Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Overview
- The market
- Healthy reputation scheduled to boost tea and RTD tea sales through 2018
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- 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
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- 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
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- 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
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- 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
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- Figure 5: Attitudes and behaviors toward health and tea (any agree), by age, March 2013
- What we think
Issues and Insights
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- 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 Applications
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- Trend: Experience Is All
- Trend: The Real Thing
- Mintel Futures: Old Gold
Market Size and Forecast
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- Key points
- Category reports annual growth fueled by desire for healthier beverages
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- 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
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- Figure 8: Total U.S. sales and fan chart forecast of tea and RTD tea, at current prices, 2008-18
Market Drivers
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- Key points
- Heavily sweetened teas land on naughty list, could confuse new users
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- 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
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- Figure 10: Purchase of tea, by types, by presence of children in household, March 2013
- Hispanics lead tea consumption among multicultural consumers
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- Figure 11: Purchase of tea, by types, by race and Hispanic origin, March 2013
Competitive Context
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- Key points
- RTD teas fall in shadow of water, CSD consumption
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- Figure 12: Change in personal non-alcoholic drinking habits, by category, November 2012
- Restaurants expand tea menus to encourage beverage purchases
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- 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
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- Key points
- Desire for freshness boosts ready-to-brew, refrigerated segments
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- 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
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- Figure 15: Total U.S. sales and forecast of tea and RTD tea, by segment, 2008-18
Retail Channels
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- Key points
- Other retail channel, supermarkets see growth in tea sales
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- 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
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- 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
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- Figure 18: Tea purchases, by retail channels, by age, March 2013
- Convenience stores remain an important channel for RTD purchases
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- Figure 19: Tea purchases by retail channels by purchase of tea type, March 2013
- Kombucha sales surpass RTD in natural supermarket, continue to grow
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- Figure 20: Natural supermarket sales of tea, RTD tea, and kombucha, by segment, 2011 and 2013*
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- 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
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- 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
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- Key points
- Majority of leaders stagnant, Coca-Cola sees largest rise in sales
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- 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
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- Key points
- Premium-positioned, flavored canned/bottled RTD teas see success
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- 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
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- 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
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- 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
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- 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
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- Key points
- Traditional brands see sales cool, functional and premium teas get hot
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- 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
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- Figure 30: Twinings of London, print ad, October 2012
- Figure 31: Twinings of London, print ad, December 2012
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- Figure 32: Twinings of London, print ad, January/February 2013
- Black consumers seek brands, Asians look for different brands
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- 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
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- Key points
- Half-and-half products not enough to revive instant tea mix market
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- 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
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- Figure 35: Household use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
- Sugar-sweetened mixes connect with youngest adult consumers
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- Figure 36: Household use of instant tea mixes, by age, October 2011-November 2012
- Instant tea mixes could increase usage through portable formats
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- Figure 37: Personal consumption of instant tea mixes by location, by gender, March 2013
- Liquid formats could provide renewed life to struggling segment
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- Figure 38: Attitudes toward liquid tea mixes (any agree), by age, March 2013
Innovations and Innovators
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- New teas must capitalize on open space to avoid over-saturation
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- 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
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- Brand analysis: Snapple
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- Figure 41: Snapple Re-enFACTments, June 17, 2013
- TV presence
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- Figure 42: Snapple, Half ’n Half television ad, 2013
- Brand analysis: Honest Tea
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- Figure 43: Honest Tea, “Lemons” television ad, 2012
- Brand analysis: Lipton
- Ready-to-drink Lipton tea
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- Figure 44: Lipton RTD tea, So Hot It’s Cool television ad, 2013
- Bagged/loose leaf Lipton tea
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- Figure 45: Lipton bagged tea, Feel Inspired television ad, 2013
- Lipton instant tea mixes
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- Figure 46: Lipton Tea & Honey, print ad, July 2012
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- 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
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- Key points
- Social media metrics
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- Figure 49: Key performance indicators, June 2013
- Market overview
- Brand usage and awareness
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- Figure 50: Usage and awareness of selected tea and RTD tea brands, April 2013
- Interaction with tea and RTD tea brands
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- Figure 51: Interaction with selected tea and RTD tea brands, April 2013
- Online conversations
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- 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?
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- Figure 53: Online conversations on selected tea brands, by page type, May 18-June 17, 2013
- What are people talking about?
