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The U.S. Market for Tea and Ready-to-Drink Teas, 2nd Edition

  • Executive Summary
    • Scope and Methodology
      • Tea Sales Projected to Reach $6.8 Billion in 2005
        • Table U.S. Retail Sales of Tea and Ready-to-Drink Tea By Category, 2001-2005 (in million $)
      • Tea Sales Projected to Reach $10 Billion in 2010
        • Table Projected U.S. Retail Sales of Tea and Ready-to-Drink Tea, 2005-2010
      • RTD Is Leading Category in Tea Market
      • Positive Growth Trends for Tea in F/D/M Channel
        • Table IRI-Tracked Sales of Tea Market Segments in Dollars, 52 Weeks Ending April 17, 2005,
      • Lipton Leads in F/D/M Loose/Bagged Tea, But Brand Sales Are Stagnant
        • Table IRI-Tracked Sales of Bagged and Loose Tea: Top 12 Sellers, 52 Weeks Ending April 17, 2005,
      • RTD AriZona Brand Has Strongest Growth in F/D/M Channels
        • Table IRI-Tracked Sales of Ready-to-Drink Tea: Top 5 Sellers, 52 Weeks Ending April 17, 2005,
      • Refrigerated Tea A Small Percentage of Market, But Growing Fast
        • Table IRI-Tracked Sales of Refrigerated Tea: Top 5 Sellers, 52 Weeks Ending April 17, 2005,
      • Instant Tea Mix Category Declines Overall, With Strong Brand Growth
        • Table IRI-Tracked Sales of Instant Tea Mix: Top 5 Sellers, 52 Weeks Ending April 17, 2005,
      • Celestial Seasonings Leads in Herbal and Specialty Teas
      • Specialty and Herbal Teas Account for 35% Of Loose/Bagged Segment
      • Types of Tea
    • The Tea Consumer
      • Age Plays Role for Ready-to-Drink Teas
        • Table Demographic Characteristics Favoring Purchase of RTD Iced Tea Drinks, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Instant Iced Tea Mixes, 2004 (U.S. Adults)
      • 78 Percent of Consumers Use Loose/Bagged Tea
      • Loose/Bagged Tea General Usage Balanced Among Categories
    • Market Dynamics
      • Market Driver: Health Benefits of Tea
      • Questions Remain About Benefits, Usage
      • Boomers Driving Specialty Tea Segment
      • Tea Has Less Caffeine Than Coffee
      • Low-Carb Trend Overtaken By Sugar-Free
      • Tea as Global Commodity: Organic and Fair Trade Claims
      • Tea Packaging and Positioning: Luxury or Convenience
      • Blends, Green Tea Are Most Used Flavors in New Tea Drinks
        • Table Most Used Flavors In New Tea Drinks, January 2004 – December 2004
      • Market Dynamics: Advertising, Marketing and Promotions
        • Table Advertising Dollars and Media Used By Select Tea Brands, 2004
    • The Marketers
      • Multinationals Dominate Tea Industry
      • Recent Merger/Acquisition and Licensing Activity
      • Coke to Acquire Arizona?
    • Distribution and Sales Channels
      • Loose/Bagged Tea and Tea Mixes Sold Primarily in Supermarket Channel
      • Convenience Stores Lead With Estimated 41% of Retail Tea Sales
      • RTD Teas By Retail Outlet: Convenience Stores Lead
      • Private Label Teas in Supermarket Channel
        • Table IRI-Tracked Private Label Tea Sales, 52 Weeks Ending April 17, 2005
    • Trends, Opportunities and Obstacles
      • Consumer Education, Lifestyle Changes Accelerate Tea Acceptance
      • Obstacles to Growth
  • Size and Growth of Market
    • Tea Sales Projected to Reach $6.8 Billion in 2005
      • Table U.S. Retail Sales of Tea and Ready-to-Drink Tea By Category, 2001-2005 (in million $)
      • Tea Sales Projected to Reach $10 Billion in 2010
        • Table Projected U.S. Retail Sales of Tea and Ready-to-Drink Tea, 2005-2010
      • RTD Is Leading Category in Tea Market
      • Positive Growth Trends for Tea in F/D/M Channel
