Tea in Spain

PROSPECTS

Increasing penetration, yet potential for growth remains

The retail volume and current value consumption of tea continued to increase at the end of the review period, favoured by ongoing economic recovery. However, a tea-drinking culture has only just started to emerge in Spain, with hot drinks still largely dominated by coffee.

Consumers are willing to pay more for tasty, healthy products

The health and wellness trend has emerged in Spain, shaping nutritional patterns. It is also influencing consumption within beverages, and strongly contributing to the growth of tea, such as herbal/medicinal teas, especially due to rising awareness of their good-for-you properties.

Players offer exotic teas to meet consumer demand

In the context of the recovering economy, the efforts of manufacturers in terms of product innovation were key for the positive performance of the category. Consumers are always on the lookout for new exotic flavours, and companies are therefore launching new variants every year to meet this demand.

COMPETITIVE LANDSCAPE

Jacobs Douwe Egberts retains its lead but continues to decline

Jacobs Douwe Egberts remained the leading branded player in tea in value terms in 2019, despite losing value share for another year. The company operates with the leading brand Hornimans, and also benefits from its nationwide presence in coffee.

Pompadour performs well due to innovation

Second-placed Pompadour Ibérica saw growth in its value sales and share in 2018 and 2019, enjoying a broad presence across tea due to its wide variety of products. Its share growth was mainly thanks to its innovation efforts and the development of specific products, with a strong commitment to new product development, focusing on more premium products.

A premium positioning boosts the share of Bolton Cile España

Bolton Cile España also saw good value performances in both 2018 and in 2019, due to the premium positioning of its Twining teas, which have higher average prices, a strong brand image and a wide distribution network. With most premium teas being unavailable in large chains, the company leverages its presence in major supermarkets such as Carrefour and El Corte Inglés with its leading black tea flavours Earl Grey, English Breakfast and Prince of Wales, which are available both in tea bags and in loose tea.

Files are delivered directly into your account within a few minutes of purchase.