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Tea and RTD Teas - US - July 2013

Published By :

Mintel

Published Date : Jul 2013

Category :

Beverages

No. of Pages : 206 Pages


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.
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
What we think

Issues and Insights
How can tea break from tradition and appeal to new day-parts?
Insight: Leverage tea’s healthy reputation to present it as the universal beverage
Green tea envy: Is there a way for other teas to appeal to Millennials?
Insight: Expand tea’s healthy reputation beyond green tea
How can the struggling tea mix segment be revived?
Insight: Emphasis on ingredients, new liquid formats could perk up segment

Trend Application
Trend: Experience Is All
Trend: The Real Thing
Mintel Futures: Old Gold

Market Size and Forecast
Key points
Category reports annual growth fueled by desire for healthier beverages
Figure 6: Total U.S. retail sales and forecast of tea and RTD tea, at current prices, 2008-18
Figure 7: Total U.S. retail sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 8: Total U.S. sales and fan chart forecast of tea and RTD tea, at current prices, 2008-18

Market Drivers
Key points
Heavily sweetened teas land on naughty list, could confuse new users
Figure 9: New York City Department of Health, “Choose Health” television ad, 2013
Decline in households with children should be a concern for tea-makers
Figure 10: Purchase of tea, by types, by presence of children in household, March 2013
Hispanics lead tea consumption among multicultural consumers
Figure 11: Purchase of tea, by types, by race and Hispanic origin, March 2013

Competitive Context
Key points
RTD teas fall in shadow of water, CSD consumption
Figure 12: Change in personal non-alcoholic drinking habits, by category, November 2012
Restaurants expand tea menus to encourage beverage purchases
Figure 13: Top 10 tea flavors (fruit) at restaurants, by incidence, Q4 2009-12
Specialty tea shops emerge, creating a forum for tea connoisseurs

Segment Performance
Key points
Desire for freshness boosts ready-to-brew, refrigerated segments
Figure 14: Total U.S. retail sales of tea and RTD tea, by segment, at current prices, 2011 and 2013
Refrigerated RTD tea to grow fastest, challenging shelf-stable RTD
Figure 15: Total U.S. sales and forecast of tea and RTD tea, by segment, 2008-18

Retail Channels
Key points
Other retail channel, supermarkets see growth in tea sales
Figure 16: Total U.S. retail sales of tea and RTD tea, by channel, at current prices, 2011-13
Drug stores should take cues from convenience stores to reverse slide
Figure 17: Total U.S. retail sales of tea and RTD tea, by channel, at current prices, 2008-13
Supermarkets continue to be preferred retailer for tea purchases
Figure 18: Tea purchases, by retail channels, by age, March 2013
Convenience stores remain an important channel for RTD purchases
Figure 19: Tea purchases by retail channels by purchase of tea type, March 2013
Kombucha sales surpass RTD in natural supermarket, continue to grow
Figure 20: Natural supermarket sales of tea, RTD tea, and kombucha, by segment, 2011 and 2013*
Figure 21: Natural supermarket sales of tea, RTD tea, and kombucha, at current prices, 2011-13*
Brands of note from natural supermarkets
Organic teas expand in natural channel, exceeding Fair Trade’s rise
Figure 22: Natural supermarket sales of tea, RTD tea, and kombucha, by organic, 2010 and 2012*
Figure 23: Natural supermarket sales of bagged or loose leaf tea, by fair trade, 2011 and 2013*

Leading Companies
Key points
Majority of leaders stagnant, Coca-Cola sees largest rise in sales
Figure 24: MULO sales of tea, by leading companies, rolling 52-weeks 2012 and 2013
Coca-Cola drops Nestea partnership, focuses on Gold Peak, Fuze
Lipton dominates, expands RTB options with Keurig partnership
Celestial Seasonings builds on strength of Sleepytime to expand line

Brand Share—Ready-to-Drink Tea
Key points
Premium-positioned, flavored canned/bottled RTD teas see success
Figure 25: MULO sales of canned and bottled tea, by leading companies, rolling 52-weeks 2012 and 2013
Snapple’s Snap Tea value brand could foster budget-focused loyalty
Gold Peak, Turkey Hill Sun Brew report rapid rise in refrigerated RTD tea
Figure 26: MULO sales of ready-to-drink refrigerated tea, by leading companies, rolling 52-weeks 2012 and 2013
Lipton leads across all races and ethnicities, but losing favor
Figure 27: Adult personal consumption of ready-to-drink iced tea by brands, by race/Hispanic origin, October 2011-November 2012
AriZona establishes niche among teens, especially older girls
Figure 28: Teen personal consumption of ready-to-drink iced tea by brands, by gender and age, October 2011-November 2012

