Growth continues with the blend of new products and health benefits
London, United Kingdom (PRWEB) April 23, 2013
Tea is a distinctly British beverage, and more than 60 billion cups of tea are consumed per year in the United Kingdom alone. Britons are the world's second-largest tea drinkers per capita, with over 1,200 varieties of tea sold around the country. According to IBISWorld industry analyst Steven Connell, “in the face of the economic malaise and declining consumer spending, the Tea Processing industry has remained resilient, largely due to its staple and inexpensive nature.” The majority of tea consumed in the United Kingdom is of the black tea variety, made primarily from a blend of East African and South Asian tea leaves. Given that very little tea is actually grown in the United Kingdom, the industry is subject to the volatilities of global sourcing, such as weather, crop disease, domestic political situations and other external factors.
The domestic industry is dominated by multinational giants such as Tata Global Beverages and Unilever, which are highly vertically integrated and boast a strong portfolio of brands such as Tetley, PG Tips and Lipton. They have also stimulated demand in a mature market through new product introductions that focused on the consumer trends related to health, economy and convenience. IBISWorld estimates that in the five years through 2013-14, industry revenue will increase at a compound annual rate of 3.2% to total £934.3 million. In 2013-14, revenue is expected to increase by 2.2%.
Over the five years through 2018-19, the tea market is expected to remain robust with steady growth in industry revenue expected. Global supply shortages are expected to increase input costs in the short term, but are forecast to have little dampening effect on consumer demand. The economies resulting from the enormous buying power of the industry's major players is expected to keep prices at a manageable level. Connell adds, “the continued emphasis on the health benefits of tea and the introduction of new products, such as fruit and herbal infusions, will mean consumer demand will remain buoyant.” The major tea brands have embraced the concepts of ethical sourcing and sustainability in their products, associating themselves with initiatives such as the Rainforest Alliance.
The Tea Processing industry is estimated to have a high level of market share concentration, with the top four players accounting for 74.3% of the market. Tea is the most consumed beverage in the United Kingdom, and the players compete fiercely for market share through aggressive promotions, new product introductions and various cross-promotional activities. Major companies included Tata Global Beverages, Unilever, Associated British Foods, Bettys & Taylors of Harrogate and Typhoo Tea.
For more information on the Tea Processing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes the processing and blending of tea and the manufacture of extracts and preparations based on tea. It also includes the packing of tea in teabags and the production of herb-infused teas.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call 0-203-008-6568.