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Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer
Trends


December 1, 2009

Although the economic recession has clearly affected the U.S. tea market, slowing
previously double-digit sales growth in the pricier RTD segment while slightly lifting
sales in the more affordable bags/loose tea segment, tea’s appeal as an “affordable
luxury” and its compelling image as a healthy product have kept sales in the black when
many other CPG categories have seen declines. Moreover, considering the 2005-2009
period overall, sales have done well, and as the economic picture brightens the
recession may turn out to have a silver lining in that it has compelled tea marketers to
innovate along value-added lines likely to continue to resonate well with consumers in
the years ahead.

Market thrusts examined in the report include exotic superfruit flavors; hybrid products
designed to compete with other beverage categories including bottled waters, energy
drinks and sodas; new RTD spins on green tea that promise to mainstream this tea type
once and for all; emerging segments including yerba mate and Kombucha; the upswing
in fair trade and other “ethical” appeals; social marketing via nontraditional media like
Facebook and Twitter; and a strong tea push in the convenience store channel by
marketers and operators alike. At the same time, foodservice players from fine
restaurants on down are expanding their tea offerings even as tea rooms and coffee/tea
shops surge, suggesting tea may be headed toward much broader levels of distribution
and popularity à la Starbucks.

This fully updated report examines the U.S. market for tea across the retail and
foodservice spectrum, including ready-to-drink (RTD) tea, leaf (bagged and loose) tea,
and instant tea. Following an introductory chapter documenting tea types, packaging
trends, “the ethics of tea,” and global market trends, the report segments and quantifies
the market by channel and product type, providing historical sales figures and
projections through 2014. The report examines market drivers and trends and
thoroughly maps out the competitive situation to the marketer and brand share level,
profiling brands including Arizona RTD Tea (Ferolito, Vultaggio & Sons), Bigelow Tea
(R.C. Bigelow, Inc.), Celestial Seasonings (The Hain Celestial Group, Inc.), Honest Tea
(Honest Tea, Inc.), Lipton (Unilever) and Starbucks and Tazo Tea (Starbucks Coffee
Co.). Trends in new product introductions are analyzed at length, based on data from
Datamonitor’s Product Launch Analytics, as are trends in the c-store and foodservice
channels.

An exclusive feature of this report is custom survey data from Packaged Facts’
February 2009 online poll of 2,600 U.S. adults, which was conducted to measure
purchasing patterns, attitudes and demographics specific to tea and other functional
foods and beverages. Drilling down to the brand level, the analysis also relies on
consumer survey data from Experian Simmons’ Spring 2009 National Consumer Study
to chart consumer demographic and psychographic trends, Information Resources, Inc.
InfoScan Review data tracking product sales in mass-market channels, and wholesale
data from leading natural/specialty channel distributor United Natural Foods, Inc. (UNFI)
to quantify sales and market shares of natural and specialty products.



Table of Contents

Chapter 1: Executive Summary
      Scope and Methodology
      Scope of Report
      Exclusions
      Report Methodology
      Market Trends
      Sales Notch Up to $8.5 Billion
      Retail vs. Foodservice
      Figure 1-1: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009
      (percent)
      RTD Tea Feels Economic Pinch
      Organic Tea Leads Growth in Natural Supermarket Channel
      Supermarkets and C-Stores Lead
      Looking Ahead
      The Marketers
      Range of Players
      Acquisitions, Alliances and Corporate Changes
Crossing Category Lines
      Unilever Strong in Both Major Categories
      Top Natural Products
      Corporate Responsibility and Environmental Initiatives
      The New Marketing Buzz: Social Media
      C-store Trends Favor Tea Expansion
      Foodservice Trends Also Favorable
      Coffeehouses Focus on Tea
      New Product Trends
      Tea: A Healthy, Affordable Luxury
      Tea Intros Swell, Drop in Economic Recession
      “Upscale” Tops Marketing Claim/Package Tag List
      “Affordable Luxury” and Health Appeals Reign Supreme
      Green Tea Still Seeing Plenty of Action
      The Superfruit Surge
      Fast-Food Chains Increase Tea Offerings
      Consumer Trends
      Household Purchasing Rates for Retail Tea Products
      Figure 1-2: Household Purchasing of Retail Tea Products, 2009 (percent and
      number)
      Retail vs. Restaurant Purchasing Rates
      Purchasing Patterns
Chapter 2: Introduction
      Scope and Methodology
      Scope of Report
      Exclusions
      Report Methodology
      Types of Tea
“Real” Tea and Tisanes
Four Basic Tea Types
A Fifth Tea Type: Pu’er Tea
Tisanes and Tea Blends
Bubble Tea and Chai
The Grading of Tea
Whole Leaf
Broken Leaf
Fannings
Dust
Additional Modifiers for Grades
Green and Oolong Teas
Additional Terms
Packaging Options and Variations
Ready-to-Drink (RTD) Options
Bottles and Cans
Box and Bag-in-Box
Jugs and Cartons
Leaf Tea Options
Bag
Filter Packs and Pods
Bulk
Tin
Other Loose Tea Formats
Instant Tea Mix Options
Jars and Canisters
On-the-Go Packets and Caps
Pumps and Droppers
Overview of Government Regulation
The Role of the FDA and FTC
Tea Labeling
Advertising Tea
Other Governmental Efforts
The Ethics of Tea
Defining “Fair Trade”
TransFair Monitors Fair Trade Products in U.S
Other Organizations Monitoring Tea
The Ethical Tea Partnership
The Rainforest Alliance
UTZ Certified Tea
Global Market Overview
Top Country Producers, Importers, and Exporters
Table 2-1: Top 20 Global Tea-Producing Countries, 2007 (in thousands of metric
tons)
Table 2-2: Top 20 Countries by Tea Exports, 2007 (in thousands of metric tons)
Table 2-3: Top 20 Countries by Tea Imports, 2007 (in thousands of metric tons)
Climate Change May Impact Supply Quantity, Quality
Growth in U.S. Tea Imports
Table 2-4: Value of U.S. Tea Imports, 1999-2008 (in millions of dollars)
Table 2-5: Value of U.S. Tea Imports by Country of Origin: 2000, 2004 and 2008
(in millions of dollars)
Green Tea Imports Increase
Global Tea Product Launches Chart Steady Increases
Figure 2-1: Number of Global Tea Product Launches: Reports and SKUs, 2005-
2009
Asia-Pacific Regions Leads in New Product Introductions
     Figure 2-2: Share of Global Tea Product Launches by Region: 2000, 2004 and
     2008 (percent)
     Unilever, Ito En Lead Global Tea Introductions
     Table 2-6: Top 10 Global Marketers of Tea Based on Level of New Product
     Launches, 2005-2009 (number)
     Natural, Organic Are Top Global Tea Claims
     Table 2-7: Top 20 Package Tags/Marketing Claims: By Number of Global Tea
     Product Launches, 2005-2008
     Table 2-8: Natural and Ethical Package Tags/Marketing Claims: By Number of
     Global Tea Product Launches, 2005-2009
     Table 2-9: Functional Package Tags/Marketing Claims: By Number of Global Tea
     Product Launches, 2005-2008

Chapter 3: Market Trends
     Market Size and Composition
     Sales Notch Up to $8.5 Billion
     Table 3-1: U.S. Sales of Tea: 2005-2009 (in millions of dollars)
     Retail vs. Foodservice
     Figure 3-1: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009
     (percent)
     Table 3-2: U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009 (in millions of
     dollars)
     IRI-Tracked Tea Sales Flatten
     Table 3-3: IRI-Tracked Sales of Tea: 2005-2009 (in millions of dollars)
     Shelf-Stable RTD Tea Dominates Retail Market
     Figure 3-2: Share of IRI-Tracked Sales of Tea by Category: 2005, 2007 and 2009
     (percent)
     RTD Tea Feels Economic Pinch
     Table 3-4: IRI-Tracked Sales of Tea: By Category, 2005-2009 (in millions of
     dollars)
     Table 3-5: Growth of IRI-Tracked Sales of Tea: By Category, 2006-2009
     (percent)
Table 3-6: IRI-Tracked Dollar Sales and Volume Sales of Tea: By Category,
2009 (in millions of dollars and ounces)
Organic Tea Leads Growth in Natural Supermarket Channel
Table 3-7: Market Share and Sales Growth of Leaf Tea Products in Natural
Supermarket Channel: By Category, 2008 (percent)
Table 3-8: Market Share and Sales Growth of Leaf Tea Products in Natural
Supermarket Channel: By Organic Content, 2008 (percent)
Specialty Teas Going Strong
Figure 3-3: Growth of Leaf Tea Products in the Natural Supermarket Channel: By
Product Type, 2008 (percent)
Figure 3-4: Share of United Natural Foods, Inc. (UNFI)
Wholesale Distribution of Leaf Tea by Type, 2009 (percent)
Packaged RTD Tea Leads in Foodservice
Table 3-9: Share of U.S. Foodservice Sales of Tea: By Product Category, 2005-
2009 (percent)
Supermarkets and C-Stores Lead
Figure 3-5: Share of U.S. Retail Sales of Packaged Tea by Channel, 2008 vs.