Brand Share—Bagged, Loose Leaf, and Single-cup Teas
Key points
Traditional brands see sales cool, functional and premium teas get hot
Figure 29: MULO sales of bagged, loose leaf, and single-cup tea, by leading companies, rolling 52-weeks 2012 and 2013
Amid increasing sales, Twinings focuses on variety in print ads
Figure 30: Twinings of London, print ad, October 2012
Figure 31: Twinings of London, print ad, December 2012
Figure 32: Twinings of London, print ad, January/February 2013
Black consumers seek brands, Asians look for different brands
Figure 33: Brands of bags or packages of tea used by households, by race/Hispanic origin, October 2011-November 2012

Brand Share—Instant Tea Mixes
Key points
Half-and-half products not enough to revive instant tea mix market
Figure 34: MULO sales of instant tea, by leading companies, rolling 52-weeks 2012 and 2013
Blacks show strongest brand loyalty to instant tea mixes
Figure 35: Household use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
Sugar-sweetened mixes connect with youngest adult consumers
Figure 36: Household use of instant tea mixes, by age, October 2011-November 2012
Instant tea mixes could increase usage through portable formats
Figure 37: Personal consumption of instant tea mixes by location, by gender, March 2013
Liquid formats could provide renewed life to struggling segment
Figure 38: Attitudes toward liquid tea mixes (any agree), by age, March 2013

Innovations and Innovators
New teas must capitalize on open space to avoid over-saturation
Figure 39: New tea products, by subcategory, May 2012-May 2013
Figure 40: New tea products, by launch type, May 2012-May 2013
RTD provides familiar format to introduce new tea sources
Rising consumer interest in bagged teas presents options for growth
Variety packs
New usage occasions
Specific functionalities
Nontraditional flavors
Cultivate high-end tea drinkers with high-end tea options
International innovations provide a fresh take in global category

Marketing Strategies
Brand analysis: Snapple
Figure 41: Snapple Re-enFACTments, June 17, 2013
TV presence
Figure 42: Snapple, Half ’n Half television ad, 2013
Brand analysis: Honest Tea
Figure 43: Honest Tea, “Lemons” television ad, 2012
Brand analysis: Lipton
Ready-to-drink Lipton tea
Figure 44: Lipton RTD tea, So Hot It’s Cool television ad, 2013
Bagged/loose leaf Lipton tea
Figure 45: Lipton bagged tea, Feel Inspired television ad, 2013
Lipton instant tea mixes
Figure 46: Lipton Tea & Honey, print ad, July 2012
Figure 47: Lipton Tea & Honey, print ad, September 2012
Figure 48: Lipton Tea & Honey, “It Tastes Great” television ad, 2013
Brand analysis: Tazo

Social Media
Key points
Social media metrics
Figure 49: Key performance indicators, June 2013
Market overview
Brand usage and awareness
Figure 50: Usage and awareness of selected tea and RTD tea brands, April 2013
Interaction with tea and RTD tea brands
Figure 51: Interaction with selected tea and RTD tea brands, April 2013
Online conversations
Figure 52: Online conversations on selected tea brands, by day, May 18-June 17, 2013
Where are people talking about tea and RTD tea brands?
Figure 53: Online conversations on selected tea brands, by page type, May 18-June 17, 2013
What are people talking about?
Figure 54: Types of conversations around selected tea brands, May 18-June 17, 2013
Figure 55: Types of conversations around selected tea brands, by day, May 18-June 17, 2013
Analysis by brand
Snapple
Figure 56: Snapple—key social media indicators, June 2013
Key online campaigns
Figure 57: Online mentions of 7-Eleven Snapple giveaway, by day, May 18-June 17, 2013
What we think
AriZona Iced Tea
Figure 58: AriZona Iced Tea—key social media indicators, June 2013
Key online campaigns
What we think
Lipton
Figure 59: Lipton—key social media indicators, June 2013
Key online campaigns
What we think
Tazo
Figure 60: Tazo—key social media indicators, June 2013
Key online campaigns
What we think
Honest Tea
Figure 61: Honest Tea—key social media indicators, June 2013
Key online campaigns
What we think
Celestial Seasonings
Figure 62: Celestial Seasonings—key social media indicators, June 2013
Key online campaigns
What we think

