Table of Contents
Introduction and Abbreviations
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- Definitions
- Consumer research
- Lifestage and Special Groups
- ACORN
- Advertising data
- Abbreviations
Premier Insight
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- Daily habits
- Changing attitudes through changing behaviour
- Varieties of teas
Executive Summary
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- Economic prosperity drives premium tea sector
- New product development and promotion to fuel growth of speciality tea
- Changes in age demographics
- Healthy image reviving consumer interest
- Decline continues despite growth in speciality and herbal teas
- The market is dominated by brands
- Brand loyalty is strong
- Advertising re-enforces brand loyalty and raises awareness
- Decelerating the decline
Market Drivers
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- PDI and consumer expenditure
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- Figure 1: PDI and consumer expenditure, at constant prices, 1999-2008
- Shifting demographics
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- Figure 2: Trends and projections in total UK population, by age group, 1999-2009
- The growing popularity of tea alternatives
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- Figure 3: UK volume sales of soft drinks, by type, 2000-04
- Figure 4: Consumption of non-alcoholic drinks by type, 2002 and 2004
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- Figure 5: Consumption of non-alcoholic drinks by type, by age and gender, 2004
- Soft drinks replace hot beverages among the young
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- Figure 6: Expenditure on non-alcoholic drinks in and out of the home, 1998-2003
- Positioning as a health drink
- The impact of new product development
- A decline in the role of the traditional breakfast
Market Size and Trends
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- Building value sales back into the market
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- Figure 7: UK retail sales of tea and herbal tea, at current and constant 1999 prices, 1999-2004
- Volume inching downward
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- Figure 8: UK retail sales of tea and herbal tea, by volume, 1999-2004
Market Segmentation
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- Types of tea
- Fruit, herbal and speciality teas continue to drive sales
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- Figure 9: UK retail sales of tea and herbal tea, by value, 2002 and 2004
- Figure 10: UK retail sales of tea and herbal tea, by value, 2004
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- Figure 11: UK retail sales of tea and herbal tea, by type and volume*, 2002 and 2004
- Standard tea bags fight the decline
- Speciality teas – strong potential
- Decaffeinated tea for health
- One-cup tea misses the mark
- Infusions with an NPD focus
- Loose tea
- Instant tea
- Tea bags – format
- Standard tea bags – pyramid versus round
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- Figure 12: UK retail sales of tea bags*, by type and value, 2002 and 2004
The Supply Structure
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- Overview – suppliers and brands
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- Figure 13: Manufacturer shares within the UK retail tea market, by value, 2002 and 2004
- Figure 14: Estimated brand shares of the UK retail tea market, 2002-04
- Leading companies and retailers
- Associated British Foods plc
- Bettys & Taylors of Harrogate Ltd
- Clipper Teas Ltd
- The Drury Tea & Coffee Company
- Premier Foods (Holdings) Ltd
- The Tetley Group
- Unilever Bestfoods UK
- Whittard of Chelsea
- Other companies
- Own-label
New Product Trends
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- Definition
- Organic and ethical trends
- Decaffeinated tea and coffee trend
- Trend towards premium speciality teas
- A growing trend towards healthy tea with fruit and herbal infusions
- NPD in the own-label sector
Advertising and Promotion
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- Above-the-line
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- Figure 15: Main monitored media advertising expenditure on tea, 1999-2004
- Brand spend
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- Figure 16: Main monitored media advertising expenditure on tea, by top-spending brands, 2004
- Figure 17: Main monitored media advertising expenditure on tea, by top-spending brands, 2002 and 2004
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- Figure 18: Main monitored media advertising expenditure on tea, by five highest-spending advertisers, 2004
- The Tea Council
- Recent campaigns
- Below-the-line
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- Figure 19: Selected below-the-line promotion of tea, October 2004
Distribution
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- Heavily discounting the staples
- Healthy lifestyles shift tea buying habits
- Online and catalogue for speciality
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- Figure 20: UK retail sales of tea and herbal tea, by type of outlet and value, 2002 and 2004
- Figure 21: UK retail sales of tea and herbal tea, by type of outlet and value, 2002 and 2004
- Tea bars are possible for the future
- Fairtrade products are becoming increasingly popular
The Consumer
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- Standard tea bags
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- Figure 22: Weight of usage of standard tea from tea bags, 2002-04
- Age dictates usage
- Fruit or herbal tea
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- Figure 23: Weight of usage of fruit or herbal tea from tea bags, 2002-04
- Attracting the opposite
- Packet tea
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- Figure 24: Weight of usage of packet tea (excluding tea bags), 2002-04
- Types of tea
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- Figure 25: Types of tea bought, 2002-04
- What’s in a name?