        • Table IRI-Tracked Sales of Tea Market Segments. 52-Weeks Ending April 17, 2005 (in $)
        • Table IRI-Tracked Sales of Tea Market Segments in Dollars, Calendar Year 2004,
      • Lipton Leads in F/D/M Loose/Bagged Tea, But Brand Sales Are Stagnant
        • Table IRI-Tracked Sales of Bagged and Loose Tea: Top 12 Sellers, 52 Weeks Ending April 17, 2005,
      • RTD AriZona Brand Has Strongest Growth in F/D/M Channels
        • Table IRI-Tracked Sales of Ready-to-Drink Tea: Top 5 Sellers 52 Weeks Ending April 17, 2005,
      • Refrigerated Tea A Small Percentage of Market, But Growing Fast
        • Table IRI-Tracked Sales of Refrigerated Tea: Top 5 Sellers, 52 Weeks Ending April 17, 2005,
      • Instant Tea Mix Category Declines Overall, With Strong Brand Growth
        • Table IRI-Tracked Sales of Instant Tea Mix: Top 5 Sellers, 52 Weeks Ending April 17, 2005,
      • Celestial Seasonings Leads in Herbal and Specialty Teas
      • Specialty and Herbal Teas Account for 35% Of Loose/Bagged Segment
      • Organic As Much As Ten Percent of Loose/Bagged Tea Sales
      • Consumer Education, Lifestyle Shifts Accelerate Growth
      • Obstacles to Growth
  • Products
    • Types of Tea
      • True Teas and Tisanes
      • Black Tea
      • Green Tea
      • White Tea
      • Oolong Tea
      • Tea Grading and Quality
      • Rooibos (Red or Redbush) Tea
      • Herbal Teas (Tisanes) and Medicinal Teas
      • Chai
      • Yerba Maté
    • Tea Packaging and New Products
      • Loose Leaf Tea
      • New Products In Loose Leaf Tea
      • Bagged Tea
        • Table New Products: Teas and Tisanes - Loose or Bagged (401 SKUs)
      • Ready to Drink Teas and Tea Beverages
        • Table New Products: Teas and Tea Beverages - Ready to Drink (196 SKUs)
      • Tea Mixes and Concentrates
        • Table New Products: Tea Mixes and Concentrates (96 SKUs)
  • The Tea Consumer
    • Categories of Tea Included in Simmons Data
    • Ready-to-Drink Iced Tea Drink Users
      • Gender and Use of RTD Iced Tea Drinks
        • Table RTD Iced Tea Drinks, Brand Preference - Women
        • Table RTD Iced Tea Drinks, Brand Preference - Men
      • Age and Use of RTD Iced Tea Drinks
      • Ethnicity and Use of RTD Iced Tea Drinks
      • Education and Use of RTD Iced Tea Drinks
      • Household Income and Use of RTD Iced Tea Drinks
      • Family Size and Use of RTD Iced Tea Drinks
      • Geographic Region and Use of RTD Iced Tea Drinks
        • Table Geographic Regions and RTD Iced Tea Drink Brand Preferences
      • Overview of Demographics of RTD Iced Tea Drinks Consumer
        • Table Demographic Characteristics Favoring Purchase of RTD Iced Tea Drinks, 2004 (U.S. Adults)
      • User Profiles of Selected Brands of RTD Iced Tea Drinks
        • Table Demographic Characteristics Favoring Purchase of AriZona RTD Iced Tea Drinks, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Lipton RTD Iced Tea Drinks, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Nestea RTD Iced Tea Drinks, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Snapple RTD Iced Tea Drinks, 2004 (U.S. Adults)
    • Instant Iced Tea Mix Users
      • 31 Percent Use Instant Iced Tea Mixes
      • Age and Gender in Use of Instant Iced Tea Mixes
      • Ethnicity and Use of Instant Iced Tea Mixes
      • Education and Use of Instant Iced Tea Mixes
      • Household Income and Use of Instant Iced Tea Mixes
      • Marital Status and Makeup of Household and Use of Instant Iced Tea Mixes
      • Regional Differences in Use of Instant Iced Tea Mixes
        • Table Demographic Characteristics Favoring Purchase of Instant Iced Tea Mixes
