The rise in health-food culture has been a boon for tea vendors, with a new report showing a significant increase in out-of-home tea sales. Allegra World Coffee Portal has released the findings on Project Tea Out-of-Home UK, revealing that tea sales increased by as much as £30 million between 2016 and 2017, with a further 10 percent increase expected in 2018. Allegra expects this growth to continue, eventually reaching a total of £439 million by 2022. The report also noted growth in herbal, fruit and green tea, with 58 percent of operators adding such options to their tea menus since 2016.
“Specialty teas that tap into current premiumisation and wellness trends are providing a significant boost to out-of-home tea sales, with matcha, kombucha and other functional teas at the forefront,” said Bradley Journeaux, research manager at Allegra World Coffee Portal. “Among the major players, we’re starting to see greater variety in range and delivery, with more emphasis on presentation of delivery, and a resolved determination to provide the best quality experience. Those operators moving beyond the basic tea offer and providing a better value proposition are gaining traction with consumers.”
Oddly, the report found that tea suffers from a perception that it isn’t value for money – 29 percent of respondents said that it was worth purchasing, while a further 41 percent said that it was worth it only if they were offered a premium brand of tea. Loose leaf tea was also shown to increase profit margins and customers satisfaction.
