This report offers readers a complete review of the tea market in the US, covering all tea types sold at the retail level. With room to appeal better to tea consumer preferences, the data-backed analysis provided here can arm your unique insight strategy with the foundations to drive growth.
Tea should be performing better than it is. Despite its range of flavors, formats, and strong health positioning as compared to other drink categories, it’s one of the smallest. The Achilles heel of the category is flavor, with fewer than 40% of tea drinkers saying the most common types of tea are a taste they enjoy. Boosting taste perception will be key in growing sales, given the leading role taste plays in food/drink choice. This can come from the addition of flavors to tea, as well as strengthening flavor cues on pack.
In addition to flavor, ease of use/convenience will be the way forward. While brewed tea rules formats consumed, more than half of tea drinkers turn to RTDs. In a world of single-cup coffee, brewing a cup of tea will become a harder sell. Brewed tea brands should consider either speeding up the process via convenience options, such as RTDs, quick-brews, and tea concentrates, or more clearly promoting the value/benefit of carving out time for a slow tea ritual.
Brands are not maximizing the advantage of functionality. Consumers want measurable benefits from their food/drink, and brands that clearly communicate the benefits of their products/ingredients will win out. At present, claims activity centers around environmental claims which, while important to some consumers, lacks the power of “what’s in it for me.”
For the purposes of this Report, Mintel has used the following definitions:
Teas sold through foodservice outlets are not included in the Report. Foodservice tea is covered in Mintel’s Foodservice Coffee and Tea – US, 2024 Report.
This Report builds on the analysis presented in Mintel’s Tea and RTD Tea – US, 2023 Report, as well as the 2022, 2021, and 2020 Reports of the same name.
Mintel also offers a look at the future of the global tea market.
This report was written by Paige Leyden. Paige is an Associate Director at Mintel and focuses on consumer attitudes, behaviors and trends in the US foodservice industry. She has over 7 years of experience leveraging syndicated and consumer data to deliver insights to CPG, retail and foodservice clients. She holds a Bachelor’s Degree in Consumer Economics from the University of Illinois.
Despite a wide range of flavors, formats and functionality, tea underperforms its potential. Brands must make stronger claims of convenient, affordable benefits.
Paige Leyden
Research Manager – Foodservice, US
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