2009 (percent)
Market Outlook
Recessionary Concerns Linger
Table 3-10: Consumer Price Index for Food at Home and Beverage Materials
Including Coffee and Tea: 1999-2009
Tea Not Immune to Consumer Cutbacks
Gourmet Teas Demonstrate Recession Resistance
Tea’s Health Halo
FDA Hedges with Green Tea Claims
But Canada Rulings May Pave Way for Additional Claims
Research Supports Tea’s Health Benefits
The Wellness Connection
Packaged Facts Survey Confirms Healthy Interest in Tea
Table 3-11: Percent of U.S. Consumers Who Have Purchased Beverage
Products in the Last 12 Months Because of Special Nutritional Benefits, 2009
Table 3-12: Percent of U.S. Consumers Who Have Purchased Food or Beverage
Products in the Last 12 Months Because of Specific Nutritional Content, 2009
Table 3-13: Level of Agreement with Statement, “Rather Than
Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific
Nutritional Benefits,” February 2009 (percent of U.S. adults)
Figure 3-6: Level of Agreement with Statement, “I Am Buying More
Foods/Beverages Because of Their Specific Nutritional Benefits,” February 2009
(percent of U.S. adults)
Health Concerns Growing with Aging Population
Table 3-14: Projected U.S. Population by Age Bracket: 2007, 2010 and 2015 (in
thousands)
Organic Growth Bodes Well for Tea Category
Table 3-15: Consumer Attitudes About Buying Organic Foods and Beverages,
2009 (percent of U.S. adults)
Fair Trade Tea Gets Green Light
Competition from Other Beverages
Table 3-16a: Beverage Dollar Sales and Market Share by Category: 2005 (in
millions of dollars)
Table 3-16b: Beverage Dollar Sales and Market Share by Category: 2007 (in
millions of dollars)
Table 3-16c: Beverage Dollar Sales and Market Share by Category: 2009 (in
millions of dollars)
Table 3-17: Beverage Category Growth Rates: July 2009 vs. Year Ago, and
2005-2009 CAGR (in millions of dollars)
Lessons from Coffee
Table 3-18: U.S. Per Capita Consumption of Tea vs. Coffee: 1998-2007 (in
gallons)
Energy Drinks Going Strong
Tough Times for Sugary Carbonated Beverages
High Interest in “Superfruit” Juices a Potential Tea Plus
Table 3-19: New Product Introductions with Selected Superfruits: 2005-2009
     (number)
     Table 3-20: Purchasing of Selected “Superfruit” Beverage Types Within The Past
     12 Months, 2009 (percent of U.S. adults)
     Convenience vs. Environment
     Looking Ahead
     Steadily Increasing Annual Sales Gains
     Table 3-21: Projected U.S. Sales of Tea: 2009-2014 (in millions of dollars)
     Principal Market Drivers
     Retail to Outpace Foodservice
     Table 3-22: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2009-2014
     (percent)
     Table 3-23: Projected U.S. Sales of Tea: Retail vs. Foodservice, 2009-2014 (in
     millions of dollars)
     Retail Market Growth by Product Type
     Table 3-24: Projected U.S. Retail Sales of Tea: By Category, 2009 vs. 2014 (in
     millions of dollars)
     Table 3-25: Share of U.S. Retail Sales of Tea: By Category, 2009 vs. 2014
     (percent)
     Good Prospects for Organic and Specialty Tea
     Weight Issue Not Dead

Chapter 4: The Marketers
     Competitive Overview
     Range of Players
     Acquisitions, Alliances and Corporate Changes
     Coca-Cola and PepsiCo Set Sights on Tea Category
     Nestlé Invests in Sweet Leaf Tea
     Acquisition Rumors Abound
     Cadbury Spin-Off Creates Dr Pepper Snapple Group
Table 4-1: IRI-Tracked Sales and Share of Snapple RTD Canned and Bottled
Tea, 2005-2009 (in millions of dollars and percent)
The Case of Enviga
Crossing Category Lines
Marketer and Brand Shares
Methodology
Unilever Strong in Both Major Categories
Table 4-2: Top Marketers of RTD Canned and Bottled and Bags/Loose Tea,
2009 (percent)
Arizona Charts Gains Amidst RTD Tea Losses
Table 4-3: Top Marketers of RTD Canned and Bottled Tea by Share of IRI-
Tracked Sales: 2005, 2007 and 2009 (percent)
Table 4-4: Top Marketers and Brands of RTD Canned and Bottled Tea by IRI-
Tracked Sales and Volume: 2009 vs. Year Ago (in millions of dollars and ounces)
Lipton, Bigelow and Celestial Lead Bags/Loose Tea Category
Table 4-5: Top Marketers of Bags/Loose Tea by Share of IRITracked Sales:
2005, 2007 and 2009 (percent)
Table 4-6: Top Marketers and Brands of Bags/Loose Tea by IRI-Tracked Sales
and Volume: 2008 vs. 2009 (in millions of dollars and ounces)
Refrigerated RTD and Instant Tea Mix Marketers
Private-Label Up in Down Economy
Table 4-7: IRI-Tracked Sales of Private-Label Tea by Category: Bags/Loose and
RTD Canned/Bottled, 2005-2009 (in millions of dollars)
Private Label in General on the Ups
RTD Market Ripe for Private-Label Tea
Top Natura: l Products
Table 4-8: Top 20 Natural Brands of Leaf Tea Distributed by United Natural
Foods, Inc. (UNFI): Wholesale Category Rank, Percentage Share, and Change
