Packaged Facts Optimistic about Tea’s Future

Packaged Facts has recently released a set of slides from their May 2014 World Tea Expo presentation regarding U.S. Tea Market Contexts and Trends. Their data indicates reasons for optimism about tea’s future.

LOGO_Packaged_Facts_50th[1]Packaged Facts analysts are predicting a $900 million increase in total tea sales across the industry in 2015 with the most substantial increase attributable to food service sales. Currently food service makes up slightly more than 75% of total tea sales. 2014 sales are expected to total $25 billion.

The trend toward ready-to-drink teas is clearly demonstrated in the report’s numbers. When considering retail sales, more than 43% of tea is sold in cans or bottles, compared to 30% as tea bags or loose tea. While loose leaf tea purchases were shown to be declining, ready to drink has increased by 3.5%.

Overall, both tea and coffee have seen decreased sales in the past decade, as have other caffeinated beverages. (Energy drinks were the substantial exception.) The vast majority of tea purchased was for brewing hot tea, rather than iced.

Even so, total per capita consumption is on the rise, from 23.6 gallons per person in 2002 to 25.7 gallons in 2011.

Tea bags continue to be king, accounting for 94.3% of tea purchases in 2013, compared to 9.1% for loose leaf tea. While black tea continues to dominate, interest in green tea is on the rise as are teas with spice or fruit flavors.

The Tea and Ready-to-Drink Tea in the U.S.: Retail and Food Service, 5th edition report is currently available for purchase from Packaged Facts.

SOURCE: Packaged Facts