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Tea & RTD Tea - US - July 2015

"The tea and RTD (ready-to-drink) tea category has experienced stellar growth in recent years, the result of growing interest in health and wellness and greater availability in both bagged/loose leaf and RTD teas."

Elizabeth Sisel, Beverage Analyst

This report covers the following areas:

  • Fragmented market challenges brand loyalty
  • Future for single-cup teas?
  • Coffee still holds upper hand

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Tea category continues upward
          • Figure 1: Total US sales and fan chart forecast of market, at current prices, 2010-20
        • The issues
          • Fragmented market challenges brand loyalty
            • Figure 2: MULO sales of tea, by leading companies, rolling 52 weeks ending April 2015
          • Future for single-cup teas?
            • Figure 3: Total US retail sales and forecast of single-cup tea, at current prices, 2010-20
          • Coffee still holds upper hand
            • Figure 4: Beverage Tracker, by coffee and tea, March 2015
          • The opportunities
            • Refrigerated tea popularizes premium
              • Figure 5: Usage – Any consumption, April 2015
            • Consumers looking for healthy, single-serve, sweetened RTD tea
              • Figure 6: Ideal ready-to-drink tea creation, April 2015
            • Opportunities with relaxation RTD teas
              • Figure 7: Ideal RTD tea categorization - Characteristics, April 2015
            • What it means
            • The Market – What You Need to Know

              • Tea continues upward trajectory
                • RTD segments lead in sales and growth; single-cup struggles
                  • Tea prices, health drive growth
                  • Market Size and Forecast

                    • Tea continues upward trajectory
                      • Figure 8: Total US sales and fan chart forecast of market, at current prices, 2009-19
                      • Figure 9: Total US sales and forecast of tea and RTD tea, at current prices, 2010-20
                      • Figure 10: Total US sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2010-20
                  • Market Breakdown

                    • RTD teas lead segment sales, growth; single-cup struggles
                      • Figure 11: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2010-20
                    • RTD tea growth stays consistent through 2020
                      • Figure 12: Total US retail sales and forecast of tea and RTD tea, by canned/bottles tea and refrigerated tea, at current prices, 2010-20
                    • Bagged/loose leaf, single-cup tea growth flat through 2020
                      • Figure 13: Total US retail sales and forecast of tea and RTD tea, by bagged/loose leaf tea and single-cup tea, at current prices, 2010-20
                    • Retail channels experience double-digit sales growth
                      • Figure 14: Total US retail sales of tea and RTD tea, by channel, at current prices, 2013 and 2015
                    • Natural channel sales grow 23.6% from 2013-15
                      • Figure 15: Natural supermarket sales of tea and RTD tea, at current prices, April 2013-15
                    • Segments see sales growth at natural channels
                      • Figure 16: Natural supermarket sales of tea and RTD tea, by form, rolling 52 weeks ending April 2013 and April 2015
                  • Market Factors

                    • US increasing imports of tea
                      • Figure 17: US worldwide imports of tea and mate, trending 1999-2014
                    • Households with families’ income increasing
                      • Figure 18: Median household income, in inflation-adjusted dollars, 2003-13
                    • Households with children decline
                      • Figure 19: Households, by presence of own children, 2003-13
                    • Overweight/obesity trends remain an issue
                      • Figure 20: National percent of adults aged 18+ who are obese or overweight, 2011-13
                      • Figure 21: National percent of students in grades 9-12 who are obese or overweight, 2001-13
                  • Key Players – What You Need to Know

                    • Leading companies ssee MULO sales growth
                      • Private label, other brand, refrigerated teas see success
                        • Single-cup struggles
                        • Manufacturer Sales of Tea and RTD Tea

                          • Leading companies see MULO sales growth
                            • Manufacturer sales of tea and RTD tea
                              • Figure 22: MULO sales of tea, by leading companies, rolling 52 weeks ending April 2015
                              • Figure 23: MULO sales of tea, by leading companies, rolling 52 weeks 2014 and 2015
                          • What’s Working?

                            • Private label, other brands experience MULO sales gains
                              • Figure 24: MULO sales – Other brands and private label, by leading companies and brands, rolling 52 weeks 2014 and 2015
                            • Premium, refrigerated teas sees stellar growth
                              • Kombucha trends
                                • Figure 25: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                              • Health, foodservice benefits leading bagged teas
                                • Bagged tea for health
                                  • Figure 26: MULO sales of bagged and loose leaf tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                              • Who’s Struggling?

                                • Single-serve cups
                                    • Figure 27: MULO sales of single cup tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                                • What’s Next?

                                  • Cold-brew
                                    • Matcha
                                      • Sparkling tea
                                        • Unique brews
                                          • New blends
                                            • Yuanyang
                                            • The Consumer – What You Need to Know

                                              • Majority of consumers drink tea
                                                • Idea RTD tea creation
                                                  • Ideal teas are healthy and relaxing
                                                  • Total Tea Consumption

                                                    • Majority of consumers drink tea
                                                      • Figure 28: Usage – Any consumption, April 2015
                                                      • Figure 29: Teen RTD tea consumption, trended 2010-14
                                                    • Bagged tea most popular with adults
                                                      • Figure 30: Usage – Any adult consumption, April 2015
                                                    • One tea type for the whole family
                                                      • Figure 31: Usage – Any teen/child consumption, April 2015
                                                  • RTD Tea

