UK Tea and Other Hot Drinks Market Report 2023

Stay ahead of the curve and secure future growth for your business with Mintel’s UK Tea and Other Hot Drinks Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK hot drinks industry including market size, forecasted growth, and opportunities for the tea and other hot drinks market.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Key Issues Covered in this Report

• The impact of the rising cost of living on the tea and other hot drinks market, including trading down within the category.
• Key trends in recent launch activity and future opportunities.
• Usage of tea and other drinks by type, including key demographics.
• Choice factors when buying tea, including the importance of familiar brands and health benefits.
• Consumer behaviours and attitudes related to tea and other hot drinks. This includes opportunities for both less-sweet and added-health hot chocolate, and cold tea.

UK Tea and Other Hot Drinks – Current Market Landscape

Sharp value growth is expected in 2023, propelled by inflation. Volumes are expected to see a slight decline amid warmer weather. The ongoing cost-of-living crisis has had mixed effects on the UK tea market, it has encouraged at-home occasions but prompted consumers to be more frugal.

• UK tea market size: The market is estimated to reach £874 million in 2023.

Ordinary tea continues to dominate the category, reflecting its ingrained role in the nation’s drinks choices. However, it now only accounts for half of the nation’s retail spend. Challengers like fruit, herbal and speciality teas have chipped away at ordinary tea sales.

• UK tea and other hot drinks market segmentation: Ordinary teas account for three quarters of volume sales, but only half of UK retail spend.

UK Tea and Hot Drinks Market Trends and Opportunities

Affordable gifting offers opportunities

The strong appeal of tea as a good choice for an affordable gift holds potential for brands to unlock incremental sales by targeting gifting. This is particularly pertinent in the short term while household incomes remain under pressure. Gift formats warrant further attention from mainstream players. Most people who consider tea a good affordable gift attach high importance in their tea choice to a brand they’ve bought before.

Better-for-you hot chocolate holds untapped potential

The better-for-you space holds untapped potential in the hot chocolate segment, with interest in variants with added health benefits. Protein stands out as an area to explore in mainstream hot chocolate, given plentiful recipes online and the prevalence of high-protein chocolate drinks.

Purchase our full report to discover more consumer insights and recommendations for growth opportunities from our expert researchers. To learn more about the tea market, take a look at Mintel’s The Future of Tea 2023.

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Expert Analysis from an Industry Specialist

This report, written by Kiti Soininen, a leading Food and Drink analyst, delivers in-depth commentary and analysis to highlight current trends in the UK tea and other hot drinks market and add expert context to the numbers.

The category faces a growing need to reaffirm its relevance to needstates beyond offering comfort, as it looks ahead beyond the income squeeze.

Kiti Soininen
Head of UK Food and Drink Research