Tea in Sweden

PROSPECTS

Healthier varieties are the way forward, though RTD tea is a threat

Due to their healthy image, fruit/herbal tea and green tea are gaining in popularity in Sweden and preventing the overall category, led by black tea, from going into decline. The health-orientated Swedish Kung Markatta and globally known Pukka and Yogi Tea brands are targeting consumers seeking quality additives that boost health and organic alternatives.

CSR credentials can stir consumers

Investing in social and environmental responsibility is increasingly important in Sweden. The Pukka brand, for example, invests in sustainability for its agricultural production, utilising fair trade and organic-certified sites.

Foodservice popularity could have positive effect on retail

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 the increasing cost of household mortgages, loans and other financial products could jeopardise it.

COMPETITIVE LANDSCAPE

Unilever waits for the smaller categories to warm up

Unilever Sverige, the Swedish subsidiary of Unilever Group, remained the clear leader in tea in 2019. 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 the second half of the review period.

Lifestyle brands Pukka and Yogi Tea are filtering into the mainstream

The fastest-growing tea brands in value share terms were Pukka and Yogi Tea in 2019. These are lifestyle brands that are playing with concepts, flavours and packaging.

Demand for higher-value tea pushes up unit prices

The average retail unit price of tea accelerated for the second successive year in 2019. This was driven by new product launches with added value, such as organic or fortified teas with healing effects, satisfying the demands of the health and wellness trend.

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