Tea and Ready-to-Drink Tea in the U.S., 4th Edition

Request for Sample Pages

Published Date : 1 October 2011

Pages : 192

Add to Cart - Tea and Ready-to-Drink Tea in the U.S., 4th Edition

Tea continues to be a star in the U.S. beverage market. Bolstered by consumers’ thirst for tea’s variety of flavors and healthy qualities, the tea market has shown considerable resilience in the economic downturn. The market is experiencing solid growth, with double-digit gains from refrigerated tea. Ready-to-drink tea in general has been especially strong, particularly in natural food stores and convenience stores. And all teas are hot in foodservice. This report takes a comprehensive look at the retail market for packaged tea in the U.S., with reference to foodservice tea trends for additional perspective. The report examines the key factors driving growth in the category: readers will learn about critical merger and acquisition activity that is changing the distribution landscape for niche organic brands; the diverse range of tea offerings; tea's functional benefits and the regulatory challenge in promoting them; the embrace of tea by fast food giants, coffeehouses, specialty retailers and tea rooms; trends in new product claims; purchasing patterns, demographics and psychographics of the tea consumer; and the new ways in which tea marketers are connecting with customers, including through social media and apps.

The market analysis covers ready-to-drink (RTD) tea, leaf (bagged and loose) tea, refrigerated tea and instant tea. The report segments and quantifies the market by channel and product type, providing historical sales figures and projections through 2016. The report examines market drivers and trends, retail sales-tracking data from SymphonyIRI and SPINSscan, new product trends based on data from Datamonitor’s Product Launch Analytics, and national consumer survey data from Experian Simmons data, as well as a proprietary consumer survey on beverage and tea trends conducted by Packaged Facts. The report thoroughly maps out the competitive situation at the marketer and brand levels, with detailed profiles of AriZona, Bigelow, Celestial Seasonings, Coca-Cola (Gold Peak, Honest Tea and Nestea), Lipton (from Unilever and the Pepsi Lipton Partnership), McDonald’s sweet tea, Nestea, Snapple, Starbuck’s Tazo, Teavana, Turkey Hill and others.

Scope of Report

Retail channels covered include supermarkets and grocery stores, convenience stores, supercenters/mass merchandisers, warehouse clubs, drugstores, gourmet/specialty food stores, supplement chains, direct-sales channels including catalogs and Internet, and alternative channels such as department stores, kitchenware stores and bookstores. Foodservice channels include restaurants, coffeehouses, tea rooms and tea retailers, cafés and bars, and other foodservice establishments.

Report Methodology

The information contained in this report was obtained from primary and secondary research. Primary research entailed consultations with beverage market sources, on-site examination of retail venues, and fielding a proprietary Packaged Facts online consumer survey focusing on beverage product shopper insights. Secondary research included extensive Internet canvassing and research- and data-gathering from relevant consumer business and trade publications; company reports including annual reports, press releases, and investor conference calls; company profiles in trade and consumer publications; government reports; and other food and beverage market reports by Packaged Facts.

Sales estimates are based on data from the above sources as well as SymphonyIRI data for mass-market channels (supermarkets, drugstores and mass merchandisers other than Walmart); SPINSscan data for natural supermarkets; published and estimated sales of major market participants; market size estimates from other sources, including those appearing in the trade press; the performance of relevant retail venues; consumer usage rates for beverage products; and new product introduction activity in the market. Data on new product introductions are based on Product Launch Analytics, a Datamonitor service.

Our consumer analysis draws primarily on two data sources. The first is national consumer survey data from Experian Simmons in its Fall 2010 National Consumer Study, which is based on 24,463 adult respondents surveyed from October 2009 through December 2010, as well as previous-year Experian Simmons surveys. Through an ongoing program of telephone and booklet questionnaire surveys of a large probability sample of consumers who represent a statistically accurate cross-section of the U.S. adult population, Simmons is able construct detailed demographic profiles across various consumer product and service markets, including the beverage market. The discussion of consumer patterns also draws on proprietary Packaged Facts online consumer surveys, including a May/June 2011 survey based on 2,000 U.S. adults (including 1,453 tea drinkers) who in aggregate are census representative on the primary demographic measure of age, gender, geographic region, race/ethnicity, and presence of children in the household.