      • Use of Sweetened, Sweetened Sugar-Free, and Unsweetened Instant Iced Tea Mixes
      • User Profiles of Selected Brands of Instant Iced Tea Mix
        • Table Demographic Characteristics Favoring Purchase of Country Time Instant Iced Tea Mix
        • Table Demographic Characteristics Favoring Purchase of Crystal Light Instant Iced Tea Mix, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Lipton Instant Iced Tea Mix, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Nestea Instant Iced Tea Mix, 2004 (U.S. Adults)
      • Number of Glasses of Instant Iced Tea Mix Used in Average Day
    • Loose or Bagged Tea Users
      • 78 Percent of Consumers Use Loose/Bagged Tea
      • Loose/Bagged Tea General Usage Balanced Among Categories
      • Education, Income Affect Likelihood To Make Hot Tea vs. Iced Tea
      • Bags Win Over Loose Tea
      • Profile of Fruit or Spice Flavored Tea User
        • Table Demographic Characteristics Favoring Purchase of Fruit or Spice Flavored Tea, 2004 (U.S. Adults)
      • Profile of Herbal Tea User
        • Table Demographic Characteristics Favoring Purchase of Herbal Tea, 2004 (U.S. Adults)
      • User Profiles for Top Brands of Bagged/Loose Tea
        • Table Demographic Characteristics Favoring Purchase of R.C. Bigelow Tea, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Celestial Seasonings Tea, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Lipton Tea, 2004 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase of Twinings Tea, 2004 (U.S. Adults)
        • Table 4.20 Demographic Characteristics Favoring Purchase of "Other Brands" of Tea, 2004 (U.S. Adults)
    • The Organic Consumer
      • Education Levels Higher for Organic Shoppers
      • As Market Grows, Consumer Profile Changes
      • Ethnic Diversity Among Organic Shoppers
      • Cultural Creative Mindset More Telling Than Demographics
      • Parenthood, Health Turning Points Are Still Gateways
      • Frequency of Use Increasing
      • Demographics of Organic Users and Non-Users
        • Table Demographics of Organic Users and Non-Users
  • Market Overview and Dynamics
    • Market Driver: Health Benefits of Tea
      • More Research Likely on Green Tea and Health
      • Questions Remain About Benefits, Usage
      • Green Tea and Weight Loss
      • Green Tea and Cancer
      • Tea and Other Health Benefits
      • Health Benefits Touted for Rooibos (Red) Herbal Tea
      • Health is Prime Development Focus for Beverages
    • Market Driver: Aging Baby Boomers Seek Wellness
      • Boomers Driving Specialty Tea Segment
      • Tea May Be Ultimate "Functional Beverage"
      • Tea Appearing In Countless Products
      • Tea in Natural and Upscale Cosmetic Products
      • Market Driver: Tea As Alternative to Coffee, Soda
      • Tea Has Less Caffeine Than Coffee
      • Yerba Maté Stimulates-Is It Caffeine or Mateine?
        • Table Caffeine Content of Common Beverages (approximate)
        • Table Antioxidant and Caffeine Rankings for Types of Tea
    • Market Driver: More Sugar-Free, Low-Carb Options
      • Low-Carb Trend Overtaken By Sugar-Free
      • Tea Drinks Offer Both Low-Carb and Sugar Free/Diet
    • Market Driver: Organic and Fair Trade Claims
      • Tea as Global Commodity
      • Organic a $15.4 Billion Market in 2004
      • Organic Beverages Forecast for 18.8 Growth 2004-2008
      • What Does Organic Mean?
      • Organic Tea Cultivation in India
      • Pesticides and Tea
      • Many Tea Brands Offer Some Organic Choices; Some Brands All Organic
      • Organic Ready-to-Drink Tea Beverages
      • Organic Loose and Bagged Tea
      • Organic Chai and Yerba Mate