in Dollar Volume, 2009 (percent)
Table 4-9: Top 25 Natural Varieties of Leaf Tea Distributed by United Natural
Foods, Inc. (UNFI): Wholesale Category Rank, Brand, and Change in Dollar
Volume, 2009 (percent)
Table 4-10: Top 25 Natural Varieties of RTD Tea Distributed by United Natural
Foods, Inc. (UNFI): Brand, Percentage Share, and Change in Dollar Volume,
2009 (percent)
Table 4-11: Top 10 Natural Brands of RTD Tea Distributed by United Natural
Foods, Inc. (UNFI): Wholesale Category Rank, Brand, Percentage Share, and
Change in Dollar Volume, 2009 (percent)
Marketing Trends
When the Going Gets Tough
RTD Teas Combine Function and Flavor
Sparkling Teas Lure Soda and Bottled Water Drinkers
Leaf Teas Offer Functional Benefits
Corporate Responsibility and Environmental Initiatives
Unilever Adopts Rainforest Alliance Guidelines
Republic of Tea Gives Back
Inko’s Supports Multiple Causes
Hain Celestial Committed to Corporate Responsibility
Environmental Initiatives
The New Marketing Buzz: Social Media
Sweet Leaf Tea Masters Viral Marketing
C-stores Redefining Image
C-store Trends Favor Tea Expansion
7-Eleven, Wawa, BP Tap RTD Tea Market
Sweet Leaf Tea Pursues C-Store Channel
Foodservice Trends
Channel Overview
Table 4-12: Share of Dollar Sales of Meals and Snacks Away from Home: By
Type of Outlet, 2005-2008 (percent)
Restaurant Industry Sales Reach New Record
What’s Hot & What’s Not
Foodservice Competition Grows
      More Establishments Offering Tea
      Iced Tea a Dining-Out Staple
      Delivering Quality to Discerning Customers
      Cocktails with a Twist
      Coffeehouses Focus on Tea
      The Coffee Bean & Tea Leaf
      Peet’s Coffee & Tea
      Seattle’s Best Coffee
      Tropical Smoothie
      The Perfect Breakfast Beverage
      Tea Rooms Offer High-Grade Tea, Calming Atmosphere
      Keurig Brings Foodservice Tea Out of the Restaurant

Chapter 5: Brand Profiles
     Arizona RTD Tea (Ferolito, Vultaggio & Sons)
      A Privately Owned Powerhouse
      Table 5-1: IRI-Tracked Sales of Arizona RTD Canned/Bottled and Bags/Loose
      Tea, 2005-2009 (in millions of dollars)
      Mass-Market Sales Outperform Market
      Thriving Amidst Controversy
      Distinctive Design, Distinctive Products
      Arizona Plus Nestlé/Poland Spring
      Arizona Kidz Tea Benefits Operation Smile
      Bigelow Tea (R.C. Bigelow, Inc.)
      A Family-Owned Leaf Tea Expert
      The American Tea Plantation
      Bigelow Brand Sales and Market Performance
Table 5-2: IRI-Tracked Sales of Bigelow Bags/Loose Tea, 2005-2009 (in millions
of dollars)
Table 5-3: Share of IRI-Tracked Sales of Bigelow Bags/Loose Teas by Variety:
2005, 2007 and 2009 (percent)
Table 5-4: Wholesale Ranking and Percentage Change in Sales vs. Previous
Year of Bigelow Leaf Tea Varieties Distributed by United Natural Foods, Inc.
(UNFI), 2009 (percent)
Responsible Tea Production
The Bigelow/Arizona Partnership
New Products Promise Functional Benefits
Celestial Seasonings (The Hain Celestial Group, Inc.)
Celestial Seasonings: A Potent “Wellness” Brand
Celestial Seasonings Brand Sales and Market Performance
Table 5-5: IRI-Tracked Sales of Celestial Seasonings Bags/Loose Tea, 2005-
2009 (in millions of dollars)
Table 5-6: Wholesale Ranking and Percentage Change in Sales vs. Previous
Year of Celestial Seasonings Leaf Tea Varieties Distributed by United Natural
Foods, Inc. (UNFI), 2009 (percent)
Tea with a Conscience
Rebranding and Cross-Category Expansion
New Products Mix the Familiar with Innovation
Hain Buys into Kombucha Market
Honest Tea (Honest Tea, Inc.)
The Organic Tea Leader
Coca-Cola and Honest Tea
Mass-Market Sales More Than Double
Table 5-7: IRI-Tracked Sales of Honest Tea RTD Canned/Bottled Tea, 2005-
2009 (in millions of dollars)
Table 5-8: Top Honest Tea RTD Tea Varieties Distributed by United Natural
Foods, Inc. (UNFI), 2009 (percent)
Social Responsibility Is Key to Success
The Obama Factor
     New Products, New Markets
     New Plastic Bottles Save Plastic and Offer Mass Appeal
     Lipton (Unilever)
     The Global Tea Leader
     RTD Tea Nearly 70% of Lipton’s Mass-Market Sales
     Table 5-9: IRI-Tracked Sales of Lipton RTD Canned/Bottled and Bags/Loose Tea
     by Variety, 2005-2009 (in millions of dollars)
     Table 5-10: Share of IRI-Tracked Sales of Lipton Bags/Loose and RTD
     Canned/Bottled Tea by Variety: 2005, 2007 and 2009 (percent)
     Proprietary Tea Leaves
     Sustainable Practices
     Zero-Landfill Initiative
     Partnering with National Geographic
     The Pepsi-Lipton Tea Partnership
     Lipton’s Sparkling Surprise
     Starbucks and Tazo Tea (Starbucks Coffee Co.)
     Coffee Kingpin Responds to Competition, Economy
     From Coffeehouse to Tea Room?
