Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Tea and RTD Tea - US - August 2017

"Dollar sales of tea are projected to reach $8 billion in 2017. The market has continued steady dollar sales growth, increasing 24% from 2012-17. 79% of US adults drink tea, 60% drink RTD options, and 49% drink bagged/loose-leaf varieties. Good news comes from the fact that a higher percentage of drinkers are increasing tea consumption than are decreasing. Strong performance in the canned/bottled RTD segment, which delivers on convenience and variety for time-strapped, thirsty consumers, drives gains. The pace of tea growth is expected to slow amid a non-alcoholic beverage market ripe with stiff competition vying for share of stomach."

- Beth Bloom, Associate Director, US Food and Drink Reports

This report will look at the following areas:

  • Tea and RTD market grows 24% 2012-17; slowdown ahead
  • Instant tea mixes continue to struggle
  • Consumers have a fridge-full of options to quench their thirst

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Tea and RTD market grows 24% 2012-17; slowdown ahead
            • Figure 1: Total US retail sales and forecast of tea and RTD tea, at current prices, 2012-22
          • Instant tea mixes continue to struggle
            • Figure 2: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2012-22
          • Consumers have a fridge-full of options to quench their thirst
            • The opportunities
              • One in five tea drinkers has increased consumption in the past year
                • Figure 3: Tea statements – Change in consumption, May 2017
              • Varied perception of products spells a category ripe for targeted marketing
                • Figure 4: Tea attributes, by type, May 2017
              • More effort could be made to help tea stand out from other drink options
                • Figure 5: Tea statements – Health, May 2017
              • What it means
              • The Market – What You Need to Know

                • Tea and RTD market grows 24% 2012-17
                  • Canned/bottled RTD tea continues to lead the category
                    • Consumers have a fridge-full of options to quench their thirst
                      • Label updates and sugar taxes could help/hurt tea category
                        • Less than one in four adults feel in control of stress
                        • Market Size and Forecast

                          • Tea and RTD market grows 24% 2012-17
                            • Figure 6: Total US retail sales and forecast of tea and RTD tea, at current prices, 2012-22
                            • Figure 7: Total US retail sales and forecast of tea and RTD tea, at current prices, 2012-22
                            • Figure 8: Total US retail sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2012-22
                        • Market Breakdown

                          • Canned/bottled RTD tea continues to lead the category
                            • Bagged/loose leaf segment lacks luster
                              • Dollar sales of refrigerated tea grow 51%
                                • Instant tea mixes continue to struggle
                                  • Figure 9: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2012-22
                                • “Other” channels lead sales of tea
                                  • Figure 10: Total US retail sales of tea and RTD tea, by channel, at current prices, 2015 and 2017
                                • Tea sales grow 12% in natural channels 2015-17
                                  • Figure 11: Natural supermarket sales of tea and RTD tea, at current prices, 2015-17
                                  • Figure 12: Natural supermarket sales of tea and RTD tea, at current prices, 2015-17
                              • Market Perspective

                                • Consumers have a fridge-full of options to quench their thirst
                                  • Kombucha takes aim at CSDs
                                    • Tea lattes may help tea compete with coffee
                                      • Tea and lemonade blends can appeal as a lower calorie juice option
                                        • Label updates/anti-sugar laws put the focus on sugar; could help/hurt the category
                                          • Lightly sweetened product imply taste satisfaction, with lower guilt
                                            • Honey may help tea stay ahead of sugar concerns
                                              • Tea on-premise may do more to provide inspiration than competition
                                                • Figure 13: Tea drinks consumed at home vs away from home, October 2016
                                                • Figure 14: Coffee/tea drink interest, September 2016
                                            • Market Factors

                                              • Less than one in four adults feel in control of stress
                                                • Figure 15: Self-perception of stress control, by gender and age, household income, parental status by gender, and employment status, October 2016
                                            • Key Players – What You Need to Know

                                              • Pepsi Lipton controls 20% of MULO sales of tea
                                                • Lipton sees strong growth in refrigerated tea segment
                                                  • Bagged, loose leaf, single-cup tea launches on the decline
                                                    • RTD and instant launch activity shows increased emphasis on clean products
                                                    • Company and Brand Sales of Tea and RTD Tea

