2023
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UK Tea and Other Hot Drinks Market Report 2023
2023-11-17T12:03:16+00:00
REPCBD719C7_472F_435B_83C3_38B147063783
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168083
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Report
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The category faces a growing need to reaffirm its relevance to needstates beyond offering comfort, as it looks ahead beyond the income squeeze. Kiti Soininen, Head of UK Food…

UK Tea and Other Hot Drinks Market Report 2023

$ 2,995 (Excl.Tax)

Description

Stay ahead of the curve and secure future growth for your business with Mintel’s UK Tea and Other Hot Drinks Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK hot drinks industry including market size, forecasted growth, and opportunities for the tea and other hot drinks market.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Key Issues Covered in this Report

  • The impact of the rising cost of living on the tea and other hot drinks market, including trading down within the category.
  • Key trends in recent launch activity and future opportunities.
  • Usage of tea and other drinks by type, including key demographics.
  • Choice factors when buying tea, including the importance of familiar brands and health benefits.
  • Consumer behaviours and attitudes related to tea and other hot drinks. This includes opportunities for both less-sweet and added-health hot chocolate, and cold tea.

UK Tea and Other Hot Drinks – Current Market Landscape

Sharp value growth is expected in 2023, propelled by inflation. Volumes are expected to see a slight decline amid warmer weather. The ongoing cost-of-living crisis has had mixed effects on the UK tea market, it has encouraged at-home occasions but prompted consumers to be more frugal.

  • UK tea market size: The market is estimated to reach £874 million in 2023.

Ordinary tea continues to dominate the category, reflecting its ingrained role in the nation’s drinks choices. However, it now only accounts for half of the nation’s retail spend. Challengers like fruit, herbal and speciality teas have chipped away at ordinary tea sales.

  • UK tea and other hot drinks market segmentation: Ordinary teas account for three quarters of volume sales, but only half of UK retail spend.

UK Tea and Hot Drinks Market Trends and Opportunities

Affordable gifting offers opportunities

The strong appeal of tea as a good choice for an affordable gift holds potential for brands to unlock incremental sales by targeting gifting. This is particularly pertinent in the short term while household incomes remain under pressure. Gift formats warrant further attention from mainstream players. Most people who consider tea a good affordable gift attach high importance in their tea choice to a brand they’ve bought before.

Better-for-you hot chocolate holds untapped potential

The better-for-you space holds untapped potential in the hot chocolate segment, with interest in variants with added health benefits. Protein stands out as an area to explore in mainstream hot chocolate, given plentiful recipes online and the prevalence of high-protein chocolate drinks.

Purchase our full report to discover more consumer insights and recommendations for growth opportunities from our expert researchers. To learn more about the tea market, take a look at Mintel’s The Future of Tea 2023.

Additional Features Included with Your Purchase

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence and major concerns of up to 40 different demographics, tracking changes in attitudes over time.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentations.
  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Analysis from an Industry Specialist

This report, written by Kiti Soininen, a leading Food and Drink analyst, delivers in-depth commentary and analysis to highlight current trends in the UK tea and other hot drinks market and add expert context to the numbers.

The category faces a growing need to reaffirm its relevance to needstates beyond offering comfort, as it looks ahead beyond the income squeeze.

Kiti Soininen
Head of UK Food and Drink Research

Table of Contents

    • Key issues covered in this report
  1. Executive Summary

    • Opportunities for the tea and other hot drinks market
    • Market dynamics and outlook
    • Graph 1: tea value sales in retail, by segment, 2021-23
    • Graph 2: leading brands’ value sales in the tea retail market, 2020/21-2022/23
    • What consumers want and why
    • Graph 3: frequency of drinking of tea and other hot drinks, by type, 2023
    • Graph 4: Occasions for drinking tea, 2023
    • Graph 5: choice factors for buying tea, 2023
    • Graph 6: concepts of interest in tea and other hot drinks, 2023
    • Graph 7: behaviours related to tea, 2023
    • Graph 8: attitudes towards tea and other hot drinks, 2023
    • Innovation and marketing
    • Graph 9: tea and malt & other hot beverages launches, by functional claims, 2018-23
    • Graph 10: total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, by leading advertisers, 2019-23*
  2. Market Dynamics

