The U.S. Market for Tea and Ready-to-Drink Teas

Chapter 1: Executive Summary

Chapter 2: The Products

Scope of the Report

• Markets Analyzed
• Products Outside of Scope

Product Breakouts

• Three Primary Categories
• First Category: Tea Packaged for Future Brewing or Mixing
• Broken Into Four Sub-Categories
• Tea Bags
• Loose Tea Leaves
• Instant Tea Mix
• Specialty Instant Tea Mixes 
• Second Category: Packaged Tea Beverages (Ready-to-Drink)
• Third Category: Freshly Brewed for Immediate Consumption (Ready-to-Drink)
• Additional Descriptors �E Traditional vs. Herbal
• Caffeine Content
• Flavors
• Organic

Chapter 3: The Market Market Size and Growth

• 2003 Sales for Total U.S. Tea and Ready-to-Drink Tea Market
• Table 3-1: Total U.S. Sales of Tea and Ready-to-Drink Tea, 1999-2003 (dollars)
• Figure 3-1: Total U.S. Sales of Tea and Ready-to-Drink Tea, 1999-2003 (dollars)
• Table 3-2: Total U.S. Sales of Tea and Ready-to-Drink Tea by Category, 1999-2003 (dollars)
• Table 3-3: Total U.S. Sales of Tea and Ready-to-Drink Tea by Market, 1999-2003 (dollars)
• Packaged vs. Immediate Consumption Purchases
• The Retail Market
• Table 3-4: U.S. Retail Sales of Tea and Ready-to-Drink Tea by Category, 1999-2003 (dollars)
• The Tea House Market
• Table 3-5: U.S. Tea House Sales of Tea and Ready-to-Drink Tea by Category, 1999-2003 (dollars)
• Tea House Sales are Primarily Freshly Brewed Tea for Immediate Consumption
• Table 3-6: Total U.S. Sales of Packaged Tea Beverages by Market, 1999-2003 (dollars)
• Other Venues Where Tea is Sold
• Unlike Coffee, Hotel Room Tea is Small Business
• Selling Tea Wholesale

Market Composition

• Figure 3-2: Total U.S. Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Figure 3-3: U.S. Retail Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Table 3-7: U.S. Retail Sales of Tea and Ready-to-Drink Tea: Branded vs. Private Label, 1999-2003 (dollars)
• Figure 3-4: U.S. Retail Sales of Tea and Ready-to-Drink Tea, Branded vs. Private Label: Share of Dollar Sales, 2003 (percent)
• Traditional Supermarkets Are the Primary Retail Sales Venue for Packaged Tea Products
• Figure 3-5: U.S. Retail Sales of Tea and Ready-to-Drink Tea: Share of Dollar Sales by Retailer Type, 2003 (percent)�E Figure 3-6: U.S. Supermarket Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Figure 3-7: U.S. Mass Merchandiser Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Figure 3-8: U.S. Drug Store Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Figure 3-9: U.S. C-store Tea and Ready-to-Drink Tea: Share of Dollar Sales by Category, 2003 (percent)
• Figure 3-10 Share of U.S. Retail Sales of Tea and Ready-to-Drink Tea by Season: 2003 (percent)
• Regional Preferences by Product Category
• Table 3-8: Regional Distribution Indices for Consumption of Tea and Ready-to-Drink Tea: By Product Type, April 2002-March 2003 (U.S. Adults)

Factors to Market Growth Projected Market Growth

• Projected Sales for 2008
• Table 3-9: Projected Total U.S. Sales of Tea and Ready-to-Drink Tea, 2003-2008 (dollars)
• Table 3-10: Projected Total U.S. Sales of Tea and Ready-to-Drink Tea by Category, 2003-2008 (dollars)
• Table 3-11: Projected Total U.S. Sales of Tea and Ready-to-Drink Tea by Market, 2003-2008 (dollars)
• Table 3-12: Projected U.S. Retail Sales of Tea and Ready-to-Drink Tea by Category, 2003-2008 (dollars)

Chapter 4: Market Dynamics Retail Marketers

• A Very Full, and Continually Growing Supermarket Aisle
• Marketer or Manufacturer?
• Distribution Agreements
• Table 4-1: U.S. Retail Tea and Ready-to-Drink Tea: Select Marketers of Packaged Tea Products by Brand and Product Type, 2003