      • What Does Fair Trade Mean?
      • Certification Not Required
      • Fair Trade Tea
      • Many Consumers Unfamiliar With Fair Trade Label
        • Table Ranking of Standards Criteria For Food Products
    • Market Dynamics: Packaging and Flavor Trends
      • Tea Packaging and Positioning: Luxury or Convenience
      • Innovations for Convenience: Ito En Makes Hot/Cold RTD Tea
      • Spoonty Creates Tea and Spoon in One
      • Unilever Markets On-The-Go Tea for UK Foodservice
      • Honest Tea Packages Organics in PET
      • Whole Leaf Tea Bags Claim Artisan Status
      • Teaosophy Uses Tea Pyramids
      • Tea for the Yoga Mom
      • Blends, Green Tea Are Most Used Flavors in New Tea Drinks
        • Table Most Used Flavors In New Tea Drinks, January 2004 – December 2004
      • Sweet Leaf Tea Introduces Southern-Style RTD Tea
      • Real Simple Magazine Taste-Tests RTD Teas
      • Market Dynamics: Advertising, Marketing and Promotions
        • Table Advertising Dollars and Media Used By Select Tea Brands, 2004
      • Snapple Spends Media Dollars On Fruit Drinks
      • Twinings of London Promotes "Spa Lifestyle"
      • Lipton Leaves J. Walter Thompson for DDB
  • The Marketers
    • Recent Merger/Acquisition and Licensing Activity
      • Kerry Group Acquires Oregon Chai
      • Tazo Tea and Kraft Foods Form Licensing Agreement
      • Coke to Acquire Arizona?
    • Marketer Profiles
      • Republic of Tea
    • Honest Tea
    • Adagio Teas
    • Lipton Tea
    • Celestial Seasonings
      • Key Brand in Hain Celestial Group Portfolio
      • Celestial Second Largest in U.S. Loose/Bagged Tea Sales
      • New Products Respond to Competitive Market
    • Traditional Medicinals
    • Arizona Beverages
    • South Beach Beverage Company (SoBe brand)
    • Tazo Tea
    • Numi
    • Oregon Chai
    • Third Street Chai
    • Pixie Maté
    • Snapple
    • Davidson's
    • R.C. Bigelow
    • Twinings of London
    • Nestea
    • Salada and Red Rose Tea
    • Tetley Tea
  • Distribution and Sales Channels
    • Tea Sales in Retail Channels
      • Supermarkets Are Top Sellers of Loose/Bagged Tea
      • Americans Prefer Tea Bags
      • Tea Trends May Help Develop Supermarket Presence and Sales
      • Private Label Teas Do Well In Supermarkets
        • Table IRI-Tracked Private Label Tea Sales, 52 Weeks Ending April 17, 2005
      • Natural Products Retailers Are Specialty Tea Pros
      • Whole Foods Market Sells Specialty, Bulk Teas
      • Trader Joe's Offers Private Label Tea
      • Natural Products Channel Now More Challenging for New Companies
      • Natural Products Split Between Naturals and Mainstream Markets
      • Specialty/Gourmet Stores Focus on High-End Teas
      • Convenience Stores Primary Sellers of RTD Tea
      • Club Stores, Warehouse Stores and Supercenters
    • The Teahouse Trend
      • Not Your Mother's Coffeehouse
      • Teavana Announces Expansion Plans
      • Steady Growth In Existing Tea House Locations
      • Diverse Enough to Compete?
      • Tea Association Offers Tea Education and Certification
    • Tea and Foodservice
      • Tea Service In Hotels and Restaurants
      • Iced, Hot and RTD Tea in Foodservice
      • Tea and the Spa Market
    • Other Distribution Channels
      • Vending Machine Sales of RTD Tea More than $1.25 Billion
      • Tea Sales on the Web
      • Gift Baskets and Gift Sets
      • Percentage of Tea Sales by Retail Outlet
      • RTD Teas By Retail Outlet: Convenience Stores Lead
      • Loose/Bagged Tea and Tea Mixes Sold Primarily in Supermarket Channel
  • Trends and Opportunities
  • Web Directory of Tea Manufacturers and Marketers

