Keywords : tea, tea production, instant tea, tea consumer, rtd tea, ready-to-drink tea, sweet tea
Tea continues to be a star in the U.S. beverage market. Bolstered by consumers’ thirst for tea’s variety of flavors and healthy qualities, tea has shown resilience in the economic downturn. The category has experienced solid growth in the last year, with double digit gains from refrigerated tea. Ready-to-drink tea in general has been especially strong, particularly in natural food stores and convenience stores. And all teas are hot in foo...
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Tea continues to be a star in the U.S. beverage market. Bolstered by consumers’ thirst for tea’s variety of flavors and healthy qualities, tea has shown resilience in the economic downturn. The category has experienced solid growth in the last year, with double digit gains from refrigerated tea. Ready-to-drink tea in general has been especially strong, particularly in natural food stores and convenience stores. And all teas are hot in foodservice. This report takes a comprehensive look at the retail market for packaged tea in the U.S., with reference to foodservice tea trends for additional perspective. The report examines the factors driving growth in the category. Readers will learn about critical merger and acquisition activity that is changing the distribution landscape for niche organic brands; the diverse range of tea offerings; teas’ functional benefits and the regulatory challenge in promoting them; the embrace of tea by fast food giants, coffeehouses, specialty retailers and tea rooms; trends in new product claims; purchasing patterns,demographics and psychographics of the tea consumer; and the new ways in which tea marketers are connecting with customers, including through social media and apps.
This report examines the U.S. market for ready-to-drink (RTD) tea, leaf (bagged and loose) tea, refrigerated tea and instant tea. The report segments and quantifies the market by channel and product type, providing historical sales figures and projections through 2016. The report examines market drivers and trends, retail sales-tracking data from SymphonyIRI and SPINSscan, new product trends based on data from Datamonitor’s Product Launch Analytics, and national consumer survey data from Experian Simmons data, as well as a proprietary consumer survey on beverage and tea trends conducted by Packaged Facts. The report thoroughly maps out the competitive situation at the marketer and brand levels, with detailed profiles of AriZona, Bigelow, Celestial Seasonings, Coca-Cola (Gold Peak, Honest Tea and Nestea), Lipton (from Unilever and the Pepsi Lipton Partnership), McDonald’s sweet tea, Nestea, Snapple, Starbuck’s Tazo, Teavana, Turkey Hill and others.
Scope of Report
Retail channels covered include supermarkets and grocery stores, convenience stores, supercenters/mass merchandisers, warehouse clubs, drugstores, gourmet/specialty food stores, supplement chains, direct-sales channels including catalogs and Internet, and alternative channels such as department stores, kitchenware stores and bookstores. Foodservice channels include restaurants, coffeehouses, tea rooms and tea retailers, cafés and bars, and other foodservice establishments.
Hot Drink Industry in the United States
Chapter 1 Executive Summary
Scope and Methodology
Scope of Report Report Methodology Varieties of Tea Market Trends Tea Grow Despite Tough Economy Tea Sales Grow in Multiple Categories, Channels Tea Is Good For You, But Be Careful How You Say That All’s Fair in the Tea Trade Merger Mania K-Cup Craze How Sweet It Is For Foodservice The Marketers The Power of Tea Concentrated Among A Few Many Big Players in Foodservice Tea Retailers Take Center Stag New Product Trends Tea Leads All Beverages in Innovation“Natural” the top Claim, but a Mainstay Drops Down the List Marketers Emphasize Functional Benefits Kombucha Creates a Stir New Products from Celebri-Teas Foodservice Chains Bet Big on Tea Consumer Trends Tea Remains a Consumer Favorite Purchasing Patterns Emerge Appendix I ABC ABC
Chapter 2 Market Trends
Retail Market Size and Composition