     Tea: The Alternative Coffee
     Mass-Market Sales of Tazo Tea Grow
     Table 5-11: IRI-Tracked Sales of Tazo Bags/Loose and RTD Canned/Bottled
     Tea, 2005-2009 (in millions of dollars)
     Table 5-12: Wholesale Ranking and Percentage Change in Sales vs. Previous
     Year of Tazo Leaf Tea Varieties Distributed by United Natural Foods, Inc. (UNFI),
     2009 (percent)
     Table 5-13: Top Tazo RTD Tea Varieties Distributed by UNFI, 2009 (percent)

Chapter 6: New Product Trends
     Overview
     Tea: A Healthy, Affordable Luxury
Tea Tops Beverage Category List by Number of New Product Introductions
Table 6-1: Number of U.S. Beverage Product Reports/SKUs, 2009
Tea Intros Swell, Drop in Economic Recession
“Upscale” Tops Marketing Claim/Package Tag List
Table 6-2: Number of U.S. Tea Product Introductions: Reports and SKUs, 2005-
2009
Table 6-3: Top Marketing Claims/Package Tags for U.S. Tea Product
Introductions, 2005-2009
Herbal, Fruit-Flavored Teas Top Introductions
Figure 6-1: Share of New Hot Tea Product Introductions by Category, 2005-2009
(percent)
Table 6-4a: Number of New Hot Tea Product Reports by Category, 2005-2009
Table 6-4b: Number of New Hot Tea Product SKUs by Category, 2005-2009
Republic of Tea Launches the Most New Products
Table 6-5: Top Tea Marketers by Number of New Product Reports and SKUs,
2005-2009
Retail Product Trends
Marketers React to Economic Pressures
“Affordable Luxury” and Health Appeals Reign Supreme
Green Tea Still Seeing Plenty of Action
Table 6-6: Number of New RTD Green Tea Product Reports and SKUs, 2005-
2009
The Superfruit Surge
Table 6-7: New Hot and RTD Tea Product Introductions with Selected
Superfruits, 2005-2009 (number)
Antioxidants and Anti-Aging
Rooibos and White Tea Offer Health Benefits, Milder Flavor
Kombucha and Yerba Mate on the Ups
Tea Category Leads by Number of “Ethical” Claims
Table 6-8: Ethical Food and Beverage Product Introductions by Product
Category, 2005-2009*
Organic and Fair Trade Teas
Dessert Teas Echo Flavored Coffee Appeals
Tea for Kids
Innovative Delivery Systems Offer Quality and Convenience
Healthy Shots
Green and White Tea Extracts
Other Beverage Types Tapping into Tea
Here Comes Stevia
Foodservice Trends
Tea Offerings Expanding in Foodservice Outlets
From Dining Staple to Specialty Item
The New “Mocktail”
Quality, Variety Key to Foodservice Innovations
Coca-Cola Increases Presence in Tea Foodservice
Fast-Food, Casual Dining Chains Increase Tea Offerings
Bubble Tea Offers Novelty, Variety
The Word Tea Expo
Trade Show Tracks New Specialty Product Trends
The World Tea Championship
Table 6-9a: World Tea Championship 2009 Winners, Hot Tea Class: Signature
Famous Tea Categories
Table 6-9b: World Tea Championship 2009 Winners, Hot Tea Class: General
Tea Categories
Table 6-10a: World Tea Championship 2009 Winners, Iced Tea Class:
Foodservice Categories
Table 6-10b: World Tea Championship 2009 Winners, Iced Tea Class: Ready-
To-Drink Categories
Canadian Trade Shows Note Drop in Tea Products

Chapter 7: Consumer Trends
     Overview
     Note on Experian Simmons and Packaged Facts Surveys
     Household Purchasing Rates for Retail Tea Products
     Figure 7-1: Household Purchasing of Retail Tea Products, 2009 (percent and
     number)
     Table 7-1: Household Purchasing Rates for Retail Tea Products, 2005-2009
     (percent of U.S. households)
     Table 7-2: Number of Households Purchasing Retail Tea Products, 2005-2009
     (number of U.S. households in millions)
     Retail vs. Restaurant Purchasing Rates
     Figure 7-2: Tea Drinker Purchasing Patterns: Retail vs. Restaurant, February
     2009 (percent)
     Figure 7-3: Tea Drinker Purchasing Patterns: Retail or Restaurant Purchasing
     Patterns for Selected Specialty Tea Products, February 2009 (percent)
     Consumer Demographics and Psychographics: Leaf Tea
     Overall Purchasing Patterns for Leaf Tea
     Table 7-3: Demographic Indicators for Purchasing of Leaf Tea, 2009 (percent,
     total number and index)
     Hot vs. Iced Tea
     Table 7-4: Household Purchasing of Leaf Tea by Purpose: Hot Tea vs. Iced Tea,
     2009 (percent and number)
     Table 7-5: Demographic Indicators for Purchasing of Leaf Tea to Make Hot Tea,
     2009 (percent, total number and index)
     Table 7-6: Psychographic Indicators for Purchasing of Leaf Tea to Make Hot Tea,
     2009 (percent, total number and index)
     Table 7-7: Demographic Indicators for Purchasing of Leaf Tea to Make Iced Tea,
     2009 (percent, total number and index)
     Bagged vs. Loose Tea
     Table 7-8: Household Purchasing of Leaf Tea by Type: Bagged vs. Loose, 2009
     (percent and total number)
Table 7-9: Demographic Indicators for Purchasing of Loose Leaf Tea, 2009
(percent, total number and index)
Table 7-10: Psychographic Indicators for Purchasing of Loose Leaf Tea, 2009
(percent, total number and index)
62% of Households Buy Regular Tea
Table 7-11: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated, 2009
(percent and total number)
Figure 7-4: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated and
Bagged vs. Loose, 2009 (percent)
Table 7-12: Demographic Indicators for Purchasing of Decaffeinated Tea, 2009
(percent, total number and index)
Table 7-13: Psychographic Indicators for Purchasing of Decaffeinated Tea, 2009
(percent, total number and index)
Flavor Preferences
Table 7-14: Household Purchasing of Leaf Tea by Flavor, 2009 (percent and total
number)
Figure 7-5: Retail Tea Purchasing Patterns by Flavor, February 2009 (percent)
Figure 7-6: Restaurant Tea Purchasing Patterns by Flavor, February 2009
(percent)
Herbal and Fruit/Spice-Flavored Tea Drinkers
Table 7-15: Demographic Indicators for Purchasing of Herbal Tea, 2009 (percent,
total number and index)
Table 7-16: Psychographic Indicators for Purchasing of Herbal Tea, 2009
(percent, total number and index)
Table 7-17: Demographic Indicators for Purchasing of Fruit/Spice-Flavored Tea,
2009 (percent, total number and index)
Table 7-18: Psychographic Indicators for Purchasing of Fruit/Spice-Flavored Tea,
2009 (percent, total number and index)
11% of Households Are Heavy Consumers of Leaf Tea
Table 7-19: Household Consumption Levels for Leaf Tea, 2009 (percent and total
number)
Table 7-20: Demographic Indicators for Heavy Household Consumption of Leaf
Tea, 2009 (percent, total number and index)
Table 7-21: Psychographic Indicators for Heavy Consumption of Leaf Tea, 2009
(percent, total number and index)
43% of Households Buy Lipton Leaf Tea
Figure 7-7: Top Brands of Leaf Tea by Household Purchasing Levels, 2009
(percent)
Table 7-22: Demographic Indicators for Purchasing of Leaf Tea: By Brand, 2009
(index)
Table 7-23: Psychographic Indicators for Purchasing of Leaf Tea: By Brand,
2009 (index)
