Table of Contents
Issues in the Market
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- Key themes
- Definition
- Abbreviations
Future Opportunities
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- Standing out from competition
- Do not overcrowd the fixture
- Fighting commodisation
Market in Brief
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- Brits’ love of tea remains
- Health trend shapes demand
- A brand-led, concentrated market
- Tea for two... different consumer groups
- What the future holds
Internal Market Environment
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- Key points
- Healthy does it
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- Figure 1: Trends in attitudes towards health and diet, 2004-08
- Recent scientific research into tea’s health benefits
- Is noni the next big thing?
- Let’s get ethical
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- Figure 2: Trends in attitudes towards ethical issues, 2004-08
- Britain is still a tea-drinking nation
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- Figure 3: Comparison of consumption and frequency of drinking tea (standard and herbal) across Europe, 2007
- Trendy yogurt drinks gain ground in soft drink choices
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- Figure 4: Trends in consumption of soft drinks, 2004-08
- A shift upmarket
- Emotional approach remains, but the ‘ritual’ of tea drinking is waning
Broader Market Environment
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- Key points
- Standard tea little affected by demographic changes
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- Figure 5: Structure of the UK population, by age. 2003-13
- Will deteriorating economy hit premium products?
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- Figure 6: UK workforce and employment, by gender, 2003-13
- Rising raw material costs
Competitive Context
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- Key points
- Tea vs coffee
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- Figure 7: UK retail value sales of selected hot drinks, 2003-12
- Is tea a premium or a commodity product?
- Hot chocolate gains, but other malted hot drinks decline
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- New product launches
- Organic and natural products appeal
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- Figure 8: New product activity, by positioning, 2007-08
- Safety concerns
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- Figure 9: New product activity, by type, 2008
- Manufacturers and brands
- Cheeky Teapigs
- Herbal and specialities
- Own-label in tune with trends
- Product innovation elsewhere
Market Size and Forecast
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- Key points
- Herbal tea keeps market in the black
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- Figure 10: UK volume and value sales of tea and herbal tea, 2003-13
- Health matters
- Pressure on prices
- The future of the market
- Wellness trend here to stay
- Expanding herbal tea beyond core consumers
- Economic downturn may have a mixed impact
- Market to plateau in next five years
- Factors used in the forecast
Segment Performance
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- Key points
- Green tea and Redbush outperform
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- Figure 11: UK retail value sales of tea and herbal tea, by type, 2006-08
- Figure 12: UK retail volume sales of tea and herbal tea, by type, 2006-08
- Standard tea
- Departure from the ordinary
- Product bonding
- Decaffeinated tea gaining ground
- Instant tea
- Not so hot
- Speciality tea
- The gourmet choice
- Loose tea
- In need of a marketing boost
- Herbal/fruit tea
- Appealing on healthiness and functionality
- Lacking a ritual
- A philosophical approach
- Green tea
- Going for gold
- Adding flavour
- Promotions give a boost
- Redbush tea
- From South Africa with love
- The best of both worlds – black and herbal tea
- Tea bag sales by format
- Hip to be square
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- Figure 13: UK retail value sales of standard tea bags*, by type, 2006-08
- Tea in a stick
- Sustainable packaging
Market Share
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- Key points
- A concentrated market with high brand loyalty
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- Figure 14: Estimated retail value brand shares of the UK tea and herbal tea market, 2006-08
- Standard tea suppliers move into herbal
- Own-label to benefit from economic slowdown?
- Market leader Tetley also number-one in decaf
- Clipper takes top spot in green tea
- Big players eye up competition
- Small independent premium suppliers – will they make it?
