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Tea and RTD Tea - US - July 2014

Published By :

Mintel

Published Date : Jul 2014

Category :

Beverages

No. of Pages : 139 Pages

The healthfulness of tea has been heavily pushed through media and marketing. However, consumers’ focus may be switching away from health, which they have most likely come to expect from the category, and are now looking for flavor and product innovation to keep them interested.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

Executive Summary

The market
Figure 1: Total US sales and fan chart forecast of tea and RTD tea, at current prices, 2009-19
Segment performance
Figure 2: Total US retail sales and forecast of tea and RTD segmentation, at current prices, 2009-19
Key players
Figure 3: MULO sales of tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Millennials top consumers of RTD tea offerings
Figure 4: Drinking habits for tea – Any consumption, by generations, May 2014
Figure 5: Drinking habits for tea – Any consumption, by generations, May 2014
RTD teas losing appeal as a beverage replacement for CSDs, juice
Figure 6: Attitudes toward tea, May 2014
Millennials seek tea innovation
Figure 7: Attitudes and behaviors toward tea, any agreement, by generation, May 2014
Figure 8: Attitudes and behaviors toward tea, by generation, May 2014
What we think

Issues and Insights

Is tea losing its health appeal?
Issues
Insight: Focus on flavor and product innovation, in addition to health and wellness
Do consumers prefer other beverages to tea and RTD tea?
Issues
Insight: Attributes from other categories can increase appeal
Is tea considered an everyday beverage?
Insight: New ideas and forms will encourage usage for more occasions

Trend Applications

Trend: Mood to Order
Trend: Factory Fear
Trend: Extend My Brand

Market Size and Forecast

Key points
Steady growth forecast for tea market
Sales and forecast of tea and RTD tea
Figure 9: Total US sales and forecast of tea and RTD tea, at current prices, 2009-19
Figure 10: Total US sales and forecast of market, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 11: Total US sales and fan chart forecast of tea and RTD tea, at current prices, 2009-19

Market Drivers

Key points
Media focus on health supports tea category
Households with children on decline, could affect tea market
Figure 12: Drinking habits for tea – More, by presence of children in household, May 2014
Figure 13: US households, by presence of own children, 2003-13
Multicultural interest assists category growth
Figure 14: Drinking habits for tea – Any consumption, by race and Hispanic origin, May 2014

Competitive Context

Competition with other beverages
Figure 15: Frequency of non-alcoholic beverage consumption – Any consumption, November 2013
Specialty tea shops, tea houses draw attention away from at-home usage

Segment Performance

Key points
Bagged/loose/single-cup and refrigerated RTD tea see strong sales growth
Sales of market, by segment
Figure 16: Total US retail sales of tea and RTD teas, at current prices, 2012 and 2014
Canned/bottled tea segment sees steady growth at current prices
Sales and forecast of canned/bottled tea
Figure 17: Total US retail sales and forecast of canned/bottled tea, at current prices, 2009-19
Bagged, loose leaf, single-cup tea segment sales increases through 2019
Sales and forecast bagged, loose, single-cup tea
Figure 18: Total US retail sales and forecast of bagged, loose, single-cup tea, at current prices, 2009-19
Refrigerated RTD tea sees 6.1% sales growth in estimated 2014
Sales and forecast of refrigerated RTD tea
Figure 19: Total US retail sales and forecast of refrigerated RTD tea, at current prices, 2009-19
Instant tea segment continues to suffer
Sales and forecast of instant tea
Figure 20: Total US retail sales and forecast of Instant tea, at current prices, 2009-19

Retail Channels

Key points
Supermarkets, other retail channels grow in sales from 2012-14
Market sales, by channel
Figure 21: Total US retail sales of tea and RTD teas, by channel, at current prices, 2012-14
Figure 22: Total US retail sales of tea and RTD teas, by channel, at current prices, 2009-14
Natural channel retail sales
Figure 23: Natural supermarket sales of tea and RTD tea, at current prices, 2011-13*
Figure 24: Natural supermarket sales of tea and RTD tea, by organic content, 2011 and 2013*
Figure 25: Natural supermarket sales of RTD tea, by type of sweetener, 2011 and 2013*
Figure 26: Natural supermarket sales of tea and RTD tea, by organic content, 2011 and 2013*

Leading Companies

Key points
Pepsi Lipton Tea Partnership grows category slightly
Manufacturer sales of tea at retail
Figure 27: MULO sales of tea at retail, by leading companies, rolling 52-weeks 2013 and 2014

Brand Share – Canned and Bottled Tea

Key points
The Pepsi Lipton Tea Partnership leads growth
Figure 28: Lipton Carl and Stu, Promotional Photo, May 2014
Figure 29: Real Is Good, Promotional Photo, July 2014
Figure 30: Flavor Charged Iced Tea, Facebook Photo, May 2014
Manufacturer sales of market
Figure 31: MULO sales canned and bottled tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Overall households buying tea declines slightly as volume buying grows
Figure 32: Key purchase measures for the top canned and bottled tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)

