The behavior of out-of-home tea drinkers in the United Kingdom offers valuable insights for tea retailers in developed markets where competition with coffee is fierce.
Tetley, in its second annual 30-page Tea Report, teamed with CGA, a market research consultancy specializing in foodservice drinks markets in the U.S. and U.K. Consumers were questioned on everything from dining experience and the role of technology in the market, to the quality of tea out of home and the channels in which they consume those teas.
Here are key takeaways from responses by 2,500 U.K. residents surveyed last year.
- Consumers are more concerned about ingredients and products that provide nutritional, physical, or emotional benefits to meet their requirements for self-care. Consumers increasingly look for beverages to provide functions such as energy and relaxation. Health is the fastest-growing consumer need, up 9 percent since 2014.
- Consumer demand for natural and earthy flavors such as matcha, ginger, turmeric, and cumin are increasing across markets. Demand for these products is twofold as consumers seek out bold and adventurous flavors, while pursuing alternative health benefits associated with these ingredients.
- New sensations including kombucha, matcha, cold brew, and nitro tea are creating new sensorial experiences in the home. The global kombucha market is expected to experience significant growth from 2018 to 2021.
- Consumers are looking for an experience that reflects their desire to premiumize their beverage choice. Experience is a bankable commodity for brands and cafés alike. Two-thirds of British consumers tell us that they strongly or moderately feel the need to satisfy their desire for new experiences.
- Hotel and foodservice operators are offering afternoon tea reimagined. This quintessential tradition continues to evolve with operators offering eccentric twists. In the future tea sommeliers will play a huge part in the ceremony, with consumers hungry for the theater that comes with this British ritual. Hotel guests are willing to spend an average £2.33 ($3.27) per cup more than any other channel. The average cost per cup is £1.77 ($2.47).