2020
9
US Tea and RTD Tea Market Report 2020
2021-05-08T04:45:26+01:00
OX987128
3695
137898
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Report
en_GB
“Tea in all its forms has been given a boost by COVID-19 and the changes it has brought to the routines of work and shopping. With natural and inherent properties…

US Tea and RTD Tea Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the US Tea and RTD Tea market, including the behaviours, preferences and habits of the consumer.

The US tea market has seen a significant boost during the COVID-19 pandemic, with a 5.5% growth to $9 billion in sales in 2020. With stay-at-home orders forcing many consumers to work from home for the majority of the year, tea drinking occasions has meant brewed tea has seen a spike in popularity. Ready-to-Drink (RTD) teas are utilised more as away-from-home refreshments, meaning that impulse buys dipped throughout the year.

Tea has a range of benefits that can often be clashing, with many people drinking it for it’s relaxing and stress-relief properties, while others use it as an energy booster. With health and wellbeing now increasingly in the public eye thanks to the pandemic, brands can help to market these immunity and wellness benefits.

As the pandemic subsides, at-home drinking occasions will decrease, meaning that the tea market may seen a decline. Encouraging it as a habitual drink, especially in the mornings, may help to increase sales across the tea category.

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

Quickly understand

  • The immediate and longer-term impact of COVID-19 on consumer behavior and the tea market.
  • The impact of a recession on the tea category.
  • Use of tea by form, type and occasion.
  • Consumer consumption of and attitudes about tea.

Covered in this report

Products: Ready to drink (RTD), refrigerated teas, bagged tea, loose leaf tea, single-cup pod tea, black tea, white tea, green tea, fruit tea, herbal tea, instant tea mixes, tea hybrid drink, liquid tea concentrate, Kombucha.

RTD Brands: Pepsi (Lipton), Hain (AriZona), Coca-Cola (Gold Peak), Dr Pepper (Snapple), Millennium Products (GT’s), Milo’s Tea Company, Steaz Energy, Guyaki, Hoplark, Clean Cause, Rebbl, Tapaut Brewing Go., Better Booch, Suja Organic, Revive, Mudra, Marley, Arteasan, Blue Buddha, NoYy Samurai Defender, private label.

Tea Brands: Pepsi (Lipton, Tazo), Bigelow Tea, Hain Celestial, Twinings, Traditional Medicinals, East West Tea (Yogi), Reilly Food Company (Luzianne), 4C, Kraft Heinz (Crysyal Light), private label.

Expert analysis from a specialist in the field

Written by Eric Wenner, a leading analyst in the Beverage sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The $8.7 billion tea market continues to grow at a slow rate driven by smaller RTD brands and trendy kombucha. Though tea faces stiff competition from other beverages, and RTDs are under scrutiny due to their sugar content, tea is well suited to address the needs of today’s consumers. Brands can complement tea’s natural health halo by developing products with strong functional benefits and that address new consumption occasions

Eric Wenner
Associate Director, Food and Drink

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • COVID-19: Market context
            • Economic and other assumptions
            • Executive Summary

                • Top takeaways
                  • Market overview
                    • Figure 1: Total US sales of tea and RTD tea, at current prices, 2015-2025
                    • Figure 2: Total US retail sales and forecast of tea and RTD tea, at current prices, 2015-25
                  • Impact of COVID-19 on tea
                    • Figure 3: Short-, medium- and long-term impact of COVID-19 on tea, August 2020
                  • Opportunities and Challenges
                    • Re-emergence
                      • Demand for tea will hold during the recession
                        • Figure 4: Total US retail sales of tea and RTD tea, 2007-2012
                      • Remind tea drinkers of health, wellness and stress relief benefits
                        • Figure 5: Reasons for tea consumption, April 2020
                      • Recovery
                        • RTD tea brands will need to adjust for less impulsive consumption
                        • The Market – Key Takeaways

                          • COVID-19 put the kettle on
                            • Tea has ridden out the storm
                              • Increased emphasis on wellbeing bodes well for tea
                                • Emphasize the functional
                                  • Play in the morning
                                  • Market Size and Forecast

                                    • COVID-19 breathes new life into category
                                      • Figure 6: Total US retail sales and forecast of tea and RTD tea, at current prices, 2015-25
                                      • Figure 7: Total US retail sales and forecast of tea and RTD tea, at current prices, 2015-25
                                    • Impact of COVID-19 on tea
                                      • Figure 8: Short-, medium- and long-term impact of COVID-19 on tea, July 2020
                                    • Lockdown
                                      • Re-emergence
                                        • Recovery
                                          • COVID-19: US context
                                            • Learnings from the last recession
                                              • Figure 9: Total US retail sales of tea and RTD tea, 2007-2012
                                          • Segment Performance

