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Food Business Review | Wednesday, January 19, 2022
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The tea market is experiencing a renaissance, accounting for 46 percent of hot beverage sales. Evolving consumer tastes drive a surge in herbal and premium blends. Tea's diverse roles peak during mealtimes.
FREMONT, CA: Tea, a favorite among many nations’ beverage choices, has not merely lasted but evolved. The research highlights the growing popularity of tea, constituting 46 percent of all hot beverage sales. Although English breakfast and black teas maintain dominance, accounting for 81 percent of sales, there is a noticeable uptick in the popularity of herbal and fruit teas, along with an increased demand for premium blends. Approximately 42 percent of operators report a trend toward consumers embracing more adventurous tea tastes, signaling a dynamic shift in the traditional tea market.
During important mealtime moments, tea becomes a popular choice; morning and high tea are the most popular times. Cakes and biscuits are the most popular products sold with tea, according to a large 53.2 percent of operators. These are closely followed by breakfast dishes and high tea.
Spending on out-of-home tea events is still strong despite customers' concern about value for money, as operators realize tea has a larger profit margin than coffee, particularly in premium offers. Nearly 30 percent of operators have made recent or planned adjustments to their tea offerings to appeal to new demographics and cut operational expenses, according to the data. But in the out-of-home industry, tea promotion techniques seem underutilized; almost 80 percent don't have distinct tactics, which means there is unrealized marketing and visibility potential. Knowledgeable promotion of tea characteristics and potential well-being benefits proved effective in driving sales for those who actively promoted their tea offerings.
Reputation is built on a dedication to providing outstanding environments for fine cuisine, drink, and service. The broad options cater to a variety of dining experiences, from business settings and university campuses to street food-style vending. With plans for coffee shops changing into beverage bars and bevistas with knowledge of teas, smells, preparation techniques, and the cultural significance of tea events, there has been a noticeable increase in the focus on tea.
With a varied tea selection that includes luxury and staple options, it is clear that customers' tastes are shifting towards curiosity and exploration. This enhances the tea experience, conforms to customer preferences, and fosters business expansion. The emphasis on arming bevistas with information about tea echoes the culture of tea, where customers consider themselves experts but are receptive to learning about the wider tea industry. The tea renaissance reveals a dynamic landscape that caters to a wide range of tastes, ensuring its enduring appeal in the ever-evolving hot beverage market. As the tea market changes, with evolving consumer preferences and a surge in herbal and premium blends, the industry's future looks promising.