The Consumer—Purchase of Tea by Types
Key points
Adults equally interested in both tea segments, RTD reigns with minors
Figure 63: Purchase of tea by types, March 2013
Ready-to-brew tea appeals to more women, young men prefer RTD teas
Figure 64: Purchase of tea by types for personal use, by gender and age, March 2013
Consumers explore the variety of teas available in both segments
Figure 65: Factors influencing ready-to-brew tea purchases, by tea types influencing ready-to-drink tea purchases, March 2013
Figure 66: Factors influencing ready-to-brew tea purchases, by product types influencing ready-to-drink tea purchases, March 2013
Health a driver of tea purchases, especially compared to coffee
Figure 67: Attitudes and behaviors toward health of tea (any agree), by age, March 2013

The Consumer—Consumption Occasions and Locations
Key points
Home most popular venue for tea consumption
Figure 68: Personal consumption of tea by location, by gender and age, March 2013
Figure 69: Personal consumption of tea by tea type and location, March 2013
Afternoon most apt to be tea time for RTD, instant tea mixes
Figure 70: Personal consumption of tea, by tea type and time of day, March 2013
Morning consumption more likely to be out-of-home
Figure 71: Personal consumption of tea by location, by personal consumption of tea by time of day, March 2013
Consumers match tea type to occasion; RTD in p.m., brewed in a.m.
Figure 72: Personal consumption of tea by tea type and occasion, March 2013

The Consumer—RTD Tea Preferences, Occasions, and Attitudes
Key points
Consumers most motivated to purchase green RTD tea rather than black
Figure 73: Factors influencing ready-to-drink tea purchases, by gender and age, March 2013
Demand for flavors crosses RTD tea types, most common with white tea
Figure 74: Factors influencing ready-to-drink tea purchases, by Factors influencing ready-to-drink tea purchases, March 2013
Promotion of RTD as a morning beverage could expand consumption
Figure 75: Personal consumption of single-serve ready-to-drink tea by time of day, by age, March 2013
Interest in diet RTD tea waning among younger consumers
Figure 76: Adult personal consumption of ready-to-drink iced tea by type, by gender and age, October 2011-November 2012
Figure 77: Teen personal consumption of ready-to-drink iced tea by type, by gender and age, October 2011-November 2012
Multiserving teas connect during dinner, socializing a growth point
Figure 78: Personal consumption of multiserving ready-to-drink tea by occasion, by age, March 2013
Youngest respondents most interested in RTD tea innovations
Figure 79: Attitudes and behaviors toward RTD tea (any agree), by age, March 2013

The Consumer—RTB Tea Preferences, Occasions, and Attitudes
Key points
Green tea only slight edges out black tea as top type of RTB tea
Figure 80: Factors influencing ready-to-brew tea purchases, by gender and age, March 2013
Unblended black tea is more sought-after than plain green tea
Figure 81: Product types influencing ready-to-brew tea purchases, by tea types influencing ready-to-brew tea purchases, March 2013
Youngest respondents show highest volume usage of bagged teas
Figure 82: Household volume use of tea in bags or packages, by age, October 2011-November 2012
Value a consideration as bagged tea used most by lowest income
Figure 83: Household volume use of tea in bags or packages, by household income, October 2011-November 2012
Black, fruit or herbal teas are most popular in the evening
Figure 84: Personal consumption of ready-to-brew tea by time of day, by tea types influencing ready-to-brew tea purchases, March 2013
Functional teas have evening appeal, caffeine-free in the morning
Figure 85: Personal consumption of ready-to-brew tea by time of day, by product qualities influencing ready-to-brew tea purchases, March 2013
Young men brew tea out of home, middle-aged men brew tea with meals
Figure 86: Personal consumption of bagged or loose leaf tea by location, by gender and age, March 2013
Figure 87: Personal consumption of bagged or loose leaf tea by occasion, by gender and age, March 2013
Tea could benefit from additional education on usage, preparation
Figure 88: Attitudes and behaviors toward ready-to-brew tea (any agree), by age, March 2013

