Tea in Chile

PROSPECTS

More premium tea demand

The consumer in Chile is experimenting and developing a more refined taste for tea. With the development of speciality shops such as Adagio Teas and Whittard, consumers are expanding their appreciation of tea as a beverage.

Small packaging for more price-sensitive consumers

Although tea in Chile is characterised by a premiumisation trend, the fact remains that consumers are sensitive to price. Mid-price and low-price options remain stagnant while small presentation options such as packs of 10, 20 or 40 tea bags are seeing better performance in terms of sales.

Online offers opportunity for big-ticket purchases but remains niche

On the other hand, the online channel represents an opportunity for consumers to make big-ticket purchases and stock up at home. Although the online channel represents a small percentage of total distribution, companies are already betting on growth from online sales.

COMPETITIVE LANDSCAPE

Lack of space on retail shelves prompts brands to look for new spaces

The off-trade remains the most important distribution channel for tea in Chile. However, retail shelves look more crowded than ever leaving almost no space for brands to position their new products or even remain with their existing products.

Dilmah Chile implements strategic partnership with Travelli coffee shop for exclusive food and tea paring

In 2019, Dilmah Chile started working in partnership with the coffee and gelato shop Travelli. In order to showcase new products and flavours, the brand decided to create exclusive food and tea parings.

Brands look to expand consumption occasions by positioning towards mixology and alcoholic cocktails

In the same vein, brands are looking to make a connection between tea and alcoholic drinks. Brands such as Dilmah have implemented marketing strategies to present their tea as a new ingredient for cocktails.

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