Brand Share – Ready-to-Drink Refrigerated Tea

Key points
Milo’s, GT’s Kombucha make gains while Coca-Cola expands lead in the segment
Figure 33: New Milo’s, Promotional photo, April 2014
Figure 34: A Message from GT, Mission Statement, June 2014
Manufacturer sales of segment
Figure 35: MULO sales of ready-to-drink refrigerated tea at retail, by leading companies, rolling 52-weeks 2013 and 2014

Brand Share – Bagged, Loose, Single-cup Tea

Key points
Keurig sees largest growth in bagged, loose, and single-cup tea segment
Figure 36: How To #BeMoreTea with Lipton & The Muppets!, Commercial, February 2014
Manufacturer sales of segment
Figure 37: MULO sales bagged and loose leaf tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Key measures remain constant in bagged, loose, and single-serve tea
Figure 38: Key purchase measures for the top bagged. loose tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)

Brand Share – Instant Tea

Key points
Tazo’s flavor varieties increase sales in an otherwise shrinking segment
Figure 39: Carli’s #TinyWin, Pinterest Photo, February 2014
Manufacturer sales of segment
Figure 40: MULO sales instant tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Volume buying and household penetration decline in the shrinking segment
Figure 41: Key purchase measures for instant tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)

Innovations and Innovators

Indulgent and spicy flavors
New packaging to draw interest
Single-cup tea
Tea for kids

Consumer Drinking Habits

Key points
Tea consumption high, men and women 18-34 drinking the most variety
Figure 42: Drinking habits for tea – Any consumption, by gender and age, May 2014
Figure 43: Household volume use of tea in bags or packages, by age, January 2013-March 2014
Households with children drive tea consumption
Figure 44: Drinking habits for tea – Any consumption, by presence of children in household, May 2014
Figure 45: Household volume use of tea in bags or packages, by presence of children in household, January 2013-March 2014
Northeast most likely to drink tea, most versatile in their selection
Figure 46: Drinking habits for tea – Any consumption, by region, May 2014
Whites least experimental in their tea consumption
Figure 47: Drinking habits for tea – Any consumption, by race and Hispanic origin, May 2014
Income affects consumers’ diverse tea drinking habits.
Figure 48: Drinking habits for tea – Any consumption, by age and household income, May 2014
Young adults most likely to increase tea consumption
Figure 49: Drinking habits for tea – More, by gender and age, May 2014
Households with children significantly more likely to increase tea consumption
Figure 50: Drinking habits for tea – More, by presence of children in household, May 2014
More than a third of respondents drinking less tea
Figure 51: Drinking habits for tea – Less, by gender and age, May 2014

Preferences for Ready-to-Drink Teas

Key points
Green tea most popular RTD tea
Figure 52: Ready-to-drink tea launches, by tea type, 2009-14
Figure 53: Attributes of ready-to-drink tea at retail, by gender and age, May 2014
Green tea most preferred, Hispanics and Blacks lean toward flavored varieties
Figure 54: Attributes of ready-to-drink tea at retail, by race and Hispanic origin, May 2014

Preferences for Bagged, Loose Leaf, Single-cup Tea

Key points
Green tea most sought after, bagged packaging preferred
Figure 55: Ready-to-drink tea launches, by tea type, 2009-14
Figure 56: Attributes of bagged, loose leaf, single-cup tea at retail, by gender and age, May 2014
Hispanics, Blacks prefer flavored and green teas; Whites, “other” races interested in unblended and black teas
Figure 57: Attributes of bagged, loose leaf, single-cup tea at retail, by race and Hispanic origin, May 2014

Time of Day/Meal Occasions for Consuming Tea

Key points
Afternoon, with lunch most popular occasion to drink tea
Figure 58: Occasions for tea consumption, May 2014
Figure 59: Time of day for tea consumption, May 2014
Young adult men prefer RTD tea, women bagged/loose leaf with breakfast
Figure 60: Occasions for tea consumption – With breakfast, by gender and age, May 2014
RTDs preferred with lunch
Figure 61: Occasions for tea consumption – With lunch, by gender and age, May 2014
Bagged, loose leaf tea top beverage choice with dinner
Figure 62: Occasions for tea consumption – With dinner, by gender and age, May 2014
Men aged 18-34 most likely to drink tea with a snack
Figure 63: Occasions for tea consumption – With a snack, by gender and age, May 2014
Millennials most likely to drink tea on its own as a snack
Figure 64: Occasions for tea consumption – As a snack on its own, by gender and age, May 2014
Bagged, loose leaf tea best for socializing
Figure 65: Occasions for tea consumption – When socializing with friends, family, or acquaintances, by gender and age, May 2014