Consumer Demographics and Psychographics: Ready-To-Drink Cold Tea
45% of Households Purchase RTD Cold Tea
Figure 7-8: Household Purchasing of RTD Cold Tea, 2009 (percent and number)
Table 7-24: Demographic Indicators for Purchasing of RTD Cold Tea, 2009
(percent, total number and index)
Table 7-25: Psychographic Indicators for Purchasing of RTD Cold Tea, 2009
(percent, total number and index)
Regular vs. Diet RTD Tea
Table 7-26: Demographic Indicators for Purchasing of Regular RTD Cold Tea,
2009 (percent, total number and index)
Table 7-27: Psychographic Indicators for Purchasing of Regular RTD Cold Tea,
2009 (percent, total number and index)
Table 7-28: Demographic Indicators for Purchasing of Diet RTD Cold Tea, 2009
(percent, total number and index)
Table 7-29: Psychographic Indicators for Purchasing of Diet RTD Cold Tea, 2009
(percent, total number and index)
22% of Households Buy RTD Lipton
Figure 7-9: Top Brands of RTD Cold Tea by Household Purchasing Levels, 2009
(percent)
Patterns by Brand
Table 7-30: Demographic Indicators for Purchasing of RTD Cold Tea: By Brand,
2009 (index)
Table 7-31: Psychographic Indicators for Purchasing of RTD Cold Tea: By Brand,
2009 (index)
Consumer Demographics and Psychographics: Instant Iced Tea Mix
       27% of Households Buy Instant Iced Tea Mix



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Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer Trends

  • 1.     Get more info on this report! Tea and Ready-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and Consumer Trends December 1, 2009 Although the economic recession has clearly affected the U.S. tea market, slowing previously double-digit sales growth in the pricier RTD segment while slightly lifting sales in the more affordable bags/loose tea segment, tea’s appeal as an “affordable luxury” and its compelling image as a healthy product have kept sales in the black when many other CPG categories have seen declines. Moreover, considering the 2005-2009 period overall, sales have done well, and as the economic picture brightens the recession may turn out to have a silver lining in that it has compelled tea marketers to innovate along value-added lines likely to continue to resonate well with consumers in the years ahead. Market thrusts examined in the report include exotic superfruit flavors; hybrid products designed to compete with other beverage categories including bottled waters, energy drinks and sodas; new RTD spins on green tea that promise to mainstream this tea type once and for all; emerging segments including yerba mate and Kombucha; the upswing in fair trade and other “ethical” appeals; social marketing via nontraditional media like Facebook and Twitter; and a strong tea push in the convenience store channel by marketers and operators alike. At the same time, foodservice players from fine restaurants on down are expanding their tea offerings even as tea rooms and coffee/tea shops surge, suggesting tea may be headed toward much broader levels of distribution and popularity à la Starbucks. This fully updated report examines the U.S. market for tea across the retail and foodservice spectrum, including ready-to-drink (RTD) tea, leaf (bagged and loose) tea, and instant tea. Following an introductory chapter documenting tea types, packaging trends, “the ethics of tea,” and global market trends, the report segments and quantifies the market by channel and product type, providing historical sales figures and projections through 2014. The report examines market drivers and trends and thoroughly maps out the competitive situation to the marketer and brand share level, profiling brands including Arizona RTD Tea (Ferolito, Vultaggio & Sons), Bigelow Tea (R.C. Bigelow, Inc.), Celestial Seasonings (The Hain Celestial Group, Inc.), Honest Tea (Honest Tea, Inc.), Lipton (Unilever) and Starbucks and Tazo Tea (Starbucks Coffee
  • 2. Co.). Trends in new product introductions are analyzed at length, based on data from Datamonitor’s Product Launch Analytics, as are trends in the c-store and foodservice channels. An exclusive feature of this report is custom survey data from Packaged Facts’ February 2009 online poll of 2,600 U.S. adults, which was conducted to measure purchasing patterns, attitudes and demographics specific to tea and other functional foods and beverages. Drilling down to the brand level, the analysis also relies on consumer survey data from Experian Simmons’ Spring 2009 National Consumer Study to chart consumer demographic and psychographic trends, Information Resources, Inc. InfoScan Review data tracking product sales in mass-market channels, and wholesale data from leading natural/specialty channel distributor United Natural Foods, Inc. (UNFI) to quantify sales and market shares of natural and specialty products. Table of Contents Chapter 1: Executive Summary Scope and Methodology Scope of Report Exclusions Report Methodology Market Trends Sales Notch Up to $8.5 Billion Retail vs. Foodservice Figure 1-1: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009 (percent) RTD Tea Feels Economic Pinch Organic Tea Leads Growth in Natural Supermarket Channel Supermarkets and C-Stores Lead Looking Ahead The Marketers Range of Players Acquisitions, Alliances and Corporate Changes
  • 3. Crossing Category Lines Unilever Strong in Both Major Categories Top Natural Products Corporate Responsibility and Environmental Initiatives The New Marketing Buzz: Social Media C-store Trends Favor Tea Expansion Foodservice Trends Also Favorable Coffeehouses Focus on Tea New Product Trends Tea: A Healthy, Affordable Luxury Tea Intros Swell, Drop in Economic Recession “Upscale” Tops Marketing Claim/Package Tag List “Affordable Luxury” and Health Appeals Reign Supreme Green Tea Still Seeing Plenty of Action The Superfruit Surge Fast-Food Chains Increase Tea Offerings Consumer Trends Household Purchasing Rates for Retail Tea Products Figure 1-2: Household Purchasing of Retail Tea Products, 2009 (percent and number) Retail vs. Restaurant Purchasing Rates Purchasing Patterns Chapter 2: Introduction Scope and Methodology Scope of Report Exclusions Report Methodology Types of Tea
  • 4. “Real” Tea and Tisanes Four Basic Tea Types A Fifth Tea Type: Pu’er Tea Tisanes and Tea Blends Bubble Tea and Chai The Grading of Tea Whole Leaf Broken Leaf Fannings Dust Additional Modifiers for Grades Green and Oolong Teas Additional Terms Packaging Options and Variations Ready-to-Drink (RTD) Options Bottles and Cans Box and Bag-in-Box Jugs and Cartons Leaf Tea Options Bag Filter Packs and Pods Bulk Tin Other Loose Tea Formats Instant Tea Mix Options Jars and Canisters On-the-Go Packets and Caps
