Tea in Sweden

PROSPECTS

Leaders follow the strategies of small players

A handful of smaller and health-orientated brands recorded strong retail value growth over the review period, taking share from companies offering globally well-established brands. The health-orientated Swedish Kung Markatta and globally known Pukka and Yogi Tea brands targeted consumers seeking quality, additives which boost health and organic alternatives.

Unilever Sverige boosts sales of fruit/herbal tea

Fruit/herbal tea recorded the strongest retail volume growth in 2018, driven by the health and wellness trend, as well as product launches in 2017 and 2018. The largest entrant and most active player in terms of product launches was Unilever Sverige, aiming to improve its tea strategy.

Foodservice sales of tea to support retail sales towards the end of the forecast period

Eating out and visiting cafés, while working or meeting friends, are becoming increasingly popular activities in Sweden, boosting foodservice volume sales of tea. The trend is expected to remain strong over the forecast period, although increasing household mortgages, loans and financial issues could jeopardise the positive trend.

COMPETITIVE LANDSCAPE

Unilever Sverige remains the clear leader

Unilever Sverige, the Swedish subsidiary of Unilever Group, remained the clear leader in tea in 2018. Unilever Sverige markets its Lipton and PG Tips brands in Sweden, with Lipton the key brand, available in black tea, green tea, other tea and even fruit/herbal tea since 2017.

Pukka records the strongest growth in 2018

The Pukka brand achieved the strongest increase in its retail value share in 2018. The tea brand is marketed by Biofood-Biolivs in Sweden, which offers basic organic food products, mainly grains, flour, nuts, dried fruit, processed products and tea.

Unit prices set to increase again

Retail unit prices of tea began to take off again in 2018, after a slower increase in 2017. This was driven by new product launches with added value, such as organic, fortified, with healing effects and satisfying the demands of the health and wellness trend.

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