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Tea & RTD Tea - US - July 2015

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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