    • Market size
    • Graph 11: retail market size for tea and other hot drinks, 2018-23
    • Market forecast
    • Graph 12: annual growth in value and volume retail sales of tea and other hot drinks, 2008-12
    • Market segmentation
    • Graph 13: retail value sales of tea, by segment, 2021-23
    • Graph 14: retail value sales of hot chocolate and malted drinks, by segment, 2021-23
    • Market share
    • Graph 15: Leading brands’ value sales in the tea retail market, 2020/21-2022/23
    • Graph 16: leading brands’ value sales of hot chocolate, 2020/21-2022/23
    • Graph 17: leading brands’ value sales in the retail malted drinks market, 2020/21-2022/23
    • Macro-economic factors
    • Graph 18: GDP, 2021-23
    • Graph 19: CPI inflation rate, 2021-23
    • Graph 20: CPI for coffee, tea, cocoa and non-alcoholic beverages, January 2022-September 2023
    • Graph 21: the financial wellbeing index, 2016-23
    • Graph 22: the financial confidence index, 2016-23
    • Social, environmental and legal factors
    • Graph 23: alcohol usage and reduction, 2019-23
    • Graph 24: how often people try to eat healthily, 2018-22
  3. What Consumers Want and Why

    • Tea and other hot drinks drinking habits
    • Graph 25: frequency of drinking of tea and other hot drinks, by type, 2023
    • Graph 26: usage of other tea types among standard black tea drinkers, 2023
    • Graph 27: drinking of tea and other hot drinks, by type, by generation, 2023
    • Occasions for drinking tea
    • Graph 28: occasions for drinking tea, 2023
    • Graph 29: tea drinking occasions, by generation, 2023
    • Choice factors for tea
    • Graph 30: choice factors for buying tea, 2023
    • Graph 31: a brand bought before and low price as choice factors when buying tea, by financial health, 2023
    • Graph 32: selected choice factors for buying tea, by age, 2023
    • Concepts of interest in tea and other hot drinks
    • Graph 33: concepts of interest in tea and other hot drinks, 2023
    • Graph 34: Interest in trying hot chocolate with relaxing ingredients, among selected groups, 2023
    • Behaviours related to tea
    • Graph 35: behaviours related to tea, 2023
    • Graph 36: drinking tea more often in cold weather and interest in recipes for cold tea-based drinks, by age, 2023
    • Graph 37: “iced tea from a brand that I like”, by age, 2023
    • Attitudes towards tea and other hot drinks
    • Graph 38: attitudes towards tea and other hot drinks, 2023
    • Graph 39: top factors influencing choice when buying food/drink as a gift, 2022
    • Graph 40: agreement that tea is a good choice for an affordable gift, by age, 2023
  4. Innovation And Marketing Trends

    • Launch activity and innovation
    • Graph 41: tea and malt & other hot beverages launches, by functional claims, 2018-23
    • Graph 42: tea and malt & other hot beverages launches, by ethical claims, 2018-23
    • Graph 43: launches of teas and other hot drinks, by subcategory, 2020-23*
    • Advertising and marketing activity
    • Graph 44: total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, by leading advertisers, 2019-23*
    • Graph 45: total above-the line, online display and direct mail advertising expenditure on tea and other hot drinks, by leading brands, 2019-23*
  5. Brand Research

    • Graph 46: attitudes, by brand, 2023
    • Graph 47: brand personality – macro image, 2023
    • Graph 48: brand personality – micro image, 2023
  6. Appendix

    • Supplementary data – market segmentation
    • Market forecast data and methodology
    • Report scope and definitions
    • Methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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