Fruit/herbal tea recorded the strongest retail value and volume growth in tea in 2018. The popularity of fruit and herbal tea is not only due to a wide range of products and flavours but also because many of these teas are marketed as containing beneficial ingredients or make claims to provide a specific benefit or purpose.
The majority of new teas launched through the supermarket channel in the review period were in the bags format. Loose leaf products are mainly reserved for speciality tea shops such as T2 and Tea Total.
Other tea variants remain niche, particularly in supermarkets, and are limited to speciality tea shops. The main other tea variant sold in supermarkets is rooibos (red bush) tea which is popular as it is caffeine free yet still delivers a medium-bodied taste.
Dilmah New Zealand remained the leader in tea in 2018, followed closely by Jacobs Douwe Egberts. Dilmah New Zealand traditionally focused on black and green teas, as the company farms these products.
With the acquisition of BrewGroup in 2017, Jacobs Douwe Egberts acquired the flagship Bell tea brand, along with the smaller Ti Ora range. The company moved into black speciality tea blends under its Bell brand by offering Earl Grey and English Breakfast tea in 2018, whilst introducing three white tea variants.
Private label suppliers revamped their ranges in 2017 and 2018. Progressive Enterprises introduced its Essentials economy range while Foodstuffs NZ also launched its Value line.
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This industry report originates from Passport, our Hot Drinks market research database.