- Becoming mainstream
- Easy being green
- Setting habits
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- Figure 26: Types of tea bought, by gender, age and region, 2004
- Everything points to age
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- Figure 27: Types of tea bought, by socio-economic status, working status and ACORN categories, 2004
- An ABC slant
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- Figure 28: Types of tea bought, by marital status, working status, presence of children, household size and Mintel’s Special Groups, 2004
- Reaching the mass market or the upmarket?
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- Figure 29: Types of tea bought, by commercial TV viewing habits, media usage and supermarket usage, 2004
- Purchasing habits
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- Figure 30: Tea purchasing and drinking habits, 2004
- Premium perception
- Brand resonates for the majority
- Caffeine is not the selling point
- Detailed demographics
- Standard tea bags
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- Figure 31: Weight of usage of standard tea from tea bags, by demographic sub-group, 2004
- Fruit and herbal tea
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- Figure 32: Weight of usage of fruit or herbal tea from tea bags, by demographic sub-group, 2004
- Packet tea
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- Figure 33: Weight of usage of packet tea (excluding tea bags), by demographic sub-group, 2004
The Consumer – Assessing Purchase Habits and Enthusiasm
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- Consumer typologies
- Overview
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- Figure 34: Consumer typologies, 2004
- Casual Samplers
- Habi-tea-ual
- Tea-total
- Enthusiasm for tea
- A small repertoire
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- Figure 35: Repertoire of tea purchased, 2004
- Non-buyers of specific tea drinkers
- Purchasers of one type of tea
- Purchasers of two types of tea
- Buyers of three or more types of tea
- Media usage
- Cross-analysis – investigating repertoire and typologies
- Repertoire and types of tea
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- Figure 36: Tea repertoire, by types of tea purchased, 2004
- Tea typologies and repertoire
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- Figure 37: Consumer typologies, by number of types of tea purchased, 2004
- Types of tea and supermarkets shopped, correlation analysis
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- Figure 38: Cross-analysis, types of tea by supermarkets shopped, 2004
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- Figure 39: Correlation analysis, types of tea by supermarkets shopped, 2004
- The skew for fruit
- Alternative retailing approaches
- Detailed demographics
- Consumer typologies
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- Figure 40: Consumer typologies, by gender, age and region, 2004
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- Figure 41: Consumer typologies, by socio-economic group and ACORN categories, 2004
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- Figure 42: Consumer typologies, by lifestage, presence of children, and Mintel’s Special Groups, 2004
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- Figure 43: Consumer typologies, by media usage, supermarket usage and commercial television viewing habits, 2004
- Repertoire analysis
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- Figure 44: Repertoire of tea purchased, by gender, age and region, 2004
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- Figure 45: Repertoire of tea purchased, by socio-economic status and ACORN categories, 2004
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- Figure 46: Repertoire of tea purchased, by lifestage, presence of children and Mintel’s Special Groups, 2004
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- Figure 47: Repertoire of tea purchased, by media usage, supermarkets shopped and commercial television viewing habits, 2004
The Future
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- Decline in tea sales may slow in the future
- Demographic trends look optimistic for future tea sales
- PDI and consumer spend set to continue rising
- Is the problem with tea one of image?
- Consumers will continue to seek exotic and unusual flavours
- Herbal and fruit teas appear to have a fairly broad appeal
- Outlook less dire, as the tea market becomes increasingly segmented
Forecast
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- Figure 48: Forecast of the UK tea market, by value and volume, 2004-09
- Figure 49: Forecast of the UK tea market, 2004-09
- The current situation:
- The optimum situation:
- Factors incorporated in the forecast
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