Table of Contents :

Chapter 1: Executive Summary

Scope and Methodology

Scope of Report

Report Methodology

Varieties of Tea

Market Trends

Tea Grow Despite Tough Economy

Table 1-1: U.S. Retail Sales of Tea, 2007-2011 (in millions of dollars)

Supermarkets at 28% Share

Table 1-2: Share of U.S. Retail Sales of Packaged Tea by Channel, 2011 (percent)

SymphonyIRI-tracked Sales Show Solid Growth

Table 1-3: SymphonyIRI-tracked Sales of Tea: Overall and by Segment, June 2011 (dollars and volume)

RTD Tea Going Strong in Natural Foods Channel

Table 1-4: Sales of Leaf and RTD Tea Products in Natural Supermarket Channel, 2009-2011

Varieties of Tea Purchased by Type

Table 1-5: Tea Drinkers by Types of Tea Purchased, 2011

Tea Is Good For You, But Be Careful How You Say That

All’s Fair in the Tea Trade

Merger Mania

K-Cup Craze

How Sweet It Is for Foodservice

More Robust Tea Sales Growth on the Horizon

Table 1-6: Projected U.S. Retail Sales of Tea, 2011-2016 (in millions)

The Marketers

The Power of Tea Concentrated Among a Few

Table 1-7: Top Marketers of Tea at Food, Drug and Mass Merchandisers, 2010-11 (dollar sales and market share)

Many Big Players in Foodservice

Tea Retailers Take Center Stage

New Product Trends

Tea Leads All Beverages in Innovation

Tea Begins Rebound from Recessionary Lows

Table 1-8: Number of U.S. Tea Product Introductions: Reports and SKUs, 2007-2011

“Natural” the Top Claim, “Upscale” Recedes

Table 1-9: Top Marketing Claims/Package Tags for U.S. Tea Product Introductions: 10-year vs. 1-year Trend for Period Ending July 2011

Marketers Emphasize Functional Benefits

Kombucha Creates a Stir

New Products from Celebri-Teas

Foodservice Chains Bet Big on Tea

Consumer Trends

Tea Remains a Consumer Favorite

Figure 1-1: Household Purchasing of Retail Tea Products, 2010 (percent and number)

Table 1-10: U.S. Households Purchasing Retail Tea Products, 2006-2010 (number in millions and percent)

Regular vs. Decaf

Figure 1-2: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated and Bagged vs. Loose, 2010 (percent)

41% of Households Buy Lipton Leaf Tea

Figure 1-3: Top Brands of Leaf Tea by Household Purchasing Levels, 2009 (percent)

Purchasing Patterns Emerge

Chapter 2: Market Trends

Retail Market Size and Composition

Retail Tea Sales Rise to $6.5 billion

Table 2-1: U.S. Retail Sales of Tea, 2007-2011 (in millions of dollars)

A Multi-Channel Champion

Table 2-2: Share of U.S. Retail Sales of Packaged Tea by Channel, 2011 (percent)

SymphonyIRI-tracked Sales Show Solid Growth

Table 2-3: SymphonyIRI-tracked Sales of Tea: Overall and by Segment, June 2011 (dollars and volume)

RTD Tea Going Strong in Natural Foods Channel

Table 2-4: Sales of Leaf and RTD Tea Products in Natural Supermarket Channel, April 2009 - April 2011

Medicinal Tea Leads the Leaf Tea Category

Table 2-5: Sales of Leaf Tea in the Natural Supermarket Channel, April 2009 - April 2011 (dollars)

Tea Remains One of the Beverage Industry’s Bright Spots

Table 2-6: Beverage Dollar Sales and Market Share by Category, June 2011

Table 2-7: Fastest-Growing Beverage Categories, June 2011

Foodservice Composition

House Wine of the South Spurs Foodservice Growth

“Money in a Cup”

Foodservice Fast Facts

Vending a Key Tea Channel

Fast-Growing Tea Companies

Tea Behaviors

Varieties of Tea Consumed and Single-Serve Purchase Behavior

Table 2-8: Tea Drinkers by Types of Tea Purchased, 2011

Market Dynamics

FDA Cracks Down

Health Studies Abound

Fair Trade Shows Big Jump

Tea Companies Marry and Divorce

Single Cup Platforms Become New Growth Drivers

Tea Marketers Get Creative

Tea 2.0

Looking Ahead

More Robust Tea Sales Growth on the Horizon

Table 2-9: Projected U.S. Retail Sales of Tea, 2011-2016 (in millions)

Chapter 3: The Marketers

Competitive Overview - Packaged Goods

A Handful of Marketers Dominate

Table 3-1: Leading Marketers of Tea at Food, Drug and Mass Merchandisers, April 2011 (dollar sales and market share)

