: Household usage of instant iced tea mixes, by brand, by
race/Hispanic origin, July 2007-September 2008
- The Consumer--Attitudes and Motivations
- Key points
- Reasons for drinking tea
- Figure 61: Reasons for drinking different types of tea, February 2009
- Favorite tea flavors
- Figure 62: Attitude toward various tea flavors, February 2009
- What tea drinkers add to tea
- Figure 63: Choice of additives in tea, February 2009
- Perceptions of health benefits, organic tea and fair trade tea
- Figure 64: Attitude toward health benefits, and organic and fair
trade-certified tea, by age, February 2009
- Impact of the recession and environmental concerns
- Figure 65: Influence of sustainability awareness and recession on tea
purchase behavior, by age, February 2009
- Appendix: Other Useful Consumer Tables
- Brand usage of RTD Iced tea by gender
- Figure 85: Personal consumption of RTD iced tea, by brand, by gender,
July 2007-September 2008
- Brand usage of RTD Iced tea by region
- Figure 86: Personal consumption of RTD iced tea, by brand, by region,
July 2007-September 2008
- Tea flavors used by race/Hispanic origin
- Figure 87: Household usage of bagged tea, by types/flavors, by
race/Hispanic origin, July 2007-September 2008
- Perceptions of health benefits, organic tea and fair trade tea by
race/Hispanic origin
- Figure 88: Attitude toward health benefits of and organic and fair
trade-certified tea, by race/Hispanic origin, February 2009
- Impact of the recession and environmental concerns on tea by race/Hispanic
origin and household income
- Figure 89: Influence of sustainability awareness and recession on tea
purchase behavior, by race/Hispanic origin, February 2009
- Figure 90: Influence of sustainability awareness and recession on tea
purchase behavior, by HH income, February 2009
- Preference for tea additives in freshly brewed iced tea by age,
race/Hispanic origin, and region
- Figure 91: Choice of additives in iced tea, by age, February 2009
- Figure 92: Choice of additives in iced tea, by race/Hispanic origin,
February 2009
- Figure 93: Choice of additives in iced tea, by region, February 2009
- Preference for tea additives in freshly brewed hot tea by age and
race/Hispanic origin
- Figure 94: Choice of additives in freshly brewed hot tea, by age,
February 2009
- Figure 95: Choice of additives in freshly brewed hot tea, by
race/Hispanic origin, February 2009
- Reasons for drinking bottled tea by gender
- Figure 96: Reasons for drinking bottled iced tea, by gender, February
2009
- Women have bigger flavor repertoire
- Figure 97: Attitude toward various tea flavors that respondents like and
sometimes drink, by gender, February 2009
- Usage frequency of freshly brewed teas by age
- Figure 98: Frequency of drinking freshly brewed iced and hot tea, by
age, February 2009
- Appendix: Trade Associations
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