  • 5. Pumps and Droppers Overview of Government Regulation The Role of the FDA and FTC Tea Labeling Advertising Tea Other Governmental Efforts The Ethics of Tea Defining “Fair Trade” TransFair Monitors Fair Trade Products in U.S Other Organizations Monitoring Tea The Ethical Tea Partnership The Rainforest Alliance UTZ Certified Tea Global Market Overview Top Country Producers, Importers, and Exporters Table 2-1: Top 20 Global Tea-Producing Countries, 2007 (in thousands of metric tons) Table 2-2: Top 20 Countries by Tea Exports, 2007 (in thousands of metric tons) Table 2-3: Top 20 Countries by Tea Imports, 2007 (in thousands of metric tons) Climate Change May Impact Supply Quantity, Quality Growth in U.S. Tea Imports Table 2-4: Value of U.S. Tea Imports, 1999-2008 (in millions of dollars) Table 2-5: Value of U.S. Tea Imports by Country of Origin: 2000, 2004 and 2008 (in millions of dollars) Green Tea Imports Increase Global Tea Product Launches Chart Steady Increases Figure 2-1: Number of Global Tea Product Launches: Reports and SKUs, 2005- 2009
  • 6. Asia-Pacific Regions Leads in New Product Introductions Figure 2-2: Share of Global Tea Product Launches by Region: 2000, 2004 and 2008 (percent) Unilever, Ito En Lead Global Tea Introductions Table 2-6: Top 10 Global Marketers of Tea Based on Level of New Product Launches, 2005-2009 (number) Natural, Organic Are Top Global Tea Claims Table 2-7: Top 20 Package Tags/Marketing Claims: By Number of Global Tea Product Launches, 2005-2008 Table 2-8: Natural and Ethical Package Tags/Marketing Claims: By Number of Global Tea Product Launches, 2005-2009 Table 2-9: Functional Package Tags/Marketing Claims: By Number of Global Tea Product Launches, 2005-2008 Chapter 3: Market Trends Market Size and Composition Sales Notch Up to $8.5 Billion Table 3-1: U.S. Sales of Tea: 2005-2009 (in millions of dollars) Retail vs. Foodservice Figure 3-1: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009 (percent) Table 3-2: U.S. Sales of Tea: Retail vs. Foodservice, 2005-2009 (in millions of dollars) IRI-Tracked Tea Sales Flatten Table 3-3: IRI-Tracked Sales of Tea: 2005-2009 (in millions of dollars) Shelf-Stable RTD Tea Dominates Retail Market Figure 3-2: Share of IRI-Tracked Sales of Tea by Category: 2005, 2007 and 2009 (percent) RTD Tea Feels Economic Pinch Table 3-4: IRI-Tracked Sales of Tea: By Category, 2005-2009 (in millions of dollars) Table 3-5: Growth of IRI-Tracked Sales of Tea: By Category, 2006-2009 (percent)
  • 7. Table 3-6: IRI-Tracked Dollar Sales and Volume Sales of Tea: By Category, 2009 (in millions of dollars and ounces) Organic Tea Leads Growth in Natural Supermarket Channel Table 3-7: Market Share and Sales Growth of Leaf Tea Products in Natural Supermarket Channel: By Category, 2008 (percent) Table 3-8: Market Share and Sales Growth of Leaf Tea Products in Natural Supermarket Channel: By Organic Content, 2008 (percent) Specialty Teas Going Strong Figure 3-3: Growth of Leaf Tea Products in the Natural Supermarket Channel: By Product Type, 2008 (percent) Figure 3-4: Share of United Natural Foods, Inc. (UNFI) Wholesale Distribution of Leaf Tea by Type, 2009 (percent) Packaged RTD Tea Leads in Foodservice Table 3-9: Share of U.S. Foodservice Sales of Tea: By Product Category, 2005- 2009 (percent) Supermarkets and C-Stores Lead Figure 3-5: Share of U.S. Retail Sales of Packaged Tea by Channel, 2008 vs. 2009 (percent) Market Outlook Recessionary Concerns Linger Table 3-10: Consumer Price Index for Food at Home and Beverage Materials Including Coffee and Tea: 1999-2009 Tea Not Immune to Consumer Cutbacks Gourmet Teas Demonstrate Recession Resistance Tea’s Health Halo FDA Hedges with Green Tea Claims But Canada Rulings May Pave Way for Additional Claims Research Supports Tea’s Health Benefits The Wellness Connection Packaged Facts Survey Confirms Healthy Interest in Tea
  • 8. Table 3-11: Percent of U.S. Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Special Nutritional Benefits, 2009 Table 3-12: Percent of U.S. Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content, 2009 Table 3-13: Level of Agreement with Statement, “Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits,” February 2009 (percent of U.S. adults) Figure 3-6: Level of Agreement with Statement, “I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits,” February 2009 (percent of U.S. adults) Health Concerns Growing with Aging Population Table 3-14: Projected U.S. Population by Age Bracket: 2007, 2010 and 2015 (in thousands) Organic Growth Bodes Well for Tea Category Table 3-15: Consumer Attitudes About Buying Organic Foods and Beverages, 2009 (percent of U.S. adults) Fair Trade Tea Gets Green Light Competition from Other Beverages Table 3-16a: Beverage Dollar Sales and Market Share by Category: 2005 (in millions of dollars) Table 3-16b: Beverage Dollar Sales and Market Share by Category: 2007 (in millions of dollars) Table 3-16c: Beverage Dollar Sales and Market Share by Category: 2009 (in millions of dollars) Table 3-17: Beverage Category Growth Rates: July 2009 vs. Year Ago, and 2005-2009 CAGR (in millions of dollars) Lessons from Coffee Table 3-18: U.S. Per Capita Consumption of Tea vs. Coffee: 1998-2007 (in gallons) Energy Drinks Going Strong Tough Times for Sugary Carbonated Beverages High Interest in “Superfruit” Juices a Potential Tea Plus
  • 9. Table 3-19: New Product Introductions with Selected Superfruits: 2005-2009 (number) Table 3-20: Purchasing of Selected “Superfruit” Beverage Types Within The Past 12 Months, 2009 (percent of U.S. adults) Convenience vs. Environment Looking Ahead Steadily Increasing Annual Sales Gains Table 3-21: Projected U.S. Sales of Tea: 2009-2014 (in millions of dollars) Principal Market Drivers Retail to Outpace Foodservice Table 3-22: Share of U.S. Sales of Tea: Retail vs. Foodservice, 2009-2014 (percent) Table 3-23: Projected U.S. Sales of Tea: Retail vs. Foodservice, 2009-2014 (in millions of dollars) Retail Market Growth by Product Type Table 3-24: Projected U.S. Retail Sales of Tea: By Category, 2009 vs. 2014 (in millions of dollars) Table 3-25: Share of U.S. Retail Sales of Tea: By Category, 2009 vs. 2014 (percent) Good Prospects for Organic and Specialty Tea Weight Issue Not Dead Chapter 4: The Marketers Competitive Overview Range of Players Acquisitions, Alliances and Corporate Changes Coca-Cola and PepsiCo Set Sights on Tea Category Nestlé Invests in Sweet Leaf Tea Acquisition Rumors Abound Cadbury Spin-Off Creates Dr Pepper Snapple Group
