Tea is a $1.7 billion category that is currently in a growth phase, one that Mintel expects to continue indefinitely. The main drivers spurring an increase in sales are convenience, health factors, and exotic flavors and innovation. Consumers simply are more pressed for time, an issue that has been in play for several years and is only getting worse, as employers are demanding more productivity from their workers and a shaky economy still leaves Americans fearing for their jobs. Thus, any products that fill a need for convenience and speed will gain a foothold in the typical American lifestyle, as tea has, and particularly RTD teas sold in single-serve containers.
However, the desire for convenience would not in and of itself have led to a resurgence of the tea market without the accompanying positive press that tea has received in recent years. Studies continue to show that tea has even more beneficial properties than previously reported, with health benefits ranging from lower cholesterol levels to improved arterial health and a decreasing chance of cancer. For aging Baby Boomers who are increasingly obsessed with their health, tea is a palatable option.
In that respect, manufacturers have stepped up to the plate by offering consumers a vast range of choices in their tea beverages. Not only are RTD teas available in numerous formulas and flavors, but bag/loose tea has delved into the realm of higher quality. Tea has also become the hip and trendy new beverage, a "must-have" for any kitchen. With something for everybody, the tea category is estimated to grow even faster in 2005, as more consumers flock to this category, which is far from saturated.
This report covers the retail market for tea purchased for at-home consumption. It includes teas pre-packaged in tea bags, loose-leaf varieties, bottled or canned RTD (ready-to-drink) tea, and refrigerated tea. By type, this report covers black, green, and herbal teas.
Since this report focuses on tea purchased for at-home consumption, it covers only tea sold through food stores, mass merchandisers, and drug stores. Tea sold through other types of outlets, such as restaurants, cafes, specialty shops (such as Starbucks), foodservice, convenience stores, and vending machines is generally for consumption away from home, is not covered in this report.
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