2021
9
UK Tea and Other Hot Drinks Market Report 2021
2021-11-16T03:08:43+00:00
OX1049443
2195
145290
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Report
en_GB
“Tea and other hot drinks have benefited from the uptick in at-home food and drink occasions brought about by the COVID-19/coronavirus outbreak. While standard black tea looks set to face…

UK Tea and Other Hot Drinks Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Tea and Other Hot Drinks report identifies consumer attitudes towards hot beverages, functional benefits of tea, and behaviour related to tea in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Tea and Other Hot Drinks market in the UK. 

Current Market Landscape 

The tea market, hot beverages retail market and hot drinks market enjoyed a boost in 2020 and into 2021 as the COVID-19 pandemic saw various restrictions that forced a sharp shift in food and drink occasions to the home.

  • 53% and 50% of people think there should be a wider range of lower sugar and lower calorie variants of hot chocolate and malted drinks, respectively.
  • 38% of tea drinkers are interested in tea that helps de-stress/calm users.
  • Only 7% of launches presented stress and sleep benefit claims, showing further innovation potential.

With flexible working becoming the norm for many, this lends enduring support for the market. Hot chocolate and malted drinks have the potential to stay on the menu even amidst the heightened health focus that the pandemic has drawn over the past year.

Future Market Trends in Tea and Other Hot Drinks

The tea and other hot drinks market forecast predicts the industry is expected to return to its previously downward trend as the dominant standard black tea segment is set to continue to see other drink options chip away at its role at the go-to beverage. In the long term, the impact of climate change on tea-growing communities poses a pressing challenge to the hot drinks industry.

There is evidence that consumers are looking for way to manage their emotional wellbeing, with the pandemic having caused large amounts of stress and causing people to seek out new ways of staying calm and unwinding. Innovations into the calming effects of hot drinks could prove valuable to the hot drinks market going forward.

Read on to discover more details or take a look at all of our UK Drinks market research.

Quickly understand

  • Impact of COVID-19 on the tea and other hot drinks market.
  • Usage of tea and other hot drinks.
  • Interest in functional benefits in tea.
  • Behaviours related to tea.
  • Attitudes towards tea and other hot drinks.

Covered in this report

Brands: Unilever (Pukka, PG Tipps), Tata Global Beverages (Tetley), Associated British Foods (Twinings, Options, Ovaltine), Bettys & Taylors of Harrogate (Yorkshire Tea), Biotone (Clipper), Tea Times Trading (Tick Tock), Apeejay Group (Typhoo), Mondelēz (Cadbury, Green & Blacks), Mars (Galaxy, Maltesers), Jacobs Douwe Egberts (Tassimo), Nestlé (Milo), Aimia Foods (Horlicks), Small & Wild, Hoogly, Costa, Starbucks, Lavassa Coffee, Dilmah Tea, Clipper Teas, Hebden Tea, Punjana, Serendipity, Whittard, T2, Sainsbury’s, Velvet Rich, Bom Bombs, Dairyfine, Yogi, Kaoka, Morrisons, Choceur.

Expert analysis from a specialist in the field

This report, written by Angharad Goode, a leading analyst in the Drinks sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Tea and other hot drinks have benefited from the uptick in at-home food and drink occasions brought about by the COVID-19/coronavirus outbreak. While standard black tea looks set to face continued pressure from ever-growing competition, the focus on health puts herbal tea in a strong position to appeal thanks to its sugar-free credentials and functional benefits.
Angharad Goode
Research Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on tea and other hot drinks
      • Figure 1: Short, medium and long-term impact of COVID-19 on tea and other hot drinks market, 2021
    • The market
    • Boost from COVID-19 eases in 2021, decline predicted ahead
      • Figure 2: Market size and value sales forecast for tea and other hot drinks retail market, 2016-26
    • IPCC report adds to high-profile reporting on climate change
    • Companies and brands
    • Yorkshire Tea becomes leading brand
      • Figure 3: Leading brands’ value sales in the UK tea market, 2019/20-2020/21
    • Brands increasingly ditch plastic; NPD continues in stress & sleep launches
    • Ad spend defies COVID pressure
      • Figure 4: Total above-the-line, online display and direct mail advertising expenditure on tea and other hot drinks, by month, 2019-21*
    • The consumer
    • Standard black tea remains most used
      • Figure 5: Types of tea and hot drinks drunk, 2020 and 2021
    • Emotional support tops interest
      • Figure 6: Interest in functional benefits in tea, 2021
    • Potential for flavour innovation in black tea
      • Figure 7: Behaviours related to tea, 2021
    • Hot chocolate spheres appeal to two in five; links to herbal medicine can drive standout in tea
      • Figure 8: Interest in concepts for tea and hot drinks, 2021
    • Openness to healthier hot chocolate variants is welcome news ahead of HFSS regulations
      • Figure 9: Attitudes towards tea and hot drinks, 2021
  3. Issues and Insights

