UK tea sales fall by more than 6% over past five years - THEGRD
05-Aug-2015 09:03

Increasing popularity of coffee takes its toll, with sales of ordinary teabags falling from £491m in 2012 to £425m in 2014, according to latest figures
Trouble is brewing for the traditional British cuppa, a report has warned, with sales falling by more than 6% over the past five years.

The increasing popularity of coffee has taken its toll, with UK retail tea sales dropping from an all-time peak of £699m in 2010 to an estimated £654m this year, according to the consumer analysts Mintel.

But it is the standard cuppa which is losing steam, with sales of ordinary teabags – which have traditionally dominated the market – falling by 13% from £491m in 2012 to £425m last year.
The popularity of alternative teas – including new ranges from traditional brands such as Tetley and PG Tips – has gone from strength to strength. Between 2012 and 2014, sales of fruit and herbal teabags grew by 31% from £58m to £76m, while sales of speciality teabags rose by 15% to £63m and sales of green teabags leaped by 50% to £36m.

Emma Clifford, senior food and drink analyst at Mintel, said consumers were becoming much more adventurous in their choice of tea to drink at home, triggering strong sales of fruit or herbal teas, speciality teas and green tea, reflecting what she said was "a growing foodie culture in the UK".

One of the factors behind the decline in tea has been that it has lost out to coffee. Clifford said: "There has been a lot of innovation activity and premiumisation in coffee in recent years, with growth in premium formats like coffee pods and coffee beans. New formats and the coffee shop culture have encouraged switching from tea to coffee – but the rate of this switching is likely to abate, with a large base of core users unlikely to change their tea drinking habits."

The volume decline was even sharper, down from 97m kg to 76m kg over the past five years.

In the UK tea brands have spent millions of pounds diversifying into new green tea ranges. Tetley, for example, the most popular tea brand in the UK, is also the fastest-growing green tea brand . Last year, rival PG Tips launched a range of green teas alongside fruit and herbal teas.

The UK Tea and Infusions Association , which represents the world's tea producing and exporting countries, pointed out that tea was still by far the most popular hot drink in the UK, with over 165m cups being drunk every day. That compares with 70m cups of coffee.

The report said more than three out of four (76%) drank tea in the month to April this year, and over half (54%) said they drank it at least once a day.
Falling sales of biscuits and cakes may be having repercussions on the tea market too. Volume sales of sweet biscuits fell from 451m kg in 2009 to an estimated 413m kg last year.
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Britons desert ordinary cuppa for exotic brews when it's time for tea - INDEPE
05-Aug-2015 05:04

It has long been the staple beverage of British breakfast tables and is regarded by many as the national drink. But the humble cup of tea is now in serious decline as people turn to healthier herbal alternatives, according to research published today.

Between 2010 and 2015 the volume of tea sold in the UK slumped by 22 per cent, from 97 million kilograms to 76 million. The fall is "almost completely attributable to diminishing sales of ordinary tea bags", the study by the global market research agency Mintel concluded.

Sales of standard black tea bags dived 13 per cent between 2012 and 2014, while alternative teas enjoyed strong growth. Green tea-bag sales rose 50 per cent, fruit and herbal tea bags 31 per cent and speciality blends such as Earl Grey, Darjeeling and Assam 15 per cent.

Retail analysts said the switch from ordinary tea may be partially explained by growing health awareness among the public, as other teas are not typically taken with milk and sugar. The rise of "foodie" culture may also be a factor, with regular black tea seen as unexciting compared to other blends.

Emma Clifford, senior food and drink analyst at Mintel, said the decline may also be tied to dwindling cake and biscuit sales. "It is widely accepted that tea is a good accompaniment to biscuits and cakes. Given the sugar scare, however, and that usage of such treats is in decline, these strong associations could have had a negative impact on the tea market," she said.
Last month, official statistics revealed that sausages are also falling out of favour, with sales dropping more than 25 per cent since 2008.

The Mintel analysts suggested that manufacturers should consider introducing "extreme flavours" to make the beverage appeal to younger consumers who regarded it as dull, suggesting spicy flavours such as wasabi or Szechuan pepper.

However, the study also confirmed that tea is still a staple drink for millions of Britons. More than half of the population (54 per cent) drink at least one cup of ordinary tea a day, with men between 16 and 44 the biggest consumers. Almost 75 per cent drink it in the morning, and 66 per cent in the afternoon.

Bill Gorman, chairman of the tea industry body, the UK Tea and Infusions Association, said the UK was "still a nation of tea drinkers" and that Ireland was the only country in the world which consumed more per head. "The tea industry has been very slow to innovate - the coffee boys have been way ahead of us. But now we're producing a range of products - speciality teas, herbal fruit infusions - which is appealing to consumers."

CHALLENGING TASTES HOW TEA HAS CHANGED
Manufacturers have been busily developing new herbal blends and fruit infusions.
Pukka Herbs, the company which produces flavours such as Lemon, Ginger and Manuka Honey and Supreme Matcha Green launched more new products than any other tea maker last year.
PG Tips has started a Fruit & Herbal Infusions range which includes flavours such as Vibrant Blackcurrant, Crisp Mint and Zesty Lemon & Ginger. Twinings launched a Sweet Green Tea range last year which included flavours such as Gingerbread and Salted Caramel. Earlier this year, it added some even more peculiar infusions, including Fudge Melts and Cherry Bakewell.
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