Tea in Switzerland

PROSPECTS

Health-positioned tea records further growth in 2019

Tea recorded further growth in 2019, benefiting from the health and wellness trend as more Swiss consumers want to have a healthy diet and a better lifestyle. Teas which have a relaxing or stimulating effect are popular, particularly as lifestyles are increasingly hectic.

Green tea and fruit/herbal tea benefit from healthy image

Green tea remains the best-performing category as it is positively influenced by experts and health institutions promoting its health credentials, including weight loss, and a number of studies have shown that green tea may prevent the growth of cancer cells and lower cholesterol levels. It is also a source of antioxidants.

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

Migros’ lead challenged by increasing polarisation and competition

Migros Genossenschaftsbund remains the undisputed leader in off-trade value sales of tea in 2019; however, due to the increasing polarisation between premium and lower-priced tea products, the retailer’s value share fell slightly over the review period. Migros also faces competition from sector leaders such as Unilever Schweiz, which are expected to remain active and innovative in terms of new product launches.

Fair trade on the rise, whilst private label sees further share loss

Ethical consumption will remain a key area of focus for tea as Swiss consumers increasingly realise that their consumption and spending have ethical, social and environmental consequences. The tea market is deeply involved in social and environmental certification.

Opportunities for smaller manufacturers via innovation in niche areas

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 new trends 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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