Tea in the United Kingdom

2021 DEVELOPMENTS

Fruit/herbal tea benefits from the enhanced health and wellness trend

Fruit/herbal tea performed particularly well during the COVID-19 pandemic in 2020 and continued to help drive overall sales growth in tea in 2021. The category was already growing due to the health and wellness trend even before the outbreak of the health crisis, but its growth was accelerated by an increased focus on health, due both to the direct threat of disease and awareness of potential health problems linked to sedentary lifestyles and the increasing consumption of caffeinated drinks.

Consumers’ desire for exotic teas negatively affects sales of black tea

Consumers in the UK have become increasingly curious about newer types of teas with exotic, botanical or unusual ingredients that can have a positive effect on health. Recent examples include new types of tea with added ginger or turmeric, as well as rooibos and other types of tea.

Yorkshire Tea leads tea

Thanks to its strong performance in black tea bags, Yorkshire Tea maintained its lead in tea in value terms in 2021. In the last year, the brand strongly invested in premium black tea and launched several new product developments, such as its Toast & Jam Brew, which was added to its portfolio in September 2020.

PROSPECTS AND OPPORTUNITIES

Foodservice to see strong recovery despite notable challenges

Foodservice is expected to see tea volumes rise dynamically over the forecast period as it recovers from the dramatic negative impact of the COVID-19 crisis, which led to a sharp reduction in consumption occasions in away-from-home channels. However, the negative impact of the pandemic on foodservice sales of tea is expected to remain in evidence until at least the middle of the forecast period.

Positive outlook for premium and functional teas

The perception of tea as a healthy beverage is in general a driving force for the category, but functional ingredients are also gaining popularity within tea. In fact, while remaining interested in products with general health claims, consumers have increased their search for options with more specific benefits, benefiting premium brands, which are expected to continue to perform well in retail channels over the forecast period.

Growing interest in sustainability will push organic tea into the mainstream

Sustainability is a hot topic in food and beverage markets in the UK. As a result of the increasing demand for sustainable tea, the share of teas with a sustainability certification is growing and key brands are increasingly committing to sustainability.