Tea & RTD Tea - US - July 2015
"The tea and RTD (ready-to-drink) tea category has experienced stellar growth in recent years, the result of growing interest in health and wellness and greater availability in both bagged/loose leaf and RTD teas."
Elizabeth Sisel, Beverage Analyst
This report covers the following areas:
Fragmented market challenges brand loyalty
Future for single-cup teas?
Coffee still holds upper hand
- OVERVIEW
- What you need to know
- Definition
- EXECUTIVE SUMMARY
- Tea category continues upward
- Figure 1: Total US sales and fan chart forecast of market, at current prices, 2010-20
- The issues
- Figure 2: MULO sales of tea, by leading companies, rolling 52 weeks ending April 2015
- Figure 3: Total US retail sales and forecast of single-cup tea, at current prices, 2010-20
- Figure 4: Beverage Tracker, by coffee and tea, March 2015
- The opportunities
- Figure 5: Usage – Any consumption, April 2015
- Figure 6: Ideal ready-to-drink tea creation, April 2015
- Figure 7: Ideal RTD tea categorization - Characteristics, April 2015
- What it means
- THE MARKET
- What you need to know
- Tea continues upward trajectory
- RTD segments lead in sales and growth; single-cup struggles
- Tea prices, health drive growth
- Market size and forecast
- Tea continues upward trajectory
- Figure 8: Total US sales and fan chart forecast of market, at current prices, 2009-19
- Figure 9: Total US sales and forecast of tea and RTD tea, at current prices, 2010-20
- Figure 10: Total US sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2010-20
- Market breakdown
- RTD teas lead segment sales, growth; single-cup struggles
- Figure 11: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2010-20
- RTD tea growth stays consistent through 2020
- Figure 12: Total US retail sales and forecast of tea and RTD tea, by canned/bottles tea and refrigerated tea, at current prices, 2010-20
- Bagged/loose leaf, single-cup tea growth flat through 2020
- Figure 13: Total US retail sales and forecast of tea and RTD tea, by bagged/loose leaf tea and single-cup tea, at current prices, 2010-20
- Retail channels experience double-digit sales growth
- Figure 14: Total US retail sales of tea and RTD tea, by channel, at current prices, 2013 and 2015
- Natural channel sales grow 23.6% from 2013-15
- Figure 15: Natural supermarket sales of tea and RTD tea, at current prices, April 2013-15
- Segments see sales growth at natural channels
- Figure 16: Natural supermarket sales of tea and RTD tea, by form, rolling 52 weeks ending April 2013 and April 2015
- Market factors
- US increasing imports of tea
- Figure 17: US worldwide imports of tea and mate, trending 1999-2014
- Households with families’ income increasing
- Figure 18: Median household income, in inflation-adjusted dollars, 2003-13
- Households with children decline
- Figure 19: Households, by presence of own children, 2003-13
- Overweight/obesity trends remain an issue
- Figure 20: National percent of adults aged 18+ who are obese or overweight, 2011-13
- Figure 21: National percent of students in grades 9-12 who are obese or overweight, 2001-13
- KEY PLAYERS
- What You need to know
- Leading companies see MULO sales growth
- Private label, other brand, refrigerated teas see success
- Single-cup struggles
- Manufacturer sales of tea and rtd tea
- Leading companies see MULO sales growth
- Figure 22: MULO sales of tea, by leading companies, rolling 52 weeks ending April 2015
- Figure 23: MULO sales of tea, by leading companies, rolling 52 weeks 2014 and 2015
- What’s working?
- Private label, other brands experience MULO sales gains
- Figure 24: MULO sales – Other brands and private label, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Premium, refrigerated teas sees stellar growth
- Figure 25: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Health, foodservice benefits leading bagged teas
- Figure 26: MULO sales of bagged and loose leaf tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Who’s struggling?
- Single-serve cups
- Figure 27: MULO sales of single cup tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- What’s next?