                                                    • Millennials drinking tea most
                                                      • Figure 32: Usage – Personal consumption, by any ready-to-drink tea, by generations, April 2015
                                                      • Figure 33: Usage – Personal consumption, by ready-to-drink tea type, by generations, April 2015
                                                    • Opportunities with health-focused Gen Xers and Baby Boomers
                                                      • Figure 34: Usage – Personal consumption, by ready-to-drink tea type, by generations, April 2015
                                                    • Parents heavy tea drinkers
                                                      • Figure 35: Usage, by any ready-to-drink tea, by parental status, April 2015
                                                      • Figure 36: Usage – Personal consumption, by ready-to-drink tea type, April 2015
                                                      • Figure 37: Usage, by any ready-to-drink tea, April 2015
                                                  • Bagged/Loose Leaf Tea

                                                    • Women heavy bagged tea users, men dominate loose leaf and powdered
                                                      • Figure 38: Usage – Personal consumption, by bagged/loose leaf tea type, by gender and age, April 2015
                                                    • Higher income levels support all tea consumption
                                                      • Figure 39: Usage – Personal consumption, by any bagged/loose leaf tea, by household income, April 2015
                                                    • Fathers drink more tea
                                                      • Figure 40: Usage – Personal consumption, by bagged/loose leaf tea type, by parental status, April 2015
                                                  • Consumers’ Ideal RTD Tea

                                                    • Perceived ideal RTD tea is natural, healthy, uncarbonated, with vitamins
                                                      • Figure 41: Ideal ready-to-drink tea creation, April 2015
                                                    • Single-serve RTD tea most created
                                                        • Figure 42: Ideal ready-to-drink tea creation – Container type, April 2015
                                                      • Lightly sweetened is ideal
                                                          • Figure 43: Ideal ready-to-drink tea creation – Sweetness level, by generation, April 2015
                                                        • Millennials open to textured RTD tea
                                                            • Figure 44: Ideal ready-to-drink tea creation – Texture, by generation, April 2015
                                                          • Citrus, unflavored teas most popular ideal RTD tea flavors
                                                            • Figure 45: Ideal ready-to-drink tea creation – Flavor, April 2015
                                                            • Figure 46: Top RTD tea flavors, 2010-14
                                                          • Vitamins preferred in ideal RTD tea
                                                              • Figure 47: Ideal ready-to-drink tea creation – Function/attributes, by generations, April 2015
                                                            • Majority wants ideal RTD tea with natural claims
                                                                • Figure 48: Ideal ready-to-drink tea creation – Ingredient/nutritional claims, by generation, April 2015
                                                                • Figure 49: Ideal ready-to-drink tea creation – Ingredient/nutritional claims, by generation, April 2015
                                                            • Ideal Tea Categorization and Usage

                                                              • Ideal teas described as healthy, hydrating, relaxing
                                                                  • Figure 50: Ideal RTD tea categorization – Characteristics, April 2015
                                                                • Ideal RTD tea consumed with meals, on-the-go
                                                                  • Figure 51: Ideal RTD tea categorization – Usage, April 2015
                                                                • Distinct differences between ideal tea as snack or exercise beverage
                                                                    • Figure 52: Correspondence analysis – Ideal RTD tea categorization, April 2015
                                                                • Optimal Target for an Ideal “Relaxing” RTD Tea

                                                                    • Figure 53: Ideal RTD tea characteristics – CHAID – Tree output, April 2015
                                                                • Purchase Location

                                                                  • Supermarkets primary purchase channel
                                                                    • Figure 54: RTD tea purchase location, by generation, April 2015
                                                                    • Figure 55: RTD tea purchase location, by parental status, April 2015
                                                                • Appendix – Data Sources and Abbreviations

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

                                                                                • Figure 56: Total US sales and forecast of canned/bottled tea, at current prices, 2010-20
                                                                                • Figure 57: Total US sales and forecast of canned/bottled tea, at inflation-adjusted prices, 2010-20
                                                                                • Figure 58: Total US sales and forecast of refrigerated tea, at current prices, 2010-20
                                                                                • Figure 59: Total US sales and forecast of refrigerated tea, at inflation-adjusted prices, 2010-20
                                                                                • Figure 60: Total US sales and forecast of bagged/loose leaf tea, at current prices, 2010-20
                                                                                • Figure 61: Total US sales and forecast of bagged/loose leaf tea, at inflation-adjusted prices, 2010-20
                                                                                • Figure 62: Total US sales and forecast of single-cup tea, at current prices, 2010-20
                                                                                • Figure 63: Total US sales and forecast of single-cup tea, at inflation-adjusted prices, 2010-20
                                                                                • Figure 64: Total US retail sales of tea and RTD tea, by channel, at current prices, 2010-15
                                                                                • Figure 65: Natural supermarket sales of tea and RTD tea, by organic content, rolling 52 weeks ending April 2013 and April 2015
                                                                                • Figure 66: Natural supermarket sales of tea and RTD tea, by fair trade labeling/certification, rolling 52 weeks ending April 2013 and April 2015
                                                                                • Figure 67: Natural supermarket sales of bag/loose tea, by type, rolling 52 weeks ending April 2013 and April 2015
                                                                            • Appendix – Key Players

                                                                                • Figure 68: MULO sales of canned and bottled tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                                                                                • Figure 69: MULO sales of refrigerated tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                                                                                • Figure 70: MULO sales of bagged and loose leaf tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                                                                                • Figure 71: MULO sales of single cup tea, by leading companies and brands, rolling 52 weeks 2014 and 2015
                                                                            • Appendix – Correspondence Analysis

                                                                              • Methodology
                                                                                • Figure 72: Ideal RTD tea categorization, April 2015
                                                                            • Appendix – CHAID Analysis

                                                                              • Methodology
                                                                                • Figure 73: Ideal RTD characteristics – CHAID – Table output, April 2015

                                                                            Companies Covered

                                                                            • Walmart Stores (USA)

                                                                            Tea & RTD Tea - US - July 2015

                                                                            US $3,995.00 (Excl.Tax)