Tea and Other Hot Drinks - UK - July 2016
“UK retail value sales of tea have been in decline, with growth in sales of green, fruit/herbal and speciality teas not enough to make up for a fall in sales of standard black tea that dominates the market. Tea brands need to increase the appeal of their products to 16-34-year-olds who have a stronger preference for more indulgent hot drinks.”
Richard Caines, Senior Food & Drink Analyst
This report looks at the following areas:
- NPD needed to drive more tea drinking among younger generation
- Adding value to tea market through wider repertoires and trading up
- New features and formats needed in hot chocolate and malted drinks to develop new usage occasions
For the purposes of this Report, Mintel has used the following definitions:
The tea market is segmented – and defined – as follows:
- Ordinary teabags, which contain black tea, account for the majority of standard black teas in the UK market and are the main product for brand leaders such as PG Tips and Tetley. Black tea usually has a rich taste, which means it is suited to being served with milk and sugar.
- Decaffeinated tea is used to refer to black tea that has been through a process to remove most of the caffeine content.
- Speciality tea is used to refer to tea which, although similar in appearance to standard tea and also often drunk with milk, is usually sourced from specific high-quality tea plantations and has a distinctive taste. Examples include Earl or Lady Grey, Chai and Darjeeling, Ceylon, Assam and Kenyan blends.
- Fruit and herbal teas are typically infusions which contain pieces of fruit, herbs (eg peppermint), spices or flowers (eg camomile). Tending not to contain black or green tea, they are generally caffeine-free. The segment also includes Redbush tea.
- Green tea is a tea which is a light green colour when brewed and is generally drunk without milk. In contrast to black tea which is oxidised, green tea is un-oxidised and has a more bitter flavour.
- Instant tea comes in powder or granule form and contains soluble tea solids, sometimes with the addition of sweetener, milk powder and/or flavourings.
Hot chocolate drinks are defined as follows:
- Hot chocolate powder that requires the addition of either milk or water. It also includes products that are ready prepared and need to be heated in the microwave, as well as stir-in spoons (that are stirred into hot milk).
- Cocoa and cocoa powder.
Malted drinks are defined as follows:
- Malted drinks that require the addition of either milk or water.
- Malted hot chocolate drinks, eg Ovaltine malted drinks, chocolate malted drinks.
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