
There's nothing like a positive health claim to get food marketers excited and consumers eagerly filling their shopping trolleys. From blueberries to dark chocolate, a wide array of produce is being classed as superfoods or rich in health-enhancing properties.
This trend has even stretched to the humble cup of tea. Its antioxidant and hydrating properties mean that the nation's tea-drinking habits are also benefiting our health. Black tea contains zinc, fluoride and flavonoids, all of which, it is believed, boost health.
Herbal and green teas can lay claim to the most benefits; for example, research suggests camomile tea relieves colds and menstrual pain, and green tea eases arthritis.
Speciality and herbal teas are experiencing the strongest growth, although standard tea still accounts for 92% of volume sales. Total growth in 2008 was modest, with value and volume sales rising only 1% to reach £552m, according to Mintel.
While tea faces competition from coffee and soft drinks, household penetration is high, with 83% of adults drinking it, and just over half (54%) doing so several times a day.
Herbal tea drinkers tend to be women, ABC1s and from the 45- to 50-year-old age group (followed by 25- to 34-year-olds) according to TGI. Of British men, 15% drink herbal tea, compared with 27% of women. Herbal teas usually form a part of consumers' tea-drinking repertoire, rather than replacing black tea entirely.
Rooibos tea, more commonly known as redbush, has been one of the best-performing alternative variants in recent years. Made from the leaves of the Rooibus bush, which grows in South Africa, it has gained favour due to its immune-system boosting properties, low tannin levels and caffeine-free content. Because it can be drunk with milk, as well as straight, it makes an appealing alternative for UK drinkers unwilling to forego white tea. It gained a broader audience when Tetley launched a range of Rooibus tea bags, backed by significant promotional investment, in 2007.
Although tea's caffeine content is lower than that of coffee, sales of caffeine-free tea have increased, and now make up more than 5% of the market.
Ethical trading has also grown in importance for tea drinkers, despite still being a relatively small part of the market (16% of shoppers are regular purchasers of fairtrade products, according to TGI). Tea is a product, like coffee and chocolate, that easily lends itself to this trading scheme and both the Co-op and Marks & Spencer have switched all their own-label teas to Fairtrade-accredited variants.
Big-name brands continue to dominate the sector with Tetley, PG Tips, Twinings, Typhoo and Yorkshire Tea taking a market share of almost 75%. Own-label teas account for 17%.
Attempts to boost the premium end of the market have been prevalent among suppliers, with a rise in speciality blends or origin-specific leaves. In the 90s the shape of the tea bag became the focus of NPD, but this appears to have little impact on consumer choice today. Instead, packaging has been used as a way of gaining shelf-standout in a crowded market.
Tata-owned Tetley is the number one supplier of tea in the UK. In 2008 it tried, unsuccessfully, to buy Clipper Teas, but it did acquire Good Earth Teas, a US organic range, which has launched in the UK. Tata's recent promotional activity has included TV ads for its green teas promoting their place in a healthy lifestyle.
Unilever's PG Tips has used its brand icon, Monkey, to promote its range, with an accompanying range of toys making the simian a children's favourite. It has also joined with the Rainbow Alliance to source its tea from sustainable plantations.
By 2013, Mintel predicts the tea market will be worth £574m, a rise of 4% on 2008. However, in real terms this is a value drop of 5%.
Tea Brands by Value and Market Share | |||||||||||||||||||||||||||||||||||||||||||||||||
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Rank | Brand | 2008 | 2007 | 2006 | % change | ||||||||||||||||||||||||||||||||||||||||||||
£m | % | £m | % | £m | % | ||||||||||||||||||||||||||||||||||||||||||||
1 | Tetley | 138 | 25 | 137 | 25 | 135 | 25 | 2.2 | |||||||||||||||||||||||||||||||||||||||||
2 | PG Tips | 125 | 23 | 124 | 23 | 124 | 23 | 0.8 | |||||||||||||||||||||||||||||||||||||||||
3 | Twinings | 50 | 9 | 49 | 9 | 48 | 9 | 4.2 | |||||||||||||||||||||||||||||||||||||||||
4 | Typhoo | 43 | 8 | 42 | 8 | 42 | 8 | 2.4 | |||||||||||||||||||||||||||||||||||||||||
5 | Yorkshire Tea | 38 | 7 | 37 | 7 | 37 | 7 | 2.7 | |||||||||||||||||||||||||||||||||||||||||
Other | 64 | 12 | 65 | 12 | 64 | 12 | - | ||||||||||||||||||||||||||||||||||||||||||
Own-label | 94 | 17 | 95 | 17 | 92 | 17 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||
Total | 552 | 100 | 549 | 100 | 542 | 100 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||
Source: Mintel |
Retail Sales of Tea by Type | |||||||||||||||||||||||||||||||||||||||||||||||||
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Type | 2008 | 2007 | 2006 | % change | |||||||||||||||||||||||||||||||||||||||||||||
£m | % | £m | % | £m | % | ||||||||||||||||||||||||||||||||||||||||||||
Standard tea, of which: | 431 | 78 | 432 | 79 | 434 | 80 | -0.7 | ||||||||||||||||||||||||||||||||||||||||||
Tea bags | 417 | 76 | 419 | 76 | 421 | 78 | -1 | ||||||||||||||||||||||||||||||||||||||||||
Decaffeinated | 28 | 5 | 27 | 5 | 24 | 4 | 16.7 | ||||||||||||||||||||||||||||||||||||||||||
Loose | 14 | 3 | 13 | 2 | 13 | 2 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||
Speciality tea, of which: | 49 | 9 | 50 | 9 | 47 | 9 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||
Herbal/fruit | 42 | 8 | 40 | 7 | 37 | 7 | 13.5 | ||||||||||||||||||||||||||||||||||||||||||
Teabags | 40 | 7 | 40 | 7 | 37 | 7 | 8.1 | ||||||||||||||||||||||||||||||||||||||||||
Loose tea | 23 | 4 | 23 | 4 | 23 | 4 | - | ||||||||||||||||||||||||||||||||||||||||||
Green tea | 17 | 3 | 16 | 3 | 14 | 3 | 21.4 | ||||||||||||||||||||||||||||||||||||||||||
Loose | 9 | 2 | 10 | 2 | 10 | 2 | -10 | ||||||||||||||||||||||||||||||||||||||||||
Redbush tea | 8 | 1 | 6 | 1 | 4 | 1 | 100 | ||||||||||||||||||||||||||||||||||||||||||
Instant tea | 5 | 1 | 5 | 1 | 6 | 1 | -14.3 | ||||||||||||||||||||||||||||||||||||||||||
Total | 552 | 100 | 549 | 100 | 542 | 100 | 1.8 |