                                                      • Pepsi Lipton controls 20% of MULO sales of tea
                                                        • Sales of tea and RTD tea, by company
                                                          • Figure 16: MULO sales of tea and RTD tea, by leading companies, 52 weeks ending April 17, 2017
                                                        • Leaders maintain their position in the 52 weeks ending April 17, 2017
                                                          • Figure 17: MULO sales of tea, by leading companies, rolling 52 weeks 2016 and 2017
                                                      • What’s Working?

                                                        • Premium positioning benefits the canned/bottled RTD tea segment
                                                          • Figure 18: MULO sales of canned/bottled RTD tea, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                        • Lipton sees strong growth in refrigerated and RTD tea segments; kombucha thrives
                                                          • Figure 19: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                        • Bagged/loose leaf/single-cup tea segment stagnates at MULO; strongest activity seen in wellness-focused brands
                                                          • Figure 20: MULO sales of bagged/loose leaf/single cup tea, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                        • RTD launch activity shows increased emphasis on clean products
                                                          • Figure 21: Tea launches, by segment, 2013-17*
                                                          • Figure 22: Tea launches – RTD*, by leading claims, 2013-17**
                                                        • Unflavored/plain lead RTD launches
                                                          • Figure 23: Tea launches – RTD*, by leading flavors, 2013-17**
                                                        • …while bagged/loose leaf, single-cup segment expands flavors
                                                          • Figure 24: Tea launches – Bagged, loose leaf, and single-cup teas, by leading flavors, 2013-17*
                                                        • …instant tea mixes highlight international flair
                                                          • Figure 25: Tea launches – Instant tea mixes, by leading flavors, 2013-17*
                                                        • RTDs see strong growth in natural channels
                                                          • Figure 26: Natural supermarket sales of tea and RTD tea, by segment, at current prices, 2015-17
                                                      • What’s Struggling?

                                                        • MULO sales of instant tea mixes decline by 5%
                                                          • Figure 27: MULO sales of instant tea mixes, by leading companies and brands, rolling 52 weeks 2016 and 2017
                                                          • Figure 28: Tea launches – Instant tea mixes, by format, 2013-17*
                                                      • What’s Next?

                                                        • Brands experiment with mouthfeel of RTDs
                                                          • Tea cocktails move tea beyond the non-alcoholic beverage space
                                                            • Cooking with tea may kickstart sluggish loose leaf tea sales
                                                            • The Consumer – What You Need to Know

                                                              • 79% of US adults drink tea
                                                                • One in five tea drinkers has increased consumption in the past year
                                                                  • Interest in flavored/herbal tea on the rise
                                                                    • Tea has a strong association with relaxation
                                                                      • Promoting energy may boost morning tea consumption
                                                                        • More effort could be made to help tea stand out from other drink options
                                                                        • Who’s Drinking Tea?

                                                                          • 79% of US adults drink tea
                                                                            • Figure 29: Tea consumption – Net, May 2017
                                                                          • Instance of tea consumption split by gender; tea types vary
                                                                            • Figure 30: Share of tea consumption – Net, by gender, May 2017
                                                                          • 25-44s make up the largest share of tea drinkers
                                                                            • Figure 31: Share of tea consumption – Net, by age, May 2017
                                                                          • Half of teens drink RTD tea
                                                                            • Figure 32: Iced-tea (RTD) consumption, 2012-16
                                                                          • A third of tea drinker comes from HHs earning $100K+
                                                                            • Figure 33: Share of tea consumption – Net, by HH income, May 2017
                                                                          • One in five tea drinkers has increased consumption in the past year
                                                                            • Figure 34: Tea statements – Change in consumption, May 2017
                                                                        • Types of Tea Consumed

