Total tea volume sales are expected to drop considerably in 2020, driven primarily by the closure of foodservice outlets and a resulting dramatic decline in on-trade sales during lockdown in the spring. Retail volume sales, however, are expected to record some growth as a result of stockpiling trends during this time, although tea is less popular in Finland than coffee so the effect is likely to be fairly small.
Domestic tea players are represented by Nordqvist Oy and Aaro Forsman Oy, both tea specialists with a long-standing presence in Finland. Nordqvist is set to maintain its value share in 2020, and the company has recently launched and promoted an innovative line with four variants that are suitable for preparing with both hot and cold water and “mocktails”.
Tea has a much higher unit price per kg compared with coffee in Finland, and private label continues to strengthen its presence in the category in 2020, particularly within tea bags black. Kesko’s Pirkka, S Group’s Rainbow, and Lidl’s Lord Nelson are all fairly well placed, while the newer entry of S Group’s Tesco Finest was also initially well received.
Unlike coffee, there is no strong tradition of drinking tea in Finland; however, this category is set to record growth in foodservice and retail volume as well as retail current growth across the forecast period. Tea carries a much higher unit price per kg compared to coffee in Finland, which leads to higher current value growth compared to volume performance.
Within off-trade, fruit/herbal and other tea are set to record the strongest growth in current value terms, as Finns seek out healthy hot drink options and their tastes diversify. This trend will be supported by a greater variety of products becoming available and the fact that functional products with natural ingredients tend to have higher average unit prices, which drives value growth.
Modern grocery retailers remain the dominant distribution channel for tea. However, internet retailing, although remaining lower than neighbouring Sweden, received a boost in 2020 as distribution channels were impacted by the COVID-19 pandemic and consumers sought to limit face-to-face shopping experiences.
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Understand the latest market trends and future growth opportunities for the Tea industry in Finland with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Tea research and analysis database.
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