LONDON, UK – Sales in the UK tea out-of-home category are underperforming against the wider coffee shop market value, according to Tea Out-Of-Home 2017, the latest report in the Project Café UK Series by Allegra World Coffee Portal.
The UK coffee shop sector increased by 12% in turnover to reach £8.9 billion in 2016, with the low performing tea out-of-home category contributing £308 million to the total sales.
Although sales of tea in coffee shops continue to rise, the growth is predominantly driven by an increase in price and by the growth of the coffee shop sector as a whole, rather than increased consumer participation. The tea category currently accounts for 3.8% of the total coffee shop market turnover, declining in sales share from 4.1% in 2015.
While tea is an integral part of British culture and over 15 million cups are consumed every day in the UK, the majority is consumed at home or at work. Consumers drink on average 9 cups of tea per week at home, 3 at work and just 0.65 per week in coffee shops.
A recent consumer study conducted by Allegra World Coffee Portal, shows that Brits simply prefer tea the way they make it at home, with nearly a third of consumers stating that coffee shops do not make a cup of tea to their taste.
22% of the consumers surveyed also claimed that the tea available out-of-home presents poor value for money. This has increased by 6% since 2014, as better tea offers have not kept pace with rising prices.
Opportunity for growth in the tea out-of-home market lies in the speciality and iced tea categories, offering innovation and healthier beverage choices to the increasingly health & wellness conscious consumers. In the long term, tea innovation will be driven by leading operators who are prepared to re-define the consumer experiences of tea out-of-home.
Allegra World Coffee Portal anticipates the category to continue similar growth in 2017 and reach £341 turnover by year-end.
Further insights into the growth and innovation opportunities in the tea out-of-home category will be shared at The London Coffee Festival, returning to the capital for its 7th year from 6-9 April 2017.
Sources:
- 1,500 online surveys with UK consumers regarding tea consumption
- 25 telephone and face-to-face interviews with operators, suppliers and industry experts
