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Tea & RTD Tea - US - July 2015

Published By :

Mintel

Published Date : Jul 2015

Category :

Beverages

No. of Pages : N/A

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."

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
Fragmented market challenges brand loyalty
Figure 2: MULO sales of tea, by leading companies, rolling 52 weeks ending April 2015
Future for single-cup teas?
Figure 3: Total US retail sales and forecast of single-cup tea, at current prices, 2010-20
Coffee still holds upper hand
Figure 4: Beverage Tracker, by coffee and tea, March 2015
The opportunities
Refrigerated tea popularizes premium
Figure 5: Usage – Any consumption, April 2015
Consumers looking for healthy, single-serve, sweetened RTD tea
Figure 6: Ideal ready-to-drink tea creation, April 2015
Opportunities with relaxation RTD teas
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 ssee 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
Manufacturer sales of tea and RTD tea
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
Kombucha trends
Figure 25: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
Health, foodservice benefits leading bagged teas
Bagged tea for health
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
Matcha
Sparkling tea
Unique brews
New blends
Yuanyang

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
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations

Appendix – 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
Figure 67: Natural supermarket sales of bag/loose tea, by type, rolling 52 weeks ending April 2013 and April 2015

Appendix – 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

Appendix – Correspondence Analysis

Methodology
Figure 72: Ideal RTD tea categorization, April 2015

Appendix – CHAID Analysis

Methodology
Figure 73: Ideal RTD characteristics – CHAID – Table output, April 2015

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