After many years as a stepchild to the specialty coffee market, tea is taking off in the United States. The trend is fueled by good news about the health benefits of drinking tea, by new products and appealing packaging, by an interest in alternatives to coffee or soda, and by lifestyles that embrace both the luxury/ritual aspect of tea and the convenience of new bottled and ready-to-drink teas.

Packaged Facts’ new report, The U.S. Market for Tea and Ready-to-Drink Tea, 2nd Edition, explores tea’s new prominence and the impact on the market and the consumer psyche.

As the market grows, it’s also becoming much more segmented and competitive. Where black tea was once the predominant choice available on supermarket shelves, there are now many varieties, each with particular health and flavor aspects. These include green tea, white tea, red tea, herbal tea, medicinal tea, chai, yerba mate, and blends of all the above. Tea drinkers can now truly be tea connoisseurs, using different teas for different occasions, just as with wine or specialty coffees. Many small companies are serving this market, setting up the possibility of future merger and consolidation activity.

The growing popularity of tea is reflected in the foodservice arena, where tea houses are luring former coffeehouse customers with a calmer, more serene ambience. Because tea is a global and agricultural commodity, there’s also interest in organic tea production and labels such as “fair trade” that ensure a socially responsible purchasing system.

Report Methodology
The information in The U.S. Market for Tea and Ready-to-Drink Tea is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the beverage market and consultants to the industry. Market size data was derived from Information Resources, Inc. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd. Consumer information was derived from Simmons Market Research Bureau, fall 2004 National Consumer Survey.

About the Author
Elaine Lipson is a writer, editor and communications consultant who has specialized in consumer education about organic foods. She is the author of The Organic Foods Sourcebook (McGraw-Hill, 2001), a consumer guide to the meaning and benefits of organics. Her articles have appeared in Delicious Living, Natural Foods Merchandiser, TheOrganicReport.com, Organic Valley’s Rootstock, and other publications. Elaine has written a monthly column on sustainable eating for the Boulder Daily Camera, and writes a quarterly column on organics for Natural Grocery Buyer. She has also written and consulted on educational and marketing communications for some of the natural products industry’s most successful companies and organizations. Elaine was formerly a senior editor for the Natural Business LOHAS Journal and public relations specialist for Alfalfa’s Markets, Inc. Elaine’s most recent report for Packaged Facts was the October 2004 edition of The U.S. Market for Organic Foods and Beverages.

What You’ll Get in this Report
The U.S. Market for Tea and Ready-to-Drink Tea makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Tea and Ready-to-Drink Tea offers. The report addresses the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Marketers (including discussions of specific marketer brand and market shares)
  • Competitive Profiles (of the mainstream marketers, specialists and up-and-coming niche players, and analyses of the products they market)
  • Retail and Foodservice Strategies
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report
If your company is already competing in the food/beverage industry, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for tea and ready-to-drink tea, as well as projected sales and trends through 2009. Contributing to that understanding will be a complete analysis of sales data, and a detailed discussion of the consumer for tea based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for tea and ready-to-drink tea.
  • Research and development professionals stay on top of competitor initiatives and explore demand for tea products.
  • Advertising agencies working with clients in the food/beverage industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


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