- Cold-brew
- Sparkling tea
- Unique brews
- New blends
- THE CONSUMER
- What you need to know
- Majority of consumers drink tea
- Idea RTD tea creation
- Ideal teas are healthy and relaxing
- Total tea consumption
- Majority of consumers drink tea
- Figure 28: Usage – Any consumption, April 2015
- Figure 29: Teen RTD tea consumption, trended 2010-14
- Bagged tea most popular with adults
- Figure 30: Usage – Any adult consumption, April 2015
- One tea type for the whole family
- Figure 31: Usage – Any teen/child consumption, April 2015
- RTD tea
- Millennials drinking tea most
- Figure 32: Usage – Personal consumption, by any ready-to-drink tea, by generations, April 2015
- Figure 33: Usage – Personal consumption, by ready-to-drink tea type, by generations, April 2015
- Opportunities with health-focused Gen Xers and Baby Boomers
- Figure 34: Usage – Personal consumption, by ready-to-drink tea type, by generations, April 2015
- Parents heavy tea drinkers
- Figure 35: Usage, by any ready-to-drink tea, by parental status, April 2015
- Figure 36: Usage – Personal consumption, by ready-to-drink tea type, April 2015
- Figure 37: Usage, by any ready-to-drink tea, April 2015
- Bagged/loose leaf tea
- Women heavy bagged tea users, men dominate loose leaf and powdered
- Figure 38: Usage – Personal consumption, by bagged/loose leaf tea type, by gender and age, April 2015
- Higher income levels support all tea consumption
- Figure 39: Usage – Personal consumption, by any bagged/loose leaf tea, by household income, April 2015
- Fathers drink more tea
- Figure 40: Usage – Personal consumption, by bagged/loose leaf tea type, by parental status, April 2015
- Consumers’ ideal RTD tea
- Perceived ideal RTD tea is natural, healthy, uncarbonated, with vitamins
- Figure 41: Ideal ready-to-drink tea creation, April 2015
- Single-serve RTD tea most created
- Figure 42: Ideal ready-to-drink tea creation – Container type, April 2015
- Lightly sweetened is ideal
- Figure 43: Ideal ready-to-drink tea creation – Sweetness level, by generation, April 2015
- Millennials open to textured RTD tea
- Figure 44: Ideal ready-to-drink tea creation – Texture, by generation, April 2015
- Citrus, unflavored teas most popular ideal RTD tea flavors
- Figure 45: Ideal ready-to-drink tea creation – Flavor, April 2015
- Figure 46: Top RTD tea flavors, 2010-14
- Vitamins preferred in ideal RTD tea
- Figure 47: Ideal ready-to-drink tea creation – Function/attributes, by generations, April 2015
- Majority wants ideal RTD tea with natural claims
- Figure 48: Ideal ready-to-drink tea creation – Ingredient/nutritional claims, by generation, April 2015
- Figure 49: Ideal ready-to-drink tea creation – Ingredient/nutritional claims, by generation, April 2015
- Ideal tea categorization and usage
- Ideal teas described as healthy, hydrating, relaxing
- Figure 50: Ideal RTD tea categorization – Characteristics, April 2015
- Ideal RTD tea consumed with meals, on-the-go
- Figure 51: Ideal RTD tea categorization – Usage, April 2015
- Distinct differences between ideal tea as snack or exercise beverage
- Figure 52: Correspondence analysis – Ideal RTD tea categorization, April 2015
- Optimal target for an ideal “relaxing” RTD tea
- Figure 53: Ideal RTD tea characteristics – CHAID – Tree output, April 2015
- Purchase location
- Supermarkets primary purchase channel
- Figure 54: RTD tea purchase location, by generation, April 2015
- Figure 55: RTD tea purchase location, by parental status, April 2015
- APPENDIX
- Data sources and abbreviations
- Data sources
- Fan chart forecast
- Abbreviations and terms
- Market
- Figure 56: Total US sales and forecast of canned/bottled tea, at current prices, 2010-20
- Figure 57: Total US sales and forecast of canned/bottled tea, at inflation-adjusted prices, 2010-20
- Figure 58: Total US sales and forecast of refrigerated tea, at current prices, 2010-20
- Figure 59: Total US sales and forecast of refrigerated tea, at inflation-adjusted prices, 2010-20
- Figure 60: Total US sales and forecast of bagged/loose leaf tea, at current prices, 2010-20
- Figure 61: Total US sales and forecast of bagged/loose leaf tea, at inflation-adjusted prices, 2010-20
- Figure 62: Total US sales and forecast of single-cup tea, at current prices, 2010-20
- Figure 63: Total US sales and forecast of single-cup tea, at inflation-adjusted prices, 2010-20
- Figure 64: Total US retail sales of tea and RTD tea, by channel, at current prices, 2010-15
- Figure 65: Natural supermarket sales of tea and RTD tea, by organic content, rolling 52 weeks ending April 2013 and April 2015
- Figure 66: Natural supermarket sales of tea and RTD tea, by fair trade labeling/certification, rolling 52 weeks ending April 2013 and April 2015.. 62
- Figure 67: Natural supermarket sales of bag/loose tea, by type, rolling 52 weeks ending April 2013 and April 2015
- Key players
- Figure 68: MULO sales of canned and bottled tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 69: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 70: MULO sales of bagged and loose leaf tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 71: MULO sales of single cup tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Correspondence analysis
- Methodology
- Figure 72: Ideal RTD tea categorization, April 2015
- CHAID analysis
- Methodology
- Figure 73: Ideal RTD characteristics – CHAID – Table output, April 2015
- RESEARCH METHODOLOGY
- US Research Methodology
- Consumer research
- Social Media Research
- Trade research
- Statistical Forecasting
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