                                                                          • RTD
                                                                            • Wide range of RTD options give consumers a lot to choose from
                                                                              • Regular-calorie leads over diet/low-cal RTDs
                                                                                • Fairly even split between single- and multiserve RTDs among consumers overall
                                                                                  • Kombucha consumption is still relatively low
                                                                                    • Figure 35: Tea consumption – RTD tea, May 2017
                                                                                    • Figure 36: Tea consumption – Refrigerated RTD size, by age, May 2017
                                                                                    • Figure 37: RTD tea consumption, by type, 2013-17
                                                                                  • Bagged/loose leaf
                                                                                    • Four in 10 consumers drink bagged tea
                                                                                      • Figure 38: Tea consumption – Bagged/loose leaf tea, May 2017
                                                                                      • Figure 39: Tea consumption – Bagged/loose leaf tea, by age, May 2017
                                                                                    • Interest in flavored/herbal tea on the rise
                                                                                      • Figure 40: Tea consumption – Bagged/loose leaf tea, by flavor, 2013-17
                                                                                    • Hot preparation leads iced tea usage for bags
                                                                                      • Figure 41: Tea consumption – Bagged/loose leaf tea, by purpose, 2013-17
                                                                                    • Single-cup
                                                                                      • Iced tea leads single-cup usage
                                                                                        • Figure 42: Tea consumption – Single-cup tea, May 2017
                                                                                      • Instant
                                                                                        • Instant iced tea mix use on the decline
                                                                                          • Figure 43: Tea consumption – Instant iced tea mix, 2013-15
                                                                                        • Caffeinated vs. decaffeinated
                                                                                          • A higher percentage of tea drinkers primarily drink caffeinated varieties
                                                                                            • Figure 44: Tea statements – Caffeinated, May 2017
                                                                                          • Tea repertoire
                                                                                            • Nearly a quarter of consumers drink 3-4 types of tea
                                                                                              • Figure 45: Repertoire of tea consumption, May 2017
                                                                                            • Young adults are more likely to purchase multiple tea types
                                                                                              • Figure 46: Repertoire of tea consumption, by age, May 2017
                                                                                            • Bagged tea leads for being the single tea of choice
                                                                                              • Figure 47: Repertoire of tea consumption – net types, May 2017
                                                                                          • Reasons for Consumption

                                                                                            • Tea performs well for flavor
                                                                                              • Figure 48: Reasons for consumption, by type – net, May 2017
                                                                                            • Women are more likely to turn to tea for health reasons
                                                                                              • Figure 49: Reasons for consumption, by gender, May 2017
                                                                                            • Tea hits a lot of marks for younger consumers, underperforms on flavor
                                                                                              • Figure 50: Reasons for consumption, by age, May 2017
                                                                                          • Drinking Occasions

                                                                                            • Coffee leads for morning consumption
                                                                                              • Figure 51: Drinking occasion – daypart, by beverage type, May 2017
                                                                                              • Figure 52: Drinking occasion – Daypart, by tea type, May 2017
                                                                                            • Promoting energy may boost morning tea consumption
                                                                                              • Figure 53: Drinking occasion – energy, by beverage type, May 2017
                                                                                              • Figure 54: Drinking occasion – energy, by tea type, by age, May 2017
                                                                                            • Weather occasions may present a strong opportunity for tea marketing
                                                                                              • Figure 55: Drinking occasion – weather, by beverage type, May 2017
                                                                                              • Figure 56: Drinking occasion – weather, by tea type, May 2017
                                                                                            • Tea most closely competes with water across other occasions
                                                                                              • Figure 57: Drinking occasion – other occasions, by beverage type, May 2017
                                                                                          • Perceptions of Tea

                                                                                            • Varied perception of products spell a category ripe for targeted marketing
                                                                                              • Figure 58: Tea attributes, by type, May 2017
                                                                                              • Figure 59: Tea statements – RTD, May 2017
                                                                                            • Younger consumers have higher perception of RTDs than do older consumers
                                                                                              • Figure 60: Tea attributes – Type, by age, May 2017
                                                                                            • More effort could be made to help tea stand out from other drink options
                                                                                              • Figure 61: Tea statements – Health, May 2017
                                                                                            • Tea drinkers aren’t bothered by time
                                                                                              • Figure 62: Tea statements – Brew, by gender and age, May 2017
                                                                                          • Appendix – Data Sources and Abbreviations