    • COVID-19 drives focus on health that holds potential for tea
    • Keen interest in health-focused hot chocolate products
    • Climate change will force change in tea
  4. Market Size and Performance

    • Boost from COVID-19 eases in 2021
      • Figure 10: Short, medium and long-term impact of COVID-19 on tea and other hot drinks, 2021
    • 2021 sees tea and other hot drinks drop from their COVID-19 peak
      • Figure 11: Retail market size for tea and other hot drinks, 2016-21
  5. Market Forecast

    • Return to previous downward volume trend predicted
      • Figure 12: Market forecast for value of the UK tea and other hot drinks retail market, 2021-26
      • Figure 13: Market forecast for volume of the UK tea and other hot drinks retail market, 2021-26
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2015-25
    • Forecast methodology
  6. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • The risk of vaccine-resistant strains of COVID-19 adds uncertainty
      • Figure 15: COVID-19 scenario forecast for UK retail sales of tea and other hot drinks, by value, 2016-26
      • Figure 16: COVID-19 scenario forecast for UK retail sales of tea and other hot drinks, by volume, 2016-26
    • A small sales difference between Mintel’s rapid COVID recovery and central scenario
    • A setback to the vaccination programme could extend social distancing into 2022
    • COVID-19 market disruption: risks and outcomes
      • Figure 17: Summary of Mintel scenario expectations and the impact on the tea and other hot drinks retail market, 2021
  7. Market Segmentation

    • COVID boost set to reverse in 2021
      • Figure 18: UK retail value and volume sales of tea, by segment, 2019-21
    • Malted drinks stave off value slump
      • Figure 19: UK retail value and volume sales of hot chocolate and malted drinks, by segment, 2019-21
  8. Market Drivers

    • IPCC report adds to high-profile reporting on climate change
    • Impact of climate change on tea production
    • Rising inflation set to squeeze household incomes
    • Flexible working to continue to support hot drinks in retail
    • Focus on health works in tea’s favour
    • Spotlight on the nation’s diet benefits tea
    • Tea can capitalise on alcohol moderation
    • Tea’s comforting connotations and relaxation proposition chime amidst stress
    • COVID-19 outbreak drives exploration in tea
  9. Market Share

    • Yorkshire Tea becomes leading brand
    • Major investment for Typhoo, Unilever looks to sell part of tea portfolio
    • Zetland Capital takes a majority stake in Typhoo
    • Unilever looks to sell tea portfolio
    • Amazon expands tea offering
      • Figure 20: Leading brands’ value sales and shares in the UK tea market, 2018/19-2020/21
      • Figure 21: Leading brands’ volume sales and shares in the UK tea market, 2018/19-2020/21
    • Cadbury maintains market lead in hot chocolate
      • Figure 22: Leading brands’ value and volume sales and shares in the UK hot chocolate market, 2018/19-2020/21
    • Horlicks continues to lose share in malted drinks
      • Figure 23: Leading brands’ value and volume sales and shares in the UK malted drinks market, 2018/19-2020/21
  10. Launch Activity and Innovation

    • Brands increasingly ditch plastic
      • Figure 24: Share of product launches in the UK tea market with packaging related claims, 2017-21
    • Recycling claims grow again
    • Waterdrop brings cubed tea to market
    • De-stressing/sleep support remains most common functional claim
      • Figure 25: Share of product launches in the UK tea market with functional claims, by claim, 2017-21
      • Figure 26: Tea product launches with a stress/sleep related functional claim, 2020-21
    • Yorkshire brand launches functional tea range
    • PG Tips launches fortified range
      • Figure 27: PG Tips Plus range, 2020
    • Twinings adds ‘friendly bacteria’ to tea
      • Figure 28: Twinings BioBlends Camomile & Linden Tea, 2021
    • Tea brands look to sweet treat flavours
      • Figure 29: Tea product launches with bakery flavour profiles, 2020-21
    • Hot chocolate and malted drinks go vegan
      • Figure 30: Vegan product launches in hot chocolate and malted drinks market, 2020
    • Coffee shops bring hot chocolate home
      • Figure 31: Hot chocolate product launches from coffee shop brands, 2021
  11. Advertising and Marketing Activity

