More consumers want premium tea, study reveals

Premium tea popular at home
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Over half of consumers opt for a premium tea when drinking it out of home, according to a new study.

 

The report by Allegra World Coffee Portal found that the out-of-home tea market is now valued at an estimated £300m and that 164 million cups of tea are drunk every day.

However, consumers drink on average 11 cups of tea per week at home, five at work and just 0.5 in coffee shops. 

Tea consumption in coffee shops has risen three percentage points in the last two years from 14% in 2012 to 17% in 2014, according to Allegra. And it said that 15% of consumers intended to increase tea consumption in the upcoming year, compared with 77% who expect to maintain their current tea consumption frequency.

The report said: “The market is split between premium brands (eg Twinings) and economy brands (eg Tetley). Economy brands are responding to declining black tea sales by introducing a wider variety of non-traditional teas. 

“Exposure to premium tea is changing the preferences of habitual economy tea-drinkers and high street coffee shops are focusing on premium brands.”

It added: “Premiumisation is an important trend in the UK market. Sixty-two per cent of consumers consider a premium brand such as Twinings or Teapigs to be the most important factor when ordering tea out of home. Traditional black tea sales are in decline, while premium teas such as green, fruit and herbal are becoming more popular. Fifty-three per cent of consumers indicated they would spend more on a premium tea.”

Consumers spend on average £1.68 on a cup of tea out of home. This compares to £2.31 for a latte or cappuccino.  

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