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UK Tea and Other Hot Drinks 2014 | ResearchMoz
Higher-caffeine teas could help brands increase usage by positioning the drink as an energy-boosting alternative to coffee while in hot chocolate, new formats would provide a platform for trading drinkers up.
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Table of Content
Introduction
Definition
Excluded
Abbreviations
Executive Summary
The market
The future
Figure 1: UK retail value sales and forecast for the tea*, hot chocolate and hot malted drinks market, 2009-19
Market factors
Tea consumption is in long-term decline
Climate change could negatively impact tea yields
Slower growth of the 15-34 age group could limit tea’s growth
Companies, brands and innovation
Unilever holds over a quarter of the UK retail tea market by value
Figure 2: Estimated manufacturer shares in the UK retail tea market, by value, 2013/14*
Own-label’s share of NPD reaches a four-year high
Adspend falls for a second year
The consumer
Four in five Brits drink tea
Figure 3: Consumption of tea, hot chocolate and hot malted drinks, April/May 2014
A well-known brand is the most important factor in tea drinkers’ choice
Figure 4: Factors considered when buying tea, April/May 2014
Tea is seen as a good option to curb hunger between meals
Figure 5: Attitudes towards tea, April/May 2014
Smaller teabags interest a quarter of users
Figure 6: Attitudes towards teabags, April/May 2014
New flavours of malted drinks interest a third of users
Figure 7: Attitudes towards hot chocolate and malted drinks, April/May 2014
What we think
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Issues and Insights
Higher-caffeine tea has scope to compete with coffee
The facts
The implications
Black tea with added health benefits appeals to half of tea drinkers
The facts
The implications
New hot chocolate formats should add value to the category
The facts
The implications
Trend Application
Extend My Brand
Help Me Help Myself
Minimize Me
Market Drivers
Key points
Tea consumption is in long-term decline
Figure 8: UK household purchases of coffee and tea, 1974-2012
Climate change threatens long-term production in tea-producing regions
Tea brands should do more to position tea as an alternative to alcohol
Figure 9: Trends in UK per capita consumption of 100% alcohol, 2000-13
Slower growth of the 15-34 age group could affect growth of tea
Figure 10: Trends in the age structure of the UK population, 2009-14 and 2014-19
Warm weather in 2013 puts pressure on tea sales
Figure 11: Hours of sunshine in the UK, by month, 2008-14
Strengths and Weaknesses
Strengths
Weaknesses
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