Competitive Retail Overview

• Retail Leaders �E A Very Branded Business
• Variety, Variety, Variety �E Table 4-2 U.S. Retail Sales of Tea Packaged for Future Brewing or Mixing Top Five Marketer Sales and Shares, 2002 (in millions of dollars)
• Table 4-3: U.S. Retail Sales of Tea Packaged for Future Brewing or Mixing Top Ten Brands Sales and Shares, 2002 (in millions of dollars)
• Table 4-4: U.S. Retail Sales of Tea Bags Top Three Marketer Sales and Shares, 2002 (in millions of dollars)
• Table 4-5: U.S. Retail Sales of Tea Bags Top Ten Brands Sales and Shares, 2002 (in millions of dollars)
• Table 4-6: U.S. Retail Sales of Instant Tea, Including Specialty Instant Tea Mixes Top Three Marketer Sales and Shares, 2002 (in millions of dollars)
• Table 4-7: U.S. Retail Sales of Instant Tea, Including Specialty Instant Tea Mixes Top Five Brands Sales and Shares, 2002 (in millions of dollars) �E
• Table 4-8 U.S. Retail Sales of Ready-to-Drink Packaged Tea Beverages Top Three Marketer Sales and Shares, 2002 (in millions of dollars)
• Table 4-8 U.S. Retail Sales of Ready-to-Drink Packaged Tea Beverages Top Five Brands Sales and Shares, 2002 (in millions of dollars)

Tea House Marketers

• Tea Houses, Small but Growing
• Starbucks Is Not Just Coffee

Competitive Overview of Marketers in Other Venues 

• Foodservice Accounts
• Hotel In-Room Tea Service

Competitive Overview of Niche Segments

• The Slowly Growing Organic Market
• Teas with an Ethnic Twist
• International Players

Competitive Profiles: A Minimum of Five Marketing and New Products

• Flavors, Convenience, and Consumer Demand for Quality Drive Innovation
• Some Seasonal Offerings �E Something for All Tea Consumers
• Table 4-12: U.S. Retail Tea and Ready-to-Drink Tea: Select Tea Packaged for Future Brewing or Mixing Product Introductions, 2002-2003
• Table 4-13: U.S. Retail Tea and Ready-to-Drink Tea: Select Packaged Tea Beverage Product Introductions, 2002-2003 
• Table 4-14: U.S. Tea House Tea and Ready-to-Drink Tea: Select New Product Introductions, 2002-2003

Advertising and Promotion

• Amount Spent in 2002
• Leading Spenders �E Consumer Promotions
• Event Sponsorships �E Sampling Best Promotion

Chapter 5: Distribution and Sales Channels Retail Distribution Overview

• Retail Distribution Methods
• Some Packaged Tea Beverages Are Perishable
• Direct Delivery Advantages
• Retail Cafes

Retail Sales Overview

• Traditional Supermarkets Account for Most Retail Sales
• Table 5-1: Share of U.S. Tea and Ready-to-Drink Tea Retail Sales by Outlet, 2003
• Table 5-2: U.S. Tea and Ready-to-Drink Tea: Share of Total Retail Sales of Ground Tea by Outlet, 2003
• Table 5-3: U.S. Tea and Ready-to-Drink Tea: Share of Total Retail Sales of Tea Bags by Outlet, 2003
• Table 5-4: U.S. Tea and Ready-to-Drink Tea: Share of Total Retail Sales of Instant Tea by Outlet, 2003
• Table 5-5: U.S. Tea and Ready-to-Drink Tea: Share of Total Retail Sales of Specialty Tea Mixes by Outlet, 2003
• Table 5-6: U.S. Tea and Ready-to-Drink Tea: Share of Total Retail Sales of Packaged Tea Beverages by Outlet, 2003
• Dairy Case vs. Beverage Aisle
• Table 5-7: U.S. Tea and Ready-to-Drink Tea: Suggested Retail Price of Select Tea Products Packaged for Future Brewing or Mixing
• Table 5-8: U.S. Tea and Ready-to-Drink Tea: Suggested Retail Price of Select Packaged Tea Beverage Products �E Private Label Pricing
• Table 5-9: U.S. Tea and Ready-to-Drink Tea: Private Label vs. Branded Pricing of Tea Bags 
• Table 5-10: U.S. Tea and Ready-to-Drink Tea: Private Label vs. Branded Pricing of Instant Tea
• Table 5-11: U.S. Tea and Ready-to-Drink Tea: Private Label vs. Branded Pricing of Specialty Instant Tea Mixes

Alternative Distribution Channels 

• Warehouse/Club Stores 
• Mail Order/Catalog
• Internet
• Gift Baskets

Tea House Distribution Overview

• Tea House Distribution Methods
• Other Products Sold
• Table 5-12: U.S. Tea and Ready-to-Drink Tea: Tea House Prices of Select Ready-to-Drink Products

Chapter 6: The Consumer Consumer Attitudes Consumer Use and Demographics

• Simmons Consumer Survey
• Simmons Data on Tea and Ready-to-Drink Tea

Chapter 7: Trends and Opportunities