UK Tea – Market Dynamics 2025
The matcha boom, dynamic functional NPD and tea's role in self-care routines are some of the bright spots for the market amid its ongoing volume decline.
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THE MARKET
- Snapshot – tea and other hot drinks market size and forecast
- Financial wellbeing and confidence is still relatively weak, despite improvement in H1 2025
- Graph 1: the financial wellbeing and confidence indices, 2019-25
- Lower tea and cocoa/powdered chocolate inflation provides relief to shoppers
- Graph 2: consumer price inflation for tea, coffee, cocoa and powdered chocolate and soft drinks, 2020-25
- Caffeine concerns help fuel the matcha trend
- Graph 3: Google searches for caffeine and matcha, 2020-25
- The overarching health trend supports teas’ appeal
- Market size and forecast
- Inflation to drive value growth
- Graph 4: retail market value forecast for tea and other hot drinks, 2020-30
- Market segmentation
- Graph 5: retail value sales of tea and other hot drinks, by segment, 2023-25
- Only Clipper and own-label grow volumes in tea in 2024/25
- Graph 6: leading brands’ value sales in the retail tea market, 2022/23-2024/25
- Own-label also gains share in hot chocolate and other hot drinks
- Graph 7: leading brands’ value sales in the retail hot chocolate and other hot drinks market, 2022/23-2024/25
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THE CONSUMER
- The matcha trend
- Propelled from niche to viral, matcha is firmly mainstream
- Unlocking the potential of alternative formats
- Tap into the buzz around coffee concentrates
- Mine the ‘drinkable desserts’ trend
- Tap ‘drinkable desserts’ trend through recipe inspiration…
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PRODUCT, INNOVATION AND MARKETING
- Brands in hot chocolate/malted drinks continue to innovate
- 2025 sees a hike in adspend
- Graph 8: total above-the-line, online display and direct mail advertising on tea and other hot drinks, 2021-25
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APPENDIX
- The market
- Market definition
- Market definition (continued)
- Forecast methodology
- Forecast methodology – fan chart
- Market forecast – volume sales
- Graph 9: retail market volume forecast for tea and other hot drinks, 2020-30
- Market size and forecast of tea and other hot drinks – value
- Market size and forecast of tea and other hot drinks – volume
- Market forecast and prediction intervals (value)
- Market segmentation
- Tea retail market share – value sales – brands
- Tea retail market share – volume sales – brands
- Tea retail market share – value sales – manufacturers
- Tea retail market share – volume sales – manufacturers
- Hot chocolate and other hot drinks retail market share – value sales – brands
- Hot chocolate and other hot drinks retail market share – volume sales – brands
- Hot chocolate and other hot drinks retail market share – value sales – manufacturers
- Hot chocolate and other hot drinks retail market share – volume sales – manufacturers
- Advertising spend on tea and other hot drinks
- The consumer
- Consumer research questions
- Consumer research methodology
- Other data source methodologies
- Nielsen Ad Intel coverage
- Abbreviations
This Market Dynamics report features market data taken from Mintel’s UK Tea and Other Hot Drinks Market Report 2025. Giving you direct access to key market information and analysis from our category experts. This report is ideal for those looking for a topline summary of the UK Tea market. The full report is available to purchase here.
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