    • Ad spend defies COVID-19 pressure
      • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on tea and other hot drinks, by month, 2019-21*
    • PG Tips promotes new biodegradable teabags…
    • …and makes tea for dogs
      • Figure 33: Above-the-line, online display and direct mail advertising expenditure on tea and other hot drinks, by advertiser, sorted by 2021, 2019-21
    • Yorkshire Tea promotes Carbon Neutral status…
    • …and introduces The Social Distancing Teapot
    • Pukka encourages us to Unwind with Nature
    • Tetley launches campaign for Cold Infusions
    • Horlicks acknowledges at-home mishaps
    • Nielsen Ad Intel coverage
  12. Brand Research

    • Brand map
      • Figure 34: Attitudes towards and usage of selected brands, 2021
    • Key brand metrics
      • Figure 35: Key metrics for selected brands, 2021
    • Brand attitudes: established brands spark the most trust
      • Figure 36: Attitudes, by brand, 2021
    • Brand personality: mass-market players have similar brand personalities
      • Figure 37: Brand personality – Macro image, 2021
    • Twinings and Pukka lead as special
      • Figure 38: Brand personality – Micro image, 2021
  13. Drinking Habits – Tea and Other Hot Drinks

    • Standard black tea remains most used
      • Figure 39: Types of tea and hot drinks drunk, 2021
    • Black tea is used most often
      • Figure 40: Frequency of drinking tea and hot drinks, by type, 2021
  14. Interest in Functional Benefits in Tea

    • Emotional support tops interest
      • Figure 41: Interest in functional benefits in tea, 2021
    • A quarter interested in energy
      • Figure 42: Tea product launches with an energy related claim, 2019-21
    • Trust in health benefits increases, but still low
      • Figure 43: Consumers’ trust of health benefit claims on herbal teas, 2019 and 2021
  15. Behaviours related to Tea

    • Habitual choice is lead usage driver
      • Figure 44: Behaviours related to tea, 2021
    • Potential for flavour innovation in black tea
      • Figure 45: Black tea products with spices, 2020-21
    • Most prefer biodegradable teabags to loose tea for reducing plastic
      • Figure 46: Tea products with biodegradable claim, 2021
  16. Interest in Concepts for Tea and Hot Drinks

    • Hot chocolate spheres appeal to two in five
      • Figure 47: Interest in concepts for tea and hot drinks, 2021
    • From Christmas launches to dinosaurs and chickens
    • Opportunities for chocolate and alcohol brands
      • Figure 48: Hot chocolate melts, 2021
    • Traditional wellness attracts interest in tea
    • Yogi and Pukka link with holistic wellbeing
      • Figure 49: Yogi Tea Organic Limited Edition Turmeric Chai & White Tea with Aloe, 2021
    • More potential to explore traditional functional ingredients
  17. Attitudes towards Tea and Hot Drinks

    • Healthier hot chocolate/malted drinks interest half of people
    • Openness to healthier variants is welcome news ahead of HFSS regulations
      • Figure 50: Attitudes towards tea and hot drinks, 2021
    • Scope for others to challenge Options, clear communication is key
      • Figure 51: Examples of hot chocolate product launches with lower/reduced sugar claims, 2019-21
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  19. Appendix – Consumer Data

      • Figure 52: Repertoire of types of tea drunk, 2021
  20. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 53: Market forecast for value sales in the tea and other hot drinks, upper and lower bound, 2016-26
      • Figure 54: Market forecast for volume sales in the tea and other hot drinks, upper and lower bound, 2016-26
    • Market drivers and assumptions
      • Figure 55: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology
  21. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 56: Market scenario forecast for retail value sales in the tea and other hot drinks, 2016-26
      • Figure 57: Market scenario forecast for retail volume sales in the tea and other hot drinks, 2016-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology
  22. Appendix – Market Share

      • Figure 58: Leading manufacturers’ sales and shares in the UK tea market, by volume and value, 2019/20-2020/21
      • Figure 59: Leading manufacturers’ sales and shares in the UK hot chocolate market, by volume and value, 2019/20-2020/21
      • Figure 60: Leading manufacturers’ sales and shares in the UK malted drinks market, by volume and value, 2019/20-2020/21

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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