Table of Contents
Executive Summary
-
- The market
- Inflation drives values while volume sales continue to fall in tea
-
- Figure 1: UK retail value sales of tea, 2013-23
- Ordinary teabags see ongoing drop in volume sales
-
- Figure 2: UK retail value sales of tea, by segment, 2016 and 2017
- Hot chocolate and malted drinks see ongoing decline
-
- Figure 3: UK retail value sales of hot chocolate and hot malted drinks, by segment, 2016 and 2017
- Incomes set to rise but expenditure to remain subdued
- Drop in younger people poses potential barrier to growth
- Companies and brands
- Market leader PG Tips sees sales fall in tea
-
- Figure 4: Leading brands’ value shares in the tea retail market, 2017/18*
- Cadbury leads in hot chocolate but sees sales fall
-
- Figure 5: Leading brands’ value shares in the hot chocolate retail market, 2017/18*
- Market leader Horlicks sees continued decline in malted drinks
-
- Figure 6: Leading brands’ value shares in the malted drinks retail market, 2017/18*
- PG Tips launches dairy-free blend
- Environmental claims remain widespread in tea
- Adspend continues downward trajectory in 2017
- PG Tips scores highest on brand commitment
- The consumer
- Standard tea dominates; 70% drink it, 45% daily
-
- Figure 7: Frequency of drinking tea, by tea type, May 2018
- Hot chocolate remains an infrequent treat
-
- Figure 8: Frequency of drinking hot chocolate and hot malted drinks, May 2018
- Branded opportunities in hot chocolate
-
- Figure 9: Interest in innovation in tea, hot chocolate and malted drinks, May 2018
- Hydration benefits of tea noted by 83%
-
- Figure 10: Attitudes towards tea, May 2018
- Standard tea is seen to be traditional, comforting and refreshing
-
- Figure 11: Correspondence analysis of qualities associated with hot drinks, May 2018
- A third see RTD cold tea as a good alternative to other soft drinks
-
- Figure 12: Attitudes to RTD cold tea, May 2018
- What we think
Issues and Insights
-
- Cold versions of tea can help the market to better compete with soft drinks
- The facts
- The implications
- Opportunities for brands to talk about how dairy-free milks influence tea
- The facts
- The implications
- Highlighting ethical/environmental credentials is timely given current consumer sentiment
- The facts
- The implications
The Market – What You Need to Know
-
- Inflation drives values while volume sales continue to fall in tea
- Hot chocolate and malted drinks see ongoing decline
- Ordinary teabags see ongoing drop in volume sales
- Decline in tea drinking plateaus
- Price rises seen in the market
- Incomes set to rise but expenditure to remain subdued
- Drop in younger people poses potential barrier
Market Size and Forecast
-
- Inflation drives values while volume sales continue to fall in tea
-
- Figure 13: UK retail value and volume sales of tea, 2013-23
- Rise in values predicted, on the back of falling volumes
-
- Figure 14: UK retail value sales of tea, 2013-23
-
- Figure 15: UK retail volume sales of tea, 2013-23
- Hot chocolate and malted drinks see ongoing decline
-
- Figure 16: UK retail value and volume sales of hot chocolate and malted drinks, 2013-23
- Further decline expected in hot chocolate and malted drinks
-
- Figure 17: UK retail value sales of hot chocolate and malted drinks, 2013-23
- Figure 18: UK retail volume sales of hot chocolate and malted drinks, 2013-23
- Forecast methodology
Market Segmentation
-
- Ordinary teabags see ongoing drop in volume sales
-
- Figure 19: UK retail value and volume sales of tea, by segment, 2015-17
- Continued decline in hot chocolate and malted drinks
-
- Figure 20: UK retail value and volume sales of hot chocolate and hot malted drinks, by segment, 2015-17
Market Drivers
-
- Decline in tea drinking plateaus
-
- Figure 21: UK household purchases of tea, coffee and cocoa, hot chocolate and malted drinks, 1974-2016/17
- Under pressure from coffee and soft drinks
- Price rises seen in the market
- Incomes set to rise but expenditure to remain subdued
-
- Figure 22: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2012-April 2018
- Drop in younger people poses potential barrier to growth
-
- Figure 23: Trends in the age structure of the UK population, 2013-23
Companies and Brands – What You Need to Know
-
- Market leader PG Tips sees sales fall in tea
- Twinings sees growth slow
- Yorkshire Tea and own-label see sales rise