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- Figure 54: Types of conversations around selected tea brands, May 18-June 17, 2013
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- Figure 55: Types of conversations around selected tea brands, by day, May 18-June 17, 2013
- Analysis by brand
- Snapple
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- Figure 56: Snapple—key social media indicators, June 2013
- Key online campaigns
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- Figure 57: Online mentions of 7-Eleven Snapple giveaway, by day, May 18-June 17, 2013
- What we think
- AriZona Iced Tea
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- Figure 58: AriZona Iced Tea—key social media indicators, June 2013
- Key online campaigns
- What we think
- Lipton
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- Figure 59: Lipton—key social media indicators, June 2013
- Key online campaigns
- What we think
- Tazo
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- Figure 60: Tazo—key social media indicators, June 2013
- Key online campaigns
- What we think
- Honest Tea
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- Figure 61: Honest Tea—key social media indicators, June 2013
- Key online campaigns
- What we think
- Celestial Seasonings
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- Figure 62: Celestial Seasonings—key social media indicators, June 2013
- Key online campaigns
- What we think
The Consumer—Purchase of Tea by Types
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- Key points
- Adults equally interested in both tea segments, RTD reigns with minors
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- Figure 63: Purchase of tea by types, March 2013
- Ready-to-brew tea appeals to more women, young men prefer RTD teas
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- 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
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- Figure 65: Factors influencing ready-to-brew tea purchases, by tea types influencing ready-to-drink tea purchases, March 2013
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- 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
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- Figure 67: Attitudes and behaviors toward health of tea (any agree), by age, March 2013
The Consumer—Consumption Occasions and Locations
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- Key points
- Home most popular venue for tea consumption
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- Figure 68: Personal consumption of tea by location, by gender and age, March 2013
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- 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
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- Figure 70: Personal consumption of tea, by tea type and time of day, March 2013
- Morning consumption more likely to be out-of-home
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- 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.
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- Figure 72: Personal consumption of tea by tea type and occasion, March 2013
The Consumer—RTD Tea Preferences, Occasions, and Attitudes
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- Key points
- Consumers most motivated to purchase green RTD tea rather than black
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- 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
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- 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
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- 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
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- Figure 76: Adult personal consumption of ready-to-drink iced tea by type, by gender and age, October 2011-November 2012
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- 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
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- Figure 78: Personal consumption of multiserving ready-to-drink tea by occasion, by age, March 2013
- Youngest respondents most interested in RTD tea innovations
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- Figure 79: Attitudes and behaviors toward RTD tea (any agree), by age, March 2013
The Consumer—RTB Tea Preferences, Occasions, and Attitudes
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- Key points
- Green tea only slight edges out black tea as top type of RTB tea
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- Figure 86: Personal consumption of bagged or loose leaf tea by location, by gender and age, March 2013
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- 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
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- Figure 88: Attitudes and behaviors toward ready-to-brew tea (any agree), by age, March 2013
Race and Hispanic Origin
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- Key points
- Hispanics most engaged in tea category, equally interested in segments
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- 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
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- 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.
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- 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
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- 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
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- 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
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- Figure 94: Attitudes and behaviors toward tea (any agree), by race and Hispanic origin, March 2013
Cluster Analysis
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- Tea Partiers
- Demographics
- Characteristics
- Opportunity
- RTD Fans
- Demographics
- Characteristics
- Opportunity
- Seldom Sippers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 95: Target clusters, March 2013
- Figure 96: Purchase of tea, by types, by target clusters, March 2013
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- 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
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- 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
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- 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
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- Figure 103: Tea purchases by retail channels, by target clusters, March 2013
- Cluster demographic tables
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- Figure 104: Target clusters, by demographic, March 2013
- Cluster methodology
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- Figure 105: Attitudes and behaviors toward tea (any agree), by target clusters, March 2013
Information Resources Inc. Builders Panel Data
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- Canned and bottled RTD tea
- Consumer insights on key purchase measures: Canned or bottled RTD tea
- Brand map
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- Figure 106: Brand map, selected brands of canned and bottled RTD tea buying rate, by household penetration, 2012*
- Brand leader characteristics
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- 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
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- Figure 108: Brand map, selected brands of bagged/loose tea buying rate, by household penetration, 2012*
- Brand leader characteristics
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- 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
