Competition heats up between coffee and tea
Consumers look for beverages to meet various need states
The competitive baseball season is just underway, but for the beverage market, competition for share of stomach is a 365-day pursuit. Lately my husband and I have been seeping hot tea in the morning, enjoying chai; golden monkey oolong; as well as such flavored fruit herbal teas as Caribbean Crush, which blends pineapple, apple, papaya, cranberry and hibiscus; and an organic Sweet Almond Green tea with almonds, marigold flowers and cornflower petals.
It seems like we are not alone in our love of tea. In fact, one in five consumers are drinking more tea than they did a year ago, according to a Tea Report from Tetley and CGA, a market research consultancy firm that specializes in the foodservice drinks market.
The study also notes that competition between tea and coffee is fierce, with coffee rising to 3.8 billion out-of-home consumption occasions in the United Kingdom. On the other hand, 31.4 million cups of tea are consumed outside of the home in the U.K. compared with 11.6 million cups in 2015.
In foodservice, coffee dominates for energy and alertness early in the day, but tea is preferred with meals (62 percent of tea occasion consumption also includes food), the report states.
Yet, 52 percent of those who identify themselves as tea drinkers also drink coffee and 43 percent of self-identified coffee drinkers also drink tea. Within the workplace, 44 percent of tea drinkers choose the beverage to “break up the day.”
“Consumers are more concerned about ingredients and the products that provide nutritional, physical or emotional benefits to meet their requirements for self-care,” the report states. “Consumers increasingly look for beverages to provide function such as energy and relaxation. Health is the fastest-growing consumer need, up 9 percent since 2014.”