Companies and Products
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- Bettys & Taylors of Harrogate
- Cafédirect
- Clipper Teas
- Spicers Ltd
- Teapigs
- Tetley (Tata Group)
- Twinings (Associated British Foods)
- Typhoo (Apeejay Surrendra Group)
- Unilever
Brand Communication and Promotion
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- Key points
- Declining adspend
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- Figure 15: Main monitored media advertising spend on tea, 2003-08
- Adspend by advertiser
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- Figure 16: Main monitored media advertising spend on tea, by advertiser, 2003-08
- Trading up
- A repertoire of teas
- Marketing themes
Channels to Market
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- Key points
- Multiple dominance
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- Figure 17: UK retail value sales of tea and herbal tea, by outlet type, 2006-08
- Co-op’s Fairtrade commitment
- Online and mail order sales still limited, but posting steady growth
The Consumer – Consumption and Frequency of Use
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- Key points
- A slowly contracting user base, but tea remains popular
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- Figure 18: Trends in tea consumption (both standard and herbal tea made in bags), 2004-08
- Standard tea still very much part of daily routine
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- Figure 19: Trends in frequency of drinking standard tea, 2004-08
- Herbal tea lightweights
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- Figure 20: Trends in frequency of drinking herbal tea, 2004-08
- Branded herbal tea makes gains
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- Figure 21: Trends in consumption of own-label versus branded standard and herbal tea, 2004-08
- Who drinks what?
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- Figure 22: Most valuable consumers for standard tea (VII) by age, 2008
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- Figure 23: Most valuable consumers for herbal tea (VII) by age, 2008
The Consumer – Tea Perceptions
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- Key points
- Seeking solace in a cuppa
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- Figure 24: Words and phrases associated with standard and herbal tea, November 2008
- Herbal tea classified through functionality
- Attributes by demographics
The Consumer – Targeting Opportunities
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- Key points
- Standard tea scores high on tradition and taste
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- Figure 25: Perception of five most important qualities of standard tea and how they compare with herbal tea, November 2008
- Herbal tea scores high on health benefits
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- Figure 26: Perception of five most important qualities of herbal tea and how they compare with standard tea, November 2008
- Herbal tea lacks an obvious occasion to drink
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- Figure 27: How people perceive occasions to drink standard and herbal tea, November 2008
- Identifying targets for standard tea
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- Figure 28: Size of standard tea attitudinal groups, November 2008
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- Figure 29: How standard tea attitudinal groups differ on key dimensions, November 2008
- Tea Lovers (10%)
- Tea Traditionalists (20%)
- Morning Drinkers (26%)
- Disinterested (45%)
- A family affair
- Identifying targets for herbal tea
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- Figure 30: Size of herbal tea attitudinal groups, November 2008
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- Figure 31: How herbal tea attitudinal groups differ on key dimensions, November 2008
- Hardcore Herbals (8%)
- Health Heeders (19%)
- Refreshed (15%)
- Disinterested (58%)
- Taste a barrier for those seeking health benefits from herbal tea
- A generation gap
Appendix
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- Consumer research
- ACORN
- Advertising data
Appendix – Internal Market Environment
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- Figure 32: Attitudes towards ethical issues, by demographics, 2008
- Figure 33: Further attitudes towards ethical issues, by demographics, 2008
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Appendix – Broader Market Environment
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- Figure 34: Structure of the UK population, by age and gender, 2003-13
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Appendix – Consumer Consumption and Frequency of Use
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- Figure 35: Trends in tea consumption (both herbal and standard, tea made in bags), by demographics, 2008
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- Figure 36: Penetration and frequency of drinking standard tea, by demographics, 2008
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- Figure 37: Penetration and frequency of drinking herbal tea, by demographics, 2008
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Appendix – The Consumer: Tea Perceptions
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- Figure 38: Words and phrases associated with standard tea, by demographics, 2008
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- Figure 39: Words and phrases associated with standard tea, by demographics, 2008
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- Figure 40: Words and phrases associated with standard tea, by demographics, 2008
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- Figure 41: Words and phrases associated with herbal tea, by demographics, 2008
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- Figure 42: Words and phrases associated with herbal tea, by demographics, 2008
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- Figure 43: Words and phrases associated with herbal tea, by demographics, 2008
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Appendix – The Consumer: Targeting Opportunities
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- Figure 44: Standard tea attitudinal groups, 2008
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- Figure 45: Standard tea attitudinal groups, by demographics, 2008
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- Figure 46: Herbal tea attitudinal groups, 2008
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- Figure 47: Herbal tea attitudinal groups, by demographics, 2008
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