Tea in the United Kingdom

PROSPECTS

Coffee shop culture can affect tea over the forecast period

Although British consumers are buying less tea in retail volume terms, they are paying a higher average unit price to purchase premium tea. This new consumption habit reflects the growing premiumisation trend in the category, as consumers increasingly look for high-quality teas with exotic flavours, natural ingredients and a strong brand identity.

Number of dairy-free variants is likely to increase

In 2018, several brands launched “tea latte” variants in their portfolios, following the “Superfood Lattes” trend due to out-of-home consumption to reach younger, more health- conscious and Instagram-friendly consumers. Furthermore, an increasing number of plant-based options is expected over the forecast period due to the growing focus on dairy-free alternatives, as consumers associate milk-free with natural and healthier options.

Specific functional benefits

Due to busier lifestyles, Britons are looking for tea variants to drink during the day, which benefit from functional proprieties of the ingredients according to the consumption occasion. Consequently, functional tea, green tea and other tea are likely to record positive growth over the forecast period.

COMPETITIVE LANDSCAPE

Betty & Taylors of Harrogate Ltd continues its growth

Betty & Taylors of Harrogate Ltd, with its Yorkshire brand, continued to gain value share in 2018. This good performance was due to the capacity of the company to innovate its portfolio and to its intensive marketing campaign.

Strong competition for R Twining & Co Ltd

Although Twinings remained the leading brand of tea in the UK in 2018, it experienced strong competition from Unilever. With the decline of black tea sales, Unilever is exploiting the benefits of the health and wellness trend, launching new dairy-free tea variants and investing in its Pukka brand.

Vivid Vitality Ltd introduces new latte range

While Vivid Vitality Ltd initially only offered matcha flavours of tea, it has expanded its portfolio to include other exotic flavours such as turmeric, ginger, cacao, beetroot and blueberry in 2018. Each pack contains seven single-serve sachets of organic, pure powder, micro-ground for perfect solubility with water or milk, particularly alternative, non-dairy milks.

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