- Cadbury leads in hot chocolate but sees sales fall
- Market leader Horlicks sees continued decline in malted drinks
- PG Tips launches dairy-free blend
- Environmental claims remain widespread in tea
- Adspend continues downward trajectory in 2017
- PG Tips scores highest on brand commitment
Market Share
-
- Market leader PG Tips sees sales fall in tea
- Unilever buys Pukka
- Twinings sees growth slow
- Yorkshire Tea and own-label see sales rise
-
- Figure 24: Leading brands’ value sales and shares in the tea market, 2016/17 and 2017/18
-
- Figure 25: Leading brands’ volume sales and shares in the tea market, 2016/17 and 2017/18
- Cadbury leads in hot chocolate but sees sales fall
- Options and Galaxy grow but Tassimo falters
-
- Figure 26: Leading brands’ value sales and shares in the hot chocolate market, 2016/17 and 2017/18
- Market leader Horlicks sees continued decline in malted drinks
-
- Figure 27: Leading brands’ value sales and shares in the malted drinks market, 2016/17 and 2017/18
Launch Activity and Innovation
-
- PG Tips launches dairy-free blend
-
- Figure 28: PG Tips launches dairy-free blend, 2018
- Yorkshire Tea unveils Biscuit Brew
-
- Figure 29: Yorkshire Tea launches biscuit brew, 2018
- Twinings targets healthy lifestyles with Superblends launch
-
- Figure 30: Share of new product launches in the UK tea market, by top 10 companies, 2014-18 (sorted by 2017)
-
- Figure 31: Twnings unveils Superblends range, 2018
- Turmeric sees increase in popularity
-
- Figure 32: Turmeric sees increasingly popularity as a flavour component, 2018
- Asda ramps up activity in 2018
-
- Figure 33: Asda launches dessert-inspired tea products, 2018
- Own-labels look to premiumisation trend
-
- Figure 34: Own-labels look to premiumisation, 2017 and 2018
- Environmental claims remain widespread in tea
- Removing plastic from teabags
-
- Figure 35: New product launches in the UK tea market, by top 10 claims (sorted by 2017), 2014-18
- Brands look to certification
- Convenience appeals to time-pressed consumers
-
- Figure 36: Brands launch teas with convenience claims, 2018
- Vivid Matcha looks to single-serve sachets for OTG consumers
- Hot chocolate and malted drinks NPD trails that of tea
- Mars leads NPD; launching pods for Galaxy and Maltesers
- M&S looks to single origin in hot chocolate
-
- Figure 37: M&S launches single origin hot chocolates, 2017
- Versatility could help to increase occasions
-
- Figure 38: Brands pushing versatility, 2017 and 2018
Advertising and Marketing Activity
-
- Adspend continues downward trajectory in 2017
-
- Figure 39: Total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, 2014-18
- Bettys & Taylors of Harrogate leads spend in 2017
-
- Figure 40: Total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, 2014-18
- Unilever cuts spending on PG Tips…
- …as does Tetley
- Twinings, Clipper, Pukka and Teapigs increase spend
- Mondelēz leads spend on hot chocolate
- Nielsen Ad Intel coverage
Brand Research
-
- What you need to need to know
- Brand map
-
- Figure 41: Attitudes towards and usage of selected brands, July 2018
- Key brand metrics
-
- Figure 42: Key metrics for selected brands, July 2018
- Brand attitudes: Twinings is seen to be worth paying more for
-
- Figure 43: Attitudes, by brand, July 2018
- Brand personality: PG Tips, Tetley and Yorkshire Tea are most accessible
-
- Figure 44: Brand personality – Macro image, July 2018
- Twinings offers sophistication; PG Tips, Tetley and Yorkshire Tea reassurance
-
- Figure 45: Brand personality – Micro image, July 2018
- Brand analysis
- Twinings is seen to be worth paying more for; attracting an affluent user base
-
- Figure 46: User profile of Twinings, July 2018
- Yorkshire Tea seen to be authentic
-
- Figure 47: User profile of Yorkshire Tea, July 2018
- PG Tips scores highest on brand commitment
-
- Figure 48: User profile of PG Tips, July 2018
- Tetley is the least diverse
-
- Figure 49: User profile of Tetley, July 2018
- Clipper is seen to be the most ethical
-
- Figure 50: User profile of Clipper, July 2018
The Consumer – What You Need to Know
-
- Standard tea dominates; 70% drink it, 45% daily
- Hot chocolate remains an infrequent treat
- Branded opportunities in hot chocolate
- Hydration benefits noted by 83%
- Standard tea is seen to be traditional, refreshing and comforting