Lipton Has Leaf Tea in the Bag

Table 3-2: Top Marketers and Brands of Bags/Loose Tea by SymphonyIRI-tracked Sales and Volume, April 2011

RTD Marketers Forge Ahead

Table 3-3 Top Marketers and Brands of RTD Tea by SymphonyIRI-tracked Sales and Volume, April 2011

Instant Provides Little Gratification

Table 3-4: Top Marketers and Brands of Instant Tea by SymphonyIRI-tracked Sales and Volume, April 2011

Refrigerated Tea Makes a Case for Itself

Table 3-5: Top Marketers and Brands of Refrigerated Tea by SymphonyIRI-tracked Sales and Volume, April 2011

Competitive Overview - Foodservice

Many Foodservice Tea Suppliers

Competitive Overview - Tearooms and Specialty Stores

A Highly Fragmented Market

The Teavana IPO

Table 3-6: Teavana’s product mix, 2009-2011

The Marketing of Teavana

Chapter 4: Brand Profiles

AriZona (AriZona Beverage Co.)

A Leader in RTD

Growing and Sought After

Capitalizing on a Legendary Golf Drink

Caught in an Immigration Controversy

AriZona Expands Its Packaging Options

A Straightforward Strategy

Bigelow Tea (R.C. Bigelow, Inc.)

A Constant Contender

Partnering with The Great One

Healthy Introductions Abound

Celestial Seasonings (The Hain Celestial Group)

Herbal Leader Experiences Solid Growth

Celestial Seasonings and K-Cups

Couponing, In-store and Social Media

Gold Peak (The Coca-Cola Company)

Pushing for More Share

New Packaging and Delivery Systems Drive Growth

Lipton (Unilever and PepsiCo)

Despite Weak Sales, Lipton Still Dominates

How Pepsi-Lipton Segments the RTD Market

Brisk Takes on the Year’s Biggest Audience

Partnering with Green Lantern and Stickybits

New Products Make a Splash

Nestea (Coca-Cola and Nestlé)

Slipping Sales in RTD

Nestea Emphasizes Online

Red Diamond

Rising Star in Refrigerated Tea

Snapple (Dr. Pepper Snapple Group)

A Turnaround Story

The Northeast Is Snapple’s Stronghold

The Importance of Packaging

Capitalizing on TV Tie-Ins

Turkey Hill

The Big Chilled

Twinings

By Appointment to Her Majesty

Chapter 5: New Product Trends

Overview

Tea Product Launches Pace All Categories

Table 5-1: Number of U.S. Non-Alcoholic Beverage Product Reports/SKUs, July 2011

Tea Begins Rebound from Recessionary Lows

Table 5-2: Number of U.S. Tea Product Introductions: Reports and SKUs, July 2007 - July 2011

What’s in a Claim?

Table 5-3: Top Marketing Claims/Package Tags for U.S. Tea Product Introductions: 10-year vs. 1-year Trend for Period Ending July 2011

Packed Full of Flavors

Table 5-4: Top Flavors in U.S. Tea Product Introductions: 10-years vs. 1-year Trend for Period Ending July 2011

Same Players Introduce New Products

Table 5-5: Top Companies in U.S. Tea Product Introductions, July 2001 - July 2011

Table 5-6: Top Companies in U.S. Tea Product Introductions, July 2011

Packaged Goods Trends

Functional Benefits Popular in New Tea

Coca-Cola’s “Teavolution of Water”

The Curious Case of Kombucha

Bigelow’s Healthy Offerings

Could’ve Had a V8

Tulsi Touches Down

Celebrities Jump on the Tea Bandwagon

My Country Tis of Tea

New Product Trends in Foodservice

The Big Chains Emphasize Tea

Starbucks Gets Bigger

Teavana Unveils New Teas for the 2010-11 Season

Popeyes Gets Sweet

Other New Products Debut in Foodservice

Notable Products at the World Tea Expo

2011 World Tea Expo Best New Product Award Winners

Tea as an Ingredient Winner (Tie)

TEAS' TEA Low-Calories by ITO EN

Packaging Winner (Tie)

Tiesta Tea Tins by Planet Canit

Packaging Winner (Tie)

C+SWISS by Chill Drinks

Innovation Winner

Drip Tea by Sugimoto America, Inc

Open Class Winner (Tie)

Chaitea by Gourmetti Brands Inc.

Open Class Winner (Tie)

Incredible Lid V2 for Hot Beverage by Idea House International, Inc.

