The rise in tea’s popularity in the U.S. has opened the
market for manufacturers to emphasize the natural taste of tea, range of tea
types, and various preparation options. Through education, manufacturers have
the potential to elevate tea to the level of other premium beverages, such as
coffee, that are respected for their growing region, production method, and
preparation types.
To
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Table
of Content
Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Overview
The market
Healthy reputation scheduled to
boost tea and RTD tea sales through 2018
Figure 1: Total U.S. sales and fan
chart forecast of tea and RTD tea, at current prices, 2008-18
Growing tea segments not rising
enough to challenge canned/bottled RTD tea’s lead
Figure 2: Total U.S. sales and
forecast of tea and RTD tea, by segment, 2008-18
Market factors
Highly sweetened RTD teas face
scrutiny from New York City health ads
Tea is embraced by families, so
decline in households with children not good news
Yet the tea and RTD tea category
could gain from multicultural population growth
Retail channels
RTD tea leads in convenience stores,
remaining segments sell well across channels
Key players
PepsiCo, Coca-Cola increase
competition in tea category with push on RTD teas
The consumer
Ready-to-drink teas appeal to
younger consumers, ready-to-brew skews older
Figure 3: Purchase of tea, by types,
by gender and age, March 2013
Afternoon most apt to be tea time
for RTD, instant tea mixes
Figure 4: Personal consumption of
tea by tea type and time of day, March 2013
Health a driver of tea purchases,
especially compared to coffee or soft drinks
Figure 5: Attitudes and behaviors
toward health and tea (any agree), by age, March 2013
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