Retail Tea Sales Rise to $6.5 billion Table U.S. Retail Sales of Tea, 2007-2011 A Multi-Channel Champion Table Share of U.S. Retail Sales of Packaged Tea by Channel, 2011 SymphonyIRI-Tracked Sales Show Solid Growth Table IRI-Tracked Sales of Tea, Overall and By Segment, 2011 Natural Foods Channel Going Table Sales of Leaf and RTD Tea Products in Natural Supermarket Channel, 2009-2011 Medicinal Tea Leads the Leaf Tea Category Table Sales of Leaf Tea in the Natural Supermarket Channel, 2009-2011 Tea Remains One of the Beverage Industry’s Bright Spots Table Beverage Dollar Sales and Market Share by Category, 2011 Table Fastest Growing Beverage Categories, 2011 Foodservice Composition House Wine of the South Spurs Foodservice Growth “Money in a Cup” Foodservice Fast Facts Vending a Key Tea Channel Fast-Growing Tea Companies Tea Behaviors Packaged Facts Studies Confirm Variety of Tea Consumed, and Single-Serve Purchase Behavior Table Tea drinkers, by types of tea purchased, 2011 Market Dynamics FDA Cracks Down Health Studies Abound Fair Trade Shows Big Jump Tea Companies Marry and Divorce Single Cup Platforms Become New Growth Drivers for Established Brands Tea Marketers Get Creative Tea 2.0 Looking Ahead More Tea Sales on the Horizon Table Projected U.S. Retail Sales of Tea, 2011-2016 Appendix I ABC ABC
Chapter 3 The Marketers
Competitive Overview - Packaged Goods
A Handful of Marketers Dominate Table Top Marketers Of Tea at Food, Drug and Mass Merchandisers, 2010-11 Lipton Has Leaf Tea in the Bag Table Top Marketers and Brands of Bags/Loose Tea by IRI-tracked Sales and Volume, 2011 RTD marketers forge ahead Table Top Marketers and Brands of RTD Tea by IRI-tracked Sales and Volume, 2011 Instant Provides Little Gratification Table Top Marketers and Brands of Instant Tea by IRI-tracked Sales and Volume, 2011 Refrigerated Tea Makes a Case for Itself Table Top Marketers and Brands of Refrigerated Tea by IRI-tracked Sales and Volume, 2011 Competitive Overview - Foodservice Many Foodservice Tea Suppliers Competitive Overview - Tearooms and Specialty Stores A Highly Fragmented Market The Teavana IPO Table Teavana’s product mix, 2009-2011 The Marketing of Teavana Appendix I ABC ABC
Chapter 4 Brand Profiles
AriZona (AriZona Beverage Co.)
A Leader in RTD Growing and Sought After Capitalizing on a legendary golf drink Caught in an Immigration Controversy AriZona Expands its Packaging Options A Straightforward Strategy Bigelow Tea (R.C. Bigelow, Inc.) A Constant Contender Partnering with The Great One Healthy Introductions Abound Celestial Seasonings (The Hain Celestial Group) Herbal Leader Experiences Solid Growth Celestial Seasonings and K-Cups Couponing, In-store and Social Media Gold Peak (The Coca-Cola Company) Pushing for More Share New Packaging and Delivery Systems Drive Growth Lipton (Unilever and Pepsico) Despite Weak Sales, Lipton Still Dominates How Pepsi-Lipton Segments the RTD Market Brisk Takes on the Year’s Biggest Audience Partnering with Green Lantern and Stickybits New Products Make a Splash Nestea (Coca-Cola and Nestlé) Slipping Sales in RTD Nestea Emphasizes Online Red Diamond Rising Star in Refrigerated Tea Snapple (Dr. Pepper Snapple Group) A Turnaround Story The Northeast is Snapple’s Stronghold The Importance of Packaging Capitalizing on TV Tie-Ins Turkey Hill The Big Chilled Twinings By Appointment of Her Majesty Appendix I ABC ABC
Chapter 5 New Product Trends
Overview
Tea - The Place to Be [or, more plainly: Tea Product Launches Pace All Categories] Table Number of U.S. Non-Alcoholic Beverage Product Reports/SKUs, 2011 Tea Begins Rebound from Recessionary Lows Table Number of U.S. Tea Product Introductions: Reports and SKUs, 2007-2011 What’s in a Claim? Table Top Marketing Claims/Package Tags for U.S. Tea Product Introductions, 10 years vs. 1 year trend Packed Full of Flavors Table Top Flavors in U.S. Tea Product Introductions, 10 years vs. 1 year trend Same Players Introduce New Products Table Top Companies in U.S. Tea Product Introductions, 2001-2011 Table Top Companies in U.S. Tea Product Introductions, 2011 Packaged Goods Trends Functional Benefits Popular in New Tea Coca-Cola’s “Teavolution of Water” The Curious Case of Kombucha Bigelow’s Healthy Offerings Could’ve Had a V8 Tulsi Touches Down Celebrities Jump on the Tea Bandwagon My Country Tis of Tea New Product Trends in Foodservice The Big Chains Emphasize Tea Starbucks Gets Bigger Teavana Unveils New Teas for the 2010-11 Season Popeyes Gets Sweet Other New Products Debut in Foodservice Notable Products at the World Tea Expo 2011 World Tea Expo Best New Product Award Winners Appendix I ABC ABC