Locations for Consuming Tea

Key points
At-home top location for tea consumption
Figure 66: Locations for tea consumption, May 2014
RTD teas most popular with men, bagged/loose leaf with women for at-home tea consumption
Figure 67: Locations for tea consumption – At home, by gender and age, May 2014
RTD teas most popular for on-the-go drinking
Figure 68: Locations for tea consumption – While out of home (eg, running errands, shopping, driving), by gender and age, May 2014
Millennials most likely to drink tea at work or school
Figure 69: Locations for tea consumption – At work/school, by gender and age, May 2014

Attitudes towards Tea

Key points
Respondents take notice of the healthfulness of tea
Figure 70: Attitudes toward tea, by gender and age, May 2014

Behaviors and Attitudes towards Tea and Tea Innovation

Key points
Young adult consumers most interested in tea innovation
Figure 71: Agreement with attitudes and behaviors toward tea, by gender and age, May 2014
Respondents with children in the household are significantly more likely to be interested in new varieties and flavors
Figure 72: Agreement with attitudes and behaviors toward tea, by presence of children, May 2014
Multicultural consumers most interested in flavor, variety expansion
Figure 73: Agreement with attitudes and behaviors toward tea, by race and Hispanic origin, May 2014

Race and Hispanic Origin

Key points
Locations for tea consumption by race and Hispanic origin
Figure 74: Locations for tea consumption – At home, by race and Hispanic origin, May 2014
Figure 75: Locations for tea consumption – While out of home (eg, running errands, shopping, driving), by race and Hispanic origin, May 2014
Figure 76: Locations for tea consumption – At work/school, by race and Hispanic origin, May 2014
Time of day tea consumption by race and Hispanic origin
Figure 77: Time of day for tea consumption – Morning, by race and Hispanic origin, May 2014
Figure 78: Time of day for tea consumption – Afternoon, by race and Hispanic origin, May 2014
Figure 79: Time of day for tea consumption – Evening, by race and Hispanic origin, May 2014
Meal occasions for tea consumption by race and Hispanic origin
Figure 80: Occasions for tea consumption – With breakfast, by race and Hispanic origin, May 2014
Figure 81: Occasions for tea consumption – With lunch, by race and Hispanic origin, May 2014
Figure 82: Occasions for tea consumption – With dinner, by race and Hispanic origin, May 2014
Figure 83: Occasions for tea consumption – With a snack, by race and Hispanic origin, May 2014
Figure 84: Occasions for tea consumption – As a snack on its own, by race and Hispanic origin, May 2014
Figure 85: Occasions for tea consumption – When socializing with friends, family, or acquaintances, by race and Hispanic origin, May 2014

Appendix – Other Useful Consumer Tables

Drinking habits for tea
Figure 86: Drinking habits for tea, May 2014
Figure 87: Drinking habits for tea – Any consumption, by generations, May 2014
Preferences of ready-to-drink teas at retail
Figure 88: Attributes of ready-to-drink tea at retail, May 2014
Figure 89: Attributes of ready-to-drink tea at retail, by drinking habits for tea – Drinking more, May 2014
Figure 90: Attributes of ready-to-drink tea at retail, by drinking habits for tea – Drinking more, May 2014 (continued)
Preferences of bagged, loose leaf, single-cup tea at retail
Figure 91: Attributes of bagged, loose leaf, single-cup tea at retail, May 2014
Figure 92: Attributes of bagged, loose leaf, single-cup tea at retail, by drinking habits for tea – Drinking more, May 2014
Figure 93: Attributes of bagged, loose leaf, single-cup tea at retail, by generations, May 2014
Time of day for consuming tea
Figure 94: Time of day for tea consumption – Morning, by gender and age, May 2014
Figure 95: Time of day for tea consumption – Afternoon, by gender and age, May 2014
Figure 96: Time of day for tea consumption – Evening, by gender and age, May 2014
Attitudes toward tea
Figure 97: Attitudes toward tea, by race and Hispanic origin, May 2014
Behaviors and attitudes toward tea and tea innovation
Figure 98: Attitudes and behaviors toward tea, May 2014
Experian Market Services, consumption of RTD iced tea by brand
Figure 99: Adult personal consumption of ready-to-drink iced tea by brands, by age, January 2013-March 2014
Figure 100: Adult personal consumption of ready-to-drink iced tea by brands, by presence of children in household, January 2013-March 2014
Figure 101: Teen personal consumption of ready-to-drink iced tea by brands, by gender, November 2012-December 2013
Experian Market Services, consumption of RTD iced tea by brand
Figure 102: Adult personal consumption of ready-to-drink iced tea by brands, by age, January 2013-March 2014
Figure 103: Adult personal consumption of ready-to-drink iced tea by brands, by presence of children in household, January 2013-March 2014
Figure 104: Teen personal consumption of ready-to-drink iced tea by brands, by gender, November 2012-December 2013

Appendix – Information Resources Inc. Builders Panel Data Definitions

Information Resources Inc. Consumer Network Metrics

Appendix – Trade Associations

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