Storm Brewing For UK Tea Industry

 Breaking News
  • European Commission Clears Bayer’s Acquisition of Monsanto The European Commission has approved under the EU Merger Regulation the $62.5 billion acquisition of Monsanto by Bayer. The merger is conditional on the divestiture of an extensive remedy package, which addresses the parties’ overlaps in seeds, pesticides and digital agriculture. Commissioner Margrethe Vestager, in charge of competition policy, says: “We have approved Bayer’s plans to [...]...
  • Management Plan to Fortify Fishing Sector in Western Mediterranean Sea The European Commission has proposed a multi-annual plan for fish stocks in the western Mediterranean Sea. The proposal covers demersal fish stocks, ie fish that live and feed at the bottom of the seabed, and bring a significant income to the fisheries sector in the region. According to the latest data, it is estimated that in 2015, [...]...
  • Major International Summit in Belfast to Tackle Escalating Problem of Food Integrity Food-security experts from all over the world will converge on Belfast from 28-31 May 2018 for a major Summit on how to feed a growing global population – amid massive challenges such as climate change, Brexit, labyrinthine food-supply chains and food fraud on a global scale. The Belfast Summit on Global Food Integrity will be chaired by Professor Chris Elliott [...]...
  • Cargill’s Launches De-oiled Rapeseed Lecithin Products In response to growing consumer demand for label-friendly ingredients, Cargill is introducing a new range of de-oiled lecithin products to complete its portfolio of GMO and non-GMO lecithin products.  A first to market in Europe, Cargill’s de-oiled rapeseed lecithin products help bakery and snacks manufacturers deliver the recognizable ingredient label that consumers want, at an [...]...
  • Tetra Pak Scoops Top Award For Manufacturing Excellence Tetra Pak’s packaging material factory in Izmir, Turkey, has received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years. Appraised by the Japan Institute of Plant Maintenance​, the World Class Total Production Maintenance (TPM) Award is presented to facilities that [...]...

Storm Brewing For UK Tea Industry

Storm Brewing For UK Tea Industry
March 28
13:53 2011

Latest research from Mintel finds that while 88% of British consumers aged over 65 drink tea, penetration drops to 73% for younger (15-34 year-old) adults. With ever increasing competition in the soft drink sector and more consumers dropping out of the category than are actually entering it, the next generation of traditional tea drinkers may be in jeopardy.

Furthermore, Mintel’s exclusive consumer research shows that younger consumers are less enamoured with ‘traditional English tea’ than their older counterparts – just over half of 16-24 year olds (53%) drink it regularly (ie at least once a week), compared to 68% of over 55s. As a result, despite tea having a large penetration in the UK market with eight in ten UK adults drinking it, tea has been experiencing a long-term decline in usage. Indeed, the proportion of UK adults who drink tea has dropped from 87% in 2006 to 81% in 2010 – at a time when overall soft drinks revenue is on the increase.

With the market value of tea currently standing at £647m, the standard (or ‘traditional English breakfast’) tea segment which accounts for by far the majority (89%) of the value sales in the tea market, has seen declining volume sales as a result of failing to resonate as strongly with the younger generation as it does with the old. Instead, this generation are much more likely to be among the 23% of the population who drink standard ‘English breakfast’ tea alongside newer varieties such as herbal/fruit tea (eg green tea/rooibos) and speciality (eg Assam, Earl Grey) teas. A third (34%) of 16-34 year-old tea drinkers drink all three tea types, but among consumers aged over 55 brought up on traditional tea, this figure declines to 18%.

“Tea is capitalising on the short-term increase in the share of over-65s but failing to convert the younger generations in significant enough numbers to replace those falling out of the market. Our consumer research identifies a younger tea drinking generation who differ markedly from previous generations of tea drinkers. They have a much more adventurous attitude towards drinking tea, enjoying the variety of flitting between standard ‘English’ breakfast, speciality and herbal tea rather than just sticking to one type; and they are keen to try new tea brands and new flavours,” explains Jonny Forsyth, senior drinks analyst at Mintel.

And it seems the decline is not attributable to economic uncertainty either. Ironically, the recent economic downturn has been a short term help to sales. While value sales continue to rise due to rising commodity prices, volume sales from 2005-08 declined 5% (from 82.5m kgs to 78.5m), but 2008/10 saw an 8% increase to 84.6m as consumers spent more time at home and took solace in cheap indulgences – especially ones as psychologically reassuring as standard tea.

“The recent economic climate has played a big part in consumer attitudes to tea and two of the worst winters on record have also assisted the market, not to mention heavy discounting activity. However, the sector remains too reliant on traditional English breakfast tea, which is failing to resonate with younger consumers, and needs to do more to attract new consumers to the health benefits of herbal tea and the premium tasting benefits of speciality.” Jonny Forsyth adds.

Meanwhile, herbal tea hit the £80m mark for the first time in 2010 (up from £73m in 2009) and has grown its share of the market to stand at 11%. However, Mintel’s research reveals that almost a third (31%) of standard tea drinkers do not believe in the health benefits of herbal/fruit teas, which is a problem for a niche sector trying to broaden its user base.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here