New research shows opportunity for tea sales growth in pubs

By Jo Bruce

- Last updated on GMT

Related tags: Tea

Consumers are increasing looking to drink more premium tea
Consumers are increasing looking to drink more premium tea
Tea sales in the out-of-home coffee shop market are estimated at £300 million, according to a new report on tea drinking by Allegra World Coffee Portal, with big potential to increase.

Consumers drink on average 11 cups of tea per week at home, 5 at work and just 0.5 in coffee shops.  Tea consumption in coffee shops has risen 3% in the last two years from 14% in 2012 to 17% in 2014. 

Around 15% of consumers intend to increase tea consumption in the upcoming year compared with 77% who expect to maintain their current tea consumption frequency.

Premiumisation is key

Premiumisation is an important trend in the UK market, as 62% of consumers consider a premium brand such as Twinings or Teapigs to be the most important factor when ordering tea out of home.  Traditional black tea sales are in decline, while premium teas such as green, fruit and herbal are becoming more popular and 53% of consumers indicated they would spend more on a premium tea.

Tea spend lower than coffee spend

Consumers spend on average £1.68 on a cup of tea out of home.  This compares to £2.31 for a latte or cappuccino.  This price difference means that 38% consider tea to be good value for money in a coffee shop.

Tea-focused high street operators

Two thirds of tea drinkers would like to see specialised tea chains on the high street.  Starbucks’ US launch of Teavana Tea Shops in 2013 is a strong indicator that a similar concept could launch in the UK. Allegra expects this to be a catalyst for other specialised tea shops.

Other trends

Consumers have strong views on their preferred way of brewing tea so customisation with non-dairy, lemon, added water etc is essential to meet their preferences.  Healthier lifestyles are increasingly important.  Green, fruit and herbal teas help consumers satisfy their desire for healthier choices.  Health-promoting tea blends with specific benefits are growing in popularity (e.g. cold remedy, boosting immune system, aiding digestion).  Launch of ready-to-drink teas such as matcha green tea from Teapigs mirrors the recent trend in ready-to-drink coffee beverages.

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