Total retail sales of tea and RTD tea posted estimated gains of 5.6% in 2016, thanks to the success seen in the RTD tea segment, which dominates US sales and category growth. Sales reached more than $7.47 billion as strong year-over-year growth continues, despite struggles in dollar sales from brewed tea (bagged, loose leaf, and single cup teas) as the segment faces greater innovation within the RTD tea space, longer purchase cycles, and sales loss from leading bagged tea companies. Total category sales are expected to continue upward as consumers search for functional, healthful drinks, particularly driven by RTD tea growth.

This Report covers the retail market for tea purchased for at-home or on-the-go consumption. For the purposes of this Report, Mintel has used the following definitions:

• Canned/bottled RTD tea – shelf-stable RTD teas in single-serve and multi-serve sizes

• Refrigerated tea – fresh brewed tea requiring refrigeration or teas sold in the refrigerated or chilled areas at retail in single-serve or multi-serve sizes. This includes kombucha; however, sales are too small to reflect any effect on the category

• Bagged, loose leaf, and single-cup teas, including black, white, green, and fruit/herbal teas - bagged may be single-cup or multi-cup sizes. Powdered teas do not refer to instant mixes or crystalized teas or powders, but rather powdered tea leaves that are brewed and ingested (eg matcha).

The Report references “brewed teas” to classify the bundled segments of bagged, loose leaf, powdered, and/or single-cup teas, which require brewing at home.

Source: Mintel

Teas sold through foodservice outlets are not included in the Report, but feature in Mintel’s Coffee Houses and Tea Shops – US, December 2015.