Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Tea and Other Hot Drinks market, its consumers and the major players who make up that market.
Point of sale market data
In conjunction with IRi, extensive point of sale data shows you what consumers are spending their money on
How big is the market today and what is our 5 year forecast? Includes both best & worst case scenarios
What are the different segments within the market and how are those individual segments performing?
What are consumers looking for, what drives their buying habits and what are their main purchase influencers?
From iGen & Millennials to Baby Boomers & beyond. Who is spending money and what are they spending it on?
We gather our data from real-world consumers, selected to accurately reflect precise global demographics
What are the key players doing, what has been successful for them and what was their marketing spend?
Using data from our Global New Product Database, what products were launched and how well were they perceived?
What happens next, which areas are likely to experience growth and what opportunities exist within the market?
Expert analysis from a specialist in the field
Written by Amy Price, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
While Britons continue to live up to their reputation of being a nation of tea drinkers, volume sales for ordinary teabags, which dominate the market, are down, the competition from coffee and soft drinks eroding sales. While ordinary teabags remain their core offering, operators are developing their mix of products from other segments such as green, fruit/herbal and speciality tea, as well as teas to be drunk with alternative milks, to capitalise on growth opportunities in the shrinking market.
Senior Food and Drink Analyst
Mintel has the answers you’re looking for
What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
This report discusses the following key topics:
Products covered in this Report
For the purposes of this Report, Mintel has used the following
The tea market is segmented – and defined – as follows:
- Ordinary tea bags, 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 refers to black tea that has been through a
process to remove most of the caffeine content.
- Specialty tea refers to higher-quality tea and named blend
teas. 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
- 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
- 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.
Hot malted drinks are defined as follows:
- Hot malted drinks that require the addition of either milk or
- Malted hot chocolate drinks, eg Ovaltine malted drinks,
chocolate malted drinks.
This Report excludes teas and other hot drinks sold through
catering outlets (ie cafés, restaurants, pubs) or vending machines.
It also excludes all iced teas and RTD (ready-to-drink) teas,
although usage and attitudes towards RTD tea is discussed in the
Coffee is excluded and is examined in Mintel’s upcoming Coffee –
UK, August 2018 Report.
What you need to know
Volume sales of tea continue to decline, with the performance of
ordinary teabags affecting overall sales, this being the dominant
The segment is subject to fierce competition from products such
as green, fruit/herbal and speciality tea, as well as coffee and soft
drinks, especially among younger people, who have an expansive
The advertising support by Taylors of Harrogate’s Yorkshire Tea,
however, proves that such investment can bear fruit, the brand
managing to outperform fellow standard black tea brands by
seeing value and volume sales rise.
The hot chocolate and malted drinks market continues to suffer,
these drinks struggling to remain relevant to today’s consumer.
The continued lack of marketing support for the major brands in
the hot chocolate and malted drinks market will have done little to
remind consumers of their existence. Meanwhile health concerns,
especially around these products’ content of sugar or sweeteners,
will likely have curbed usage further, with hot chocolate in
particular positioned as more of a treat.