- Just 9% drink RTD cold tea
- A third see RTD tea as a good alternative to other soft drinks
Drinking Habits – Tea and Other Hot Drinks
-
- Standard tea dominates; 70% drink it, 45% daily
-
- Figure 51: Frequency of drinking tea, by tea type, May 2018
- Speciality, fruit and green tea are drunk by 36%
-
- Figure 52: Usage of speciality, green or fruit and herbal/spice tea, by household income, May 2018
- A desire for variety: 34% drink 3-6 types of tea
-
- Figure 53: Repertoire of types of tea drunk, May 2018
- Hot chocolate remains an infrequent treat
-
- Figure 54: Frequency of drinking hot chocolate and hot malted drinks, May 2018
Interest in Innovation
-
- Branded opportunities in hot chocolate
-
- Figure 55: Interest in innovation in tea, hot chocolate and malted drinks, May 2018
- Environmental issues hold sway
- 22% show interest in tea using British ingredients
-
- Figure 56: Tea products highlight English ingredients, 201 5 and 2017
- Premium cues appeal to minority
Attitudes towards Tea
-
- Hydration benefits noted by 83%
-
- Figure 57: Attitudes towards tea, May 2018
- 43% take their own tea to work
- 59% keep their tea in the packaging it comes in
- 29% are tea connoisseurs
-
- Figure 58: Agreement with the statement ‘I consider myself a tea connoisseur’, by age, May 2018
-
- Figure 59: M&S provides guidance on how to make the perfect brew, 2018
- 23% drink tea with alternative milks
- Knowing how much goes to the farmer would make fair trade tea worth paying more for
-
- Figure 60: Tea and other hot drinks – CHAID – Tree output, May 2018
Qualities Associated with Hot Drinks
-
- Standard tea is seen to be traditional, comforting and refreshing
- Speciality tea seen to be premium; green and fruit most healthy
-
- Figure 61: Correspondence analysis of qualities associated with hot drinks, May 2018
-
- Figure 62: Qualities associated with tea and other hot drinks, May 2018
- Hot chocolate is most comforting and indulgent
-
- Figure 63: Asda calls out indulgence in product name, 2018
- Methodology
Usage of and Attitudes Related to RTD Cold Tea
-
- Just 9% drink RTD cold tea
- Coca-Cola’s launch of Fuze Tea could build momentum
-
- Figure 64: Types of bottled drinks drunk, May 2018
- A third see RTD cold tea as a good alternative to other soft drinks
-
- Figure 65: Attitudes to RTD cold tea, May 2018
- Opportunities for tea brands to branch into RTD cold tea
- Sugar content is a concern for 29%
- Opportunities for non-sweet flavours
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- CHAID – Methodology
-
- Figure 66: Tea and other hot drinks – CHAID – Table output, May 2018
Appendix – Market Size and Forecast
-
-
- Figure 67: UK value sales of tea, best- and worst-case forecast, 2018-23
- Figure 68: UK volume sales of tea, best- and worst-case forecast, 2018-23
- Figure 69: UK value sales of hot chocolate and malted drinks, best- and worst-case forecast, 2018-23
- Figure 70: UK volume sales of hot chocolate and malted drinks, best- and worst-case forecast, 2018-23
- Forecast methodology
-
Appendix – Market Drivers
-
-
- Figure 71: UK household purchases of mineral or spring waters and soft drinks, 1992-2016/17
-
Appendix – Market Share
-
-
- Figure 72: Leading manufacturer’s value and volume sales and shares in the tea market, 2016/17 and 2017/18
- Figure 73: Leading manufacturer’s value and volume sales and shares in the hot chocolate market, 2016/17 and 2017/18
-
Appendix – Launch Activity and Innovation
-
-
- Figure 74: Share of new product launches in the UK tea market, by branded and private label, 2014-18
- Figure 75: Share of new product launches in the UK tea market, by top 20 flavours (sorted by 2017), 2014-18
-
- Figure 76: Share of new product launches in the UK tea market, by claim category (sorted by 2017), 2014-18
- Figure 77: Share of new product launches in the UK hot chocolate and malted drinks markets, by launch type, 2014-18
-
- Figure 78: Share of new product launches in the UK hot chocolate and malted drinks markets, by top 10 companies (sorted by 2017), 2014-18
- Figure 79: Share of new product launches in the UK hot chocolate and malted drinks markets, by top 10 flavours (sorted by 2017), 2014-18
-
Appendix – Advertising and Marketing Activity
-
-
- Figure 80: Total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, by top 10 brands, (sorted by 2017), 2014-18
-
Back to top