                                            • COVID-19 has boosted 2020 sales of all tea forms
                                              • Figure 10: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2015-25
                                              • Figure 11: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2015-25
                                            • RTD slow down righted
                                              • Figure 12: Total US retail sales and forecast of RTD and refrigerated tea, at current prices, 2015-25
                                            • Wellbeing at the core of brewed tea success
                                              • Figure 13: Total US retail sales and forecast of bagged, loose-leaf and single-cup tea, at current prices, 2015-25
                                            • Instant teas temporarily revived
                                              • Figure 14: Total US retail sales and forecast of instant tea mixes, at current prices, 2015-25
                                            • Supermarkets picked up some lost share
                                              • Figure 15: Total US retail sales of tea and RTD tea, by channel, at current prices, 2015-20
                                          • Market Factors

                                            • Consumers are reprioritizing wellbeing
                                              • Figure 16: Change in lifestyle priorities, July 28-August 4, 2020
                                            • Tea fits any budget
                                              • Figure 17: Tea consumption, by type and household income, April 2020
                                            • Tea has grown through the worst of the downturn
                                              • Unemployment shock predicted to recede
                                                • Figure 18: US monthly unemployment rate, 2008-2010 and 2019-2020
                                                • Figure 19: Expected US Unemployment, 2019-2025
                                              • Consumer confidence already returning
                                                • Figure 20: US Consumer Sentiment Index
                                              • Increased spending on at-home consumption benefits tea
                                                • Figure 21: Consumer expenditure for food, 2018-2020
                                            • Market Opportunities

                                              • Refresh the category through functional
                                                • Figure 22: Reasons for tea consumption, April 2020
                                                • Figure 23: Percent of tea product launches with functional / health claims, 2015-2019
                                              • New shopping habits mean new distribution strategies
                                                • Figure 24: Shopping behaviors resulting from COVID-19, April-August 2020
                                              • Target new occasions
                                                • Figure 25: Morning consumption of tea and coffee by type, April 2020, percent selecting morning
                                              • Tea perceived more favorably than coffee
                                                • Figure 26: Attribute ratings of self-brewed forms of tea and coffee, top two box percentage
                                              • RTD tea brands can go big for stay-at-homers
                                                • Figure 27: Daypart consumption of RTD teas and coffees, April 2020
                                            • Companies and Brands – Key Takeaways

                                              • Tea can prosper in trying times
                                                • Large RTD brands set the pace
                                                  • Brewed teas get the biggest boost
                                                  • Companies and Brands of Tea and RTD Tea

                                                    • Tea sales get a boost from COVID-19
                                                      • Figure 28: Multi-outlet sales of tea and RTD tea, by leading companies, rolling 52 weeks 2019 and 2020
                                                    • Company/brand sales by segment
                                                      • Brewed tea whistles out of the doldrums
                                                        • Figure 29: Multi-outlet sales of bagged, loose-leaf, single-cup tea, by leading companies and brands, rolling 52 weeks 2019 and 2020
                                                      • Big brands and big sizes lead RTD and refrigerated tea
                                                        • Figure 30: US multi-outlet sales of RTD and refrigerated tea, by leading companies and brands, rolling 52 weeks 2019 and 2020
                                                      • Instant tea
                                                        • Figure 31: US multi-outlet sales of instant tea mixes, by leading companies and brands, rolling 52 weeks 2019 and 2020
                                                    • Competitive Strategies

                                                      • Tea portfolios can appeal by function
                                                        • Brewed tea as medicine cabinet
                                                          • RTDs can be healthier too
                                                            • Figure 32: Important choice attributes by tea product form, April 2020
                                                        • The Consumer – Key Takeaways

                                                          • Tea drinkers play the field
                                                            • Flavor the unifying factor in product choice
                                                              • Green teas more popular than black
                                                                • Brewed teas rule the roost
                                                                  • Tea is a big-tent beverage
                                                                    • Interest in innovation
                                                                    • The Consumer

                                                                      • Tea Formats Consumed
                                                                        • Brewed tea outpaces RTDs for penetration
                                                                          • Figure 33: Tea consumption by product form, April 2020
                                                                        • Opportunity to expand tea repertoires
                                                                          • Figure 34: Tea repertoire, by age, April 2020
                                                                        • Broad overlap between brewed and RTDs
                                                                          • Figure 35: Cross-usage of tea, by form, April 2020
                                                                        • Parents drink a broad variety of teas
                                                                          • Figure 36: Tea forms consumed, by parental status, April 2020
                                                                          • Figure 37: Tea repertoire, by parental status, April 2020
                                                                        • Women lead steeping
                                                                          • Figure 38: Tea forms, by gender, April 2020
                                                                        • Consumption patterns are consistent across ages
                                                                            • Figure 39: Tea forms consumed, by age, April 2020
                                                                            • Figure 40: Tea forms consumed, by age, April 2020
                                                                          • Tea is accessible to all incomes
                                                                            • Figure 41: Tea forms consumed, by household income, April 2020
                                                                            • Figure 42: Tea forms consumed, by household income, April 2020
                                                                        • Consumers Seek Different Attributes by Form