Chapter 6: Consumer Trends

Overview

Note on Experian Simmons and Packaged Facts Surveys

Household Purchasing Rates for Retail Tea Products

Figure 6-1: Household Purchasing of Retail Tea Products, 2010 (percent and number)

Table 6-1: U.S. Households Purchasing Retail Tea Products, 2006-2010 (number in millions and percent)

Retail vs. Restaurant Purchasing Rates

Figure 6-2: Tea Drinker Purchasing Patterns: Retail vs. Restaurant, February 2009 (percent)

Figure 6-3: Tea Drinker Purchasing Patterns: Retail or Restaurant Purchasing Patterns for Selected Specialty Tea Products, February 2009 (percent)

Consumer Demographics and Psychographics: Leaf Tea

Overall Usage Patterns for Leaf Tea

Table 6-3: Demographic Indicators for Purchasing Leaf Tea, 2010 (percent, total number and index)

Table 6-4: Household Usage of Leaf Tea by Purpose: Hot Tea vs. Iced Tea, 2010 (percent and number)

Hot vs. Iced Tea

Table 6-5: Select Demographic Indicators for Purchasing Leaf Tea to Make Hot Tea, 2010 (percent, total number and index)

Table 6-6: Psychographic Indicators for Using Leaf Tea to Make Hot Tea, 2010 (percent, total number and index)

Table 6-7: Demographic Indicators for Purchasing Leaf Tea to Make Iced Tea, 2010 (percent, total number and index)

Table 6-8: Psychographic Indicators for Purchasing Leaf Tea to Make Iced Tea, 2010 (percent, total number and index)

Bagged vs. Loose Tea

Table 6-9: Household Purchasing of Leaf Tea by Type: Bagged vs. Loose, 2010 (percent and total number)

Table 6-10: Demographic Indicators for Using Bagged Tea, 2010 (percent, total number and index)

Table 6-11: Demographic Indicators for Using Loose Leaf Tea, 2010 (percent, total number and index)

Table 6-12: Psychographic Indicators for Purchasing Loose Leaf Tea, 2010 (percent, total number and index)

61% of Households Buy Regular Tea

Table 6-13: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated, 2009 (percent and total number)

Figure 6-4: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated and Bagged vs. Loose, 2010 (percent)

Flavor Preferences

Table 6-14: Household Purchasing of Leaf Tea by Flavor, 2010 (percent and total number)

Figure 6-5: Retail Tea Purchasing Patterns by Flavor, February 2009 (percent)

Figure 6-6: Restaurant Tea Purchasing Patterns by Flavor, February 2009 (percent)

Regular Blend Drinkers

Table 6-15: Demographic Indicators for Flavors Used: Regular Blend Tea, 2010 (percent, total number and index)

Green Tea Drinkers

Table 6-16: Demographic Indicators for Flavors Used: Green Tea, 2010 (percent, total number and index)

Table 6-17: Pyschographic Indicators for Flavors Used: Green Tea, 2010 (percent, total number and index)

Herbal Tea Drinkers

Table 6-18: Demographic Indicators for Flavors Used: Herbal Tea, 2010 (percent, total number and index)

Table 6-19: Pyschographic Indicators for Flavors Used: Herbal Tea, 2010 (percent, total number and index)

Fruit/Spice-Flavored Tea Drinkers

Table 6-20: Demographic Indicators for Flavors Used: Fruit/Spice-Flavored Tea, 2010 (percent, total number and index)

Table 6-21: Pyschographic Indicators for Flavors Used: Fruit/Spice-Flavored Tea, 2010 (percent, total number and index)

14% of Households Are Heavy Consumers of Leaf Tea

Table 6-22: Household Consumption Levels for Leaf Tea, 2010 (percent and total number)

Table 6-23: Demographic Indicators for Heavy Household Consumption of Leaf Tea, 2010 (percent, total number and index)

Table 6-24: Psychographic Indicators for Heavy Consumption of Leaf Tea, 2010 (percent, total number and index)

41% of Households Buy Lipton Leaf Tea

Figure 6-7: Top Brands of Leaf Tea by Household Purchasing Levels, 2009 (percent)

Table 6-25: Demographic Indicators for Purchasing Leaf Tea: By Brand, 2010 (index)

Table 6-26: Psychographic Indicators for Purchasing Leaf Tea: By Brand, 2010 (index)

