Table of Contents
Executive Summary
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- The market
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- Figure 1: UK retail value sales and forecast for the tea market, 2010-20
- Market factors
- The warm weather in 2014 was bad news for the tea market
- Climate change is a major issue for the tea industry
- Growth in 25-34s to benefit the green and herbal tea markets
- Companies, brands and innovation
- PG Tips and Tetley lose sales
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- Figure 2: Top brands’ shares in the UK tea market, by value, 2014/15*
- High-profile NPD activity in the fruit/herbal and green tea segments
- An uptick in adspend in 2014
- The consumer
- Most people drink standard tea daily
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- Figure 3: Frequency of usage of tea, by type, April 2015
- Tea is an established partner for biscuits and cakes
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- Figure 4: Attitudes towards tea, April 2015
- Mood enhancement and health are key to the appeal of green and herbal teas
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- Figure 5: Attitudes towards fruit, herbal and green tea, April 2015
- Standard tea is set apart by its traditional quality
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- Figure 6: Correspondence Analysis – tea, April 2015
- What we think
Issues and Insights
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- Encouraging people to use tea in more ways other than simply drinking it hot can help to boost usage frequency
- The facts
- The implications
- Encouraging experimentation can help to inject more excitement into the tea market
- The facts
- The implications
- Gifting can be more actively encouraged by tea operators
- The facts
- The implications
Market Drivers
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- Key points
- Long-term decline in purchasing of tea
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- Figure 7: UK household purchases of tea, coffee and cocoa, hot chocolate and malt drinks, 1974-2013
- Tea prices can be volatile depending on harvests
- The warm weather in 2014 was bad news for the tea market
- Growth in 25-34s to benefit the green and herbal tea markets
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- An increase in launches of loose tea in 2014
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- Figure 8: New product launches in the UK tea market, by format type, 2010-15
- A packaging revamp sees Pukka jump to the top in terms of NPD
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- Figure 9: New product launches in the UK tea market, by top 10 ultimate companies, 2010-15
- Other stalwarts give their packaging a design makeover
- More companies expand into herbal and green tea
- Functional benefits provide scope for NPD
Market Size and Forecast
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- Key points
- Long-term decline within the tea market
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- Figure 10: UK retail sales value and volumes for the tea market, 2010-20
- The future
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- Figure 11: UK retail volume sales and forecast for the tea market, 2010-20
- Figure 12: UK retail value sales and forecast for the tea market, 2010-20
- Methodology
Segment Performance
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- Key points
- Ordinary teabags continue to lose share
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- Figure 13: UK retail value sales of tea, by segment, 2012-14
- Fruit/herbal, speciality and green teas are the rising stars
- Loose tea is down
Market Share
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- Key points
- PG Tips and Tetley lose sales
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- Figure 14: Top brands’ sales and shares in the UK tea market, by value and volume, 2012/13-2014/15
- Twinings and Pukka benefit from increased interest in herbal teas
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- Figure 15: Top manufacturers’ sales and shares in the UK tea market, by value and volume, 2012/13-2014/15
Companies and Products
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- Apeejay
- Background
- Product range
- Product innovation
- Advertising and promotion
- Associated British Foods
- Background
- Product range
- Product innovation
- Advertising and promotion
- Taylors of Harrogate
- Background
- Product range
- Advertising and promotion
- Tata Global Beverages
- Background
- Product range
- Product advertising and promotion
- Unilever
- Background
- Product range
- Product innovation
- Advertising and promotion
Brand Research
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- What you need to know
- Brand map
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- Figure 16: Attitudes towards and usage of selected brands, June 2015
- Key brand metrics
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- Figure 17: Key metrics for selected brands, June 2015
- Brand attitudes: Consumers likely to pay more for Twinings
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- Figure 18: Attitudes, by brand, June 2015
- Brand personality: Accessibility is key to PG Tips and Tetley
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- Figure 19: Brand personality – macro image, June 2015
- Clipper and Twinings have particularly different brand images
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- Figure 20: Brand personality – micro image, June 2015
- Brand analysis
- Twinings has the strongest premium connotations
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- Figure 21: User profile of Twinings, June 2015
- Clipper has ethical point of difference
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- Figure 22: User profile of Clipper, June 2015
- PG Tips enjoys high usage due to its accessibility, value and reassuring nature
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- Figure 23: User profile of PG Tips, June 2015
- Yorkshire Tea is considered masculine compared to other brands
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- Figure 24: User profile of Yorkshire Tea, June 2015
- Tetley has similar overall image to PG Tips but struggles to engage 16-24s as much
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- Figure 25: User profile of Tetley, June 2015
Brand Communication and Promotion
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- Key points
- An uptick in adspend in 2014
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- Figure 26: Recorded above-the-line, online display and direct mail total advertising expenditure on tea, 2011-15
- Unilever reclaims its place as the highest-spending advertiser
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- Figure 27: Recorded above-the-line, online display and direct mail total advertising expenditure on tea, by top 10 advertisers, 2011-15
- Spend on Yorkshire Tea reaches a four-year high
- Tetley’s £13 million campaign continues with new ad
- ABF plans a £10 million investment for Twinings in 2015
- Tea gets the Aldi treatment
- Coverage/methodology clarification:
The Consumer – Usage of Tea
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- Key points
- Most people drink standard tea daily
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- Figure 28: Frequency of usage of tea, by type, April 2015
- One in three stick to one type of tea
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- Figure 29: Repertoire of types of tea used, April 2015
- Tea usage varies by age and socio-economic status
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- Figure 30: Consumers who drink speciality tea, green tea, fruit/herbal tea and instant tea at least once a day, by gender, age and socio-economic group, April 2015
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- Figure 31: Consumers who drink one type of tea and those who drink five types of tea, by age, April 2015
- Tea is most likely to be drunk in the morning and afternoon
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- Figure 32: Times of day at which tea is typically drunk, April 2015
The Consumer – Attitudes towards Tea
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- Key points
- Tea is an established partner for biscuits and cakes
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- Figure 33: Attitudes towards tea, April 2015
- Willingness to spend more on high-quality tea
- Brands can encourage more use of tea in cooking and baking
- New formats appeal to four in 10 under-35s
The Consumer – Attitudes towards Fruit, Herbal and Green Tea
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- Key points
- Mood enhancement and health are key to the appeal of green and herbal teas
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- Figure 34: Attitudes towards fruit, herbal and green tea, April 2015
- Smaller packs can encourage experimentation
- Scope to build on diet connotations with green/fruit teas
- Interest from 16-24s in creating their own cold tea-based drinks
The Consumer – Qualities Associated with Hot Drinks
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- Key points
- Methodology
- Standard tea is set apart by its traditional quality
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- Figure 35: Correspondence Analysis – tea, April 2015
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- Figure 36: Qualities associated with different hot drinks, April 2015
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- Figure 37: Further qualities associated with different hot drinks, April 2015
- The health benefits of green tea are widely accepted
- Higher-caffeine tea could heighten energy-boosting associations
- The tea market is characterised with a lack of excitement
Appendix – Market Size and Forecast
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- Figure 38: Best and worst case forecasts for the total UK tea, by value, 2014-19
- Figure 39: Best and worst case forecasts for the total UK tea, by value, 2014-19
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