The way consumers are engaging with beverages is changing. In the U.S. market, the macro trend of premiumization continues to drive growth, and the TEA market is no exception. From RTDs, through Foodservice and into home brewed tea, the category dynamics are shifting to products and ingredients that are trusted, innovative and sustainable.

Although the RTD category (up over $5.1 Billion) is relatively stable at circa 2% annual growth, the real growth is in the premium and super premium RTD tea space (making up 5% growth and 20% growth respectively) ^a. The food service space was predicted to grow 5.3% in 2017 (and worth $22 Billion in sales), and the arrival of a third wave culture (as seen in coffee) is being heralded ^b. Whilst tea in itself has seen a growing interest, and although black tea remains the most adored, niche and specialty products have seen great interest. Green tea has seen the highest growth (2.3% CAGR since 2011, with projected growth to 2.5% through to 2021) ^c. White tea, yerba mate, oolong and rooibos are projected to grow at 2.1% through to 2021, even though the growth base is small at this point. Teas which offer a functional benefit such as enhanced health, or wellbeing are highly sought after and are sure to drive a renewed appreciation for tea.

These categories are prioritizing teas with heritage, origin and special functional benefits. Consumers are placing more value on clean labels, and the full tea flavor and experience. This has driven a focus on innovative and responsible ways of tea processing and production. Finlays, with its deep-rooted history and expertise, since 1750 is uniquely positioned to support these teas. With its vertically integrated business, Finlays believes that its “bush to cup” custodianship of tea assures predictable quality and flavor. With its brand-new research facility in Rhode Island Finlays is placed to respond to the need for innovative products. Through collaboration with our customers, together we will lead the development of better beverages in the market. We believe our world-class research center will place us at the forefront of future beverage advancement. The future of tea is Finlays, and we invite you to join us on this journey.

Attending IFT? Come experience Finlays’ new advancement in the future of tea at a premiere breakfast event on Monday July 16^th, 8-9am, Room N229—McCormick Place Convention Center North Hall. You will also have the opportunity to take a journey to the origin of tea through a virtual tea field experience, allowing you to see firsthand Finlays own tea estates.

To ensure a place at this limited seating event, please contact Stacy.demars@finlays.net to RSVP. To learn more about how Finlays is pioneering better tea ingredients don’t forget to stop by our booth S4203.

Sources:

• Nielsen Scandata April 2018
• Globaldata
• Mintel