Tea in Switzerland

PROSPECTS

Tea benefits from the health and wellness trend

In 2018, tea consumption in Switzerland reached an all-time high. Consumers are interested in healthy hot drinks, with this resulting in tea taking share from coffee as Swiss consumers are paying more attention to the potential health risks associated with coffee.

Premiumisation helps to revitalise tea

Premiumisation remained an important trend in tea in 2018, with consumers trading up to more premium tea products. Average unit prices across tea increased moderately, which is anticipated to continue over the forecast period.

Consumers are looking for convenience

Along with the time-constrained lifestyles of many Swiss people, consumers are looking for more convenient ways of preparing their teas. The tea industry is responding to this trend in various ways.

COMPETITIVE LANDSCAPE

Consolidated competitive landscape

The competitive landscape in tea remained consolidated in 2018. Whilst a handful of leading players accounted for the majority of the value sales, a few smaller companies managed to gain ground, especially in green tea and organic tea.

Private label tea under pressure

Private label tea continued to lose retail volume share throughout the review period, including 2018, as the competition intensified. As in other hot drinks categories, many Swiss consumers are no longer just looking for the most budget-friendly products, but are increasingly demanding premium-quality tea.

Opportunities for smaller manufacturers

It is likely that the leading players will continue to control the majority of sales in tea over the forecast period, as they focus on product innovation, supported by existing strong brands. However, as a number of subtrends continue to emerge, opportunities remain for manufacturers that are able to target consumers in areas such as premium quality, functionality and organic or ideally a combination of these.

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