Race and Hispanic Origin
Key points
Hispanics most engaged in tea category, equally interested in segments
Figure 89: Purchase of tea, by types, by race and Hispanic origin, March 2013
Other race more likely to shop for tea at warehouses, natural retailers
Figure 90: Tea purchases, by retail channels, by race and Hispanic origin, March 2013
Tea accompanies meals among blacks, other race drink in a.m.
Figure 91: Personal consumption of tea by occasion, by race/Hispanic origin, March 2013
Nearly all Asians brew tea hot, blacks most apt to make iced tea
Figure 92: Use of bags or packages of tea, by households, by race/Hispanic origin, October 2011-November 2012
Hispanics have the highest household volume usage of bagged teas
Figure 93: Household volume use of tea in bags or packages, by race/Hispanic origin, October 2011-November 2012
Blacks see tea as a healthy option, but not motivated to drink every day
Figure 94: Attitudes and behaviors toward tea (any agree), by race and Hispanic origin, March 2013

Cluster Analysis
Tea Partiers
Demographics
Characteristics
Opportunity
RTD Fans
Demographics
Characteristics
Opportunity
Seldom Sippers
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 95: Target clusters, March 2013
Figure 96: Purchase of tea, by types, by target clusters, March 2013
Figure 97: Purchase of tea, by types for personal use, by target clusters, March 2013
Figure 98: Factors influencing ready-to-drink tea purchases, by target clusters, March 2013
Figure 99: Factors influencing ready-to-brew tea purchases, by target clusters, March 2013
Figure 100: Personal consumption of tea by time of day, by target clusters, March 2013
Figure 101: Personal consumption of tea by occasion, by target clusters, March 2013
Figure 102: Personal consumption of tea by location, by target clusters, March 2013
Figure 103: Tea purchases by retail channels, by target clusters, March 2013
Cluster demographic tables
Figure 104: Target clusters, by demographic, March 2013
Cluster methodology
Figure 105: Attitudes and behaviors toward tea (any agree), by target clusters, March 2013

Information Resources Inc. Builders Panel Data
Canned and bottled RTD tea
Consumer insights on key purchase measures: Canned or bottled RTD tea
Brand map
Figure 106: Brand map, selected brands of canned and bottled RTD tea buying rate, by household penetration, 2012*
Brand leader characteristics
Figure 107: Key purchase measures for the top brands of canned and bottled RTD tea, by household penetration, 2012*
Bagged or loose leaf tea
Consumer insights on key purchase measures: Bagged/loose leaf tea
Brand map
Figure 108: Brand map, selected brands of bagged/loose tea buying rate, by household penetration, 2012*
Brand leader characteristics
Figure 109: Key purchase measures for the top brands of bagged/loose tea, by household penetration, 2012*
Instant tea mixes
Consumer insights on key purchase measures: Instant tea mixes
Brand map
Figure 110: Brand map, selected brands of instant tea mixes buying rate, by household penetration, 2012*
Brand leader characteristics
Figure 111: Key purchase measures for the top brands of instant tea mixes, by household penetration, 2012*

Appendix – Food and Drink Market Drivers
Obesity
Figure 112: U.S. obesity, by age group, 2008 and 2012
Childhood and teen obesity—highest in decades
Figure 113: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Racial, ethnic population growth
Figure 114: U.S. population by race and Hispanic origin, 2008, 2013, and 2018
Figure 115: Households with children, by race and Hispanic origin of householder, 2012
Shifting U.S. demographics
Figure 116: U.S. population, by age, 2008-18
Figure 117: U.S. households, by presence of own children, 2002-12