  • 10. Table 4-1: IRI-Tracked Sales and Share of Snapple RTD Canned and Bottled Tea, 2005-2009 (in millions of dollars and percent) The Case of Enviga Crossing Category Lines Marketer and Brand Shares Methodology Unilever Strong in Both Major Categories Table 4-2: Top Marketers of RTD Canned and Bottled and Bags/Loose Tea, 2009 (percent) Arizona Charts Gains Amidst RTD Tea Losses Table 4-3: Top Marketers of RTD Canned and Bottled Tea by Share of IRI- Tracked Sales: 2005, 2007 and 2009 (percent) Table 4-4: Top Marketers and Brands of RTD Canned and Bottled Tea by IRI- Tracked Sales and Volume: 2009 vs. Year Ago (in millions of dollars and ounces) Lipton, Bigelow and Celestial Lead Bags/Loose Tea Category Table 4-5: Top Marketers of Bags/Loose Tea by Share of IRITracked Sales: 2005, 2007 and 2009 (percent) Table 4-6: Top Marketers and Brands of Bags/Loose Tea by IRI-Tracked Sales and Volume: 2008 vs. 2009 (in millions of dollars and ounces) Refrigerated RTD and Instant Tea Mix Marketers Private-Label Up in Down Economy Table 4-7: IRI-Tracked Sales of Private-Label Tea by Category: Bags/Loose and RTD Canned/Bottled, 2005-2009 (in millions of dollars) Private Label in General on the Ups RTD Market Ripe for Private-Label Tea Top Natura: l Products Table 4-8: Top 20 Natural Brands of Leaf Tea Distributed by United Natural Foods, Inc. (UNFI): Wholesale Category Rank, Percentage Share, and Change in Dollar Volume, 2009 (percent) Table 4-9: Top 25 Natural Varieties of Leaf Tea Distributed by United Natural Foods, Inc. (UNFI): Wholesale Category Rank, Brand, and Change in Dollar Volume, 2009 (percent)
  • 11. Table 4-10: Top 25 Natural Varieties of RTD Tea Distributed by United Natural Foods, Inc. (UNFI): Brand, Percentage Share, and Change in Dollar Volume, 2009 (percent) Table 4-11: Top 10 Natural Brands of RTD Tea Distributed by United Natural Foods, Inc. (UNFI): Wholesale Category Rank, Brand, Percentage Share, and Change in Dollar Volume, 2009 (percent) Marketing Trends When the Going Gets Tough RTD Teas Combine Function and Flavor Sparkling Teas Lure Soda and Bottled Water Drinkers Leaf Teas Offer Functional Benefits Corporate Responsibility and Environmental Initiatives Unilever Adopts Rainforest Alliance Guidelines Republic of Tea Gives Back Inko’s Supports Multiple Causes Hain Celestial Committed to Corporate Responsibility Environmental Initiatives The New Marketing Buzz: Social Media Sweet Leaf Tea Masters Viral Marketing C-stores Redefining Image C-store Trends Favor Tea Expansion 7-Eleven, Wawa, BP Tap RTD Tea Market Sweet Leaf Tea Pursues C-Store Channel Foodservice Trends Channel Overview Table 4-12: Share of Dollar Sales of Meals and Snacks Away from Home: By Type of Outlet, 2005-2008 (percent) Restaurant Industry Sales Reach New Record What’s Hot & What’s Not
  • 12. Foodservice Competition Grows More Establishments Offering Tea Iced Tea a Dining-Out Staple Delivering Quality to Discerning Customers Cocktails with a Twist Coffeehouses Focus on Tea The Coffee Bean & Tea Leaf Peet’s Coffee & Tea Seattle’s Best Coffee Tropical Smoothie The Perfect Breakfast Beverage Tea Rooms Offer High-Grade Tea, Calming Atmosphere Keurig Brings Foodservice Tea Out of the Restaurant Chapter 5: Brand Profiles Arizona RTD Tea (Ferolito, Vultaggio & Sons) A Privately Owned Powerhouse Table 5-1: IRI-Tracked Sales of Arizona RTD Canned/Bottled and Bags/Loose Tea, 2005-2009 (in millions of dollars) Mass-Market Sales Outperform Market Thriving Amidst Controversy Distinctive Design, Distinctive Products Arizona Plus Nestlé/Poland Spring Arizona Kidz Tea Benefits Operation Smile Bigelow Tea (R.C. Bigelow, Inc.) A Family-Owned Leaf Tea Expert The American Tea Plantation Bigelow Brand Sales and Market Performance
  • 13. Table 5-2: IRI-Tracked Sales of Bigelow Bags/Loose Tea, 2005-2009 (in millions of dollars) Table 5-3: Share of IRI-Tracked Sales of Bigelow Bags/Loose Teas by Variety: 2005, 2007 and 2009 (percent) Table 5-4: Wholesale Ranking and Percentage Change in Sales vs. Previous Year of Bigelow Leaf Tea Varieties Distributed by United Natural Foods, Inc. (UNFI), 2009 (percent) Responsible Tea Production The Bigelow/Arizona Partnership New Products Promise Functional Benefits Celestial Seasonings (The Hain Celestial Group, Inc.) Celestial Seasonings: A Potent “Wellness” Brand Celestial Seasonings Brand Sales and Market Performance Table 5-5: IRI-Tracked Sales of Celestial Seasonings Bags/Loose Tea, 2005- 2009 (in millions of dollars) Table 5-6: Wholesale Ranking and Percentage Change in Sales vs. Previous Year of Celestial Seasonings Leaf Tea Varieties Distributed by United Natural Foods, Inc. (UNFI), 2009 (percent) Tea with a Conscience Rebranding and Cross-Category Expansion New Products Mix the Familiar with Innovation Hain Buys into Kombucha Market Honest Tea (Honest Tea, Inc.) The Organic Tea Leader Coca-Cola and Honest Tea Mass-Market Sales More Than Double Table 5-7: IRI-Tracked Sales of Honest Tea RTD Canned/Bottled Tea, 2005- 2009 (in millions of dollars) Table 5-8: Top Honest Tea RTD Tea Varieties Distributed by United Natural Foods, Inc. (UNFI), 2009 (percent) Social Responsibility Is Key to Success
  • 14. The Obama Factor New Products, New Markets New Plastic Bottles Save Plastic and Offer Mass Appeal Lipton (Unilever) The Global Tea Leader RTD Tea Nearly 70% of Lipton’s Mass-Market Sales Table 5-9: IRI-Tracked Sales of Lipton RTD Canned/Bottled and Bags/Loose Tea by Variety, 2005-2009 (in millions of dollars) Table 5-10: Share of IRI-Tracked Sales of Lipton Bags/Loose and RTD Canned/Bottled Tea by Variety: 2005, 2007 and 2009 (percent) Proprietary Tea Leaves Sustainable Practices Zero-Landfill Initiative Partnering with National Geographic The Pepsi-Lipton Tea Partnership Lipton’s Sparkling Surprise Starbucks and Tazo Tea (Starbucks Coffee Co.) Coffee Kingpin Responds to Competition, Economy From Coffeehouse to Tea Room? Tea: The Alternative Coffee Mass-Market Sales of Tazo Tea Grow Table 5-11: IRI-Tracked Sales of Tazo Bags/Loose and RTD Canned/Bottled Tea, 2005-2009 (in millions of dollars) Table 5-12: Wholesale Ranking and Percentage Change in Sales vs. Previous Year of Tazo Leaf Tea Varieties Distributed by United Natural Foods, Inc. (UNFI), 2009 (percent) Table 5-13: Top Tazo RTD Tea Varieties Distributed by UNFI, 2009 (percent) Chapter 6: New Product Trends Overview Tea: A Healthy, Affordable Luxury
  • 15. Tea Tops Beverage Category List by Number of New Product Introductions Table 6-1: Number of U.S. Beverage Product Reports/SKUs, 2009 Tea Intros Swell, Drop in Economic Recession “Upscale” Tops Marketing Claim/Package Tag List Table 6-2: Number of U.S. Tea Product Introductions: Reports and SKUs, 2005- 2009 Table 6-3: Top Marketing Claims/Package Tags for U.S. Tea Product Introductions, 2005-2009 Herbal, Fruit-Flavored Teas Top Introductions Figure 6-1: Share of New Hot Tea Product Introductions by Category, 2005-2009 (percent) Table 6-4a: Number of New Hot Tea Product Reports by Category, 2005-2009 Table 6-4b: Number of New Hot Tea Product SKUs by Category, 2005-2009 Republic of Tea Launches the Most New Products Table 6-5: Top Tea Marketers by Number of New Product Reports and SKUs, 2005-2009 Retail Product Trends Marketers React to Economic Pressures “Affordable Luxury” and Health Appeals Reign Supreme Green Tea Still Seeing Plenty of Action Table 6-6: Number of New RTD Green Tea Product Reports and SKUs, 2005- 2009 The Superfruit Surge Table 6-7: New Hot and RTD Tea Product Introductions with Selected Superfruits, 2005-2009 (number) Antioxidants and Anti-Aging Rooibos and White Tea Offer Health Benefits, Milder Flavor Kombucha and Yerba Mate on the Ups Tea Category Leads by Number of “Ethical” Claims