Consumer Demographics and Psychographics: Ready-To-Drink Cold Tea

45% of Households Purchase RTD Cold Tea

Figure 6-8: Household Purchasing of RTD Cold Tea, 2010 (percent and number)

Table 6-27: Demographic Indicators for Purchasing RTD Cold Tea, 2010 (percent, total number and index)

Table 6-28: Psychographic Indicators for Purchasing RTD Cold Tea, 2010 (percent, total number and index)

Regular vs. Diet RTD Tea

Table 6-29: Demographic Indicators for Purchasing Regular RTD Cold Tea, 2010 (percent, total number and index)

Table 6-30: Psychographic Indicators for Purchasing Regular RTD Cold Tea, 2010 (percent, total number and index)

Table 6-31: Demographic Indicators for Purchasing Diet RTD Cold Tea, 2010 (percent, total number and index)

Table 6-32: Psychographic Indicators for Purchasing Diet RTD Cold Tea, 2010 (percent, total number and index)

22% of Households Buy RTD Lipton

Figure 6-9: Top Brands of RTD Cold Tea by Household Purchasing Levels, 2010 (percent)

Patterns by Brand

Table 6-33: Demographic Indicators for Purchasing RTD Cold Tea: By Brand, 2010 (index)

Table 6-34: Psychographic Indicators for Purchasing RTD Cold Tea: By Brand, 2010 (index)

Consumer Demographics and Psychographics: Instant Iced Tea Mix

27% of Households Buy Instant Iced Tea Mix

Figure 6-10: Household Purchasing Instant Iced Tea Mix, 2010 (percent and number)

Table 6-35: Demographic Indicators for Using Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-36: Psychographic Indicators for Using Instant Iced Tea Mix, 2010 (percent, total number and index)

Patterns by Sweetened/Unsweetened Formula Type

Table 6-37: Demographic Indicators for Using Sugar-Sweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-38: Psychographic Indicators for Using Sugar-Sweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-39: Demographic Indicators for Purchasing Unsweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-40: Psychographic Indicators for Using Unsweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-41: Demographic Indicators for Purchasing Sugar-Free Sweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

Table 6-42: Psychographic Indicators for Using Sugar-Free Sweetened Instant Iced Tea Mix, 2010 (percent, total number and index)

6% of Households Are Heavy Consumers of Instant Iced Tea

Figure 6-11: Household Consumption Levels for Instant Iced Tea: Number of Glasses, 2010 (percent and total number)

Table 6-43: Demographic Indicators for Heavy Household Consumption of Instant Iced Tea, 2010 (percent, total number and index)

Table 6-44: Psychographic Indicators for Heavy Consumption of Instant Iced Tea, 2010 (percent, total number and index)

13% of Households Buy Lipton Instant Iced Tea

Figure 6-12: Top Brands of Instant Iced Tea Mix by Household Purchasing Levels, 2010 (percent)

Table 6-45: Demographic Indicators for Purchasing Instant Iced Tea Mix: By Brand, 2010 (index)

Table 6-46: Psychographic Indicators for Using Instant Iced Tea Mix: By Brand, 2010 (index)

Published By : Packaged Facts

PDF Format Reports will be
delivered by email within
12 to 24 hours after placing
the order (Mon-Fri IST)

Australia Research Reports
Brazil Research Reports
Asia Research Reports
China Research Reports
Canada Research Reports
Europe Research Reports
France Research Reports
Egypt Research Reports
Global Research Reports
Greece Research Reports
Germany Research Reports
Japan Research Reports
India Research Reports
Ireland Research Reports
Korea Research Reports
Mexico Research Reports
Maldives Research Reports
New Zealand Research Reports
Netherland Research Reports
Poland Research Reports
Russia Research Reports
South Africa Research Reports
Sri Lanka Research Reports
Singapore Research Reports
Switzerland Research Reports
UK Research Reports
USA Research Reports
UAE Research Reports
Uruguay Research Reports

ExxonMobil Company Analysis
Toyota Motors Company Analysis
ConocoPhillips Company Analysis
Sinopec Company Analysis
Total S.A. Company Analysis
Verizon Company Analysis
Gazprom Company Analysis
JPMorgan Company Analysis
Chevron Company Analysis
E.ON Company Analysis
PetroChina Company Analysis
Allianz Company Analysis
AXA Company Analysis
Carrefour Company Analysis
General Electric Company Analysis
Bank of America Company
Assicurazioni Generali Company
Samsung Electronics Company
GDF Suez Company Analysis
McKesson Corporation Company
Volkswagen Group Company
Royal Dutch Shell Company