Market insight: Liquid assets

Market insight: Liquid assets

Tetley recently launched The Tea Report 2018, exploring the landscape of the out of home tea market for 2018 and beyond. Working in collaboration with CGA, data experts in the out of home food and drink market, the second installment of the Tea Report was created on the back of Tetley dedicated surveys.

In this comprehensive research, 2,500 consumers were questioned on everything from dining experience and the role of technology in the market, to the quality of tea out of home and the channels in which they consume them. Tetley explored the challenging perceptions around the quality of tea served out of home, identifying ways in which operators can attract custom with a standout offering, and dive deep into the key channels for the tea category in foodservice.

In addition, industry experts, including Steve Fox, purchasing director for bartlett mitchell, Martin McKee, head chef at The Hawthorns Aldridge care home, David Koller of Café des Arts, and Tom Jolly, beverage manager for Gleneagles Hotel, contributed to the research, offering their professional outlook on the out of home market and the tea category.

Kicking off with a review of the future for the foodservice industry following the European Union referendum, the report explores the knock-on effects this decision may have for the tea category, as well as the hot beverages market as a whole. On the average weekday in the UK, 31.4m cups of tea are consumed, and while 75% choose black tea, 18.1% of tea served out of home is non-black, with herbal teas growing by 9.6% year-on-year. Consequently, new tastes in tea, premiumisation and future trends are explored, as is the importance of tapping into the booming breakfast occasion.

The Tea Report 2018 also looks at the profit opportunities tea offers to four key channels – cafés, the workplace, the care sector and hotels. With 47% of us drinking tea every time we are in the workplace, care residents drinking on average two to three cups per day, café-goers no longer satisfied with a simple ‘builder’s brew’, and 52% of hotel guests stating ‘how tea is served’ as being extremely important, one thing’s for sure – wherever it’s being drunk, enjoying a cup of tea is a staple part of most people’s day.

Marshall Kingston, senior brand manager – out of home for Tetley, said: “The value of tea in the UK foodservice market increased by an impressive 13.6% between 2015 and 2017, with one in five consumers admitting to drinking more tea than they did a year ago. Additionally, as the number of out of home coffee occasions continued to decline in the past year, the out of home tea occasions have grown in the same time period. This presents a key opportunity for channel operators to shake up their tea offering and listen to the needs of their customers.”