                                                                          • Brand, flavor and price are leading attributes
                                                                              • Figure 43: Important tea attributes, April 2020
                                                                            • Brand cachet differentiates bagged from loose-leaf
                                                                              • Pods lead in caffeine concern
                                                                                • Refreshment drives RTDs
                                                                                  • Kombucha locks down immunity
                                                                                  • Tea Consumption by Type

                                                                                    • Green edges black
                                                                                      • Figure 44: Tea consumption, by type, April 2020
                                                                                    • Older consumers stick with black tea, under 45s go green
                                                                                      • Figure 45: Types of tea consumed, by age, April 2020
                                                                                    • Black tea skews higher income
                                                                                      • Figure 46: Types of tea consumed, by household income, April 2020
                                                                                    • Herbal tea skews female
                                                                                      • Figure 47: Types of tea consumed, by gender, April 2020
                                                                                  • Tea Consumption by Occasion

                                                                                      • Figure 48: Tea usage occasions, by type of tea, April 2020
                                                                                    • Hot home brews vs cold cans away
                                                                                      • Figure 49: Tea occasion locations, by type of tea, April 2020
                                                                                    • Brewed tea should get out of the house more
                                                                                      • Figure 50: Away-from-home consumption of coffee and tea types, April 2020, percent selecting “Away from home”
                                                                                    • Someone’s always steeping
                                                                                      • Figure 51: Tea occasion dayparts, by type of tea, April 2020
                                                                                  • Reasons for Tea Consumption

                                                                                    • Flavor leads, each functional benefit has limited appeal
                                                                                      • Figure 52: Reasons for drinking tea, April 2020
                                                                                    • Younger consumers more attuned to health benefits
                                                                                      • Figure 53: Reasons for drinking tea, by age, April 2020
                                                                                    • Promote taste to tea drinkers
                                                                                      • Figure 54: TURF analysis – reasons for drinking tea, April 2020
                                                                                  • Reasons for Tea Abstinence

                                                                                    • Let’s hear from the naysayers
                                                                                      • Figure 55: Reasons not to drink tea, by age, April 2020
                                                                                  • Attitudes toward Tea

                                                                                    • One quarter of category users are increasing engagement
                                                                                      • Tea is comforting, BFY and delicious, but not habitual
                                                                                        • Figure 56: Attitudes toward tea, April 2020
                                                                                      • Women lead category engagement
                                                                                        • Figure 57: Attitudes toward tea, by gender, April 2020
                                                                                      • Younger consumers more experimental
                                                                                        • Figure 58: Attitudes toward tea, by age, April 2020
                                                                                    • Interest in Tea Innovations

                                                                                      • Cold brew, adaptogens top the short list
                                                                                        • Figure 59: Interest in tea innovation, by gender, April 2020
                                                                                      • Drawing in the abstainers
                                                                                        • Figure 60: Interest in tea innovations among non-tea drinkers, April, 2020
                                                                                    • Appendix – Data Sources and Abbreviations

                                                                                      • Data sources
                                                                                        • Sales data
                                                                                          • Forecast
                                                                                            • Consumer survey data
                                                                                              • Abbreviations and terms
                                                                                                • Abbreviations
                                                                                                • Appendix – The Market

                                                                                                    • Figure 61: Total US retail sales and forecast of tea and RTD tea, at current prices, 2015-25
                                                                                                    • Figure 62: Total US retail sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2015-25
                                                                                                    • Figure 63: Total US retail sales and forecast of tea and RTD tea, by segment, at current prices, 2015-25
                                                                                                    • Figure 64: Total US retail sales of tea and RTD tea, by segment, at current prices, 2018 and 2020
                                                                                                    • Figure 65: Total US retail sales and forecast of bagged, loose-leaf and single-cup tea, at current prices, 2015-25
                                                                                                    • Figure 66: Total US retail sales and forecast of bagged, loose-leaf and single-cup tea, at inflation-adjusted prices, 2015-25
                                                                                                    • Figure 67: Total US retail sales and forecast of RTD and refrigerated tea, at current prices, 2015-25
                                                                                                    • Figure 68: Total US retail sales and forecast of RTD tea, at inflation-adjusted prices, 2015-25
                                                                                                    • Figure 69: Total US retail sales and forecast of instant tea mixes, at current prices, 2015-25
                                                                                                    • Figure 70: Total US retail sales and forecast of instant tea mixes, at inflation-adjusted prices, 2015-25
                                                                                                • Appendix – Retail Channels

                                                                                                    • Figure 71: Total US retail sales of tea and RTD tea, by channel, at current prices, 2015-20
                                                                                                    • Figure 72: Total US retail sales of tea and RTD tea, by channel, at current prices, 2018 and 2020
                                                                                                    • Figure 73: US supermarket sales of tea and RTD tea, at current prices, 2015-20
                                                                                                    • Figure 74: US sales of tea and RTD tea through other retail channels, at current prices, 2015-20

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