Sales of traditional black teabags are losing out to fruit and herbal teas, according to new UK-wide research from Mintel.
The market insights provider found that flailing performance in the sale of “ordinary teabags” was contrasted by the continued growth of niche segments such as herbal, speciality and green teas. These categories, Mintel claimed, “have become hotbeds of innovation activity”.
The company added that the key to increasing volume sales for tea operators was encouraging consumers to use less the beverage in less traditional ways and in more unusual occasions – such as for iced teas, smoothies or in baking.
Volume sales within the overall tea market dropped by 15% between 2010 and 2014, with an annual decline of 7% forecast for this year. And, despite a rise in the average selling price of products, the value of the market has also fallen by 6% to £654m.
Mintel analyst Emma Clifford said: “Standard black tea is struggling to maintain consumers’ interest amid growing competition from other drinks – held back by a rather uninspiring image.
“Reflecting a growing ‘foodie’ culture in the UK, people are branching away from standard teabags and towards these more interesting alternatives.”
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