  • 16. Table 6-8: Ethical Food and Beverage Product Introductions by Product Category, 2005-2009* Organic and Fair Trade Teas Dessert Teas Echo Flavored Coffee Appeals Tea for Kids Innovative Delivery Systems Offer Quality and Convenience Healthy Shots Green and White Tea Extracts Other Beverage Types Tapping into Tea Here Comes Stevia Foodservice Trends Tea Offerings Expanding in Foodservice Outlets From Dining Staple to Specialty Item The New “Mocktail” Quality, Variety Key to Foodservice Innovations Coca-Cola Increases Presence in Tea Foodservice Fast-Food, Casual Dining Chains Increase Tea Offerings Bubble Tea Offers Novelty, Variety The Word Tea Expo Trade Show Tracks New Specialty Product Trends The World Tea Championship Table 6-9a: World Tea Championship 2009 Winners, Hot Tea Class: Signature Famous Tea Categories Table 6-9b: World Tea Championship 2009 Winners, Hot Tea Class: General Tea Categories Table 6-10a: World Tea Championship 2009 Winners, Iced Tea Class: Foodservice Categories Table 6-10b: World Tea Championship 2009 Winners, Iced Tea Class: Ready- To-Drink Categories
  • 17. Canadian Trade Shows Note Drop in Tea Products Chapter 7: Consumer Trends Overview Note on Experian Simmons and Packaged Facts Surveys Household Purchasing Rates for Retail Tea Products Figure 7-1: Household Purchasing of Retail Tea Products, 2009 (percent and number) Table 7-1: Household Purchasing Rates for Retail Tea Products, 2005-2009 (percent of U.S. households) Table 7-2: Number of Households Purchasing Retail Tea Products, 2005-2009 (number of U.S. households in millions) Retail vs. Restaurant Purchasing Rates Figure 7-2: Tea Drinker Purchasing Patterns: Retail vs. Restaurant, February 2009 (percent) Figure 7-3: Tea Drinker Purchasing Patterns: Retail or Restaurant Purchasing Patterns for Selected Specialty Tea Products, February 2009 (percent) Consumer Demographics and Psychographics: Leaf Tea Overall Purchasing Patterns for Leaf Tea Table 7-3: Demographic Indicators for Purchasing of Leaf Tea, 2009 (percent, total number and index) Hot vs. Iced Tea Table 7-4: Household Purchasing of Leaf Tea by Purpose: Hot Tea vs. Iced Tea, 2009 (percent and number) Table 7-5: Demographic Indicators for Purchasing of Leaf Tea to Make Hot Tea, 2009 (percent, total number and index) Table 7-6: Psychographic Indicators for Purchasing of Leaf Tea to Make Hot Tea, 2009 (percent, total number and index) Table 7-7: Demographic Indicators for Purchasing of Leaf Tea to Make Iced Tea, 2009 (percent, total number and index) Bagged vs. Loose Tea Table 7-8: Household Purchasing of Leaf Tea by Type: Bagged vs. Loose, 2009 (percent and total number)
  • 18. Table 7-9: Demographic Indicators for Purchasing of Loose Leaf Tea, 2009 (percent, total number and index) Table 7-10: Psychographic Indicators for Purchasing of Loose Leaf Tea, 2009 (percent, total number and index) 62% of Households Buy Regular Tea Table 7-11: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated, 2009 (percent and total number) Figure 7-4: Household Purchasing of Leaf Tea: Regular vs. Decaffeinated and Bagged vs. Loose, 2009 (percent) Table 7-12: Demographic Indicators for Purchasing of Decaffeinated Tea, 2009 (percent, total number and index) Table 7-13: Psychographic Indicators for Purchasing of Decaffeinated Tea, 2009 (percent, total number and index) Flavor Preferences Table 7-14: Household Purchasing of Leaf Tea by Flavor, 2009 (percent and total number) Figure 7-5: Retail Tea Purchasing Patterns by Flavor, February 2009 (percent) Figure 7-6: Restaurant Tea Purchasing Patterns by Flavor, February 2009 (percent) Herbal and Fruit/Spice-Flavored Tea Drinkers Table 7-15: Demographic Indicators for Purchasing of Herbal Tea, 2009 (percent, total number and index) Table 7-16: Psychographic Indicators for Purchasing of Herbal Tea, 2009 (percent, total number and index) Table 7-17: Demographic Indicators for Purchasing of Fruit/Spice-Flavored Tea, 2009 (percent, total number and index) Table 7-18: Psychographic Indicators for Purchasing of Fruit/Spice-Flavored Tea, 2009 (percent, total number and index) 11% of Households Are Heavy Consumers of Leaf Tea Table 7-19: Household Consumption Levels for Leaf Tea, 2009 (percent and total number) Table 7-20: Demographic Indicators for Heavy Household Consumption of Leaf Tea, 2009 (percent, total number and index)
  • 19. Table 7-21: Psychographic Indicators for Heavy Consumption of Leaf Tea, 2009 (percent, total number and index) 43% of Households Buy Lipton Leaf Tea Figure 7-7: Top Brands of Leaf Tea by Household Purchasing Levels, 2009 (percent) Table 7-22: Demographic Indicators for Purchasing of Leaf Tea: By Brand, 2009 (index) Table 7-23: Psychographic Indicators for Purchasing of Leaf Tea: By Brand, 2009 (index) Consumer Demographics and Psychographics: Ready-To-Drink Cold Tea 45% of Households Purchase RTD Cold Tea Figure 7-8: Household Purchasing of RTD Cold Tea, 2009 (percent and number) Table 7-24: Demographic Indicators for Purchasing of RTD Cold Tea, 2009 (percent, total number and index) Table 7-25: Psychographic Indicators for Purchasing of RTD Cold Tea, 2009 (percent, total number and index) Regular vs. Diet RTD Tea Table 7-26: Demographic Indicators for Purchasing of Regular RTD Cold Tea, 2009 (percent, total number and index) Table 7-27: Psychographic Indicators for Purchasing of Regular RTD Cold Tea, 2009 (percent, total number and index) Table 7-28: Demographic Indicators for Purchasing of Diet RTD Cold Tea, 2009 (percent, total number and index) Table 7-29: Psychographic Indicators for Purchasing of Diet RTD Cold Tea, 2009 (percent, total number and index) 22% of Households Buy RTD Lipton Figure 7-9: Top Brands of RTD Cold Tea by Household Purchasing Levels, 2009 (percent) Patterns by Brand Table 7-30: Demographic Indicators for Purchasing of RTD Cold Tea: By Brand, 2009 (index) Table 7-31: Psychographic Indicators for Purchasing of RTD Cold Tea: By Brand, 2009 (index)
  • 20. Consumer Demographics and Psychographics: Instant Iced Tea Mix 27% of Households Buy Instant Iced Tea Mix Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid=1939949      US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004