Top 5 U.S. Tea Industry Trends

Herbal tea, photo credit: Thinkstockphotos.com

 Specialty tea is booming, rising to $6.4 billion through 2018!* Did you know?

    • Tea is the most widely consumed beverage in the world next to water!
      Tea can be found in almost 80 percent of all U.S. households. In 2016, Americans consumed almost 84 billion servings of tea, or more than 3.8 billion gallons. Approximately four out of five consumers drink tea, with millennials being the most likely (87% of millennials drink tea). **
    • Purchases continue to shift toward natural and specialty/wellness teas
      Natural tea sales are up more than 6 percent and specialty/wellness tea sales are up more 3 percent. Because consumers are embracing its health benefits and variety of offerings, hot tea sales have increased more than 15 percent over the last five years. **
    • Wellness teas, loose green & white teas are bright spots within bagged & boxed teas
      Wellness tea sales are up more than 5.8 percent while loose green & white tea sales are up more than 33.3 percent in the bagged & boxed tea categories. *
    • Sales are strongest in the natural channels
      Overall tea sales are up more than 3.2 percent in the natural channel, which includes retailers that carry predominantly natural and organic products. *
    • Tea is rapidly emerging in new categories
      Foodservice, refrigerated teas and high-end specialty teas continue to grow at 7 – 10 percent per annum. In 2016 the canned/bottled RTD tea segment comprised just under 50 percent of the market share and is expected to continue to grow an estimated 30-35% over the next five years. **

     

  • World Tea Expo 2017

    At World Tea Expo, tea industry professionals or those interested in diving into the tea industry get the opportunity to hear new ideas, discover the latest trends and new distribution channels throughout three days of dedicated buying, selling and education. Retailers, tea room owners, distributors, F&B directors, spa managers, specialty grocers, mass merchants and other business professionals attend the Expo to see 250+ high-quality tea suppliers and related vendors exhibit new products and innovations.If you’re interested in attending or exhibiting at this 100% tea focused event, you’re encouraged to register soon as Early Bird rates for World Tea Expo expire Monday, February 26th with savings of up to $200 on education. Visit the World Tea Expo website to sign up today.

 

    *SPINSscan Data, 52 weeks ending 8/13/17. Total Tea Sales across all SPINS tracked channels U.S.A. (Natural + Specialty Gourmet + MULO** + Convenience)
    **MULO – Conventional Grocery, Drug, Mass Market, Dollar, WalMartNote: Totals do not include food service data (a major portion of the total U.S. Tea Industry)

Source: SPINS – The Leading information supplier for the Natural and Specialty Products Industries

**Tea Association of the USA