Tea in Spain

PROSPECTS

Increasing penetration yet room remains for future growth

Although consumption of tea grew at the end of the review period favoured by the ongoing economic recovery, a tea-drinking culture had only just started to emerge in Spain, where hot drinks is largely dominated by coffee. In the context of increasing consumer awareness but also product variety, there is plenty room for growth, which is also reflected in a higher number of companies investing in tea and launching new products.

Health and wellness to appeal to young consumers

The health and wellness trend has emerged in Spain, shaping nutritional patterns. It is expected to influence consumption in beverages, strongly contributing to growth of tea, especially due to the rising awareness of its good-for-you properties.

Innovation driving value growth

In the context of a recovering economy, the effort of manufacturers in product innovation is key for the positive performance of the category. Tea is likely to continue evolving into a more specialised category, in which key manufacturers are expected to invest in the development of specific products to appeal to increasingly sophisticated consumers during the forecast period.

COMPETITIVE LANDSCAPE

Jacobs Douwe Egberts retains leadership of tea

Jacobs Douwe Egberts retained its leadership of tea in 2018, despite losing value share. The company operates with the leading brand Hornimans and also benefits from its nationwide presence in coffee.

Pompadour Ibérica remains strong due to high innovation

Pompadour Ibérica is one of the fastest growing companies in Spanish tea. Its innovation efforts and development of specific products drives the performance of Pompadour and its solid position is explained by its wide portfolio and continuous product launches, which appeal to existing but also new consumers.

Tea is becoming increasingly fragmented

The good performances of Jacobs Douwe Egberts and Pompadour Ibérica can be attributed to the popularity of their brands amongst Spanish consumers, in addition to their wide distribution networks and continuous efforts in innovation and new product launches. The gap between these two leading players and the remaining companies in addition to private label is wide, although smaller domestic brands and international manufacturers such as Yogi Tea (Biospirit SL) and Twinings (Bolton Cile España SA) retain an important presence in Spanish tea.

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