Tea in Australia

PROSPECTS

Lack of innovation impacting traditional teas

A shortage of new product innovation is impacting sales of traditional teas, such as black tea, as it is not drawing fresh consumers to these products. This trend is observed in the falling per capita consumption of black tea, which decreased each year over the review period and is predicted to remain in decline over the forecast period.

Health advantages of tea and novel flavours to draw in consumers

On the other hand, teas with a health positioning, such as other fruit/herbal tea, saw significant growth in 2018. Consumers are attracted to the health positioning and benefits of these products.

On-trade sales encouraged by widening product variety

On-trade volume sales of tea recorded reasonable growth in 2018. This is attributable to the increasing variety of speciality teas, such as Chai, and herbal teas, such as peppermint, attracting more consumers to drink tea in the on-trade by providing greater product choice.

COMPETITIVE LANDSCAPE

Unilever Australia Ltd leads tea in Australia

While Unilever Australia led tea in Australia in 2018, the company recorded year-on-year declines in share over the review period. The biggest competition for the company within tea comes from AB Food & Beverages Australia, which recorded year-on-year share growth in tea over the review period.

AB Food & Beverages Australia continues to gain share in tea

AB Food & Beverages Australia took over the lead in black tea in 2017, which it continued to hold in 2018. The Twinings brand recorded a slight brand share increase in loose black tea, while the brand recorded slight decline in its tea bags black share in 2018.

Madura Tea Estates Australia sees growth over the review period, however this stagnates in 2018

Madura Tea Estates Australia Pty Ltd is a locally managed and owned tea company located in northern New South Wales. The company recorded year-on-year increases within black tea between 2013 and 2017; however, this growth was negligible in 2018.

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