                                                                                            • Data sources
                                                                                              • Sales data
                                                                                                • Fan chart forecast
                                                                                                  • Consumer survey data
                                                                                                    • Abbreviations and terms
                                                                                                      • Abbreviations
                                                                                                      • Appendix – The Market

                                                                                                          • Figure 63: Total US retail sales and forecast of refrigerated tea, at current prices, 2012-22
                                                                                                          • Figure 64: Total US retail sales and forecast of refrigerated tea, at inflation-adjusted prices, 2012-22
                                                                                                          • Figure 65: Total US retail sales and forecast of canned/bottled RTD tea, at current prices, 2012-22
                                                                                                          • Figure 66: Total US retail sales and forecast of canned/bottled RTD tea, at inflation-adjusted prices, 2012-22
                                                                                                          • Figure 67: Total US retail sales and forecast of bagged, loose leaf, and single-cup, at current prices, 2012-22
                                                                                                          • Figure 68: Total US retail sales and forecast of bagged, loose leaf, and single-cup, at inflation-adjusted prices, 2012-22
                                                                                                          • Figure 69: Total US retail sales and forecast of instant tea mixes, at current prices, 2012-22
                                                                                                          • Figure 70: Total US retail sales and forecast of instant tea mixes, at inflation-adjusted prices, 2012-22
                                                                                                          • Figure 71: US supermarket sales of tea and RTD tea, at current prices, 2012-17
                                                                                                          • Figure 72: US drugstore sales of tea and RTD tea, at current prices, 2012-17
                                                                                                          • Figure 73: US sales of tea and RTD tea through other retail channels, at current prices, 2012-17
                                                                                                      • Appendix – Key Players

                                                                                                          • Figure 74: MULO sales of tea and RTD tea, by leading companies, rolling 52 weeks 2016 and 2017
                                                                                                          • Figure 75: Tea launches, by segment, 2013-17*
                                                                                                          • Figure 76: Tea launches – RTD*, by leading claims, 2013-17**
                                                                                                          • Figure 77: Tea launches – Bagged, loose leaf, and single-cup teas, by leading claims, 2013-17*
                                                                                                          • Figure 78: Tea launches – Instant tea mixes, by leading claims, 2013-17*
                                                                                                          • Figure 79: Tea launches – RTD*, by leading flavors, 2013-17**
                                                                                                          • Figure 80: Tea launches – Bagged, loose leaf, and single-cup teas, by leading flavors, 2013-17*
                                                                                                          • Figure 81: Tea launches – Instant tea mixes, by leading flavors, 2013-17*
                                                                                                          • Figure 82: Tea launches – RTD*, by pack type, 2013-17**
                                                                                                          • Figure 83: Tea launches – Bagged, loose leaf, and single-cup teas, by format, 2013-17*
                                                                                                          • Figure 84: Tea launches – Instant tea mixes, by format, 2013-17*
                                                                                                          • Figure 85: Natural supermarket sales of tea and RTD tea, by segment, at current prices, 2015-17
                                                                                                          • Figure 86: Natural supermarket sales of tea and RTD tea, by flavor, at current prices, 2015-17
                                                                                                          • Figure 87: Natural supermarket sales of tea and RTD tea, by packaging, at current prices, 2015-17
                                                                                                          • Figure 88: Natural supermarket sales of tea and RTD tea, by organic ingredients, at current prices, 2015-17
                                                                                                          • Figure 89: Natural supermarket sales of tea and RTD tea, by fair-trade labeling/certification, at current prices, 2015-17
                                                                                                          • Figure 90: Natural supermarket sales of tea and RTD tea, by presence of GMO ingredients, at current prices, 2015-17
                                                                                                          • Figure 91: Natural supermarket sales of tea and RTD tea, by "natural" labeling or perception, at current prices, 2015-17

                                                                                                      Companies Covered

                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                      Tea and RTD Tea - US - August 2017

                                                                                                      US $3,995.00 (Excl.Tax)