Appendix – Other Useful Consumer Tables
Segment performance
Figure 118: Total U.S. sales and forecast of canned/bottled RTD tea, 2008-18
Figure 119: Total U.S. sales and forecast of bagged, loose leaf, and single-cup tea, 2008-18
Figure 120: Total U.S. sales and forecast of refrigerated RTD tea, 2008-18
Figure 121: Total U.S. sales and forecast of instant tea, 2008-18
Retail channels
Figure 122: U.S. supermarket sales of tea and RTD tea, at current prices, 2008-13
Figure 123: U.S. drug store sales of tea and RTD tea, at current prices, 2008-13
Figure 124: U.S. sales of tea and RTD tea, through other channels, at current prices, 2008-13
Figure 125: Tea purchases by retail channels, by household income, March 2013
Figure 126: Natural supermarket sales of tea, RTD tea, and kombucha, at inflation-adjusted prices, 2011-13*
Brand share—Bagged, loose leaf, and single-cup tea
Figure 127: Brands of bags or packages of tea used by households, by region, October 2011-November 2012
Brand share—Instant tea
Figure 128: Household use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
Figure 129: Household use of instant tea mixes, by region, October 2011-November 2012
Figure 130: Household volume use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
Figure 131: Household volume use of instant tea mixes, by household income, October 2011-November 2012
The consumer—Purchase of tea by types
Figure 132: Purchase of tea, by types, by gender and age, March 2013
Figure 133: Purchase of tea, by types, by household income, March 2013
Figure 134: Purchase of tea by types for personal use, by generation, March 2013
Figure 135: Attitudes and behaviors toward tea (any agree), by household income, March 2013
Figure 136: Attitudes and behaviors toward tea (any agree), by purchase of tea, March 2013
The consumer—Consumption occasions and locations
Figure 137: Personal consumption of tea by location, by personal consumption of tea by time of day, March 2013
The consumer—Ready-to-drink tea preferences, occasions, and attitudes
Figure 138: Personal consumption of single-serve ready-to-drink tea by location, by age, March 2013
Figure 139: Factors influencing ready-to-drink tea purchases, by generation, March 2013
Figure 140: Personal consumption of single-serve ready-to-drink tea by occasion, by age, March 2013
Figure 141: Teen personal use of ready-to-drink iced tea, by gender and age, October 2011-November 2012
Figure 142: Attitudes and behaviors toward ready-to-drink tea (any agree), by purchase of tea, March 2013
The consumer—Ready-to-brew tea preferences, occasions, and attitudes
Figure 143: Types of bags or packages of tea used by households, by age, October 2011-November 2012
Figure 144: Personal consumption of instant tea mixes by occasion, by gender, March 2013
Race and Hispanic origin
Figure 145: Purchase of tea by types for personal use, by race/Hispanic origin, March 2013
Figure 146: Personal consumption of single-serve ready-to-drink tea by occasion, by race/Hispanic origin, March 2013
Figure 147: Personal consumption of ready-to-brew tea by time of day, by race/Hispanic origin, March 2013
Figure 148: Personal consumption of ready-to-brew tea by occasion, by race/Hispanic origin, March 2013
Figure 149: Types of bags or packages of tea used by households, by race/Hispanic origin, October 2011-November 2012

Appendix—Social Media—Teas and RTD Teas
Brand usage or awareness
Figure 150: Brand usage or awareness, April 2013
Figure 151: AriZona Iced Tea usage or awareness, April 2013
Figure 152: Snapple usage or awareness, April 2013
Figure 153: Honest tea usage or awareness, April 2013
Figure 154: Lipton usage or awareness, April 2013
Figure 155: Tazo usage or awareness, April 2013
Figure 156: Celestial seasonings usage or awareness, April 2013
Activities done
Figure 157: Activities done, April 2013
Figure 158: AriZona Iced Tea—Activities done, by demographics, April 2013
Figure 159: Snapple—Activities done, by demographics, April 2013
Figure 160: Honest Tea—Activities done, by demographics, April 2013
Figure 161: Lipton—Activities done, by demographics, April 2013
Figure 162: Tazo—Activities done, by demographics, April 2013
Figure 163: Celestial seasonings—Activities done, by demographics, April 2013
Online conversations
Figure 164: Online conversations on selected tea brands, by day, May 18-June 17, 2013
Figure 165: Online conversations on selected tea brands, by page type, May 18-June 17, 2013
Figure 166: Types of conversations around selected tea brands, May 18-June 17, 2013
Figure 167: Types of conversations around selected tea brands, by day, May 18-June 17, 2013
Figure 168: Online mentions of 7-Eleven Snapple giveaway, by day, May 18-June 17, 2013

Appendix – Information Resources Inc. Builders Panel Data Definitions
Information Resources Inc. Consumer Network Metrics

Appendix – Trade Associations

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