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- Figure 110: Brand map, selected brands of instant tea mixes buying rate, by household penetration, 2012*
- Brand leader characteristics
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- Figure 111: Key purchase measures for the top brands of instant tea mixes, by household penetration, 2012*
Appendix – Food and Drink Market Drivers
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- Obesity
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- Figure 112: U.S. obesity, by age group, 2008 and 2012
- Childhood and teen obesity—highest in decades
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- Figure 113: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
- Racial, ethnic population growth
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- Figure 114: U.S. population by race and Hispanic origin, 2008, 2013, and 2018
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- Figure 115: Households with children, by race and Hispanic origin of householder, 2012
- Shifting U.S. demographics
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- Figure 116: U.S. population, by age, 2008-18
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- Figure 117: U.S. households, by presence of own children, 2002-12
Appendix – Other Useful Consumer Tables
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- Segment performance
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- 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
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- Figure 120: Total U.S. sales and forecast of refrigerated RTD tea, 2008-18
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- Figure 121: Total U.S. sales and forecast of instant tea, 2008-18
- Retail channels
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- 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
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- Figure 124: U.S. sales of tea and RTD tea, through other channels, at current prices, 2008-13
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- Figure 125: Tea purchases by retail channels, by household income, March 2013
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- 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
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- Figure 127: Brands of bags or packages of tea used by households, by region, October 2011-November 2012
- Brand share—Instant tea
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- Figure 128: Household use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
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- Figure 129: Household use of instant tea mixes, by region, October 2011-November 2012
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- Figure 130: Household volume use of instant tea mixes, by race/Hispanic origin, October 2011-November 2012
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- Figure 131: Household volume use of instant tea mixes, by household income, October 2011-November 2012
Appendix—Social Media—Teas and RTD Teas
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- Brand usage or awareness
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- Figure 132: Brand usage or awareness, April 2013
- Figure 133: AriZona Iced Tea usage or awareness, April 2013
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- Figure 134: Snapple usage or awareness, April 2013
- Figure 135: Honest tea usage or awareness, April 2013
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- Figure 136: Lipton usage or awareness, April 2013
- Figure 137: Tazo usage or awareness, April 2013
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- Figure 138: Celestial seasonings usage or awareness, April 2013
- Activities done
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- Figure 139: Activities done, April 2013
- Figure 140: AriZona Iced Tea—Activities done, by demographics, April 2013
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- Figure 141: Snapple—Activities done, by demographics, April 2013
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- Figure 142: Honest Tea—Activities done, by demographics, April 2013
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- Figure 143: Lipton—Activities done, by demographics, April 2013
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- Figure 144: Tazo—Activities done, by demographics, April 2013
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- Figure 145: Celestial seasonings—Activities done, by demographics, April 2013
- Online conversations
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- Figure 146: Online conversations on selected tea brands, by day, May 18-June 17, 2013
- Figure 147: Online conversations on selected tea brands, by page type, May 18-June 17, 2013
- Figure 148: Types of conversations around selected tea brands, May 18-June 17, 2013
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- Figure 149: Types of conversations around selected tea brands, by day, May 18-June 17, 2013
- Figure 150: Online mentions of 7-Eleven Snapple giveaway, by day, May 18-June 17, 2013
- The consumer—Purchase of tea by types
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- Figure 151: Purchase of tea, by types, by gender and age, March 2013
- Figure 152: Purchase of tea, by types, by household income, March 2013
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- Figure 153: Purchase of tea by types for personal use, by generation, March 2013
- Figure 154: Attitudes and behaviors toward tea (any agree), by household income, March 2013
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- Figure 155: Attitudes and behaviors toward tea (any agree), by purchase of tea, March 2013
- The consumer—Consumption occasions and locations
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- Figure 156: 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
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- Figure 157: Personal consumption of single-serve ready-to-drink tea by location, by age, March 2013
- Figure 158: Factors influencing ready-to-drink tea purchases, by generation, March 2013
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- Figure 159: Personal consumption of single-serve ready-to-drink tea by occasion, by age, March 2013
- Figure 160: Teen personal use of ready-to-drink iced tea, by gender and age, October 2011-November 2012
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- Figure 161: 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
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- Figure 162: Types of bags or packages of tea used by households, by age, October 2011-November 2012
- Figure 163: Personal consumption of instant tea mixes by occasion, by gender, March 2013
- Race and Hispanic origin
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- Figure 164: Purchase of tea by types for personal use, by race/Hispanic origin, March 2013
- Figure 165: Personal consumption of single-serve ready-to-drink tea by occasion, by race/Hispanic origin, March 2013
- Figure 166: Personal consumption of ready-to-brew tea by time of day, by race/Hispanic origin, March 2013
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- Figure 167: Personal consumption of ready-to-brew tea by occasion, by race/Hispanic origin, March 2013
- Figure 168: Types of bags or packages of tea used by households, by race/Hispanic origin, October 2011-November 2012
Appendix – Information Resources Inc. Builders Panel Data Definitions
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- Information Resources Inc. Consumer Network Metrics
Appendix – Trade Associations
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